Uniformity in penal interest payable by banks for delays in credit / return of NEFT / NECS / ECS transactions

Uniformity in penal interest payable by banks for delays in credit / return of NEFT / NECS / ECS transactions

As a customer friendly feature and to improve ePayments in India, Reserve Bank of India, DPSS, has issued a Notification on Uniformity in penal interest payable by banks for delays in
credit / return of NEFT / NECS / ECS transactions.

The Notification No. is RBI/2010-11/188 DPSS (CO) EPPD No.  477/ 04.03.01 / 2010-11, dt. September 1, 2010.

This Notification can be accessed @

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5976&Mode=0

Why was this Notification required:-

01)  In terms of the NEFT / NECS / ECS Procedural Guidelines as also the relevant circulars / instructions issued by Reserve Bank of India,  from time to time, member banks need to afford credits to beneficiary accounts or return transactions (uncredited for whatever reason) to the originating / sponsor bank within the prescribed timeline. Any delays in doing so attract penal provisions specified therein.

02)  The penal provisions were  not uniform across these retail electronic payment systems

03)  The spike in the NEFT/ECS transactions is an encouraging feature.

The Highlights of the Notification are: _

01)  Uniformity has been brought in with respect to the penal interest payable for delayed credits/returns across Electronic Retail Products.

02)  The new rate at which the Banks have to pay the penal interest is RBI LAF Repo Rate plus two percent.

03)  The penal interest should be credited to the customer’s account, without any specific request from the customer. THIS IS THE BEST PART.

04)  NEFT Origination Banks have been advised to ensure that the NEFT Outward transactions are executed in the next available batch. This is for both across the counter as well as online requests.

05)  In case of likelihood of delays, the customers should be informed of the same.

06)  The changes are applicable with immediate effect.

The implications are:-

01)  This will encourage Banks to strengthen their ePayments infrastructure, not only the IT part, but also the points-of-delivery.

02)  This will encourage customers to move majority of their payments from the paper mode to electronic mode.

NEFT Holidays 2010 – 11/09/2010

NEFT Holidays 2010 – 11/09/2010

RTGS and NEFT are closed on 11/09/2010. Of course, by now, ePayment users must have become familiar with the RTGS/NEFT Holidays and planned their ePayments accordingly.

ECS is closed across India, except Trivandrum location. Today Banks in Kerala are working, and there is no Holiday for either Ramzan or Ganesh Chaturthi.

10/09/2010 - RTGS is working - 10/09/2010 - NEFT is working

10/09/2010 – RTGS is working. 10/09/2010 – NEFT is working.

Public Holiday under Negotiable Instruments Act, 1881 for the year 2010, for Ramzan is spread over two days i.e 10^th September, 2010 and 11^th September, 2010

However, RTGS/NEFT is working on 10^th but closed on 11^th September, 2010

It has been a long time, since RTGS/NEFT is closed for two days in a row.

CIBIL - ePayments friendly

CIBIL – ePayments friendly.

Since last year, CIBIL is providing individual Credit Information Reports.

The fees is Rs142/- and Address Proof/Identity Proof documents are required.

Please refer to my earlier post on CIBIL, wherein I had mentioned that CIBIL is not ePayments friendly

http://prashantnepayments.blogspot.com/search/label/CIBIL

Well, I take back my words now.

Currently, CIBIL supports ePayments viz Net Banking/Credit Card/Debit Card.

The process is simple, and fast. I have tried it out, and as promised by CIBIL, it is customer-friendly.

So, all those, who want to access their Credit Information, can do so, from the comfort of their homes

THANKS CIBIL.

http://www.cibil.com/accesscredit.htm 

Syndicate Bank – SMS Alerts - Charges

Syndicate Bank – SMS Alerts - Charges

Syndicate Bank has decided to charge its customers for SMS alerts, w.e.f 01/07/2010.

The charges are applicable both to the new customers as well as the existing customers.

The relevant link is accessible @ http://www.syndicatebank.in/scripts/editnews.aspx?id=101

Syndicate Bank via its web notice has requested the existing customers, to contact their Base Branch for full details.

Hence customers would not be able to know the details vide Phone Banking or Web or any other medium.

Of course, it would have been nice, if the charges were displayed on Syndicate Bank’s website.

This would have facilitated its customers to take a informed decision, and also reduced the TAT at the Branch level.

Snippets of Syndicate Bank:

The one major contributor of Syndicate Bank to Indian Banking is the launch of Pigmy Deposit Scheme in 1928. This scheme still continues, and Syndicate Bank collects on an average Rs2crs per day.

Of course, large strides in technology have enabled the Syndicate Bank, to minimize the frauds in the Pigmy Deposit Scheme.