IIBF – All fees received vie Safe ePayments only

            Indian Institute of Banking and Finance has become 100% ePayments Motivator. Do not believe this. Well, go on to this IIBF Announcement and read for yourself.

            Now, you don’t tell me that you do not have a valid ePayment tool (credit/debit card/online banking ID) with you!!!

            IIBF, with the adoption of ePayments, will be able to reduce the TAT in the exam processing cycle.  This would in turn lead to introduction of new courses relevant to the present Banking scenario.

            The exam and registration fees can be paid at this link.

            I am sure, in the near future, the fees can be paid via other ePayments modes too, i.e Immediate Payment Service, Prepaid Cards etc.

            So, go ahead and save time, by making the fees payment online.

            Savings in cost for the respective Banks, as majority of the IIBF courses are taken by Bank employees only.

No need to stand in queues to purchase DD’s or deposit cash in Axis Bank, and again dispatching the Demand Draft, Pay-in Slip to the respective regional office.

            No need to worry, if your Demand Draft, Pay-in Slip has reached IIBF office, and eagerly wait for the Exam Hall ticket.

            Thanks, IIBF.

Disseminated by Prashant N. Banker by daytime, Blogger by Night.

           

            

RuPay Debit Card - India’s Own Card launched.

On 26/03/2012, India's own Card. 'Rupay', was launched.

The top 5 features of the launch are : -

1. Rupay payment network was inaugurated by Shri G. Padmanabhan, Executive Director, Reserve Bank of India.
2. Rupay Debit Card launched
3. Rupay Prepaid Card launched
4. Rupay Credit Card to be launched soon.
5. Rupay Debit Card to be accepted at 91,000+ ATM's and 6,00,000+ POS terminals all Pan-India.
6. Bank of India and Union Bank of India, are the first Banks' to offer Rupay Debit Cards to their account holders.
7. POS terminals of Axis Bank, Bank of Baroda, Corporation Bank and State Bank of India, will accept Rupay Debit \ Pre-paid Cards in the initial phase.
8. No initial participation fee and quarterly minimum processing fees. This would encourage Regional Rural Banks, Co-operative Banks and smaller commercial banks to offer ePayments to their account holders.

At present 26.80 crs debit cards have been issued by Indian Banks and in the near future, this number will go up, with more account holders opting for ePayments.

Now, with 'Rupay' in the field, the transaction costs for Banks are expected to go down substantially, Banks will be able to encourage ePayments.  

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.

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

Credit Card and Date of Birth

Credit Card and Date of Birth

Major misuse of credit cards take place when they are lost/stolen/only Magnetic Data Stolen.

Two Additional features for Card-Not-Present Transactions(CNP), is the Date of Birth and the additional layer of password now required for Credit Card Payments in India.

If the credit card user, forget’s  the ‘additional layer - password’, a fresh password can be generated based on the 01) Card number 02) CVV number  03) Card Expiry Date  04) Date of Birth.

The first 3 are present on the Credit Card and the 4^th is expected to be kept secret by the credit card user.

Recently, I have come across advertisements in Papers/Magazines for A) Donations B) Subscriptions wherein a mode of payment is through Credit Card.

The requested details for payments through credit card is the

01) Card Number       02) Date of Expiry      03) Date of Birth.

Yes, you have read it right DATE OF BIRTH.

Folks, never ever mention your date of birth in such transactions. Once, the date of birth is mentioned, you are opening a Pandora’s box, for misuse of your credit card !!!!!!!!!

A more safer ePayments option, for such transactions is the NEFT mode. Of course, Indian organizations have yet to understand the benefits of NEFT.

Of course, the more relevant question is whether the Date of Birth is a safe security process to generate the ‘Additional Layer-Password’. Maybe, this might continue, till better options are presented.

Protect Yourself

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

Meal Cards – The Income Tax(IT) Missive

Meal Cards – The Income Tax(IT) Missive

In continuation of my post of 27^th August, 2009, on Meal Cards,

http://prashantnepayments.blogspot.com/2009/08/meal-cards-ing-vysya-bank-new-player.html

Please find enclosed the relevant link, regarding new IT Provisions, governing Meal Cards

http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/htmpage.aspx?fn=http://law.incometaxindia.gov.in/DitTaxmann/Notifications/IncomeTaxAct/2009/Not1_2009.htm

  

The major point in this Notification is that

QUOTE

vii) The aggregate amount of ready to eat food or non-alcoholic beverage purchased during a day by an employee shall not exceed one hundred rupees

UNQUOTE

Of course, the Income Tax authorities must have had a valid reason for the above clause, or they might have been mis-informed about the true benefits of Meal Cards.

I hope the second part is true, and the relevant Institutions, have taken up with Income Tax authorities and Reserve Bank of India, to popularize this ePayment Product.

In fact, I think there should not be any IT restrictions on this ePayment Product, as the complete transaction details are electronically stored, and the Issuing Institution, will have the records safely stored.

These electronic records can be called by IT Authorities, in case of any need.

There is some confusion, as to whether these provisions will apply to Meal Cards only, and not to Vouchers like Sodexho, Ticket etc.

If so, than, the Meal Cards will not be popular in our country, and Banks/Institutions will find it difficult to market this ePayment Products.

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.

Simple Procedure for REVERSAL OF FAILED ATM TRANSACTIONS.

Simple Procedure for REVERSAL OF FAILED ATM TRANSACTIONS.


A common complaint amongst ATM users is that their respective account has been debited, but the necessary cash has not been received by them. And, in this era of centralization, customers are facing difficulties in resolution of their complaints.

The delays in resolving the issues are primarily due to submission of incomplete data by customers to the respective banks.
The ATM Transaction Slip, is the most important piece of paper in an ATM Transaction.
The ATM Transaction Slip, contains all or most of the following information:-
01) Name of the ATM Bank
02) Location
03) Date of transaction
04) Time of transaction
05) Transaction reference number
06) Response Code
07) Card No/Account Number- only the last 3-4 digits will be visible
08) Nature of Transaction


Today, I will try to explain a simple procedure for REVERSAL OF FAILED ATM TRANSACTIONS.

01) Preserve the Original ATM Transaction Slip. This is the most important piece of paper required to substantiate your amount claim. ------- -- -- Many of the today’s ATM’s indicate that the paper is not available to generate ATM Transaction Slip, and request to proceed further. If the paper is not in stock, DO NOT execute the transaction, cancel the transaction and proceed to the next ATM.

02) Scan/Xerox the Original ATM Transaction Slip, as the ink of the Original ATM Transaction Slip, will fade after a week. You will find that the Original ATM Transaction Slip, has turned into a harmless white paper!!!!!!!!

03) Call up the customer care number of the ATM Bank, and inform the complaint details. Insist on a complaint number. This will help in tracking the complaint and the time-frame of resolution.

04) Call up the customer care number of the your Bank, and inform the complaint details. Insist on a complaint number. This will help in tracking the complaint and the time-frame of resolution.

05) Email the complaint to the customer care department of the ATM Bank and your Bank, as early as possible.

As per the latest Reserve Bank of India, guidelines, It is mandatory for the banks to reimburse the customers, the amount wrongfully debited on account of failed ATM transactions, within a maximum period of 12 working days from the date of receipt of the customer complaint.

ii) For any failure to re-credit the customers account within 12 working days from the date of receipt of the complaint, the bank shall pay compensation of Rs.100/-, per day, to the aggrieved customer. This compensation has to be credited to the customer’s account automatically without any claim from the customer, on the same day when the bank affords the credit for the failed ATM transaction.

Please refer
http://prashantnepayments.blogspot.com/2009/07/atm-related-complaints-on-rise.html

Hence, if the disputed amount is not credited within 12 working days of lodging the complaint, you will be eligible for compensation of Rs.100/- per delayed day of credit. So, the earlier you lodge the complaint (proof required), the better it will be for you.

From the date of complaint lodgment, wait for 12 days and than verify your account for the credit. If the amount is not credited, escalate the complaint to the next level.

Help the Banks, to resolve your ATM Complaints faster,efficiently.

RTGS Volumes January 09 to June 2009.

RTGS Volumes January  09 to June 2009.
Today’s post is regarding the Customer Volumes in RTGS from January 2009 to June 2009. 

 

The data is only Customer Transactions only, as for the layman only customer transactions are important, and not inter-bank transactions.

A basic analysis of the data leads to some interesting observations 

01)The volumes are increasing rapidly. 

 02)As the financial year, closes in Mar, there were heavy transactions in Mar 09.
03)The decrease in April 09, was compensated in May 09.
04)As compared to Feb 09 transactions, the Mar 09 transactions improved by 30%
05)No of transactions in June 09, as compared to Jan 09, increased by 20%.

The increase in the transactions is a positive indicator for ePayments in our country.
However, these transactions are only a fraction of the payments pie, and ePayments, have a long way to go.

Small steps lead to the GOAL

Andhra Bank- A Leading Public Sector Bank, trying to increase it’s pie of ePayments

Andhra Bank- A Leading Public Sector Bank, trying to increase it’s pie of ePayments

A good number of Public Sector Banks, are waking up to the immense possibilities of ePayments.

Andhra Bank is one such bank, the full text of this development can be accessed at

http://www.thehindubusinessline.com/2009/06/19/stories/2009061952450100.htm

Mr.Mathew Josheph, Deputy General Manager, Andhra Bank, feels that the transaction cost of ePayments as compared to normal banking is very less.

Andhra Bank, in my view, can increase it’s share of ePayments and also it’s CASA Base by -- Installing POS Terminals at APSRTC(Andhra Pradesh State Road Transport Corporation), Ticket Counters.

On an average, the cost of an Overnight Inter-State Ticket is Rs350/-, and 70% of the inter-state travellers are aware of Debit cards, and its benefits.

By installing POS Terminals, Andhra Bank can tap the float funds of APSRTC and also gain experience in marketing ePayments products.

Another untapped segment is the School/College Fees. This is a lucrative segement and again 60-70% parents are aware of the benefits of Debit Cards.

In fact, the above two segments are waiting to be captured by Banks for ePayments and the first-mover will have the last laugh.

Come On Andhra Bank------- You can lead the way for ePayments in Road Corporations and Education sector