NEFT New Features from 01/March/2010 (01/03/2010)

   NEFT New Features from 01/March/2010 (01/03/2010)

        Today a ground-breaking Circular was released by Reserve Bank of India’s, Department of Payments and Settlement System, on new features in National Electronic Funds Transfer (NEFT) System

The Circular No is :RBI/2009-10/305 - DPSS CO EPPD No.168 / 04.03.01 / 2009-2010 dt.February 5, 2010 addressed to  all - The Chairman and Managing Director / Chief Executive Officer of all member banks participating in NEFT

It can be accessed @

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5489&Mode=0

I require some time to digest it and present it to the benefits of the viewers.

In short, the Diagram hereunder, will provide a Bird’s eyeview.

Andhra Bank-Drive Up ATM inaugurated.

   Andhra Bank-Drive Up ATM inaugurated.

Andhra Bank has taken 1 more customer-friendly step in the ePayments Arena. On 29/01/2010, Andhra Bank's Executive Director, Sri Anil Girotra, inaugurated  Bank's  1st  Drive Up  ATM  in  India  at  the prestigious  Secunderabad  Club, in Secundrabad.

Hyderabad-Secunderabad are twin cities.

The Details can be can be accessed at Andhra Bank's website, and also at the following links:-

http://ww.smashits.com/video/snoop/590/first-drive-up-atm.html

http://news.webindia123.com/news/articles/India/20100129/1435193.html

Drive Up ATM's will encourage customers to try the other options available in the ATM, apart from the normal routine of withdrawing Cash.

In fact, I personally feel, that the Drive Up ATM's should be accessed for options other than Cash.

What is a Drive Up ATM?

A Drive Up ATM is free standing ATM, in which the customers can execute the ATM Transactions from the comfort of their vehicles.

This is the main differentiator between a Drive Up ATM and a normal ATM.

In a normal ATM, the customers have to enter the ATM Lobby to execute the ATM transactions, however in Drive Up ATM's the customer can execute the transactions from the comfort of their vehicles.

Can this be treated as a Product Launch?

Strictly speaking it is not a product launch, but definitely a sub-product launch.

This can be a good brand-building exercise for Andhra Bank.

Apart from the normal precautions to be adhered in ATM transactions, the customers have to extra-vigilant while accessing a Drive Up ATM.

In my view, this are the most important things to be kept in mind.

1.      Be sure, no one is watching you, when you are withdrawing Cash from a Drive Up ATM.

2.      As far as possible, transact only when you have company with you.

3.      Make sure all passenger car doors are locked and windows are up.

4.      Do not leave your car unlocked or the engine running when you get out to use an ATM.

As Andhra Bank has located it's first Drive Up ATM in Secundrabad Club, the security aspect must have been taken care.

The 70%/30% Vision Document-Part 1

The 70%/30% Vision Document-Part 1

Part 1:-

Is the 70% Electronic-30%Paper a realistic target ?

          Today I am starting a new series of Posts. The Series Title is the “The 70%/30% Vision Document”

 This is in line with the Vision of  Shri.Hota, CEO of NPCI National Payments Corporation of India.

In this Series, I would be concentrating as to what marketing methodologies can be adapted to convert India’s Current Payment Ratio of 30% Electronic-70%Paper to 70% Electronic-30%Paper in the next 5 years.

First of all, is the 70% Electronic-30%Paper a realistic target?

Yes, in my opinion this is a realistic target. This is within the availability of resources in our country, within the knowledge in our country and within a time-frame of 5 years.

What do electronic payments constitute?

Electronic Payments means movements of funds via Real Time Gross Settlement (RTGS)/National Electronic Funds Transfer (NEFT)/Electronic Clearing Service (ECS)-both Credit and Debit Variants/ATM’s.

Mobile Banking/Internet Banking can also be an indirect part of Electronic Payments, though funds transfer within Banks will again be a part of RTGS/NEFT.

Payment System, can said to be supporting system for  transfer of funds from suppliers (savers) to the users (borrowers), and from payers to the payees, usually through exchange of debits and credits among financial institutions.

It consists of a paper-based mechanism for handling checks and drafts, and a paperless mechanism (such as electronics funds transfer) for handling electronic commerce transactions.

As long as the human society survives, the need for a Payment System will be there.

To achieve any objective a mix of persuasion and official directions are necessary.

When persuasion fails than official directions might do the trick.

Apart from Individuals, who are the main components of the Payment System i.e who order funds to be transferred from one Bank Account to another Bank Account.

I will divide this into 2 parts i.e The Receiving part and the Giving part.

GIVING PART:_

01)  The Banks themselves.

02) Mutual Funds.

03) Insurance Companies.

04) All Salary Disbursements whether Government or private.

05) Telecom Companies.

06) Dividend Payouts by Public Companies.

07) Media Houses.

08) Finance Companies.

Receiving Part:-

01)  The Banks.

02)  Mutual Funds.

03) Insurance Companies.

04) Government -  Taxes.

05) Telecom Companies.

06) Dividend Payouts by Public Companies.

07) Media Houses.

08) Finance Companies.

09) Oil Companies.

10)  Stock Exchanges.

The above list is only a sample and not an exhaustive. Readers are welcome to suggest any additions to the above list.

Over the next couple of months I will be writing in detail, the mechanism through which the  Current Payment Ratio of 30% Electronic-70%Paper can be moved  to  70% Electronic-30%Paper, in  each sector.

Andhra Bank – Launch of Telebanking

Andhra Bank – Launch of Telebanking

Andhra Bank, has taken one more step to listen to it’s customers by the launch of Tele-Banking.

Tele-banking has been introduced on completion of the Core Banking Solution (CBS) roll-out.

For Tele-Banking to be successful, a CBS in place is a pre-requisite. Otherwise, customer data residing in various Physical Locations, across different Software Platforms, will defeat the Tele-Banking experience.

Hence, in my opinion Andhra Bank has taken the right step of launching Tele-Banking, only after ensuring that CBS is complete.

Tele-Banking is an important tool, to reduce the customer’s queries at the branch level. At the same, Tele-Banking, aids an organization to deliver superior customer service.

The Details of the various current facilities Andhra Bank offers through its Tele-Banking Channel, can be accessed at

http://www.andhrabank.in/scripts/telebanking.aspx

The instructions are simple, easy-to-understand and satisfy 50% of the customer’s requirement.

Of course, like every new launch, there will be initial hiccups. But, I am sure Andhra Bank’s Team; view’s such hiccups, as a learning process, to enhance customer delight.

Delighted customers are those where you anticipate their needs; provide solutions to them before they ask and where you are observing to see if new and/or additional expectations are about ready to be required.

This is all "easy to say and difficult to do"; but, through commitment and practice you will soon achieve positive results. 

To me Tele-Banking is an important tool, for marketing ePayments amongst the customers.

The Customer Service Executives at the Tele-Banking can be guided to recommend ePayments to customers.

I personally feel, that Customer Service Executives, will receive more calls enquiring about RTGS Credits, than any other queries!!!

HFDC Bank ATM’s – 40% faster

 

HFDC Bank ATM’s – 40% faster

The race to retain the ATM Transactions on their network has begun amongst the banks.

An ATM transaction of its customers on its own network is cheaper than the same transaction on another bank’s ATM Network. This is because the Bank need not pay Interchange Fees for transactions on its own Networks. Plus, the more number of transactions, the lesser will be the average ATM maintenance cost.

At the same time, with more and more features being added to ATM’s, it makes sense for Banks to encourage customers to use their own ATM Network, instead of other banks ATM’s.

Hence, a differentiator is vital, to attract its own customers to its ATM Network.

In this regard, Corporation Banks, facilities viz:NEFT Transfer, Tax Payments at its ATM, is a pioneer.

HDFC bank has taken a different route, and is focusing on the primary purpose of an ATM i.e to dispense Cash.

The readers are familiar with the ‘Myfavourite’, jargon in PC’s/Mobiles/TV’s/Ac’s/Washing machines/Web browsing.

HDFC has extended the ‘Myfavourite’ theme to its ATM’s too.

It has reduced the steps necessary to withdraw Cash from its ATMs, by inserting a ‘Myfavourite’ option.

More details can be accessed at http://www.hdfcbank.com/personal/Access/ATM/atm_faster.htm

The ‘Myfavourite’, option apart from speeding up the transaction time, also aids HDFC Bank in reducing the Electricity cost at its ATM’s and also aids in t

the increase of average number of transactions.

To make this new option, HDFC Bank has unveiled a TV Advertisement campaign.

I am wondering whether the ‘Myfavourite’, option is open only for HDFC Bank Account Holders or is it accessible to other Bank Account holders too?

Ok, folks, I am an optimist!!