JAIIB/CAIIB – Pay your Exam fees online now

                Indian Institute of Banking and Finance (IIBF), the professional body of banks, financial institutions, has migrated majority of its financial transactions to the ePayments mode.    

The institute’s major share of financial transactions is the payments of membership fees and the examination fees.

                Over the years, the preferred payment mode was the Demand Drafts. However, as finance bodies started to adopt ePayments, IIBF too entered the domain of ePayments.

                Today, when I logged on to the IIBF website, the following message warmed my heart.

Quote

Register for Ordinary Membership Online.

No physical form with Demand Draft/Pay Order will be accepted by the Institute from 18th June 2012.

Unquote

The JAIIB/CAIIB examination fees too, can be paid online i.e Credit Card/Debit Card/Net Banking.

As of now, the IMPS mode has not yet been activated. Well, in future, IMPS too will be an additional payment mode.

Go ahead, remit your JAIIB/CAIIB fees online.

                 

Indian Domestic Money Transfer- Norms Relaxation by Reserve Bank of India Will UIDAI/Aadhar number, bridge the gap?

There has been a growing demand to allow non-bank entities to be part of the Domestic Money Transfer mechanism.

The most quoted alternate is MPesa pioneered in Kenya.

The focus of RBI, is on KYC/AML norms. Any domestic money transfer mechanism, should be KYC/AML compliant.  This might seem to be a bit harsh, and the proponents of alternate money transfer mechanisms, see this as the stumbling block in financial inclusion.

However, in the long run, compliance to KYC/AML norms will safeguard the Banks, customers and other participants.

There have numerous representatives to RBI, to open up the formal banking channel to facilitate fund transfers of small value, subject to monthly ceilings and monitoring, to give impetus to the process of financial inclusion.

In this regard, RBI today issued notifications on Domestic Money Transfer - Relaxations vide notification no RBI/2011-12/213 DPSS.PD.CO.No. 62/02.27.019/2011-2012 dt,October 5, 2011.

The notification can be viewed @

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6750&Mode=0

The relaxations will not give  impetus to the money transfer facilities in the country, but also ensure that the financial transfers happen  in a safe, secure and efficient manner across the length and breadth of the country.

Broadly, the relaxations fall under the following three categories:

01) Liberalising the cash pay-out arrangements for amounts being transferred out of bank accounts to beneficiaries not having a bank account and enhancing the transaction cap from the existing limit of Rs. 5,000 to Rs. 10,000 subject to an overall monthly cap of Rs. 25,000 per beneficiary.

02) Enabling walk in customers not having bank account (for instance migrant workers) to transfer funds to bank accounts ( of say family members or others) subject to a transaction limit of Rs. 5,000 and a monthly cap of Rs. 25,000 per remitter.

03) Enabling transfer of funds among domestic debit/credit/pre-paid cards subject to the same transaction/monthly cap as at (b) above.

The operational instructions are in a separate Annex.  

Banks/ non-banks may adhere to the following while enabling the domestic fund transfers enumerated above.

a) A robust risk and fraud management system in place which will include reporting of suspicious transactions to the appropriate authorities.

b) Such fund transfers are expected to be effected on a real/near real time basis.

c) The total outstanding amount on a prepaid payment instrument shall not at any point of time exceed the limits prescribed in the extant guidelines on the RBI on the policy guidelines for issuance and operation of prepaid payment instruments.

d) Inter-bank settlement of funds shall be effected using RBI approved payment systems only.

e) On charges, the same should be reasonable, i.e a balance between the cost of the scheme and the charge paying capacity of the target audience.

f) Banks/non-banks may put in place appropriate systems for redressal of customer grievances.

g) The customer grievances under the Domestic Money Transfer Scheme will also be part of the Reserve Bank of India’s Banking Ombudsman Scheme.

The key aspect of the relaxations is the  monthly cap restriction.

The participants under the Domestic Money Transfer Scheme, have to devise ways to ensure that the transactions do not breach the monthly cap norm.

Cash-Out - Monthly cap - Rs25,000/- per beneficiary.

Cash-In - Monthly cap - Rs25,000/- per remitter.  

In my view, the Rs25,000/- cap per beneficiary or per remitter monitoring has to be done  not   Payment System Provider wise, but the complete industry wise.

Eg: Cash- Out Monthly  cap - Rs25,000/- per beneficiary.

Can  Beneficiary A receive money from 10 remitter’s in excess of Rs25,000/- in a month. If the limit is breached, what will be the monitoring mechanism?

The key question, is what will be unique identifier to ensure that the cap on the remitter is not breached.

Here, the UIDAI/Aadhar number can fill in the gap.

The process flow :

a) The transaction is originated with the UIDAI/Aadhar number

b) The UIDAI/Aadhar number is verified at the  UIDAI server and the transaction tagged to the UIDAI/Aadhar number.

c) Subsequent transactions are tagged to the respective UIDAI/Aadhar number, and in case the monetary limit is breached, the transaction can be  denied.

Benefits:

01) UIDAI/Aadhar number is expected to be issued to majority of our countrymen and is also expected to be the game changer for financial inclusion.

02) The start can be made now. Yes, initial investments will be required at all levels. This will be one-time investments and the infrastructure can be utilised for other purposes.

03) Tagging of financial transactions to UIDAI/Aadhar number, will reduce the investments in risk management of individual Payment System Providers. Each Payment System Provider, need not develop individual tools, but utilise the UIDAI/Aadhar number tool.

04) Risk Management can be automated, and manual intervention will be required only for exceptional cases.

Mahesh Bank – Direct RTGS Member

Mahesh Bank – Direct RTGS Member

Today Mahesh Bank, headquartered in Hyderabad, Andhra Pradesh, announced the launch of RTGS Services for its customers.

The Bank has 33 branches primarily in Andhra Pradesh. It has also has a branch each in Jaipur and Mumbai.

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.

RTGS is only a path to join the ATM Network, by becoming a member of the Shared ATM Network.

http://thehindubusinessline.com/2011/01/25/stories/2011012550702100.htm

Kudos to Mahesh Bank for joining the Safe ePayments train.

I am sure; it will reap the benefits of this action.

IBA - Conferences

IBA  - Conferences

Indian Bank Association – IBA regularly organizes conferences on various banking issues.

The conferences are paid events and the participants have to remit the conference fees.

Till 2010, IBA used to collect the same through Demand Drafts/Pay Orders

However, in 2011, it has introduced an ePayments option too i.e. SWIFT and NEFT mode.

A sample registration form can be accessed @

http://www.iba.org.in/events/2011Registration.pdf

This is a great way to popularize ePayments.

The ePayments option can be adopted by other Conference Organizers too.

Cheers to IBA.

Number of Digits in a Bank Account

Number of Digits in a Bank Account

The key to a successful ePayment i.e RTGS/NEFT/ECS/Direct Credit is the beneficiary’s correct account number. Hence, it is of utmost for the sender to satisfy himself/herself, about the correctness of the beneficiary’s account before initiating a ePayment.

Fortunately, in all Internet Banking Modules, the Beneficiary details have tobe entered only once, and stored for future utilization.

The best technique to conform the beneficary’s account number is a copy of the Cheque leaf of the beneficiary’s bank account.

The number of digits in a Bank Account varies from Bank to Bank. However, in a Core Banking Scenario (CBS), the Bank account numbering style is common across the Bank.

Please find enclosed Details of Length of Account Numbers in Digits of few Banks.  

This will help the Senders to have a quick check as to whether the receiver is providing the correct Bank account number or not.

Of course, the standard Disclaimer applies to this Post too.

Uniformity in penal interest payable by banks for delays in credit / return of NEFT / NECS / ECS transactions

Uniformity in penal interest payable by banks for delays in credit / return of NEFT / NECS / ECS transactions

As a customer friendly feature and to improve ePayments in India, Reserve Bank of India, DPSS, has issued a Notification on Uniformity in penal interest payable by banks for delays in
credit / return of NEFT / NECS / ECS transactions.

The Notification No. is RBI/2010-11/188 DPSS (CO) EPPD No.  477/ 04.03.01 / 2010-11, dt. September 1, 2010.

This Notification can be accessed @

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5976&Mode=0

Why was this Notification required:-

01)  In terms of the NEFT / NECS / ECS Procedural Guidelines as also the relevant circulars / instructions issued by Reserve Bank of India,  from time to time, member banks need to afford credits to beneficiary accounts or return transactions (uncredited for whatever reason) to the originating / sponsor bank within the prescribed timeline. Any delays in doing so attract penal provisions specified therein.

02)  The penal provisions were  not uniform across these retail electronic payment systems

03)  The spike in the NEFT/ECS transactions is an encouraging feature.

The Highlights of the Notification are: _

01)  Uniformity has been brought in with respect to the penal interest payable for delayed credits/returns across Electronic Retail Products.

02)  The new rate at which the Banks have to pay the penal interest is RBI LAF Repo Rate plus two percent.

03)  The penal interest should be credited to the customer’s account, without any specific request from the customer. THIS IS THE BEST PART.

04)  NEFT Origination Banks have been advised to ensure that the NEFT Outward transactions are executed in the next available batch. This is for both across the counter as well as online requests.

05)  In case of likelihood of delays, the customers should be informed of the same.

06)  The changes are applicable with immediate effect.

The implications are:-

01)  This will encourage Banks to strengthen their ePayments infrastructure, not only the IT part, but also the points-of-delivery.

02)  This will encourage customers to move majority of their payments from the paper mode to electronic mode.

NEFT Network Banks – 99 now.

NEFT Network Banks – 99 now.
NEFT is for a major break-through. As on July 13th, 2010, 99 Banks were on the NEFT Network.
Just 1 short of 100. And, I am sure that the number 100 will be crossed by this month end only.

The List of Banks on NEFT network is as under:-
The next step I am looking is the crossing of 75,000 + branches.
This step should be scaled by this year end, or even earlier.

One most significant factor to be noticed is that more and more Co-operative Sector Banks are joining the NEFT bandwagon.

Almost all the Mumbai based co-operative banks are part of the NEFT network now.

Co-operative banks have few branches, but as a large number of local prefer additional accounts, these banks have an important role to play in the rapid acceleration of ePayments



Sr. No. Bank Name No. of branches as on July 13, 2010
1. ABHYUDAYA COOP BANK - NEFT Participant Bank 88
2. ABU DHABI COMMERCIAL BANK - NEFT Participant Bank 2
3. AHMEDABAD MERC COOP BANK - NEFT Participant Bank 22
4. ALLAHABAD BANK - NEFT Participant Bank 1009
5. ANDHRA BANK - NEFT Participant Bank 1558
6. AXIS BANK - NEFT Participant Bank 1007
7. B N PARIBAS BANK - NEFT Participant Bank 8
8. BANK OF AMERICA - NEFT Participant Bank 5
9. BANK OF BAHREIN & KUWAIT - NEFT Participant Bank 1
10. BANK OF BARODA - NEFT Participant Bank 3099
11. BANK OF CEYLON - NEFT Participant Bank 1
12. BANK OF INDIA - NEFT Participant Bank 3214
13. BANK OF MAHARASHTRA - NEFT Participant Bank 1456
14. BANK OF NOVA SCOTIA - NEFT Participant Bank 5
15. BANK OF RAJASTHAN - NEFT Participant Bank 463
16 BANK OF TOKYO-MITSUBISHI - NEFT Participant Bank 3
17. BARCLAYS BANK - NEFT Participant Bank 1
18. BASSEIN CATHOLIC CO-OP BANK* - NEFT Participant Bank 27
19. BHARAT COOPERATIVE BANK - NEFT Participant Bank 34
20. CREDIT AGRICOLE CORPORATE AND INVESTEMENT BANK 6
21. CANARA BANK - NEFT Participant Bank 3120
22. CATHOLIC SYRIAN BANK - NEFT Participant Bank 362
23. CENTRAL BANK OF INDIA - NEFT Participant Bank 2599
24. CHINATRUST COMMERCIAL BANK - NEFT Participant Bank 1
25. CITI BANK - NEFT Participant Bank 42
26. CITIZEN CREDIT COOP BANK - NEFT Participant Bank 28
27. CITY UNION BANK - NEFT Participant Bank 224
28. CORPORATION BANK - NEFT Participant Bank 1139
29. COSMOS CO-OP. BANK - NEFT Participant Bank 101
30. DENA BANK - NEFT Participant Bank 1133
31. DEUTSCHE BANK - NEFT Participant Bank 16
32. DEVELOPMENT BANK OF SINGAPORE - NEFT Participant Bank 6
33. DEVELOPMENT CREDIT BANK - NEFT Participant Bank 84
34. DHANALAKSHMI BANK - NEFT Participant Bank 271
35. DICGC - NEFT Participant Bank 1
36. DOMBIVLI NAGARI SAHAKARI BANK LTD - NEFT Participant Bank 29
37. FEDERAL BANK - NEFT Participant Bank 679
38. GREATER BOMBAY CO-OP. BANK LTD - NEFT Participant Bank 18
39. HDFC BANK LTD. - NEFT Participant Bank 1741
40. HONG KONG & SHANGHAI BANK - NEFT Participant Bank 51
41. ICICI BANK LTD. - NEFT Participant Bank 1821
42. IDBI BANK - NEFT Participant Bank 777
43. INDIAN BANK - NEFT Participant Bank 1710
44. INDIAN OVERSEAS BANK - NEFT Participant Bank 2012
45. INDUS-IND BANK - NEFT Participant Bank 215
46. ING VYSYA BANK - NEFT Participant Bank 503
47. JAMMU & KASHMIR BANK - NEFT Participant Bank 388
48. JANKALYAN SHAKARI BANK - NEFT Participant Bank 26
49. JP MORGAN CHASE BANK - NEFT Participant Bank 1
50. KALUPUR COMM COOP BANK - NEFT Participant Bank 36
51. KALYAN JANATA SAHAKARI BANK - NEFT Participant Bank 16
52. KAPOLE BANK - NEFT Participant Bank 1
53. KARNATAKA BANK - NEFT Participant Bank 476
54. KARNATAKA STATE COOP APEX BANK - NEFT Participant Bank 1
55. KARUR VYSYA BANK - NEFT Participant Bank 365
56. KOTAK MAHINDRA BANK - NEFT Participant Bank 259
57. LAKSHMI VILAS BANK - NEFT Participant Bank 293
58. MAHANAGAR COOP BANK - NEFT Participant Bank 28
59. MASHREQ BANK - NEFT Participant Bank 1
60. MEHSANA URBAN COOPERATIVE BANK LTD - NEFT Participant Bank 25
61. MIZUHO CORPORATE BANK LTD - NEFT Participant Bank 1
62. MSCB - NEFT Participant Bank 35
63. NAINITAL BANK LTD - NEFT Participant Bank 101
64. NEW INDIA CO-OPERATIVE BANK - NEFT Participant Bank 19
65. NKGSB BANK - NEFT Participant Bank 38
66. NUTAN NAGARIK SAHAKARI BANK - NEFT Participant Bank 20
67. OMAN INTERNATIONAL BANK - NEFT Participant Bank 1
68. ORIENTAL BANK OF COMMERCE - NEFT Participant Bank 1570
69. PARSIK JANATA SAHAKARI BANK - NEFT Participant Bank 25
70. PUNJAB AND MAHARASHTRA BANK COOP LTD - NEFT Participant Bank 34
71. PUNJAB AND SIND BANK - NEFT Participant Bank 371
72. PUNJAB NATIONAL BANK - NEFT Participant Bank 4855
73. RATNAKAR BANK - NEFT Participant Bank 88
74. RESERVE BANK OF INDIA - NEFT Participant Bank 4
75. SARASWAT CO-OPERATIVE BANK - NEFT Participant Bank 216
76. SHAMRAO VITHAL COOP BANK - NEFT Participant Bank 90
77. SHINHAN BANK - NEFT Participant Bank 2
78. SOCIETE GENERALE - NEFT Participant Bank 2
79. SOUTH INDIAN BANK - NEFT Participant Bank 581
80. STANDARD CHARTERED BANK - NEFT Participant Bank 95
81. STATE BANK OF BIKANER AND JAIPUR - NEFT Participant Bank 866
82. STATE BANK OF HYDERABAD - NEFT Participant Bank 1206
83. STATE BANK OF INDIA - NEFT Participant Bank 13090
84. STATE BANK OF INDORE - NEFT Participant Bank 480
85. STATE BANK OF MAURITIUS - NEFT Participant Bank 1
86. STATE BANK OF MYSORE - NEFT Participant Bank 689
87. STATE BANK OF PATIALA - NEFT Participant Bank 869
88. STATE BANK OF TRAVANCORE - NEFT Participant Bank 751
89. SURAT PEOPLE’S CO-OP BANK** - NEFT Participant Bank 23
90. SYNDICATE BANK - NEFT Participant Bank 2362
91. TAMILDADU STATE APEX COOP BANK - NEFT Participant Bank 1
92. TAMILNADU MERC. BANK - NEFT Participant Bank 218
93. THANE JANATA SAHAKARI BANK - NEFT Participant Bank 54
94. THE ROYAL BANK OF SCOTLAND - NEFT Participant Bank 31
95. UCO BANK - NEFT Participant Bank 2153
96. UNION BANK OF INDIA - NEFT Participant Bank 2895
97. UNITED BANK OF INDIA - NEFT Participant Bank 1556
98. VIJAYA BANK - NEFT Participant Bank 1244
99. YES BANK - NEFT Participant Bank 150
Total 69395

NEFT – Contact Details of Member Banks

NEFT – Contact Details of Member Banks.

Reserve Bank of India, Department of Payments and Settlement Systems, has taken the first step in consolidating the Contact Details of the NEFT Member Banks at a single location.

The link can be accessed @

http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2070

Reserve Bank of India, vide Lr.No.RBI/2009-10/216
DPSS (CO) EPPD No. 893/04.03.02/2009-10 dated November 11,2009, addressed to The Chairman and Managing Director/ Chief Executive Officer of all banks participating in NEFT, advised the Banks to place this Directory in the respective Bank’s website too.

Trust all the NEFT Member Banks will complete this exercise by this month-end.

Of course, as a Safe ePayments Motivator, I am not happy. It would have been nice, if the Email Id’s of the NEFT Customer Facilitation Centers were also displayed.

Yes, I know that displaying the Email ids would result in numerous mails, and put pressure on the banks to verify the contents of each mail and respond appropriately.

But, than if the aim is to promote ePayments, I feel email ids of NEFT Customer Facilitation Centers, are necessary.

My earlier Post, in this regard can be interesting

http://prashantnepayments.blogspot.com/2009/07/epayments-standard-helpdesk-contact.html

Anyhow, the first step has been taken, and am sure, this Contact details, will aid in increasing the customer confidence in ePayments and attract new entrants to ePayments.

Product Launch-Andhra Bank-AB Speedway

Product Launch-Andhra Bank-AB Speedway.

Four months ago, Mr, R.S.Reddy’s Andhra Bank’s Chairman and Managing Director, launched a new Product known as AB Speedway, at a function organized in Edison, New Jersey. 

More Details can be accessed @

https://abspeedway.andhrabank.in/info_faq.php

It is nice to know, that Andhra Bank has dedicated a separate webpage for this New Product. The Webpage is comprehensive and quite informative.

AB Speedway aims to tap the NRI’s need for a quick and safe remittance facility.

AP Speedway is a White-Label Product. It rides on Citibank’s QuikRemit   customizable remittance platform.

As per Wikepedia, A white label product or service is a product or service produced by one company (the producer) that other companies (the marketers) rebrand to make it appear as if they made it.

In a way, Andhra Bank has taken a wise decision to White Label an existing product, rather than inventing the wheel. It is a win-win situation for Andhra Bank, Citi, and most importantly Andhra Bank’s NRI Customers.

As the product has been launched 4 months back, I am sure by now; Andhra Bank has got positive feedback, and ironed out, any glitches if any.

The Launch process started in September’2008, with the signing of the Agreement, and ended on June 09, with the launch of the Product as AB Speedway.

Trust Andhra Bank is remitting funds thru RTGS Mode, for Indian Beneficiaries not having account with it.

Product Launch- Citi Tap and Pay

Product Launch- Citi Tap and Pay.

Four months ago, CitiBank in India, launched the next-generartion Mobile Payments in our own Bengaluru, India

 

The Product’s  name is Citi Tap and Pay.

In simple terms, Your Citi Credit Card is transferred to your Mobile Phone(Nokia 6212), and than you can pay your shopping bill by just tapping the phone at the Payment Counter, of Participating Outlets.

More Detials can be accessed at

http://www.online.citibank.co.in/products-services/online-services/tap-and-pay.htm?eOfferCode=OLDURLRED

To encourage Citi Customers, to try out this new facility, Citi has offered to subsidize the cost of Nokia 6612 phone. On top of the subsidy, the users will also be eligible for a Cash-back offer, on making a specified number of transactions.

As this technology is new, Citi is offering this innovative product initially for 6 months only.

Based on the learning’s, Citi might fine-tune the product, before rolling it out nationally.

Nokia will support the service with its NFC-enabled Nokia 6212 phone, which is embedded with an NFC chip. MasterCard will offer its MasterCard PayPass contactless payment and security infrastructure. ViVOtech is providing the underlying technology, including the NFC wallet, the Over-the-Air (OTA) card provisioning software.

 The technology beyond this product is near-field communications (NFC). Near Field Communication (NFC) is a new, short-range wireless connectivity technology that evolved from a combination of existing contactless identification and interconnection technologies

Communication between two NFC-compatible devices occurs when they are brought within four centimeters of one another: a simple wave or touch can establish an NFC connection, which is then compatible with other known wireless technologies such as Bluetooth or Wi-Fi. Because the transmission range is so short, NFC-enabled transactions are inherently secure. Also, physical proximity of the device to the reader gives users the reassurance of being in control of the process.

The success of this new product depends on the POS Terminal with the Merchant Establishments. The POS Terminal has to be equipped to recognize NFC Phones. Hence, this product is acceptable in only 500 outlets in Bangalore.

 For this product to be a success, I feel, Banks and Credit Card Companies might need to work together, otherwise it will be a niche product.

Payment Gateway-Is it necessary

Payment Gateway-Is it necessary.

Payment Gateway-Is it necessary for an eCommerce Site, to have a Payment Gateway, for receiving payments from its customers.

Today’s Post will might convert few of acquaintances/friends/colleagues/ into my enemies.
But, I am convinced about my idea, and its ability to transform eCommerce sites in our country.

The essential feature of eCommerce site, is an stable Payment Gateway, to transfer money from their customer’s pockets to the merchant pockets.

----------------------

The most common Payment Method’s of an eCommerce Site are:-

American Express Card
Visa/Master Debit/Credit Card
Automated internet banking (selective banks

Few Sites, in addition to the above also offer:-
Cheque Deposit/ Cash Deposit/Demand Draft - - (in specified locations)

One more option, which is not yet explored by eCommerce Sites is

.Bank Transfer-from any bank.
I will call this facility as NEFT PAY
The above facility harnesses the power of NEFT to move funds from the customer’s accounts to the merchant account.

The benefits of NEFT PAY to eCommerce Sites are
01)    No need of  investment in Payment Gateway
02)    No fear of Chargeback.
03)    No Payment of any commission to Payment Gateway Providers.
04)    No fear of any Security breaches by own employees or Payment Gateway employees.


The benefits of NEFT PAY to Customers are
01)    Shop with own money, instead of resorting to credit card outstanding.
02)    High safety levels, as Credit Card/Debit Card Numbers need not be mentioned anywhere.


NEFT PAY will not be viable, in few eCommerce Sites like Air/Rail/Bus ticketing, where the commodity is in high demand, and is on first come-first serve basis.

Such sites at the most constitute 20% of all eCommerce sites.

Hence, NEFT PAY can be used in 80% of the eCommerce Sites where the goods can be shipped/delivered on confirmation of money received by the Merchant. 

eCommerce Sites- Harness the power of NEFT

Irda allows e-payment for life insurance customers

Irda allows e-payment for life insurance customers

It is now official ePayment as a valid English Word, has been adopted by IRDA(Insurance Regulatory and Development Authority).

IRDA vide its Lr.dt.07/07/2009, to all CEO’s of Life Insurance Companies, has allowed Life Insurance Companies to , to remit  payments to all policyholders and beneficiaries through electronic payment methods such as ECS, NEFT Systems  as approved by the Reserve Bank of India.

The complete letter can be accessed at
http://docs.google.com/gview?a=v&q=cache:aI1HRd2OeIYJ:www.irdaindia.org/lifecirculars/E-payment-CIR090709.pdf+irda%2Bepayment&hl=en&gl=in

IRDA has taken a positive step towards popularizing ePayments, and the adoption of ePayments by Life Insurance Companies, will raise the confidence level of the general public in ePayments.

I believe that this is only the beginning and in near future IRDA will make it mandatory to remit the following payments through ePayment Mode only:-

01)    Commission to Agents.
02)     Payments to Vendors.
03)    Payments to Surveyors.

In fact, Commission to Agents/Payments to Surveyors by both Life and Non-Life Insurance Companies can directly be shifted to ePayments. The information required for ePayment is very easily available and as Agents/Surveyors are always in touch with the Insurance Companies, this information can effortlessly be collected.

Information required for a successful ePayment Transaction

a)    Beneficiary Name as per Bank Records.
b)    Beneficiary Bank Account Number.
c)    Beneficiary Bank IFSC Code.
d)    Beneficiary Bank Name.

ePayment volumes will rise substantially, if Insurance Companies are persuaded to shift majority of their payments from paper mode to E Mode.
 
Technology at the Insurance companies and the Banks is in place, only what is required is a small push from the Regulator i.e IRDA.