NEFT Volumes January 09 to October 09

NEFT Volumes January 09 to October 09

Today’s post is regarding the NEFT  Volumes from Jan 09 to Oct 09.

Source-Reserve Bank of India website.

01) There has been a steady growth; through the growth was spectacular, in June and October Months.

02)                       June Month it could be due to the Dividend Distribution by companies.

03)                       October Month, not sure.

04)                       It would be nice if Reserve Bank of India, publishes the Number of Cash Transactions-Type 50 and also NEFT Credits to Credit Cards-Type 52.

Such data, might be useful, to increase the overall transactions.

NEFT Volumes Jan 09 to Oct 09
Month	No of Transactions	Increase over previous month	% Increase over previous month
Jan-09	3,198,764
Feb-09	3,300,290	101,526	3
Mar-09	4,030,747	730,457	22
Apr-09	3,920,380	-110,367	-3
May-09	3,601,280	-319,100	-8
Jun-09	4,480,887	879,607	24
Jul-09	5,068,311	587,424	13
Aug-09	5,198,659	130,348	3
Sep-09	4,928,763	-269,896	-5
Oct-09	5,924,831	996,068	20

RTGS System - Government Receipts-Customer Mode or InterBank Mode?

RTGS System - Government Receipts-Customer Mode or InterBank Mode?

  

Well the spurt in RTGS Transactions seems to be creating problems for Government Receipts.

As per the present Government Rules, any Credit to a Government Account (maintained in Banks) should be accompanied with a specified Challan, for reconcialtion of the Government Accounts by Government Officers.

However, it seems the Government Accounts are receiving credits through RTGS. Obviously, the present RTGS System does not support the Challan format. Hence, the receiving bank is forced to RETURN BACK the funds, leading to all round dissatisfaction.

Please visit RBI-FAQ section, for more details on Credits to Government Accounts @

http://www.rbi.org.in/Scripts/FAQView.aspx?Id=61

As a interim measure, Reserve Bank of India vide Lr.No.RBI/2009-10/226
DPSS (CO) RTGS No.991/04.04.002/2009 – 2010 dt.November 17, 2009, addressed to Chairman and Managing Director / Chief Executive Officer of all banks participating in RTGS, after consultations with major RTGS Participating Banks has : -

01)                      Advised Sending Banks to remit funds to Government Accounts only when there is a bi-lateral agreement with the Receiving Bank.

02)                     The RTGS messages should invariably be sent in Inter-Bank Mode i.e. R42, and not Customer mode i.e R41.

03)                     The RTGS Inter-Bank Message should be in conformity with the Wire Transfer Guidelines i.e http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=3415&Mode=0

                It should be noted in the above Notification, for InterBank Funds transfer i.e. where both the Beneficiary and Receiver are Banks, the wire transfer guidelines are exempted.

However, in the present notification, Reserve Bank of India, Department of Payment and Settlement Systems, has advised Banks to follow Wire Transfer Guidelines, in cases of R42-Inter Bank RTGS Messages, where the ultimate beneficiary is a Government Account.

The impact of today’s (i.e. 17^th November 2009) notification will be

01)                      Streamlining of credits to Government Accounts.

02)                     Reducing dis-satisfaction at Sender/Government Level.

It is to be noted that Reserve Bank of India, is clear that this is only a temporary arrangement, till the RTGS system is readied for credits to Government Accounts. And knowing Reserve Bank of India, RTGS will be ready very soon, for credits to Government Accounts.

Reserve Bank of India’s Notification dt.17/11/2009 (17^th November, 2009) can be accessed @ http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5374&Mode=0

eMagic-Withdraw Cash from POS(Point of Sales)-Union Bank is the first Bank in this Arena

eMagic-Withdraw Cash from POS(Point of Sales)-Union Bank is the first Bank in this Arena

Union Bank is planning to be the first bank in the country to offer Cash Withdrawal Facilities at its Point of Sales (POS) Terminals, as per newspaper reports.

This facility is in accordance with : -

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5184&Mode=0

My earlier Post on this can be accessed at

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

The highlights of Union Bank of India announcement is

01)                      Launch the product by end of December 2009.

02)                     Initial target is Rural India, with 25,000 POS terminals to have this facility.

03)                     In the initial stages, this Product is accessible to only Union Bank of India Account Holders.

04)                     On stabilization, the Product to be rolled out to other Bank Account Holders too.

Union Bank of India, has again taken the lead, in introduction of new Products

Cheers, UNION BANK OF INDIA

RTGS Transactions All India January 2009 to October 2009

RTGS Transactions All India January 2009 to October 2009

Today’s Post is regarding the growth of RTGS Transactions in our Country.

The below Table shows the growth in the last 9 months.

Major Highlights:

01)  There was a fall in the transactions in April 09, as compared to March 09. This is due to the normal business cycle.

02)  The highest % of growth is observed in October 2009.

RTGS Transactions Jan 09 to Oct 09-All India
Month	No of Transactions	Increase over previous month	% Increase over previous month
Jan-09	1436951
Feb-09	1498555	61604	4
Mar-09	1941215	442660	30
Apr-09	1813195	-128020	-7
May-09	1978787	165592	9
Jun-09	2230310	251523	13
Jul-09	2346972	116662	5
Aug-09	2322862	-24110	-1
Sep-09	2433615	110753	5
Oct-09	2925034	491419	20

Payment Systems in India-Vision 2009-12

Payment Systems in India-Vision 2009-12

Part I 

Background:

Reserve Bank of India till date has published two Vision Documents on Payments Systems in India.

The first was published in 2001, and the second one in May 2005.

The Third Draft Vision on Payment Systems in India was released on 12/11/2009, by Reserve Bank of India.

This means a Vision Document every 3 years can be expected.

What is a Vision Document?

The term Vision Document is borrowed from the IT Industry, and now it is a widely used tool across all spectrums of life.

A good Vision Document communicates the fundamental "why and what" for the project and is a gauge against which all future decisions should be validated.

A vision document generally contains:

§                     Introduction

§                     Business Needs/Requirements

§                     Product/Solution Overview

§                     Major Features (Optional)

§                     Scope & Limitations

§                     Other Needs

In this aspect, Reserve Bank of India, not only released the Vision Document but also released the Accomplishments Vs statements document.

The Accomplishments Vs statements Document for Vision 2005-08 of Payments Systems in India, can be accessed @

http://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=575