National Electronic Funds Transfer(NEFT) System-Business Continuity Plan

National Electronic Funds Transfer(NEFT) System-Business Continuity Plan

On 29^th July, 2009, Reserve Bank of India, DPSS, issued a Notification, (RBI/2009-10/108 DPSS (CO) EPPD No.192 / 04.03.02 / 2009-10 dated July 29, 2009), stressing on the need for Business Continuity Plan in National Electronic Funds Transfer (NEFT) System, of our country.

The complete Notification can be accessed at

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5191&Mode=0

The tremendous growth in NEFT Transactions in our country, heightens   the need for a effective BCP for NEFT.

Business Continuity is the ability of a business to continue its operations with minimal disruption or downtime in the advent of natural or intentional disasters. BC begins with a plan that addresses all risks and secures systems that are vital to business operations.

A good BCP must factor in all the risks, and should ensure continued availability, reliability, and recoverability of resources. It should balance the costs of risk management with the opportunity cost of not taking appropriate action.

Till now, the BCP drills used take place IDBRT and RBI’s NEFT Back-up site. Now, Reserve Bank of India, desires that Banks too should be part of such drills, atleast once in a quarter.

Of course, the costs for back-up site should not discourage Banks, in having a effective BCP in place. Innovative strategies like sharing of resources, between Banks, can 01) Bring down costs 02) Ensure adequate Trained Staff at BCP Locations.

A good BCP can act as a motivator, for the common folk, to switch over to ePayments.   

Tit-Bits Committee on Payment and Settlement Systems broadens its membership

Committee on Payment and Settlement Systems broadens its membership

ON 24^th July, 2009, Reserve Bank of India India, joined the select club of Committee on Payment and Settlement Systems (CPSS).

CPSS is part of BIS (Bank for International Settlements)

The above step will enable our country, to be part of the latest developments in ePayments. At the same time, the experience-sharing with old and new members, will aid the Indian ePayments Players, to avoid the pit-falls, for a smooth ePayments ride.

New Members which joined CPSS on 24^th July, 2009 are the central banks of Australia, Brazil, China, India, Mexico, Russia, Saudi Arabia, South Africa and South Korea.

With its newest members, the CPSS now consists of representatives from Australia, Belgium, Brazil, Canada, China, the European Central Bank, France, Germany, Hong Kong SAR, India, Italy, Japan, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sweden, Switzerland, the United Kingdom and the United States.

The expansion will enhance the Committee’s ability to contribute to financial stability through improvements to the global payments and settlement infrastructure.

The expansion will also help the Committee keep oversight practices and standards in line with market developments and with increasing interdependencies among financial market infrastructures.

QUOTE

About the Committee on Payment and Settlement Systems

The CPSS serves as a forum for central banks to monitor and analyse developments in domestic payment, clearing and settlement systems as well as in cross-border and multicurrency settlement schemes. The chairman of the Committee is William C Dudley, President of the Federal Reserve Bank of New York. The CPSS secretariat is hosted by the BIS.

UNQUOTE

The ‘Red Book’, published by CPSS can said to be the most authoritative annual publication that provides data on payments and payment systems in a large set of industrial countries.

Increase in RTGS timings-Is it required

Increase in RTGS timings-Is it required

Banks may change timings if bourses extend trading

At present RTGS Session Time on week ends is 9.00am to 6.00pm, and than again 7.00pm to 7.30pm

However, the above timings may have to be revised if SEBI, decides to incrae the market hours of trading in exchanges. The Securities and Exchange Board of India had placed a discussion paper titled “Increase in market hours of trading in exchanges” on its Web site on March 19 for seeking public comments.

Mr Namo Narain Meena, Minister of State for Finance, told the Lok Sabha in a written reply, on 24^th July, 2009 that Banks and other financial institutions are likely to change their timings if the capital market regulator were to allow stock exchanges to extend their trading hours, the Lok Sabha was informed today.

At present, the longest RTGS Session time is in New Zealand, i.e 23 hours 30 minutes on week days.

Surprised, for confirmation just visit this link

http://www.emeap.org/emeapdb/upload\Publications\rtgs.pdf

However, it is to be seen, if there will be increase in customer session timings or only inter-bank session timings, or will the settlement sessions take place, with breaks in between.

August 1, 2009 – Your Online Transactions will be more secure

  

August 1, 2009 – Your Online Transactions will be more secure

August 1, 2009-The day when the RBI’s Notification regarding an additional level of authentication using information that is not visible on the card, for online credit and debit cards, has to be implemented.

Link to my earlier Post on this Notification is accessible at

http://prashantnepayments.blogspot.com/2009/02/revolutionary-security-features-credit.html

            However, in the last couple of week, articles have started to appear in the media, that the banking industry and card consumers are not yet ready for this feature. And, they are suggesting that Reserve Bank of India, defer the implementation date(01 Aug 2009).

            In my view, the Notification was issued in Feb2009, and 6 months is sufficient time, for the consumers to be made aware of the new rule.

This Notification must have been issued by RBI, after discussions with the stake-holders, and with an view to protect the interests of the customers, service providers.

            It is to be seen, if RBI’s defers the date or prefers the new rule to come into effect.

Let the new rule come into Effect

           

ePayments - Standard Helpdesk Contact Details of Participant Banks.

ePayments - Standard Helpdesk Contact Details of Participant Banks.

One of the reasons for the low volumes in ePayments in our country, is the lack of Helpdesk’s for ePayments in Banks.

The FAQ of Reserve Bank of India, only say that the customer

QUOTE

Q13. Whom do I can contact, in case of non-credit or delay in credit to the beneficiary account?

Ans Contact your bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted at -
The Chief General Manager,
Reserve Bank of India,
Customer Service Department,
1st Floor, Amar Building, Fort,
Mumbai - 400001
or send and email.

UNQUOTE

Nothing more, nothing else

As a customer, I will be interested in resolution of my query at the earliest, as money is involved.

A query on Search Engines, for RTGS Contact Details, does not generate uniform results.

Of course, majority of the Banks have Toll Free Customer Care Numbers, which try to resolve the customer’s query.

The idealistic situation is a Toll Free Number for ePayments.

An alternate approach is to standardize the email id’s of ePayments Helpdesk of Banks.

I suggest the following format,

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ePayments-Helpdesk

Email id epaymentshelp@rest of address

Contact Phone Numbers

This information should be

01) Circulated amongst Bank’s Customers

02) Displayed in the Contact Us Link of the Banks website.

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The above step will be a major comfort factor, to customers, to venture into ePayments.

This information will also aid RTGS/NEFT Member Banks, in resolution of their queries.

Trust Reserve Bank of India, DPSS, will shortly issue a Circular for Standard Helpdesk Contact Details.