Semi- Inspiration for this Post – Syndicate
Bank Pigmy Deposit Scheme
Syndicate Bank adopted the concept
of Pigmy bank to assist its customers to grow their pot of savings. Over the
decade's Syndicate Bank had stupendous success in its PigmyBank Scheme and was
adopted by numerous financial institutions across the world.
It was in 1928, that Syndicate Bank
introduced the innovative savings scheme 'Pigmy Deposits', to mobilize small
savings. This scheme led Syndicate Bank to be known as the `Small Man's Big
Bank'.
In simple terms, under the ‘Pigmy
Deposits’ Recurring Deposit scheme, Pigmy agents visit the doorsteps of the
depositors to collect the daily deposit.
The deposit could be as little as
INR5/-.
Quote
As
another Mint columnist wrote in a fabulous column titled Before Thaler there
was Pai, “The testimonies of some of the pigmy depositors shows this
emphatically. One woman fainted upon hearing the amount of saving, another
asked Pai not to inform her husband about the savings and yet another built a
house using the savings, calling it Pigmy House."
Unquote
The same concept can be adopted to
lessen the pain of payment of Utility Bills, Loan EMIs or any biller on the
BBPS platform.
The Process flow:
A)
Subscriber
opts for the BBPS UPIAutoPay module in his/her APP
B)
Subscriber
chooses the BBPS Biller, inputs his/her Biller identification number, inputs
the monthly saving amount, daily saving amount, and VPA
C)
Subscriber
inputs the payment date i.e Bill Due Date LESS 2 days or 3 days
D)
The
UPIAutoPay process kicks in.
E)
The
collection process i.e Debit Subscribers Bank’s Account – Credit Subscribers
Virtual Collection Account, via UPIAutoPay, takes places on the scheduled days
i.e Daily/Bi-Weekly/Weekly etc.
F)
Once
the payment is made to the BBPS Biller, the payment receipt be shared to the subscriber.
Mandatory Requirements:
01) BBPS Biller to accept partial
payments.
02) Dedicated Helpdesk by the BBPS
Biller to resolve any issues
03) Narration – Subscribers Bank Account
for the UPIAutoPay transaction ___ BBPS Biller Name / Identification Number / Virtual
Account Provider Name
Quick FAQs
Q) Who can offer this facility?
Ans: Any RBI recognized PPI Issuer
Q) What should be service charges
for this facility?
Ans) Reasonable, say INR 50/- to set
up the one Virtual Collection Account. INR10/- maintenance fee + MDR per virtual
collection account, per month. Basically, it will depend on the business plan of
the offering institution. Reward points can be the sweetener.
Q) Should the subscriber be allowed
to break a respective virtual collection account.
Ans) Ideally no, to minimize such
thoughts, penalty charges can be levied to break the virtual collection account
There will be teething issues, however
over a period of time, as the participants mature, this will benefit the whole
ecosystem.
Additional
Reading Material
01) Syndicate Bank relaunches Pigmy
collection scheme @ https://www.oneindia.com/2007/03/01/syndicate-bank-relaunches-pigmy-collection-scheme-1174137440.html
02) UPI 2.0: The digital pigmy @ https://www.livemint.com/Opinion/YtRDoDK913EfV25iIDvTWI/UPI-20-The-digital-pigmy.html
03) Should UPI (Unified Payments
Interface) take lessons from Syndicate Bank’s pigmy deposit scheme? @ https://mostlyeconomics.wordpress.com/2018/01/03/should-upi-unified-payments-interface-take-lessons-from-syndicate-banks-pigmy-deposit-scheme/
04)
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