NFS ATM Operational Excellence Awards 2012

       

As the year 2012 came to a close, NPCI announced the 2012 NFS ATM Operational Excellence Awards.

In the coming years, this Award will be an annual feature. Awards are a performance booster to the teams in any organization.

The NFS ATM Operational Excellence Awards are no exception. These Awards recognize their NFS Member banks performance on the NFS ATM Network.

These awards are decided on the basis of assessment of specific operational criteria. The winners are selected by an eminent and independent Panel of Jury.

To broad-base the awards arena, the Banks are grouped into any one category of

1. Public Sector Banks

2. MNC and Private Sector Banks

3. Scheduled Co-operative Banks

And, the Award goes to :

Sr. No	Bank Name	Category	Position
01	Union Bank of India	Public Sector Banks	Winner
02	Indian Bank	Public Sector Banks	Runner-up
03	ICICI Bank	MNC and Private Sector Banks	Winner
04	HDFC Bank	MNC and Private Sector Banks	Runner-up
05	Cosmos Bank	Scheduled Co-operative Banks	Winner
06	Saraswat Co-Operative Bank	Scheduled Co-operative Banks	Runner-up

The jury also took cognizance of excellent performance of member banks based on certain specific parameters. A Special Jury Award was given to recognize the performance of select banks based on their performances in specific ATM operational area.

The following banks were the Winners of the Special Jury Award:

Sr.       Bank Name

1           State Bank of India

2          Axis Bank

3          Andhra Bank

4          IDBI Bank

5          Allahabad Bank

6          Citibank N.A

7          Karnataka Bank

8          IndusInd Bank

9          Punjab & Maharashtra Co-Operative Bank

            

National Financial Switch(NFS) gets a new member - The A P Mahesh Co-operative Urban Bank Ltd., Hyderabad.

The A P Mahesh Co-operative Urban Bank Ltd., popularly known as 'Mahesh Bank', has joined NPCI’s National Financial Switch (NFS) network on 30 th December 2011.

The bank has a network of 36 branches, 28 in the twin cities of Hyderabad and Secunderabad and one each at Khammam, Vijayawada, Guntur, Rajahmundry, Visakhapatnam, Warangal in Andhra Pradesh., Jaipur in Rajasthan and Mumbai in Maharashtra.

Mahesh Bank's customers can now access their bank accounts through 86,000+ ATMs of 63 other banks which are already in the NFS network.

Mahesh Bank commenced operations in 1977, and its customers base is basically traders. Towards this end, it has also opened branches in Jaipur and Mumbai, both major trading centres.

Mahesh Bank started its life as Primary Co-operative Society on 30th June, 1977.

In 1996, the Bank was accorded SCHEDULED STATUS by Reserve Bank of India from 26th October, 1996 - the first Co-operative Bank to be accorded this status in the entire South India.

In 2001, the Bank got itself registered as a Multi-State Co-operative Bank under the Multi-State Co-operative Societies Act, 1984 with effect from 30.05.2001 - again the first Co-operative Bank in South India.

As Mahesh Bank is on an expansion spree, with RBI permitting the bank to extend its area of operation to the entire States of Maharashtra, Rajasthan and Gujarat, the NFS route will enable it to attract more customers into its fold.

By 2012 in India, Send money from ATM/Internet Banking to mobile

To promote Safe ePayments in our country, NPCI(National Payments of India), is in the process of rolling out a new product.

This new product will be an extension of IMPS(Interbank Mobile Payment Service).

IMPS was launched in June 2010, and currently 30 Banks offer this service.

However, there has no spectacular growth of transactions in the IMPS Grid. On an average 12,000 transactions are being executed on the IMPS platform.

Hence, to popularise the IMPS, NPCI had requested RBI to permit transmitting of money from ATM/NET Banking  to mobile i.e MMID

MMID is a 7 digit number, to be issued by the bank to the customer upon registration

A beneficiary should have a MMID in order to receive the money to his mobile.

The MMID is in turn linked to a Bank Account.

The main advantage of IMPS is that it is instant and works 24 X 7, including holidays.

A couple of articles on this initiative can be viewed@ http://www.thehindubusinessline.com/todays-paper/tp-money-banking/article2616030.ece

http://banking-news-update.blogspot.com/2011/11/now-send-money-from-atm-to-mobile.html

However as on 13/11/2011, this new NPCI offering is not yet updated on the NPCI website.

I am sure, there will be adequate security authentications, to ensure that there is no scope for fraudulent transactions.

RBI - Report on Securing Card Present Transaction - Public Comments

RBI - Report on Securing Card Present Transaction - Public Comments

Reserve Bank of India, DPSS has turned its attention to ‘secure transactions’, of ‘cards present’.

Here cards might be Credit Cards/Debit Cards/ATM Cards/ ATM cum Debit Cards

To increase the security levels for ‘card present transactions’, RBI had constituted a working group in March 2011, to look into all the related issues implementing the security of card transactions in India and suggesting a road map for migration.

The Working Group had members drawn from Banks and Card Companies and also NPCI representatives.

The Working Group in a short span of 8 weeks, submitted its report today i.e 02/06/2011

The Working Group members have to be praised for their perseverance to submit the report within a short period of 8 weeks.

RBI has invited comments to be emailed or forwarded to them, by 30^th June 2, 2011

The Working Group Report can be accessed @ http://www.rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=634

As the electronic money market grows rapidly, it is important that the fraudulent transactions are kept to the minimum, to ensure that the participant’s profitability is not hurt.

It can be noted that the electronic money usage is not only spreading in the urban area, but also spreading in the rural area. The advantages of electronic money are plenty for the rural folks to be attracted towards them.

Over the next month, the report will be discussed thread-bare not only on the internet but also in the print media. 

The more it is discussed, the more comments RBI will receive. The more comments RBI receives, the more robust solution can be found.

By now, articles on the report should have appeared on the Internet.

Time – limit Reconciliation of failed transactions at ATMs slashed

Time – limit Reconciliation of failed transactions at ATMs slashed

With Banks gaining experience in the recon of failed transactions at ATMs, Reserve Bank of India, DPSS has decided to slash the time limit for resolution of the customer complaints by the Issuing Banks from 12 working days to 7 working days.

The Notification No is : RBI/2010/11/547, DPSS.PD.No.2632 / 02.10.002 / 2010-2011 dt.May 27, 2011

The complete notification can be accessed @

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6437&Mode=0

The high lights of the notification are:-

1.     The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to 7 working days from the date of receipt of customer complaint. Otherwise compensation of Rs100/- for every delayed day will be due to the customer.

2.     Compensation can only be claimed if the customer’s lodges the complaint with the ATM Card Issuing Bank, within 30days of the transaction. Yes, such a time limit is necessary to encourage customers to lodge complaints as early as possible. The older the complaint is, the difficult it is trace the corresponding records.    So folks, preserve your charge slips and lodge complaints immediately. The ideal mode of complaints is handing over in person in the Branch or via email/online complaint lodgement

3.     Another important change is on the number of free transactions. The number of free transactions permitted per month at other bank ATMs to Savings Bank account holders shall be inclusive of all types of transactions, financial or non-financial. At present, 5 free transactions are permitted at other Bank ATMs. There was no clarity as to whether the number of free transactions, included non-financial transactions or not. RBI has now clarified, that the limit for free transactions will be all inclusive. It is up to the customers as to how they make use of the free transactions limit.

4.     It has been made clear that all the disputes regarding ATM failed transactions will be settled between the Issuing Bank and Acquiring Bank through the ATM system provider ONLY. The practice, if any, of bilateral arrangements outside the ATM dispute resolution mechanism is discouraged.

5.     The directive shall be effective from July 01, 2011

Banks are encouraged to widely publicize these changes at all ATM locations and also by individual intimation to customers.

These changes can be intimated individually to customers via a pamphlet with the Monthly/Quarterly statement of accounts dispatched to account holders

Implication:

Majority of the Banks have streamlined their internal systems for the effective ATM recon issues, so this will not be a major change for the ATM Recon Team.

The major change for the customers is on the ‘free transaction limit’. They have to remember financial and the non-financial transactions too. Otherwise, they will have to shell out charges. This discipline is necessary for the overall financial viability of the system.

As I always say, why use ATMs, go for POS transactions while shopping, dining, paying fees etc.

Interesting Trends in ATM Withdrawals

Interesting Trends in ATM Withdrawals in India.

The Document can be accessed at
http://www.npci.org.in/documents/Publications.pdf

The Highlights are:
01) The average Withdrawal size in NPCI managed ATM's is growing.
         In November 2009, it was Rs2,766/- whereas in May 10 it increased to Rs2,982/-

02) 37% of the withdrawals are below Rs.1000/-, though this share is coming down slowly.
         This 37% of the transactions can be shifted to the POS route, as already announced by Reserve Bank of India.         
                My earlier post on this is @
http://prashantnepayments.blogspot.com/2009/08/cash-withdrawal-from-pos-terminals.html


One recent trend which I have come across, is bank customers are not eager to withdraw small amounts through ATM's, especially in the Rs2,000/- to Rs4,000/- range. This is because the ATM's dispense a majority of Rs.500/- notes, whereas folks prefer Rs100/- notes.
This is pushing back the such customers from ATM's to Bank counters!!

Andhra Bank-Drive Up ATM inaugurated.

   Andhra Bank-Drive Up ATM inaugurated.

Andhra Bank has taken 1 more customer-friendly step in the ePayments Arena. On 29/01/2010, Andhra Bank's Executive Director, Sri Anil Girotra, inaugurated  Bank's  1st  Drive Up  ATM  in  India  at  the prestigious  Secunderabad  Club, in Secundrabad.

Hyderabad-Secunderabad are twin cities.

The Details can be can be accessed at Andhra Bank's website, and also at the following links:-

http://ww.smashits.com/video/snoop/590/first-drive-up-atm.html

http://news.webindia123.com/news/articles/India/20100129/1435193.html

Drive Up ATM's will encourage customers to try the other options available in the ATM, apart from the normal routine of withdrawing Cash.

In fact, I personally feel, that the Drive Up ATM's should be accessed for options other than Cash.

What is a Drive Up ATM?

A Drive Up ATM is free standing ATM, in which the customers can execute the ATM Transactions from the comfort of their vehicles.

This is the main differentiator between a Drive Up ATM and a normal ATM.

In a normal ATM, the customers have to enter the ATM Lobby to execute the ATM transactions, however in Drive Up ATM's the customer can execute the transactions from the comfort of their vehicles.

Can this be treated as a Product Launch?

Strictly speaking it is not a product launch, but definitely a sub-product launch.

This can be a good brand-building exercise for Andhra Bank.

Apart from the normal precautions to be adhered in ATM transactions, the customers have to extra-vigilant while accessing a Drive Up ATM.

In my view, this are the most important things to be kept in mind.

1.      Be sure, no one is watching you, when you are withdrawing Cash from a Drive Up ATM.

2.      As far as possible, transact only when you have company with you.

3.      Make sure all passenger car doors are locked and windows are up.

4.      Do not leave your car unlocked or the engine running when you get out to use an ATM.

As Andhra Bank has located it's first Drive Up ATM in Secundrabad Club, the security aspect must have been taken care.

HFDC Bank ATM’s – 40% faster

 

HFDC Bank ATM’s – 40% faster

The race to retain the ATM Transactions on their network has begun amongst the banks.

An ATM transaction of its customers on its own network is cheaper than the same transaction on another bank’s ATM Network. This is because the Bank need not pay Interchange Fees for transactions on its own Networks. Plus, the more number of transactions, the lesser will be the average ATM maintenance cost.

At the same time, with more and more features being added to ATM’s, it makes sense for Banks to encourage customers to use their own ATM Network, instead of other banks ATM’s.

Hence, a differentiator is vital, to attract its own customers to its ATM Network.

In this regard, Corporation Banks, facilities viz:NEFT Transfer, Tax Payments at its ATM, is a pioneer.

HDFC bank has taken a different route, and is focusing on the primary purpose of an ATM i.e to dispense Cash.

The readers are familiar with the ‘Myfavourite’, jargon in PC’s/Mobiles/TV’s/Ac’s/Washing machines/Web browsing.

HDFC has extended the ‘Myfavourite’ theme to its ATM’s too.

It has reduced the steps necessary to withdraw Cash from its ATMs, by inserting a ‘Myfavourite’ option.

More details can be accessed at http://www.hdfcbank.com/personal/Access/ATM/atm_faster.htm

The ‘Myfavourite’, option apart from speeding up the transaction time, also aids HDFC Bank in reducing the Electricity cost at its ATM’s and also aids in t

the increase of average number of transactions.

To make this new option, HDFC Bank has unveiled a TV Advertisement campaign.

I am wondering whether the ‘Myfavourite’, option is open only for HDFC Bank Account Holders or is it accessible to other Bank Account holders too?

Ok, folks, I am an optimist!!

National Financial Switch - Transaction cost re-introduced by NPCI.

National Financial Switch - Transaction cost re-introduced.
National Payments Corporation of India, in short NPCI, has started to make its presence felt in the Payments area of our Country.

NPCI has decided to charge Rs1/- for every transaction executed on the NFS ATM network, from 01/01/2010
This was announced by NPCI CEO AP Hota, at the recent Banknet Conference held in Mumbai.
National Financial Switch is the Brand name for the ATM Switching Services being offered by   IDRBT.

National Financial Switch was dedicated to the Nation on August 27, 2004, by Dr. Y. V. Reddy, Shri. G. N. Bajpai, and Shri. C. S. Rao, at IDBRT office.

From October 15, 2009, it has taken over on an AS IS WHERE BASIS, operations of National Financial Switch (NFS) from IDRBT.

NPCI had deputed its officials to IDRBT Hyderabad and NPCI has taken over NFS operations from December 14, 2009.



An efficient  ATM Switching Service ensures a successful transaction:
For a successful ATM Transaction, the ATM Switching Service, must complete the follwing actions in 30 seconds:-

1. An SBI ATM card holder swipes his card at an ICICI Bank ATM
2. The ATM links to its own core banking network to verify if it is an ICICI card
3. On finding it is an SBI card, it transfers data to the SBI Bank switch
4. The SBI switch connects to its core banking network and processes the transaction
5. After verification, the SBI switch communicates with the ICICI Bank switch
6. Finally, ATM dispenses the cash to the customer

At present 37 Banks are members of the NFS

Sr.No.    Bank Name
     
1     Allahabad Bank                        
2     Andhra Bank    
3     Axis Bank    
4     Bank of Baroda    
5     Bank of India    
6     Bank of Maharashtra    
7     Canara Bank    
8     Catholic Syrian Bank    
9     Central Bank of India    
10     City Union Bank    
11     Corporation Bank    
12     Cosmos Cooperative Bank    
13     Dena Bank    
14     Development Credit Bank    
15     Dhanalakshmi Bank    
16     HDFC Bank    
17     ICICI Bank     
18     IDBI Bank    
19     Indian Bank    
20     Indian Overseas Bank    
21     IndusInd Bank    
22     Jammu and Kashmir Bank    
23     Karnataka Bank    
24     Karur Vysya Bank    
25     Lakshmi Vilas Bank    
26     Oriental Bank of Commerce    
27     Punjab National Bank    
28     South Indian Bank    
29     Standard Chartered Bank    
30     State Bank of India    
31     Syndicate Bank    
32     Tamilnad Mercantile Bank    
33     UCO Bank    
34     Union Bank of India    
35     United Bank of India    
36     Vijaya Bank    
37     Yes  Bank Limited

The aim is to increase the Membership banks to 78 over a period of time.

Over a period of time, the transaction charges will be reduced as new Banks join the NFS Switch. 
Previously, the charges were Rs2/- per transaction until 2007. From December 2007, this NFS transactions were waived, to reduce the ATM transaction costs and also to boost the ATM Transactions.

In the weeks to come, there will be more clarity, as to which Bank has to bear the Rs1/- NFS transaction Cost i.e the Card Issuing Bank or ATM Owned Bank. If it is the ATM Owned Bank, than obviosuly the Re1/- cost will be transferred to the Card Issuing Bank.

Display of information for lodging of ATM related complaints.

Display of information for lodging of ATM related complaints.

Every day, Banks are adding new ATM's to their Networks, to enable their customers to transact through them.
It is observed that there is a proportinate increase in the ATM Complaints too.

In India, ATM's are still used chiefly for Cash Withdrawals only.

Hence, the majority of ATM related complaints are regarding 01) non-dispensing of Cash, even though Account is debited with the amount. 02) Withholding of ATM Card by the ATM Machine, when a wrong Password is keyed in 3 times.

There was no proper display of Phone numbers/contact mechanism detials at the ATM's to enable the customers to lodge the complaints. This in turn led to customers lodging complaints with Reserve Bank of India.

To minimise complaints directly being lodged with Reserve Bank of India, RBI, DPSS has vide Notification -
RBI/2009-2010/266/DPSS No.1316 /02.10.02/2009-2010, dt.December 18, 2009, addressed to The Chairman and Managing Director / Chief Executive Officers- All Scheduled Commercial Banks including RRBs /Urban Co –operative Banks / State Co-operative Banks /District Central Co-operative Banks//ATM network providers, has provided a format for Display of information for lodging of ATM related complaints.

The said Notification can be accessed at
http://rbi.org.in/scripts/NotificationUser.aspx?Id=5429&Mode=0.

The Display should contain:

QUOTE:

   1.  Information that complaints should be lodged at the branches  where customers maintain account to which ATM card is linked

   2. Telephone numbers of help desk/contact persons of the ATM owning bank  to lodge complaint / seek assistance

UNQUOTE:

ATM withdrawal fees from 15/10/2009-15th October 12, 2009

ATM withdrawal fees from 15/10/2009-15^th October 12, 2009

One of the major news items in today’s Newspapers was on the Curbs on ATM use from Oct. 15.

The news articles state that as per Indian Bank’s Association recommendation, Reserve Bank of India has asked the banks to impose the restrictions on third-party ATM usage from mid-October.

As a result, the number of free cash-withdrawals from third-party ATM’s will attract a charge.

The highlights are

01) The transaction limit is set at Rs10,000/-

02) Saving Account Holders can withdraw five times in a month free –of-cost.

03) From the sixth transaction, the fees is Rs20/-

04) Current Account Holders will be charged from the first transaction itself.

05) BALANCE ENQUIRY is still free.

However, each bank basing on the account profile/product type can decide not to charge its customers, but absorb the interchange fee.

The market will be the deciding factor.

I have been searching the Internet for the relevant Indian Bank’s Association/Reserve Bank of India Notification. No such luck.

I feel that this Notification should be in public domain, for the lay public to understand the rationale for the fees.

Tips for easier ATM Transactions after 15/10/2009-15^th October 12, 2009

01) In case your Bank’s ATM, is out-of-order or you are unable to withdraw cash for any reason, immediately lodge a complaint with your Bank. This will aid the bank to provide a superior customer service.

02) As people will tend to withdraw in higher amounts now, ATM’s will dispense High Denomination Notes. To avoid this issue, swipe your Card in POS Terminals at Merchant Establishments, for purchases.(Of course the basic safety measures are to kept in mind)

03) Avoid withdrawing large amounts in cash at night, or unfamiliar locations.

 Once the facility of withdrawing cash (up to Rs1000/-) is introduced at POS Terminals, life might become a little easier.

ATM's-The free tour is over

October 2009, free transactions At ATM’s will be restricted.

  

Come October 2009, the free ride to ATM’s will be restricted.

The Apirl 1, 2009 RBI directive to Banks to remove all charges for ATM Transactions, irrespective of Customer’s Base Bank, seems to be causing havoc  in Banks.

As mentioned  in my posts

  

http://prashantnepayments.blogspot.com/2009/03/all-atm-transactions-pan-india-to-be.html

the number of low-value transactions, is the reason for the cap on free ATM Transactions.

It is understood, that  Reserve Bank (RBI) has fixed third-party ATM withdrawal at Rs 10,000 each time they are used and the number of such transactions to five a month.

It is also understood that  IBA had  recommended a minimum limit of Rs 1,000 on third party ATM withdrawals, this was rejected by the Reserve Bank to protect the interest of small withdrawer.

IBA, which is the industry lobby of Indian banks, had submitted its recommendations to the central bank last month citing the financial burden faced by banks on account of huge number of third-party usage and small-ticket withdrawals.

RBI, which had made third-party ATM transactions free from April this year, has informed the Indian Banks' Association (IBA) in a communication. This decision is expected to be implemented shortly.

------

The highlights are

01)  Number of Free Transactions on 3^rd Party ATM’s - 5 per month.

02) Maximum Withdrawal per transactions on 3^rd Party ATM  - Rs10,000/-

03) Transaction fee subsequent to the Free Transactions - Rs20/- per transaction.

04) As per IBA, it is left to the Individual Banks to charge their customers for 3^rd Party ATM Usage or not.

05) The Decision is to be implemented from October 2009.

My suggestion is : -

01) The number of Free Transactions-per month be 10, and the maximum withdrawal per transaction be Rs.5000/-.

02) Indian Banks Association (IBA) should start a campaign highlighting the benefits of Debit Cards at Merchant Establishments. One of the reasons for the low usage of Debit Cards at Merchant Establishments is the Transaction cost, of 1.5-2% charged by the Merchants.

One nagging doubt, why did not the Indian Banks Association (IBA) or the Member Banks, did not foresee the deluge of Transactions on ATM’s, once the transactions are free.

Switch over to Debit Cards-Reduce the Load on ATM’s