A 1,000 + crores market is waiting to
be tapped by innovative service providers.
The size of this market is bound to increase in the coming months.
Digital collection tools for Traffic
Violation Fines are being introduced by many Sates across India.
The traditional collection mechanism
is through physical cash at the time on issuance of traffic fine challan.
As the physical cash collection
process was cumbersome with lots of paperwork, extra manpower and audit issues,
Traffic Police teams started to look around for alternate collection
mechanisms.
In the erstwhile Andhra Pradesh,
citizens could pay the traffic fine challan through the MeeSeva
counters.
Another new initiative is equipping
Traffic Police teams with POS terminals for instant payment through debit or
credit card. This feature eliminates cash
handling process. However, the main drawback is the convenience fees in addition to
the traffic fine. This encourages cash transactions over digital transactions. Connectivity
issues also lead to lower conversions.
Traffic violation fines are under the jurisdiction
of the respective States. However, all the states broadly follow the same rules.
A couple of States have set their
sights on NEFT. The major advantages of
NEFT for collection of traffic fines are:
a) Offline transaction.
b) 150+ banks on NEFT platform.
c) Easy to use.
d) Transaction executed directly by the
respective citizen.
e) The traffic fine can be remitted by the
person fined or any other person on his/her behalf.
f) NIL Transaction charges (Majority banks in
India offer free NEFT facility to their customers or with minimal service
charges)
g) Automated recon possible
h) Differential pricing schemes possible i.e
incentives for early payment, additional fines for delayed payments.
i) Single Step or Dual Step options available.
j) No need to expose the credit/debit cards details
Tips to encourage
traffic fines collections through NEFT:-
1) Graded traffic fines, 1st
penalty INR xxx, 2nd repeat INRxxx+50, 3rd repeat
INRxxx+100
2) Incentives for early payment i.e INR 10
discount if paid within 24 hours, INR5 discount if paid within 72 hours. The incentive
credited back through NEFT or donated to NGOs
3) Sending banks not to charge service charges
for remittances to selected IFSCs.
4) Reward points for early payment of the
traffic fine. These reward points to be transferable.
Tips to ensure
100% matching of transactions through NEFT:-
Technology requirement:
a) 2 or more Service Providers offering this
service- end-to-end
b) Setting up Messaging standards.
c) Standardisation of Traffic Challans.
d) Each generated challan to have a unique
number. This unique number will be
e) Standardisation of IT programs being used
by the respective State Traffic police
f) Beneficiary registration for this set of
IFS Codes not to be mandatory in online banking portals.
g) Transaction upper cap to prevent wrong
transactions.
h) Reversal within 12 hours, if NEFT transactions
with invalid/incomplete details are executed.
Third Party service
provider:- Service Providers can be selected via the Tender method or Swiss
challenge method.
Billing method:
1) Per transaction
2) Float model – Service Provider remits the
collections after keeping the monies in the bank accounts, for 2 days, 3 days
or more depending on individual agreements with the respective state
governments.
Expectations from Service
Providers:-
a) Integrated call centre
b) End to End recon
c) Complaint management
d) 24*7 uptime
Benefits:-
1) Expand the scope of NEFT
2) Enhance Safe Banking opportunities
3) Reduced transaction cost
4) Encourage transactions through banking
channels
5) Eliminate the need to carry bulky POS
terminals
6) Enhance overall fine collection
Additional Reading
material:
Penalties under Motor Vehicle Act
The Bengaluru police have a new problem
on their hands.
Kerala Police tie up with BillDesk for
online traffic
violation fine payment
Mumbai police allows payment of Traffic
violation through NEFT
Rs one lakh per hour: That's what
police net as traffic
fine in Bengaluru
Click
it, check it, pay it... the fine guide
How do you pay your
traffic fine?
No comments:
Post a Comment