RBI seeks responses to its 40 Questions - Discussion Paper on Charges in Payment Systems

 

RBI seeks responses to its 40 Questions - Discussion Paper on Charges in Payment Systems

          Reserve Bank of India today has placed a ‘Discussion Paper on Charges in Payment Systems’, on its website.

          This is as per ‘Statement on Developmental and Regulatory Policies dated December 08, 2021, wherein RBI had informed that it will release a discussion paper on various charges levied by banks and institutions for all kinds of digital transactions through credit cards, debit cards, wallets and Unified Payments Interface (UPI).

          The feedback provided by the general public would be used to guide policies and intervention strategies for promoting Safe ePayments.

          The feedback need not be limited to the below questions, but may include other inputs and suggestions relevant to the topic under discussion.

Summary of Questions

Digital Transactions Channel 01) ____ RTGS --- 3 Questions (1 to 3)

Digital Transactions Channel 02) ____ NEFT --- 3 Questions (4 to 6)

Digital Transactions Channel 01) ____ IMPS --- 2 Questions (7 & 8)

Digital Transactions Channel 01) ____ Debit Cards --- 7 Questions (9 to 15)

Digital Transactions Channel 01) ____ Credit Cards --- 4 Questions (16 to 19)

Digital Transactions Channel 01) ____ PPIs (Pre-Paid Instruments) --- 4 Questions (20 to 23)

Digital Transactions Channel 01) ____ UPI --- 3 Questions (24 to 26)

Digital Transactions Channel 01) ____ Intermediaries --- 3 Questions (27 to 29)

Digital Transactions Channel 01) ____ Surcharging --- 3 Questions (30 to 32)

Digital Transactions Channel 01) ____ Convenience Fee --- 3 Questions (33 to 35)

Digital Transactions Channel 01) ____ Other Aspects --- 5 Questions (36 to 40)

 

          The complete 25 Pages Discussion Paper can be read @ https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DPSSDISCUSSIONPAPER5E016622B2D3444A9F294D07234059AA.PDF

          The last date to submit your views to Reserve Bank of India on this discussion paper is: on or before October 3, 2022.

          The email id to submit your views is: dpssfeedback@rbi.org.in

          Views need not be shared via the physical mode, a soft copy of your views to the above email id is sufficient.  

          So, go ahead and provide your feedback.

Feedback which may be useful to shape future policies on Safe ePayments in our country.

Feedback which if successfully implemented in India, can be a benchmark for other nations.

The more feedback received by Reserve Bank of India, the more it will be helpful for overall customer experience.

Disclaimer: These are my personal views only. The bottom line is Safe ePayments. Nothing More – Nothing Less.

 

Central Bank of India to launch RuPay Cards

The RUPAY Card network has added one more member, with Central Bank of India inking an agreement with National Payments Corporation of India (NPCI) for issuance of RuPay cards.

To make the best use of this agreement, Central Bank of India, tweaking all its EDC Machines to be RuPay compliant. With the above feature, the bank will be in a position to issue RuPay cards as well as make payment of all RuPay cards issued by other banks in the country.

The major observation by Central Bank of India, is that the charges currently levied by RuPay are almost at par with others. NPCI has assured that shortly they will bring down these charges.

NPCI is also encouraging banks to issue RuPay cards for Financial Inclusion and Kisan Credit Card.

Central Bank of India, was established in 1911, and has the distinction of being the first Indian Commercial Bank wholly owned and managed by Indians. Central Bank of India, was the dream of Sir Sorabji Pochkhanawala, founder of the Bank.

The Bank recently celebrated its 100 years of existence.

Over the years, various innovative schemes were launched by the bank. The most noteworthy was the launch of an Exclusive Ladies Department to cater to the Bank's women clientele, that too in the year 1924.

Tata Industrial Bank founded by Shri.J.R.D Tata was acquired by Central Bank of India, in 1923

A magnificent book on Bank's History was released as part of its centennial celebrations.

Retail Electronic Payment Systems – NEFT / NECS / RECS / ECS – Levy of Processing Charges

Retail Electronic Payment Systems – NEFT / NECS / RECS / ECS – Levy of Processing Charges

The era of free lunch is over. As the volumes in Retail Electronic Payment Systems are zooming up, the various participants are looking forward to reduce their operating costs.

So far, the RBI had been waiving processing charges for retail electronic payment products (NEFT, NECS, RECS and ECS) since the year 2006 in order to promote the usage of these systems.

The last waiver by Reserve Bank of India was valid up to March 31, 2011. 

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6453&Mode=0

Today, vide RBI Notification No RBI/2010-11/559,DPSS (CO) EPPD No. /2649/ 04.03.01/2010-11, RBI has permitted   Clearing Houses / processing centers to levy charges on the originating banks as under :-

·        25 paise (exclusive of service tax) for every outward transaction

·        25 paise (exclusive of service tax) for every return transaction

The compensation to destination banks, to be paid by the originating banks is also finalized as under:

·        25 paise (exclusive of service tax) for every credit transaction

·        50 paise (exclusive of service tax) for every debit transaction

RBI has made it clear that the participant banks are not permitted to pass on these charges to customers.

 These charges will be applicable from July 01, 2011.

RTGS is not under Retail Electronic Payment Product; hence the charges for RTGS transactions are not covered under this notification.

These charges should encourage new players to set up processing centers and also enable the existing Clearing Houses / processing centers, to strength their infrastructure.

Of course, customers would not prefer to revert back to paper based from electronic mode, due to these charges.  

Interbank Mobile Payment Service – 3 Charges

Interbank Mobile Payment Service – 3 Charges

National Payment Corporation of India, has left it to individual banks, to finalized the charges for their IMPS services.

NPCI, at the pilot stage is offering free of cost. Once IMPS is commercially launched NPCI will charge .25paise per successful transaction. Clearing Corporation of India will also charge Rs.200/- plus taxes (10.3%) per bank per settlement for affecting the settlement. This is apart from NPCI Charges.

There will be infrastructure and personnel charges to the Banks.

Hence, the IMPS should not be free. One other main reason, we Indian tend to mis-use any facility, when it is free.

Therefore, it would be better from Day 1, if there are charges for IMPS.

What do you say, folks?

Initially, individual Banks might offer different rates or different slabs. But, over a period of time, the charges will be uniform across the Banking Industry. 

Syndicate Bank – SMS Alerts - Charges

Syndicate Bank – SMS Alerts - Charges

Syndicate Bank has decided to charge its customers for SMS alerts, w.e.f 01/07/2010.

The charges are applicable both to the new customers as well as the existing customers.

The relevant link is accessible @ http://www.syndicatebank.in/scripts/editnews.aspx?id=101

Syndicate Bank via its web notice has requested the existing customers, to contact their Base Branch for full details.

Hence customers would not be able to know the details vide Phone Banking or Web or any other medium.

Of course, it would have been nice, if the charges were displayed on Syndicate Bank’s website.

This would have facilitated its customers to take a informed decision, and also reduced the TAT at the Branch level.

Snippets of Syndicate Bank:

The one major contributor of Syndicate Bank to Indian Banking is the launch of Pigmy Deposit Scheme in 1928. This scheme still continues, and Syndicate Bank collects on an average Rs2crs per day.

Of course, large strides in technology have enabled the Syndicate Bank, to minimize the frauds in the Pigmy Deposit Scheme.