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Showing posts with label Direct Subsidy Transfer Scheme. Show all posts
Showing posts with label Direct Subsidy Transfer Scheme. Show all posts

Saturday, August 15, 2015

IMPS Card to scale up IMPS transactions 10 crs per month


          The transactions numbers of June and July 2015 is yet to be updated on the NPCI website. However, if past numbers are considered, the volumes are expected to show a sharp increase.

          The following are some disruptive strategies which can boost transactions volumes of IMPS.

No, the upper limit for individual transactions need not be increased. The primary key is to expand the foot print of the IMPS ecosystem.

On one hand Government is committed to eTransactions. At the same times, its flagship scheme i. e LPG Subsidy credit to bank accounts encourages cash transactions.

          Isn’t this a big contradiction? As the LPG subsidy is always directly credited to bank accounts, the gas consumers are already familiar with the banking channel. 

          This target audience does not require much motivation to migrate to eTransactions.

          Government departments channel the subsidy amounts to the respective beneficiaries, through NPCI. 

          On an average, NPCI undertakes around 3.5 million transfers through the platform every day, out of which most are LPG transfers.

Under the Pahal scheme of LPG subsidy, 139.1 million beneficiaries have received Rs.23,476.60 crore in their bank accounts since the scheme was relaunched. This translates the same amount of cash pushed into the economy.

As the LPG cylinder amount is below INR1000/-, banks end up large numbers of small denomination notes. The overall processing time of these large volumes is huge, both at the banks end as well the LPG dealers end.

This pool of beneficiaries is a low-picking fruit to be pushed towards eTransactions.


Introduce ‘IMPS Card’:

a)     An exclusive physical card

b)    Credits and debits through IMPS channel

c)     Debit upper limit of INR2000/-

d)    Contactless 

e)    No Pin. Only swipe and pay

f)     Linkages to bank accounts

g)    Linkages to eWallets

h)    Centralised clearing house to reduce transaction costs

i)      Centralised fraud monitoring system for robust monitoring mechanism

j)     No cash withdrawals

k)    Merchants can run common incentive programs

l)      Merchants can run exclusive incentive/referral programs
  
Based on feedback, will elaborate further


         







Sunday, May 11, 2014

16th Indian LokSabha Elections – ePayments to the fore


            One of the major spinoffs of the 16th LokSabha elections has been the surge in ePayments.
            One variant of the ‘Direct Subsidy Transfer Scheme’ is the 'direct cash transfer scheme' to buy voter loyalty.
            More can be read here.
            The key benefit for the political parties is that the money-trial will be useful to minimize leakages in the chain. Minimization of leakages was the main aim for ‘direct cash transfer’, of government payments/subsides too.
            Another advantage is that the same account details can be used for future elections too.
            As the amounts transferred to individual accounts will be of low-value, automatic tracking of such transfers to ascertain the underlying reasons will be difficult.
            Once the voting results are announced on May 16, 2014, the political parties will have lots of data to analysis on the pros and cons of ‘direct cash transfer’.

            

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