Karnataka Government – Please onboard BBPS for Loan Recoveries

 

Reference Article for this Blog @ https://www.newindianexpress.com/states/karnataka/2020/aug/22/poor-can-pay-home-loans-via-pigmy-collectors-2186886.html

Synopsis: Rajiv Gandhi Housing Corporation Limited is the nodal agency for enabling affordable flats in the government constructed apartments to the EWS (economically weaker sections) in Karnataka.

Under some schemes, the house owners have to repay the Loans granted by Rajiv Gandhi Housing Corporation Limited.

Karnataka Housing Minister V Somanna desires that there should be a frictionless way of loaner payment by the housing loan borrowers.

One option is collection of loan amounts on a daily basis by Pigmy Collectors ‘ .

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Rajiv Gandhi Housing Corporation Limited was created in the year 2000 as a special purpose vehicle “To provide housing for socially and economically weaker sections of the society through effective implementation of Central and State housing schemes”.

 The Pigmy Collection process is a huge success in Karnataka. The Pigmy Collection process was pioneered by Syndicate Bank. The same was replicated by numerous financial institutions across the country.

In the present digitisation era, BBPS is beneficial over Pigmy Collection process. BBPS is a product of NPCI and is 100% Indian.

The transactions on the BBPS platform and is fast becoming the de-facto mode for a variety of Billers.  

A number of Banks are also familiar with the BBPS System Architecture and the integration with Rajiv Gandhi Housing Corporation Limited can be done seamlessly.

In fact, Karnataka can take the lead in driving loan recoveries via BBPS. The model if goes LIVE, can be replicated by other State Governments too.

To encourage Loan Borrowers to repay via BBPS without any breaks, a Reward Program can be designed.

This reward program can be a great motivator for the borrowers to pay regularly and minimise defaults.

Motivators: Reward Program for high performers

01) INR51/- cashback for the first loan repayment of the Day. The day starts at 12:01am

02) INR52/- cashback for the last loan repayment of the Day. The day ends at 11:59pm

03) INR53/- cashback to the highest loan re-payer of the Day. EG: One person may pay INR100/-, another personINR300/- another person INR500/- on the same day. So, cashback of INR53/- can be given to the person who has paid INR500/-.

04) INR21/- cashback to persons who have continuously paid for Seven Days. The payment can be little as INR25/- on a single day.

05) INR101/- cashback to persons who have continuously paid for Fifteen Days. The payment can be little as INR25/- on a single day.

06) The Cashback awards to be announced every working day by 11.00am. This will build up the excitement.

07) Brief details of the daily award winners can be highlighted in the social media pages of the respective departments. This will build up the excitement to repay every day, whatever small amount it may be.

08) The cashback amounts can be reset as per public demand.   

 

Loan Collections via BBPS is very simple and can be done by the Loan Borrower/immediate family without much effort.

A)     Rajiv Gandhi Housing Corporation Limited onboards BBPS as a biller.

B)     RGRHCL Loan Recovery Module is linked to BBPS. The module should be capable of real-time data capture.

C)     Online Repayment – Net Banking/Mobile Banking/eWallets/Apps like PhonePe, Paytm, Google Pay, NPCI-BHIM etc.  The Loan Borrowers log into any BBPS App and initiate the loan repayment.

D)    Offline Repayment – i.e Cash. The Loan Borrowers walk into any BBPS Physical Counter and repay the loan amount via Cash Deposit.  

 

 

Quote:

Poor can pay home loans via pigmy collectors

The state government, which claims it to be the first such initiative in the country, is expected to launch it by the first week of September.

 

The Department of Housing is soon introducing a novel way for the poor, who have bought affordable flats in the government constructed apartments, to pay home loans easily. Instead of paying equated monthly instalments (EMIs), they can opt to pay small amounts every day through pigmy collectors.

 

The state government, which claims it to be the first such initiative in the country, is expected to launch it by the first week of September. Over one lakh flats are under construction now, of which 50,000 are in BBMP limits. Under the housing scheme for economically weaker sections, a one-BHK house would cost Rs 10.56 lakh, of which the state and central governments give a subsidy of Rs 2.71 lakh for general and Rs 3.50 lakh for SC/ST beneficiaries.

 

The government has selected close to 86,000 beneficiaries. Two BHK costs Rs 15 lakh and will be allotted through auction. Payment options for 2BHK will be initiated later. Rajiv Gandhi Housing Corporation Ltd chairman Ram Prasath Manohar said the novel initiative is the brainchild of Housing Minister V Somanna. Most of the beneficiaries are daily wage workers, who may find it difficult to pay EMIs.

 

“That’s why we are introducing the pigmy system, where one can pay every day Rs 50-100 to the authorised pigmy collector. We will draw pigmy collectors from banks, and each collector will be given 100 beneficiaries and a hand-held device. They will go to the doorsteps of beneficiaries, collect the amount and enter the amount on the machine on the spot. Immediately, an SMS alert will be sent to the beneficiary,’’ he said. The housing project is expected to be completed by 2022.

Unquote

Samsung Pay – Go Back in Time. Who will introduce it in India?

Samsung Pay in association with Curve announced the launch of Samsung Pay Card for UK customers on August 18^th, 2020.

The tagline of Samsung Pay Card is “Introducing Samsung Pay Card, powered by Curve. Stored in your Samsung Pay wallet, it’s a digital card that simplifies your spending’.

            Samsung Pay Card in UK, is a digital-first card powered by London-based Curve, which consolidates existing credit and debit cards into one — i.e Samsung Pay Card, a new Mastercard debit card from the mobile handset giant.

            The main USP of this joint launch is the consolidation of customer’s existing credit and debit cards into one card – i.e Samsung Pay Card.

            The consolidation is available for both MasterCard Visa Cards. AMEX and few other Loyalty Cards are already on Samsung Pay. Thus, customers can combine majority of their credit cards and debit cards into the Samsung Pay Card.

            There are numerous benefits available for the Samsung Pay Card users.

            One major benefit will be Curve’s proprietary tool, “Go Back in Time”.

            Curve’s “Go Back in Time” Tag Line is - Paid with the wrong Card? -

            The Curve User, can simply rewind. Curve’s unique Go Back in Time feature lets the card holder switch payments from one card to another, up to 90 days after the payment was made!

“Go Back in Time”, allows the Curve user to move transactions made on using your Curve card from one payment card in your Curve app to another. It's free, and can be done entirely in the app!

            The 90 days window was recently introduced after the Covid19 blowout, from the earlier 14 days window.

            Of course, there are Terms and Conditions for the usage of Curve’s “Go Back in Time”. The users have to be aware of a) Curve Charges b) Card issuers charges c) Only available once for each transaction.

            The “Go Back in Time”, feature will be really useful for BBPS Transactions.

01) Bank account holders can set up Auto Pay for the respective bills.

02) On ‘Auto Pay’, transactions account holders can choose to shift the transaction to another credit card or debit card, depending on the benefits associated with the shift.

03) Account Holders need not set-up Auto Pay to multiple cards.

04) Account Holders can set up for Auto Pay for 1 default card, and then move the transactions around.

05) This way they need not worry to maintain adequate balances in multiple bank accounts.

So, who will introduce “Go Back in Time”, feature in India.

            References:

01) https://support.imaginecurve.com/hc/en-gb/articles/115003750829-What-is-Go-Back-in-Time-

02) https://news.samsung.com/uk/samsung-gives-millions-of-customers-more-control-over-their-money-with-the-all-new-samsung-pay-card-powered-by-curve

03) Curve extends ‘time travel’ to 3 months, letting users make pre-coronavirus card decisions

 

How can Odisha’s 200 + Bijulee Didis on board BBPS?

 

How Odisha’s 200 bijulee didis are ensuring uninterrupted electricity to rural areas

Bijulee or Bijli Didis are assisting CESU to collect electricity bills from the villagers. The villagers in the command area of Bijulee Didis were always willing to pay the electricity bills.

The challenge the villagers faced was the non-availability of electricity bills payment avenues. It was a bit of a challenge to pay the electricity bills. They were unwilling to labelled as defaulters.

The villagers also wanted a superior customer service from the electric companies.

To boost the confidence of the villagers, in August 2019 Smart Power India (SPI), a subsidiary of the Rockefeller Foundation, working in the area of rural electrification, and Central Electricity Supply Utility of Odisha (CESU) joined hands to work on a model to improve electricity access and reliability in rural areas in Odisha.

SPI has been actively working towards developing scalable sustainable models that can improve rural electrification in India.

‘Model Distribution Zone’ (MDZ) program rolled out in August 2019 as partnership between SPI and CESU with an aim to work on a model to improve electricity access and reliability in rural areas in Odisha.

Both entities are working together to develop and implement Model Distribution Zone in select area to demonstrate improvements in electricity service by enhancing reliability and customer services.

Under the program, Women Self Help Groups (WSHGs) are engaged as micro-franchisees by CESU to perform metering, billing and collection activities.

To ensure the speedy resolution of customer complaints, customer care capacity has also been enhanced. These measures will give relief to 550,000+ rural lives in 630 villages that come under MDZ program.

 

Ensuring timely generation and payment of bills, CESU is providing billing information through SMSs / e-mail and on demand of the consumers through the toll free number of call centre. 

Consumers can pay their electricity dues online through various digital mode / mobile App like Paytm and Airtel / Debit Card / Credit Card etc.

Consumers can make payment through cheques maintaining the social distance measure by availing Cheque drop facilities at different offices of CESU.

CESU has also announced a special rebate of 4% on and above the existing rebates and incentives for making payment of March and April bills to reduce burden on rural households, enterprises and small industries.

Still the villagers prefer to pay their electricity bills in cash. This is where the Bijulee Didis come into play. The Bijulee Didis collect cash for the electricity bills and hand over the necessary receipts to the villagers.

The Bijulee Didis in turn update the collection details to their controlling office.

The Bijulee Didis through their linked SHGs get a commission for the bills collected via Cash from their villagers.

The challenge here is to ensure Bijulee Didis get the commission even when villagers pay the electricity bills via the Digital Mode.

The spade work done by Bijulee Didis in encouraging the villagers to pay the electricity bills in time has to be acknowledged.

How can Odisha’s 200 + Bijulee Didis on board BBPS?

Any thoughts here?  

 

References:

 

https://www.cescoorissa.com/franchisee/Base_Paper.pdf dt.November 2012

https://www.mycitylinks.in/women-power-cesu-success dt.03/10/2018

https://yourstory.com/herstory/2020/08/odisha-bijulee-didis-rural-electricity-power dt.17/08/2020

 

BBPS Module should be mandatory for Corporate Net Banking Portals

 

Period.

Corporate customers mean all Current Account / Overdraft Account holders of respective banks.

 

Is it so difficult for Banks to offer BBPS Module in their Corporate Net Banking portals?

Many of the main stream banks in India have separate Net Banking portals for Personal and Current Account customers.

Few banks offer specialised ‘Cash Management Services’, portals too. Normally, the CMS Portals are fee-based with lots of customisations.

The CMS portal with its myriad tools may not be suitable for typical Current Account customers.

Few banks ex ICICI Bank offer ‘Bill Payment’, services for their corporate net banking customers. However, it is not clear whether BBPS is the transaction mode or is their bilateral transaction mode.

Quote: ICICI Bank

Q: What are the various modes of fund transfer available through Corporate Internet Banking (CIB)?

Ans: CIB offers one-to-one funds transfer to ICICI Bank and Non-ICICI Bank accounts. You can transfer funds to multiple beneficiaries using Bulk File Upload through CIB. You can also make tax payments and bill payments through CIB.

Unquote

 

The transaction rules in the BBPS Module in Corporate Banking Net Portals can be customised based on customer feedback.

Customisation samples:

A)     Access to only specified users

B)     Auto Pay only on working days

C)     Detailed Bill Analysis  

Corporate customers who submit NACH Debit Mandates for their Utility Bill Payments will be the first set off customers to adopt BBPS Module.

·         The next set of customers to adopt BBPS Module will be those who want to remove the pain of bills payments via Cheques/Demand Drafts/NEFT/RTGS/IMPS/Cash and experience the magic of Bill Auto Pay.

·         The next set of customers to adopt BBPS Module will be the Finance Teams of the respective corporates. They will want BBPS Module to reduce the monthly drudgery of physical bill payments.

·         The next set of customers to adopt BBPS Module will be Chartered Accountants. CA’s will advise their customers to opt for the ‘Auto Bill Pay’ option in the Bank’s net banking portals.

Hope to this see the above Page on NPCI Website soon

Disclaimer: The bottom line is 80% all Bill Payments should happen via BBPS only.

 

26 FASTag Issuing Banks – But only 9 on BBPS

Indian highway users can buy FASTag for their vehicles from 25 Banks and 1 Bank Neutral Service Provider i.e. Indian Highways Management Company Ltd.

However, users of only the below 9 FASTag Issuers can recharge their FASTag via BBPS.

01        IndusInd Bank- FASTag     Fastag Recharge

02        Indian Highways Management Company Ltd – FASTag        Fastag Recharge

03        Indusind FASTag     Fastag Recharge

04        ICICI Bank-FASTag   Fastag Recharge

05        Bank of Baroda - Fastag    Fastag Recharge

06        Axis Bank - Fastag   Fastag Recharge

07        HDFC Bank-FASTag Fastag Recharge

08        IDFC FIRST Bank - FasTag  Fastag Recharge

09        Kotak Mahindra Bank-FasTag      Fastag Recharge

All other FASTag users have to choose alternate recharge methods.

I’m waiting for the day when all FASTag issuers onboard BBPS for FASTag recharge.

This will be a golden day in the history of BBPS when 100% of Billers in a respective category are on BBPS

What is stopping the remaining FASTag issuers to onboard BBPS?

List of FASTag Issuing Banks as on 11/08/2020

Sr. No.            Member Banks        Issuer Acquirer

1          Airtel Payments Bank        Yes      -

2          Allahabad Bank                   Yes      -

3          Axis Bank Ltd                       Yes      Yes

4          Bank of Baroda                   Yes      -

5          Canara Bank                         Yes      -

6          City Union Bank Ltd           Yes      -

7          Equitas Small Finance Bank          Yes      -

8          Federal Bank                        Yes      -

9          FINO Payments Bank         Yes      -

10        HDFC Bank                           Yes      Yes

11        ICICI Bank                             Yes      Yes

12        IDBI Bank Ltd.                      Yes      -

13        IDFC FIRST Bank                  Yes      Yes

14        Indusind Bank                     Yes      Yes

15        Karur Vysya Bank                Yes      Yes

16        Kotak Mahindra Bank        Yes      Yes

17        Nagpur Nagarik Sahakari Bank   Yes      -

18        PAYTM Bank                         Yes      Yes

19        Punjab Maharashtra Bank Yes    -

20        Punjab National Bank        Yes      Yes

21        Saraswat Co-operative Bank        Yes      -

22        South Indian Bank              Yes      -

23        State Bank of India Yes      Yes

24        Syndicate Bank                    Yes      -

25        Union Bank of India           Yes      -

26        Yes Bank Ltd                         Yes      -

 

BBPS July 2020 Presenting Interesting Titbits

 

           I’m back with BBPS July 2020 Statistics

Titbit 01) The average transaction was for INR1839/-.

Titbit 02) The month’s highest average transaction was INR 2,272.85 on July 27, 2020 Monday.

Titbit 03) The highest number of transactions i.e 8.51lacs took place July 13, 2020 Monday 

Titbit 04) On an average 6.50lacs bills were paid every day in July 2020

Titbit 05) On 6 days, the average transaction crossed INR2,000/-

Titbit 06) the lowest average transaction i.e INR1,377.98 took place on July 5, 2020 Sunday

Titbit 07) Compared to weekdays, the transactions on weekends i.e Saturday and Sunday are less.

Titbit 08) On 5 days, transactions crossed 8,00,000 per day

Titbit 09) On 4 days, transactions crossed 7,00,000 per day

Titbit 10) on 10 days, transactions crossed 6,00,000 per day

 

August 2020 too seems an actioned packed month for August 2020, what will plenty of billers added during July 2020 and the first transaction for these new billers expected in August 2020/