eMagic-Withdraw Cash from POS(Point of Sales)

eMagic-Withdraw Cash from POS(Point of Sales)

A small notification by Reserve Bank of India-DPSS, has the magic to unleash the genie of ePayments in our country.

As a further step towards enhancing the customer convenience in using the plastic money, the Reserve Bank of India (RBI) has decided to permit cash withdrawals at point-of-sale (POS) terminals.

The complete Notification can be accessed at
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5184&Mode=0

To enable the customers, Banks, System Integrators, and System Solution Providers, to stablise, RBI has for the time being allowed a maximum cash withdrawal of Rs1000/- from POS.
Once, all the players are comfortable, the amount might be enhanced.

The beauty of this concept is the facility is available irrespective of whether the card holder makes a purchase or not.
In majority of the countries, Cash withdrawal from POS is allowed only when purchases are made in the particular establishment.

Reserve Bank of India-DPSS by making its intention clear in the first Notification itself, reflects the maturity of the admired Institution.

In future posts, I will be analyze in detail, the impact of this astonishing notification.

Salaam R B I

ATM Related Complaints on the rise.

ATM Related Complaints on the rise.
A lot of ATM Related complaints, have been addressed to Reserve Bank of India, in the last couple of months.

The rise in complaints is directly proportional to the increase of ATM Transactions, due to the, No Transaction Fee Facility from 1st April, 2009.
Roughly, since April 2009, the volumes have risen by 400%. And, the technology to cope with such a huge rise is not yet in place.

It is strange, that Banks, Technology Providers, were unable to visualize the huge jump in transactions.
In my view, the following couple of factors could be the reason for the stupendous spike in volumes.
01) The Average Withdrawal per transaction has come down, since the transactions are free.
02) Consumers are still not yet adequately educated about the benefit of Debit Card Transactions rather than Cash Transactions. 40% of the Cash withdrawal, is spent on locations, where a Debit Card could be employed to close the deal.

Now, it is expected that matters will be less chaotic in by this year-end, when Banks/Technology Providers will resolve the issues.

However, Reserve Bank of India, acting on the Customer’s Complaints, has issued a series of Notifications, to make life easier for the Customers. The latest Notification, is regarding Payment of Penalty Fees, for delayed reimbursement of wrong debits to the customer’s transactions.
The Complete Notification can be accessed at

http://rbi.org.in/scripts/NotificationUser.aspx?Id=5177&Mode=0

The above Notification is timely, however my Wish List is, that each ATM Booth should display the following Information

ATM ID
Customer Care Number
Customer Care Email ID



The present ATM Transaction Slip, contains the ATM ID, and it would be wonderful, if the Customer Care Number and Customer Care Email ID are also printed on the Transaction Slip.
This will make life easier for both the customers and the bank staff.

GONE IN 30 SECONDS…
An ATM must do these steps in 30 secs to make the transaction valid
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

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

Topic of the Week - 40th Anniversary of Bank’s Nationalization in our Country.

40^th Anniversary of Bank’s Nationalization in our Country.

Today(19^th July, 1969) is the 40^th Anniversary of Bank’s Nationalization in our Country.

Banking System in India is split between by nationalised banks, private sector banks and foreign banks.

The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalisation was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalised in 1969. 14 Banks were nationalized in the first wave of nationalization. The list of the 14 banks are

01) Central Bank of India

02) Bank of Maharashtra

03) Dena Bank

04) Punjab National Bank

05) Syndicate Bank

06) Canara Bank

07) Indian Bank

08) Indian Overseas Bank

09) Bank of Baroda

10) Union Bank

11) Allahabad Bank

12) United Bank of India

13) UCO Bank

14) Bank of India

Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalised in 1955 under the SBI Act of 1955.
The second phase of nationalisation of Indian banks took place in the year 1980. Seven more banks were nationalised with deposits over 200 crores.

The above nationalization has had profound impact for our economy. As with every decision, there are pros and cons of nationlisation. But, in my view, the pros are more than the cons.

The early 90’s, with the advent of liberalization, private sector banks entered the banking scene.

ePayments as on date, are dominated by private/foreign banks, though the nationalized banks, are catching up.

ePayments-Easy and Efficient.

Andhra Bank and Sri Venkateswara College – A new path in ePayments

Well surprises never cease, Andhra Bank and Sri Venkateswara College

Address : Dhaula Kuan,

New Delhi-110021.

Web Address : www.svcollege.net

Have taken the lead, in opening a new channel for payment of College Fees.

Sri Venkateswara College will be setting up two credit machines so that parents and students can deposit their fee using credit and debit cards. This is in association with Andhra Bank.

More on the above initiative can be viewed on http://www.moneycontrol.com/watchlist1/searchnews.php?call=687474703a2f2f7777772e696e6469616e657870726573732e636f6d2f6e6577732f6e6f772d7061792d666565732d62792d636172642d61742d76656e6b61746573776172612f3437383130352f

To the best of knowledge, this is the first initiative of this type in our country. The success of this payment mode will depend on the College Authorities and Andhra Bank Staff.

I am sure that this is a win-win situation for both Andhra Bank and Sri Venkateswara College.

It would be a pleasant advertisement, for Sri Venkateswara College, if its sets up a Page on it’s website, high-lighting the number of transactions through the Credit Card Machines.

Welcome more and more ideas in ePayments