Mobile Banking – A tool for Financial Inclusion.

In the recent past, there have been demands to introduce Funds Transfer’s through Mobiles, outside the Banking Network, in India.

Proponents of this Proposal are of the view that such a product will aid in

01) Faster payment delivery channel.

02)                     Cheaper payment delivery channel

03)                      Efficient payment delivery channel.

They opine that the existing Bank led Model, is too restrictive/costly/not efficient.

In my opinion, a Bank Led model is more valid for our country, for the following reasons.

A non-bank led model is riskier from the Security Angel, as the transactions can be a front for illegal transactions. As the originator/receiver are mostly anonymous, it becomes difficult to trace the chain of funds, in case of any investigation.

Little drops become a Ocean. Single transfer of say Rs.1000/- day, translates into a transfer of Rs.30,000/- per month. And, Rs.30,000/- is a substantial sum.

 With concerns of Money Laundering and financial terrorism on the increase, a Bank led Model, is more attractive for Payment Delivery Systems than a Non-Bank led one.

As it is even without the Non-Bank Mobile Payment Delivery System, Money laundering prevails. Let us not provide Money Laundering, yet another Payment Delivery System!

I feel, Banks and Telecom companies and other stake-holders need to come together and develop innovate ideas to boost alternate delivery systems. This would be better, that exploring the options for a Non-Bank Payment Delivery System. A Non-Bank model too needs investment in terms of money, Software Development, Hardware Rollout.

Some Banks in India, are offering pure Internet Banking Accounts. Once the customer’s KYC norms are satisfied, a   Customer Master Number is created and provided to the customer. Basing on Customer Master Number, a customer can open accounts On Net Banking site of the respective bank.

The best example is ICICI ‘s Bank’s Branchless Banking.

This model can be accepted as a Base for true Mobile Banking, with suitable modifications. 

In fact, this model is also a can be adopted to enhance Financial Inclusion.

For No-Frills Account, this Model, will be a win-win situation for all the Stake Holders

01)                      For Bankers – They can open new accounts, without the need for physical branches.

02)                     For Customers – They have access to basic banking, which in turn will motivate them to experience the benefits of full banking services.

03)                     For Mobile Companies – This service might encourage customers to stay with a single mobile provider instead of jumping to their competitor.

The next obvious question is who will bear the costs. Of course, nothing in this world is free. The costs can be shared between the Banks and the Customers, with the Mobile Companies too underwriting a part of it.

Innovation in delivery models is the key to enhance Financial Inclusion.

Ideally, all Funds Transfer should be within the ambit of Banking Channels only.

RTGS Holidays 2010

RTGS Holidays 2010

Reserve Bank of India, has till date, not published the List of RTGS Holidays for 2010.

The RTGS and NEFT Holidays are in sync with each other, hence NEFT Holidays for 2010 are also not published.

I am seeing on Search Engines, folks have already keying RTGS Holidays 2010, as a search query.

Not sure, why folks are so much interested in RTGS Holidays 2010, right now.

Any views

Indian Bank Holidays 2010 – Himachal Pradesh

Indian Bank Holidays  2010 – Himachal Pradesh

Banking Holidays in India are to be declared under Negotiable Instrument Act, 1881.

Sec 25 of that Act speaks of that: 

QUOTE

25. When day of maturity is a holiday. When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day. 17 Explanation.-The expression " public holiday " includes Sundays: 1** * and any other day declared by the 2[Central Government], by notification in the Official Gazette, to be a public holiday

UNQUOTE

This is precisely the reason why the declaration has to be made either by the Central or State Governments.

Normally, the respective State Governments declare Banking Holidays under Sec 25 of Negotiable Instrument Act, 1881.

This power is delegated to the State Governments by the Central Government.

I reproduce here below, Bank Holidays for the Year 2010 – Himachal Pradesh

As declared by the State Government of Himachal Pradesh

QUOTE

 

 HR & Industrial Relations

No.CIR/HR&IR/H6/2009-10/2051

November 18, 2009

All Members of the Association

      (Designated Officers)

Dear Sirs,

Public Holidays for the Year 2010

in the State of Himachal Pradesh

We enclose a copy of the Government Notification containing the list of public holidays declared under the Negotiable Instruments Act, 1881 in the State of Himachal Pradesh for the Year 2010.

We have to clarify that ‘public holiday’ declared by Central/State Governments/ Union Territory, includes ‘Sundays’ as indicated under the explanation to Section 25 of the Negotiable Instruments Act.

Branches of banks working on Sundays observe their weekly-off on any other day of the week as decided by the Bank and notified to members of staff and public.  Therefore, all Sundays will be working days for Sunday working branches, except those Sundays declared as holidays by the Central/ State Government/ Union Territory for a specified festival/occasion in a particular year, under the Negotiable Instruments Act.

Yours faithfully,

(M Venugopalan)

Officer-on-Special Duty

Encl.

c.c.to:  Associate Members

                                                                                                     

UNQUOTE

Indian Bank Holidaysr 2010 – Tamil Nadu

Indian Bank Holidays 2010 – Tamil Nadu

Banking Holidays in India are to be declared under Negotiable Instrument Act, 1881.

Sec 25 of that Act speaks of that: 

QUOTE

25. When day of maturity is a holiday. When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day. 17 Explanation.-The expression " public holiday " includes Sundays: 1** * and any other day declared by the 2[Central Government], by notification in the Official Gazette, to be a public holiday

UNQUOTE

This is precisely the reason why the declaration has to be made either by the Central or State Governments.

Normally, the respective State Governments declare Banking Holidays under Sec 25 of Negotiable Instrument Act, 1881.

This power is delegated to the State Governments by the Central Government.

I reproduce here below, Bank Holidays for the Year 2010 – Tamil Nadu

As declared by the State Government of Tamil Nadu

QUOTE

 HR & Industrial Relations

No.CIR/HR&IR/H6/2009-10/1867

November 4, 2009

All Members of the Association

      (Designated Officers)

Dear Sirs,

Public Holidays for the Year 2010

in the State of Tamil Nadu

We enclose a copy of the Government Notification containing the list of public holidays declared under the Negotiable Instruments Act, 1881 in the State of Tamil Nadu for the Year 2010.

We have to clarify that ‘public holiday’ declared by Central/State Governments/ Union Territory, includes ‘Sundays’ as indicated under the explanation to Section 25 of the Negotiable Instruments Act.

Branches of banks working on Sundays observe their weekly-off on any other day of the week as decided by the Bank and notified to members of staff and public.  Therefore, all Sundays will be working days for Sunday working branches, except those Sundays declared as holidays by the Central/State Government/Union Territory for a specified festival/occasion in a particular year, under the Negotiable Instruments Act.

Yours faithfully,

(M Venugopalan)

Officer-on-Special Duty

Encl:

c.c.to:  Associate Members

    

UNQUOTE                                                                                                                                                                   

Indian Bank Holidays 2010 - Andhra Pradesh

Indian Bank Holidays  2010 - Andhra Pradesh

Banking Holidays in India are to be declared under Negotiable Instrument Act, 1881.

Sec 25 of that Act speaks of that: 

QUOTE

25. When day of maturity is a holdiay.When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day. 17 Explanation.-The expression " public holiday " includes Sundays: 1** * and any other day declared by the 2[Central Government], by notification in the Official Gazette, to be a public holiday
UNQUOTE

This is precisely the reason why the declaration has to be made either by the Central or State Governments.

Normally, the respective State Governments declare Banking Holidays under Sec 25 of Negotiable Instrument Act, 1881.

This power is delegated to the State Governments by the Central Government.

I reproduce here below, Bank Holidays for the Year 2010 - Andhra Pradesh

As declared by the State Government of Andhra Pradesh

QUOTE

HR & Industrial Relations

No.CIR/HR&IR/H6/2009-10/1902

November 6, 2009

All Members of the Association

      (Designated Officers)

Dear Sirs,

Public Holidays for the Year 2010

in the State of Andhra Pradesh

We enclose a copy of the Government Notification containing the list of public holidays declared under the Negotiable Instruments Act, 1881 in the State of Andhra Pradesh for the Year 2010.

We have to clarify that ‘public holiday’ declared by Central/State Governments/ Union Territory, includes ‘Sundays’ as indicated under the explanation to Section 25 of the Negotiable Instruments Act.

Branches of banks working on Sundays observe their weekly-off on any other day of the week as decided by the Bank and notified to members of staff and public.  Therefore, all Sundays will be working days for Sunday working branches, except those Sundays declared as holidays by the Central/ State Government/ Union Territory for a specified festival/occasion in a particular year, under the Negotiable Instruments Act.

Yours faithfully,

(M Venugopalan)

Officer-on-Special Duty

Encl.

c.c.to:  Associate Members

                                                                                                       

wf

//  COPY  //

List of Public Holidays for the Year 2010

State – Andhra Pradesh
Sr.No	Occasion	Date
1.	Sankranti/ Pongal	Thursday, 14 January
2.	Republic Day	Tuesday, 26 January
3.	Milad-Un-Nabi	Saturday, 27 February
4.	Ugadi	Tuesday, March 16
5.	Annual closing of Accounts Day	Thursday, 1 April
6.	Good Friday	Friday,  2 April
7.	Dr. B R Ambedkar’s Birthday	Wednesday, 14 April
8.	May Day	Saturday, 1 May
9.	Ramzan (Id-ul-Fitr)	Friday, 10 September
10.	Vinayaka Chavithi	Saturday, 11 September
11.	Half yearly closing of Accounts Day	Thrusday, 30 September
12.	Gandhi Jayanti	Saturday, 2 October
13.	Durga Asthami	Friday, 15 October
14.	Deepavali	Friday, 5 November
15.	Id-Ul-Zuha (Bakri Id)	Wednesday, 17 November
16.	Muharram	Friday, 17 December
17.	Christmas	Saturday, 25 December

The following festivals occur on Sunday during the year 2010.

18.	Independence Day	Sunday, 15 August
19.	Vijaya Dasami / Dussehra	Sunday, 17 October

If there is any change of date in respect of Idu’l Fitr, Idu’l Zuha, Muharram and Id-e-Milad as per the moon sight or any other holiday declared now, it shall be announced through electronic/ print media.  All the Heads of Financial Institutions in the State shall take action according to such an announcement and without waiting for formal order about the change of date.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

                                                                        -sd/-

P. RAMAKANTH REDDY,

CHIEF SECRETARY TO GOVERNMENT

  

UNQUOTE