Steps to check Menace of Fake Notes-Explore Alternate Payment Modes.

Today i.e 12^/08/2009, Reserve Bank of India, has released the Final Report of High Level RBI Group suggests Steps to check Menace of Fake Notes.

The Copy of the press note can be accessed at this link

http://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=21174

The recommendations of this Report, when implemented, should reduce the fake notes menace in our country.

As a ePayment devotee, I am interested in the recommendation, that Alternate Modes of Payment need to be promoted.

One of the major recommendations of this RBI Group, to check the menace of fake notes is to promote the ePayments mode.

QUOTE 

(xi) RBI may take initiatives in promoting use of cards and electronic means of payment.

4.11 Alternate means of payment

RBI may take initiatives in promoting use of cards and electronic means of payment and encourage the installation of note detectors at places where large volume cash transactions are conducted.

4.10   Disincentivise the use of cash

Despite availability of various channels of payment systems, cash transactions form a major part of the Indian economy. It has to be recognized that processing of cash involves cost that has to be recovered. 

  

UNQUOTE

The Complete report can be accessed at

http://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=554

            The Posts on this Blog are an attempt to attract more and more Indians to the ePayments fold.

ePayments are faster, inexpensive, environment-friendly. Of course, the Users need to be aware of the security precautions for ePayments.

Come, be familiar with ePayments

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.

RTGS July 2009 Customer Outward Volumes

Today's Post is regarding RTGS July 2009 Customer Outward Volumes

01) The total volume increased by 113283 transactions and the % growth is 5.96%

The Top 10 Banks contributed 58% of the total transactions. All other banks contributed the remaining 42%

As usual State Bank of India, is the leader of the pack

Let  the volumes rise in August 2009

Cash Withdrawal from POS Terminals-Shops,Petrol Stations, Hotels-FREE OF CHARGE

Cash Withdrawal from POS Terminals-Shops,Petrol Stations, Hotels-FREE OF CHARGE

15 days has passed since RBI, has allowed withdrawal of cash through POS Terminals. It is early days, for the Program to go live. The first transaction, under this Program, is expected by the middle of next year i.e 2010.

It is relevant to note, that this Program is already up and running in other European/American countries, and therefore the basic technology is in place.

One important aspect, on which Reserve Bank of India is silent, is regarding the charges.
Maybe RBI, felt that the charges issue be determined by the market forces only.

Another important aspect is that RBI has made it clear, withdrawal of cash and purchases at the same store need not be clubbed.
The world over, cash withdrawal is clubbed together with purchases at the store.

This unique facet of the Notification, adds a new dimension to the IT to be deployed.
In my opinion, there should be the service should be FREE OF CHARGE.
The following are reasons:-

01)    Installation Cost of POS Terminal is very less compared to ATM.

02)    Operating Costs of POS Terminals are very less compared to ATM.
 

03)    Stores need not invest in additional space, manpower to offer this service.
 

04)    Through this service, stores can attract new customers.
 

05)    Through this service, stores can increase the ARPC(Average Revenue Per Customer)
 

06)    Through this service, Banks can increase the float in Current Accounts. POS Merchants have invariably the current account with the POS Terminal Banks.
 

07)     Through this service, Banks can increase the float in Savings Accounts. As a saving bank account holder, I will be willing to park my money in saving account, if I am sure, that I can withdraw anytime, anywhere. 
 

08)     At present, the Cash withdrawal from ATM’s is free in India. Hence, if a Service Fee is charged for Cash withdrawal from POS Terminals, customers will prefer to withdraw cash from ATM’s only.
 

09)    Pricing this service free, will enable customers to experience the magic of ePayments.
 

10)    Pricing the service free, will stimulate more transaction activity, in the cards, which will lower down the transaction costs.

Any more reasons, folks, for the Service to be FREE.

Visit http://prashantnepayments.blogspot.com/2009/07/emagic-withdraw-cash-from-pospoint-of_24.html

for my earlier post on this subject

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.