How to remit Credit Card Dues thru NEFT

The usage of Credit Cards is on the increase in our country. At the same time, credit card holders are searching for new payment avenues, of their credit card dues.

The common options, to pay the credit card dues, are

01) Deposit of Cash-though banks are now levying a Service Charge for cash deposits, to clear credit card dues.

02) Standing Instruction (SI) to debit an Current/Savings/Overdraft Account, within the Card Issuing Bank.

03) Debit account in other bank, and remit the funds to the credit card, through Net Banking. This facility is popular amongst ICICI Bank credit card holders.

04) Last but not the least, through Cheque/Demand Draft.

Apart from the above, one new Payment option, is becoming quite popular. This option is the payment of credit card dues, through NEFT,

This facility is available from any bank that has enabled the NEFT capability on its Internet banking facility.

The following are to be kept handy, while initiating a NEFT Transaction, for payment of credit card dues.

Name of Destination Bank Compulsory

Destination Branch Compulsory

Type of Destination Account Credit Card, if the same is available on your bank’s Internet Banking site

Number of Destination Account Your 16-digit credit card number(double check this number, wrong mentioning of the number, might lead to credit’s to your enemy’s credit card!!

Transaction Code 52

IFSC Code Compuslory. This will be provided by your Card Issuer, on the Credit card statement, or be available on the Banks website.

IFSC’s for Credit Card transactions, sourced from the Bank’s Websites/Internet are provided here.

Many major Credit Card Issuers viz., Andhra Bank, State Bank of India, have not yet joined this payment mode.

Name of the Bank	NEFT IFSC Code for Credit Card Dues
AXIS BANK	NEFT IFSC Code for Axis Bank Credit Card Dues-- UTIB0000400
VIJAYA BANK	NEFT IFSC Code for VIJAYA BANK Credit Card Dues – VIJB0009020
HDFC BANK LTD.	NEFT IFSC Code for HDFC BANK LTD.Credit Card Dues— HDFC0000240
BANK OF INDIA	NEFT IFSC Code for BANK OF INDIA Credit Card Dues— BKID0000101
CANARA BANK	NEFT IFSC Code for CANARA BANK Credit Card Dues – CNRB0001912
THE BANK OF RAJASTHAN LTD	NEFT IFSC Code for THE BANK OF RAJASTHAN LTD Credit Card Dues -- BRAJ0004430
ICICI BANK	NEFT IFSC Code for ICICI BANK Credit Card Dues – ICIC0000103
DEUTSCHE BANK	NEFT IFSC Code for DEUTSCHE BANK Credit Card Dues – DEUT0784PBC
BARCLAYS BANK	NEFT IFSC Code for BARCLAYS BANK Credit Card Dues – BARC0INBBIR
KOTAK MAHINDRA BANK	NEFT IFSC Code for KOTAK MAHINDRA BANK Credit Card Dues – KKBK0000958
ABN AMRO BANK	NEFT IFSC Code for ABN AMRO BANK Credit Card Dues – ABNA0200001
STANDARD CHARTERED BANK	NEFT IFSC Code for STANDARD CHARTERED BANK Credit Card Dues – SCBL036001

Remember:

Choosing a wrong IFSC code will result in delay or cancellation of your funds transfer.

You need to make your credit card payment at least two business days before the due date.

The terms and conditions of the Internet banking facility of your bank will apply.

The NEFT facility is subject to the rules and guidelines of Reserve Bank of India, as applicable from time to time.

Tips to ensure that the Credit Card Dues remitted by your, through NEFT reach safely:-

• Initiate an initial transaction of Rs.100/-
• After 48 hours, call up the customer care number, of your Credit Card Issuer, and conform, the receipt of the funds
• Once the initial test transaction is successful, preserve the details.
• The same details to be used for every NEFT funds transfer to your credit card.
• After every NEFT funds transfer to your credit card, mail the details with the NEFT Reference Number, to the customer care email id of your Credit Card Issuer, with a request to conform receipt of the funds.

Spread the Joy of ePayments amongst your friends, relatives.

CAUTION: THE ABOVE GUIDELINES is for informational purposes only. I make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.

Two-Tier Authorization for ePayments-RTGS

             Two-Tier Authorization for ePayments-RTGS

            It is the norm of civilization, that all key actions, should follow the Maker-Checker Concept. 

Maker-checker (or Maker and Checker, or 4-Eyes) is one of the central principles of authorization in the Information Systems of financial organizations.

The principle of maker and checker means that for each transaction, there must be at least two individuals necessary for its completion. While one individual may create a transaction, the other individual should be involved in confirmation or authorization of the same. Here the segregation of duties plays an important role. This minimizes the risk, to the individuals, as well as to the Organizations at large.      However, it is observed that the Maker-Checker Concept, is not followed in the true sense. This leads to mishaps all around.

             The scenario in ePayments is also no different. A good number of times, it is observed that in the System, the Maker-Checker concept is followed, but in reality, the maker and checker is the same physical person!

             The strengthening of the Maker-Checker Concept in ePayments, will go a long way, in reinforcing the common man’s belief in ePayments.

             Reserve Bank of India, vide its Notification RBI/2008-09/437, DPSS (CO) RTGS No.1839 / 04.04.002 / 2008 – 2009, dated April 20, 2009, advised all Banks to toughen the Security Environment. Accordingly, it has been made mandatory for the members to put in place maker-checker facility during data entry.

 Further, it has also advised that the IT Security should be foolproof and the internal control systems strong enough to counter frauds / attempted frauds in the RTGS system.

             The full notification, can be accessed at http://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=4937.

             Reserve Bank of India, vide its above Notification, has assured the common man, that IT Security/User Security, for ePayments, is maintained at the highest possible standards, by Indian Banks.

 

 

 

             

RTGS: Customer Transactions, not to be routed in Interbank Session, warns Reserve Bank of India.

            RTGS: Customer Transactions, not to be routed in Interbank Session, warns Reserve Bank of India.

                         In RTGS, there are two types of Transactions 01) Customer and 02) Interbank Transactions.

            Customer transactions refer to those types of transactions, wherein the beneficiaries customer’s account, in the Beneficiary Bank is directly to be credited.

             Interbank Transactions refer to those types of transactions, wherein the Beneficiary is a bank, and internal accounting entries are effected, to the respective bank department.

            The Operating Session for Inter-bank, is longer than the Operating Session for Customer transactions,.

            Ideally, customer transactions, are not to be routed through inter-bank session, as the RTGS credit has to be afforded within 90 mintues, or  be returned back.

In the initial stages, when RTGS was evolving, Banks use to route customer transactions, in inter-bank session also.

             However, this practice, was being followed, even after Reserve Bank of India, extended considerably, the window for the Customer Session, vide its notification, RBI/2008-09/362, DPSS (CO) RTGS No.1288/04.04.002/2008 – 2009, dated January 28, 2009.

           The reasons could be: A) Accommodate High-Value Clients. B) Technical reasons, viz system failure of the respective Sending Bank, during Customer Session.

            Reserve Bank of India, has sought to plug the practice of routing customer transactions, in inter-bank session, through it’s Notification:- RBI/2008-09/476 DPSS (CO) RTGS No.1959/04.04.002/2008-2009, dated  11^th May, 2009.

The said notification, can be accessed at http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=4982&Mode=0                                      

 Reserve Bank of India, vide its above Notification, warned banks of penal actrions, in case customer payments are routed through inter bank session.

QUOTE:-

All RTGS participants are, therefore, advised to strictly adhere to the RTGS procedural guidelines and desist from the practice of pushing customer transactions in the inter-bank mode. ''Violations, if any, brought to our notice would be viewed seriously and would attract penalty under Section 30 of the Payment and Settlement Systems Act, 2007(51 of 2007),'' the Circular said.

UNQUOTE

Tit-Bits:Payment of Interest on Savings Bank Account on a Daily Product Basis – windfall to ePayments

  Payment of Interest on Savings Bank Account on a Daily Product Basis – windfall to ePayments.

A safe and easy way to save your money is with a bank savings account.  A bank savings account allows you to deposit money (add money to your account) or withdraw money (remove money from your account) at any time.  In return for keeping your money at the bank, the bank pays you money, also known as interest.

Interest will be earned on the money you have on deposit at the bank.  Since you may deposit or withdraw money each day, the bank will calculate how much money you should receive in interest.  You will also receive a periodic statement from the bank listing your deposits, withdrawals, interest, and account balances.  

 At present, in our county, interest on savings bank accounts is calculated on the minimum balances held in the accounts during the period from the 10th day to the last day of each calendar month. Several banks have suggested that interest on savings bank accounts may be calculated either on the minimum balances in the deposit accounts during the period from the first to the last day of each calendar month or on a daily product basis. 

Some Banks have also opined, that the Interest Rate Structure on Saving Bank Accounts, be de-regulated. However, Reserve Bank of India is not in favor of de-regulation. The de-regulation, would have led, to severe competition amongst the Banks. Few Banks, would have offered, a higher rate of interest, but would have set-off their interest losses, by levying service charges

          As a compromise, IBA opined, shifting to the international norm of payment of Interest, on Daily Balances. However, this could be possible, only after massive computerization of the Banking Industry.

           Now, that the Banking Industry, is computerized, to a very large extent, Reserve Bank of India, vide its notification RBI/2008-09/452,DBOD. No. Dir. BC.128/13.03.00/2008-09, dated April 24, 2009, advised Banks to Pay Interest on Savings Bank Account on a Daily Product Basis.

         The above rule will be effective from 01/04/2010. The full notification can be accessed at http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=4949&Mode=0

  At present, the interest (3.5 per cent per annum) is calculated on the minimum balance held in the account from the 10th of each month to the last day of that month. So, if a bank customer has Rs 1 lakh in his savings account one day and then Rs 100 another day, the minimum balance taken for calculation of interest in the period would be Rs 100. This system, is suited, when the Interest Calculations, are done manually.

But, from April 1, 2010, the interest paid on the savings account will be on the daily minimum balance. Now even the Rs 1 lakh balance in the savings account will earn the customer interest for the number of days it was in SB.
The daily balance method adds each day’s closing balance for the whole calendar month leading to a total value say, P. The interest amount for the month then is P×3.5/36500, computed through one day’s interest on P at 3.5% p.a. This interest will be the same as that worked out based on the average balance of the month.

 

          The above step of Reserve Bank of India, will lead to more customers, to, park their funds in Savings Bank Accounts. More funds in Saving Bank Accounts mean more opportunities for ePayments to boom.

 

 

Nomination Facility to be offered on Net Banking Sites.

            Nomination Facility to be offered on Net Banking Sites.

In this era of Bank Deposits, being the flavor of the Day, Reserve Bank of India, vide its Notification - RBI / 2008-09/ 406, DBOD.No.Leg.BC.114 /09.07.005/2008-09 dt.March 9, 2009, has mandated that Acknowledgement of Nomination and indicating the Name of the Nominee in Pass Books / Fixed Deposit Receipts, be adhered to, in case THE CUSTOMER IS AGREEABLE TO IT. 

            The complete Notification, can be accessed at:-http://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=4884

            All Bank Customers, especially those holding Saving Bank/Term Deposit Accounts, should be aware of the above Nomination Notification.

It is to be noted, that only 1 Nomination can be registered for 1 Account. Percentage-wise Nomination is not possible. In case, a Customer desires multiple nominations, one option, is to split the Term Deposits, and nominate a different person, for different Term-Deposit.

Majority of the Banks, now-a-days, are happy dispatching Monthly/Quarterly Statements, instead of Pass-Books. The nominee’s details should be displayed in the Monthly/Quarterly Statements, too.

           As many customers are at ease with Net Banking, Banks as additional feature should allow the Nomination Facility to be availed through their Net Banking Sites.

As an additional precaution, Banks on receipt of the Nomination Request thru Net Banking Channels, can seek a affirmation, by emailing the details to the email id registered with the bank. On receiving the confirmation, within the specified time, the Nomination Request can be processed.