ePayments- No Holidays till 1st July, 2009

 ePayments – No Holidays till 1^st July, 2009

            The whole of May’2009 and June’2009, is open for ePayments. In fact, the next ePayments Holiday is 1^st July, 2009 on account RBI's Annual Closing of Accounts.

Normally, during May, June, July, August, every year, the number of Bank Holidays will be minimal, and it is more so for ePayments.

             This spell should see a good number of folks, experience the magic of ePayments.  Now, the Annual Results of the Companies have been declared, Share Holders will be eagerly waiting for the Dividends to be credited to their Bank Accounts.

             This year, Indian companies, are likely to distribute the majority of Dividends through ePayments i.e(NEFT/ECS). ePayments, will reduce the TAT, and also lead to lower costs.

   

New Pension Scheme from 1st May,2009-Not ePayments friendly.TOPIC OF THE WEEK

 

 

 New Pension Scheme from 1st May,2009-Not ePayments friendly.

All citizens of the country will be able to avail of pension facility from tomorrow, with the interim pension regulator Pension Fund Regulatory and Development Authority (PFRDA) confirming the scheduled launch of the mega pension plan in a statement today.
"The necessary infrastructure for the rollout of New Pension System (NPS) is now ready and it will be available to all citizens of India from May 1, 2009," PFRDA said.

 Tier-I of NPS constituting non-withdrawable pension account will become operational from tomorrow and Tier-II (withdrawable account) of the NPS account will become operational in about six months.

This is a big step towards financial security, in the twilight years. The Offer Document can be accessed at 

http://pfrda.org.in/writereaddata/linkimages/Offer%20Document957798914.pdf

The offer document is comprehensive, user-friendly and all the participants should stabilize in the next six months. To access the Scheme, PFRDA has appointed 22 Points Of Presence(POP’S), whose network i.e Service Points, will support this scheme. This 22 POP’s are mainly Banks and other financial intermediaries.

Bank of India is the trustee Bank, and detailed Service Level Agreement, between PFRDA and Bank of India is in place.

The contributions will be accepted in Cash/Pay-Order and Demand Draft, and also through ECS. Out Station Cheques will not be accepted.

The TAT for the first contribution to be credited is 15 days,and subsequent contributions is 7 days.

 However, it is surprising to note that PFRDA, has not explored the option of receipt of the contributions thru ePayments mode, especially NEFT.  Maybe, the Consultants have not briefed PFRDA, the benefits of NEFT.

 

As the scheme is just rolled out, PFRDA should also welcome contributions through NEFT. This will increase the comfort level for the subscribers, as well as reduce the TAT for the credit to the respective pension accounts.   

 

With a professional central record-keeping agency in place, National Pension Scheme, will be preferred choice for private sector.  The IT industry has already a preliminary meeting with PFRDA, to finalize the modalities. In fact, it would be a good idea, to insist a NPS Account, at the time of match-making!!

Trust PFRDA, will initiate steps to receive contributions through NEFT also.

 

  

Debit Card Incentives, to be next marketing Mantra for Banks

            Debit Card Incentives, to be next marketing Mantra for Banks   

Now, the Cash Withdrawal from any ATM is free, Banks with smaller ATM Network, are beginning to feel the pinch of the inter-connect fee.  So, they are forced to explore new avenues, to keep the customers happy, and also continue to keep their costs low.

            As I have already said in my earlier Post http://prashantnepayments.blogspot.com/2009/03/all-atm-transactions-pan-india-to-be.html, 60% of the Cash drawn, is used in Locations, wherein Debit Cards are also accepted. 

            Hence, Banks have sought clarifications from Reserve Bank of India, whether prior approval of Reserve Bank of India, is required, for offering incentive schemes, to expand Debit Card usage.  Reserve Bank of India, DBOD(Department of Banking Operations and Development), has clarified that it’s prior approval is not required, as long as there are not of Lottery nature i.e: incentives  based on  chance. 

            It is pertinent to note, that Banks have sought this clarification, only after the introduction of the free cash withdrawals i.e after 01/04/2009. Indeed, Banks have responded quite fast, to the new reality, and quickly explored innovative tactics, to protect their bottom-line. 

            The relevant Reserve Bank of India, DBOD(Department of Banking Operations and Development)  Clarification is reproduced below

 

QUOTE 

April 20, 2009

Offering of Incentive Schemes by Banks to Promote Usage of Debit Cards

Query

A few banks have been approaching RBI seeking approval for offering incentive schemes to debit cards holders to promote debit card usage. Whether prior approval is required from RBI for offering such incentives schemes?

Response

There is no objection to banks offering incentives to promote debit card usage without prior approval of RBI provided no element of lottery or chance is involved in such incentive schemes.

DBOD Mail box clarification dt 20/04/2009

 

 UNQUOTE 

            This clarification is of recent nature, i.e 20^th April, 2009. Hence, Banks will be launching the Debit Card Usage Incentive Schemes, in the next couple of months. We have to wait and see which will be the First Bank, to utilize this clarification, and also the nature of the incentive schemes.

 Any guesses, folks.

 

 

 

 

Epayments(RTGS and NEFT to work normally on April 30th, 2009 and 1st May, 2009)

Epayments(RTGS and NEFT to work normally on April 30^th, 2009 and 1^st May, 2009)

Mumbai Financial Markets, will be closed on April 30^th, 2009 and 1^st May, 2009), continuously for two days. 30/04/2009 is the General Election day in Mumbai and 01/05/2009 is May Day. 

However, Epayments(RTGS and NEFT  will  work normally on April 30^th, 2009 and 1^st May, 2009). 

Majority of the Banks ePayments Central Hub are located in Mumbai, except for few banks like ING Vysya Bank(Bangalaore), Andhra Bank(split between Hyderabad and Mumbai). This means there will be less number of  staff  at the centralized ePayments Hub, and will not prefer to opt for bulk uploads of ePayments files. 

It has been observed, that organizations are switching over to ePayments, for disbursement of Salaries, and other forms of Employee compensations viz:- conveyance, medical reimbursements etc.

Hope, the Organizations have already forwarded the Salary Payment files to their bankers, today itself i.e 29^th April, 2009, and the Banks have already processed the files.

 

Though the branches will not be functioning, the transactions can be executed thru the Net Banking Sites of the Banks. There will be a surge of ePayments transactions on 4^th May, 2009, as the financial markets will open after 4 closed days, especially once the Clearing Credits start reflecting in the customer’s bank accounts. 

A little proper scheduling will smoothen the ePayments execution process.

 

 

 

 

India pull off a spectacular win at the 18th Edition of Sultan Azlan Shah Cup at Ipoh, Malaysia.

India pull off a spectacular win at the 18^th Edition of Sultan Azlan Shah Cup at Ipoh, Malaysia.

 Making a superb display of speed and execution of planning on the field, the Indian hockey team on Sunday beat the host Malaysia team by 3-1 to lift the 18th Sultan Azlan Shah Cup at Ipoh, Malaysia.

With a display that underlined the efficacy and elegance of frontline forays, India regained the glittering Sultan Azlan Shah Cup after a hiatus of 13 years with a 3-1 victory over Malaysia amidst a festival ambience in the international hockey tournament here on Sunday. The winner led 2-1 at halftime.

This was India’s fourth cup win, the three others coming in 1985, 1991 and in 1995.

India, on a redemption journey after last year's Olympic debacle, is presently on a high after a recent run of success at home and Down Under, including the runners-up finish at the Punjab Gold Cup in Chandigarh.

This victory, should prove to be stepping stone to greater success, and take Indian Hockey, to its glorious place.

 The only sad thing was that we Indians did not turn in huge numbers, to welcome the victorious Hockey Team, on its return from Ipoh, Malaysia. For a change, the media was in full strength. However, the TV Coverage could have been more attractive. This would have also given the much needed break, from continuous Election Coverage.

 Cheers to India