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Showing posts with label NO CASH. Show all posts
Showing posts with label NO CASH. Show all posts

Monday, December 19, 2011

Market for Indian Mobile Payment Segment - US$350 billion by 2015 - Is your Bank ready to be part of it?



The Interbank Mobile Payment Service(IMPS) launched by National Payments Corporation of India (NPCI) in June 2010, received a boost as Citibank has introduced a new Cash Management Solution, around it.

The solution has been branded as Citi Cash-to-Mobile and it was launched last week, with a pilot in Hyderabad, Andhra Pradesh with the retailer's of Hindustan Coca-Cola Beverages Private Limited (HCCB), the bottling operation of the Coca-Cola Company in India, being the privileged lot.

The aim of this product is to completely automate the Receivables of a corporate, thereby freeing the company resources to concentrate on other activities.

Aimed at Corporate and Institutional clients, this market first solution empowers corporate customers to receive funds from retailers or end customers instantly via mobile.

As a Safe ePayments motivator, this new development is very exciting and the publicity surrounding this launch will now encourage more and more banking consumers, to experience the magic of IMPS.

Mobile Money Identifier (MMID) the  seven digit random number issued by the bank upon registration for IMPS is a necessity for Citi Cash-to-Mobile to succeed.

The Process flow is as under:
01) The corporate opens a Banking Account with Citi and a MMID is issued to it.

02) The MMID is communicated to it’s distributions channel partners.

03) The distribution channel partners MMID’s are obtained and updated in the Bank’s as well as the Corporate’s  Enterprise Resource Planning solution

04) On the payment due date, a SMS is flashed by the corporate, reminding it’s channel partners on the bill amount due.

05) The channel partners transfer the funds via IMPS module.

06) As the channel partners MMID is stored on the  Enterprise Resource Planning solution, the reconciliation is done, and the MIS reports forwarded to all concerned.

06) As IMPS works 24 hours a day, seven days a week, the reconciliation can be done hourly, and the channel distributors be encouraged to remit money any time of the day or night.

07) The common excuse of ‘bank is closed’, will not be a show-stopper for Bill Payments.



Short term impact: -

a) 30 + Banks are on IMPS, but the remaining Banks have to enter the IMPS circuit, as otherwise the corporates might encourage their channel partners to move to banks offering IMPS.

b) Banks have to offer the complete suite of mobile banking services to enable its customers to obtain the full benefits of IMPS.

c) The CASA average balances at the Sending Bank and Receiving Bank, will increase as the Sender’s have to maintain adequate balance to transfer and the Receiver balance will go up correspondingly.

d) Banks too have to move to a 24*7 Core Banking Solution (CBS), as now funds can move in, move out 24*7.

e) The retail customers once are familiar with IMPS, will be encouraged to try out this  channel for other payments/receivables too. This will provide the  much needed jump for IMPS.

Security:

01) The Amount Limits are as under: -

With end to end encryption: A daily cap of Rs. 50,000 per customer per day for both, fund transfer and transactions involving purchase of goods and services

Without end to end encryption: Transactions up to Rs. 5,000 can be facilitated ( RBI Circular Dated May 4, 2011  2011  RBI/2010 RBI/2010--11/511  11/511 DPSS.CO.No.2502  DPSS.CO.No.2502 /02.23.02/  /02.23.02/ 2010 2010--11)

02) The funds cannot be transferred without a MMID.And, a MMID is attached to a Bank Account. Hence the chance of fraud is low.

Thanks to Citi, for being the first bank to introduce a Solution around IMPS. Now, there is no stopping for IMPS.

The possibilities are endless. Which will the next Bank to tap IMPS innovatively?

Let me end today’s Post with a quote : -


"It's easy to come up with new ideas; the hard part is letting go of what worked for you two years ago, but will soon be out of date."
— Roger von Oech

Thursday, October 21, 2010

SAY NO TO CASH, SAY YES TO ELECTRONIC PAYMENTS













SAY NO TO CASH, SAY YES TO ELECTRONIC PAYMENTS    .

I have been thinking for the last couple of weeks, to launch a campaign on SAY NO TO CASH, SAY YES TO ELECTRONIC PAYMENTS         .
Twice a month, I wish folks would use Electronic Payments for all their purchases and not Paper Cash.
Ok, let me be a little realistic,
Anything of purchase value above 2 Digits should be paid via Electronic Payments.
I propose the 1st Sunday and last Sunday of every month.
For Starters, the following are the Dates
31/10/2010

07/11/2010

What are the modes of Electronic Payments?
Few modes are
01)                       Sodexho Coupons
02)                       Credit Cards
03)                       Debit Cards
04)                       Gift Cards
05)                       Petro Cards
06)                       Pre-Paid Cards
07)                       Cash Cards
In short, any mode which the Buyer and Seller exchange value, excluding  physical cash.

Where can the Electronic Payments facility be availed?
a)     Supermarkets
b)    Malls
c)     Cinema Theatres
d)    Petrol Bunks
e)     Multiplexes
f)      Hospitals
g)     Internet Sites
In short, any location where your needs are satisfied.

Spread the word of NO CASH, ONLY ePAYMENTS






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The thoughts in this BLOG are personal, and reflect only my view on the subject.
This are not the views of my Employers.
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All efforts have been made to make this information as accurate as possible, N Prashant will not be responsible for any loss to any person caused by inaccuracy in the information available on this Website. Relevent Official Gazettes Communications may be consulted for an accurate information. Any discrepancy found may be brought to the notice of N Prashant