Retail Share Market Participants – New ePayments entrants.

  

Retail Share Market Participants – New ePayments entrants.

The Share Market Participants too want to enjoy the benefits of the ePayments, especially RTGS and NEFT.

In this regard, Some DP’s have requested CDSL to implement the IFSC [Indian Financial System Code] in the DP system to enable payment through the RTGS [Real Time Gross Settlement] and NEFT [National Electronic Fund Transfer] systems. 

In this regard, CDSL has vide its communiqué, CDSL/OPS/DP/1677  Dt.August 13, 2009, to DEPOSITORY PARTICIPANTS,  announced  the inclusion of the IFSC in the CDSL system with effect from August 22, 2009.

The complete Notification can be accessed at

http://www.cdslindia.com/communiques/comresults.jsp

One practical step by CDSL in this initiative, is the inclusion of the IFSC Master List in it’s Data Base. This way, the IFSC Code provided by the DP Holder can be cross-verified , with the data-base for accuracy.

In fact, it would be practical for DP Participants to install POS Terminals at their premises, to enable DP Holders to remit their dues through Debit/Credit Cards.

This will complete the ePayments Cycle for the DP Participants.

One more step in the journey towards 100% ePayments 

  

Payment Gateway-Is it necessary

Payment Gateway-Is it necessary.

Payment Gateway-Is it necessary for an eCommerce Site, to have a Payment Gateway, for receiving payments from its customers.

Today’s Post will might convert few of acquaintances/friends/colleagues/ into my enemies.
But, I am convinced about my idea, and its ability to transform eCommerce sites in our country.

The essential feature of eCommerce site, is an stable Payment Gateway, to transfer money from their customer’s pockets to the merchant pockets.

----------------------

The most common Payment Method’s of an eCommerce Site are:-

American Express Card
Visa/Master Debit/Credit Card
Automated internet banking (selective banks

Few Sites, in addition to the above also offer:-
Cheque Deposit/ Cash Deposit/Demand Draft - - (in specified locations)

One more option, which is not yet explored by eCommerce Sites is

.Bank Transfer-from any bank.
I will call this facility as NEFT PAY
The above facility harnesses the power of NEFT to move funds from the customer’s accounts to the merchant account.

The benefits of NEFT PAY to eCommerce Sites are
01)    No need of  investment in Payment Gateway
02)    No fear of Chargeback.
03)    No Payment of any commission to Payment Gateway Providers.
04)    No fear of any Security breaches by own employees or Payment Gateway employees.


The benefits of NEFT PAY to Customers are
01)    Shop with own money, instead of resorting to credit card outstanding.
02)    High safety levels, as Credit Card/Debit Card Numbers need not be mentioned anywhere.


NEFT PAY will not be viable, in few eCommerce Sites like Air/Rail/Bus ticketing, where the commodity is in high demand, and is on first come-first serve basis.

Such sites at the most constitute 20% of all eCommerce sites.

Hence, NEFT PAY can be used in 80% of the eCommerce Sites where the goods can be shipped/delivered on confirmation of money received by the Merchant. 

eCommerce Sites- Harness the power of NEFT

Meal Cards – The Income Tax(IT) Missive

Meal Cards – The Income Tax(IT) Missive

In continuation of my post of 27^th August, 2009, on Meal Cards,

http://prashantnepayments.blogspot.com/2009/08/meal-cards-ing-vysya-bank-new-player.html

Please find enclosed the relevant link, regarding new IT Provisions, governing Meal Cards

http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/htmpage.aspx?fn=http://law.incometaxindia.gov.in/DitTaxmann/Notifications/IncomeTaxAct/2009/Not1_2009.htm

  

The major point in this Notification is that

QUOTE

vii) The aggregate amount of ready to eat food or non-alcoholic beverage purchased during a day by an employee shall not exceed one hundred rupees

UNQUOTE

Of course, the Income Tax authorities must have had a valid reason for the above clause, or they might have been mis-informed about the true benefits of Meal Cards.

I hope the second part is true, and the relevant Institutions, have taken up with Income Tax authorities and Reserve Bank of India, to popularize this ePayment Product.

In fact, I think there should not be any IT restrictions on this ePayment Product, as the complete transaction details are electronically stored, and the Issuing Institution, will have the records safely stored.

These electronic records can be called by IT Authorities, in case of any need.

There is some confusion, as to whether these provisions will apply to Meal Cards only, and not to Vouchers like Sodexho, Ticket etc.

If so, than, the Meal Cards will not be popular in our country, and Banks/Institutions will find it difficult to market this ePayment Products.

Topic of the Week- Chandrayaan-1

Topic of the Week- Chandrayaan-1

Though according to numerous reports in Indian media, contact was lost with the lunar orbiter Chandrayaan-1 abruptly -- in the middle of a communications session with Earth -- at 1:30 Indian time on Friday (Thursday, August 27, at 20:00 UTC), it is not the end of the road.

According to ISRO has completed a majority of its objectives, and the data collected will be useful for C-II launch. By 2014, Indian Space Scientists plan to launch an Indian into space and onto Moon by 2020.

A very brief history of Indian Moon Mission

• The seeds for the Chandrayaan-1 was sown on during a lecture on May 11, 1999, by the than ISRO director, Dr.Krishnaswamy Kasturirangan.

• Originally called Somayana, the Moon mission was approved in 2003.

• It was in that year that then Prime Minister A B Vajpayee re-christened it Chandrayaan during the Independence Day address.

• October 2, 2008, the spacecraft was transported by road from Bangalore to Satish Dhawan Space Centre, Sriharikota Range, Andhra Pradesh.

• At 6-22 AM on October 22, 2008, it was hoisted into space onboard a PSLV rocket.

• It entered deep space (distance of 1,50,000 km from Earth) on October 26.

• The moon-craft reached the lunar orbit (100 km from Moon) on November 12.

• The Indian tricolour painted on a 30-kg instrument (Moon Impact Probe) landed on the lunar soil on November 14, birth anniversary of late Prime Minister Jawaharlal Nehru.

• May 20, 2009, a snag onboard star sensors forced scientists to raise it to a new orbit 200 km from lunar soil.

• August 21, a unique joint experiment conducted by Chandrayaan-1and Lunar Reconnaissance Orbiter (LRO), to search for water-ice on lunar soil.

• August 29, 2009, Chandrayaan-1lost radio contact with ground station (Deep Space Network, Byalalu).

• August 30, 2009, Indian Space Scientists are determined to arrive at the Root Cause Analysis for the lost radio contact.

The cost of the Chandrayaan-1 was around Rs400crs, far less compared with its counter-parts. In a magnanimous gesture, typical of Indans, ISRO Chief Madhavan Nair, offered world scientists a chance to put their instruments onboard Chandrayaan-1 for free!!!!!1

Cheers to ISRO and to our fellow country-men

RBI Annual Report 2008-200 - Payment and Settlement Systems and Information Technology Chapter

RBI Annual Report 2008-2009

Reserve Bank of India, has released its Annual Report for 2008-09. The Annual Report is an important document to understand the nuances of Indian Economy.

The complete RBI Annual Report 2008-09, can be accessed at

http://rbi.org.in/scripts/AnnualReportPublications.aspx

It contains a number of Chapter’s and as ePayment follower; I am interested in  Payment and Settlement Systems and Information Technology Chapter.

Beginning this week, I will try to analyze the various parts of the  Payment and Settlement Systems and Information Technology Chapter.