RTGS – Increase in Threshold Limit – 1 lac to 2 lacs -

RTGS – Increase in Threshold Limit – 1 lac to 2 lacs -

RTGS is a familiar word for all associated with financial industry or any business. In a sense, more than the Bankers, Business users are more familiar with RTGS.

RTGS in our country was rolled out in May 2004, and in the last 6 years, the RTGS growth has exceeded all expectations.

The credit for this spectacular performance must be shared by Reserve Bank of India, IT vendors, Banks and the Bank’s Customers.

To keep up the pace in RTGS modifications, Reserve Bank of India, DPSS has announced change in the threshold amount for RTGS Transactions.

Existing Threshold Amount: Rs.1 lac.

Revised Threshold Amount: Rs.2 lacs.

The revised guidelines will be effective from 15/11/2010

The notification can be accessed @ http://goo.gl/nQCYW

Initially, there might be a fall in the RTGS volumes, but there will be corresponding increase in the NEFT Volumes.

By March, 2011, the shortfall will be covered up.

Not many changes will be required in the Bank’s infrastructure.

Only Staff at Bank’s Touch Points/Customers will have to sensitized.

However, with the revised threshold amount being widely discussed in Print/Electronic Media, business forums, etc, the news will spread fast, in a quick span of time.

Long time back, RBI, had insisted for Banks to ensure that the IFSC’s for RTGS and NEFT are common. Hence, the customer’s too would not feel the pinch of shifting transactions from RTGS to NEFT

Interbank Mobile Payment Service – 3 Charges

Interbank Mobile Payment Service – 3 Charges

National Payment Corporation of India, has left it to individual banks, to finalized the charges for their IMPS services.

NPCI, at the pilot stage is offering free of cost. Once IMPS is commercially launched NPCI will charge .25paise per successful transaction. Clearing Corporation of India will also charge Rs.200/- plus taxes (10.3%) per bank per settlement for affecting the settlement. This is apart from NPCI Charges.

There will be infrastructure and personnel charges to the Banks.

Hence, the IMPS should not be free. One other main reason, we Indian tend to mis-use any facility, when it is free.

Therefore, it would be better from Day 1, if there are charges for IMPS.

What do you say, folks?

Initially, individual Banks might offer different rates or different slabs. But, over a period of time, the charges will be uniform across the Banking Industry. 

Interbank Mobile Payment Service – 2 Unique Reference Number

Interbank Mobile Payment Service – 2 Unique Reference Number

 I have noticed folks that we Indians are warming up to the IMPS.  The Google Search analysis illustrates this.

It is a pre-requisite for all electronic transactions to carry a Unique Reference Number.

This Unique Reference Number is present in RTGS/NEFT/ATM/Credit Card/Debit Card/Net Banking/Mobile Banking transactions.

This Unique Reference number is necessary to reconcile transactions and also to resolve customer complaints, if any.

Hence, I am sure that a Unique Reference Number will be present for IMPS transactions too

IMPS will enable the Bank customers to enjoy the wonders of ePayments without Debit Card/Internet Banking/ATM Card/ECS.

Few suggestion’s, wherein the IMPS will replace cash.

Location – A superbazaar/shopping mall /chit companies / finance companies / restaurants

01) Customer completes his/her shopping, and arrives at the Billing  Counter 

02) Indicates he/she is settling the Bill through IMPS

03)                Presents a ‘Proof of Identity’, 

04)                Cashier informs the Mobile number and MMID to the customer

05)                The customer executes the funds transfer 

06)                The customer receives the confirmation SMS containing the URN 

07)                The URN is keyed into the Sales Receipt, for further reconciliation

08)                Otherwise, the URN number is noted in the Sales receipt for further reconciliation

By late 2011, Institutions would be able to roll out this feature.

Well, who would be the first-movers? It will be the finance companies as they will be able to recover their Loan installments quickly and safely.   

The above process flow is explained as a diagram below, for a enhanced understanding.

IMPS Process flow

Interbank Mobile Payment Service (IMPS) - 1

Interbank Mobile Payment Service (IMPS) - 1

The Indian Payments Industry is on the verge of a major revolution. A makeover that will alter the way Indians transfer monies amongst themselves.

The key players in this transformation are the National Payments Corporation of India, and the few Banks viz State Bank of India, ICICI, Bank of India, and Union Bank of India.

Mobile funds transfer facilities in Kenya (M-Paisa), South Africa (Wizit) and the Philippines (Smart Cash) are run by telecom companies, while the systems in the US and the UK are intra-bank.

NPCI's interbank mobile payment system (IMPS) will be the first globally to allow such transactions between individuals that will be routed in tandem through the bank and the mobile services provider.

Yes, you have read correctly, this is a Global First, wherein the Banks and the Mobile Service Providers have joined forces for funds transfer.

This is a win-win option for all the Participants.

Link for the Customer’s FAQ on NPCI site is

http://www.npci.org.in/impsFaqCust.aspx

As the FAQ’s Document comprehensive and self-explanatory, I am not repeating them here.

As on 26^th October, 2010, the customers of the following Bank’s customer’s SBI, ICICI, Bank of India, Union Bank of India, Yes Bank and Axis Bank, are part of the privilege circle, with access to ‘Interbank Mobile Payment Service (IMPS)’.

IMPS

Link to State Bank of India – IMPS is @ http://www.statebankofindia.com/user.htm

A Google search for IMPS links in ICICI, Bank of India, Union Bank of India, Yes Bank and Axis Bank websites did not yield any result.

Ultimately, all the Banks have to be part of the IMPS, or otherwise, Customer’s might prefer to shift their monies elsewhere, though they might not close the Bank Accounts.

What could eventually move to IMPS?

01)               EMI Payments – currently routed through PDC’s or ECS Mandates

02)              Microfinance repayments – currently routed in cash

03)              Locations where Debit Cards are now swiped. Ah, this is a huge market, which I feel is not explored by the IMPS players.

Tomorrow, I will explain in more about the opportunities for Corporates, in the IMPS arena.

SAY NO TO CASH, SAY YES TO ELECTRONIC PAYMENTS

SAY NO TO CASH, SAY YES TO ELECTRONIC PAYMENTS    .

I have been thinking for the last couple of weeks, to launch a campaign on SAY NO TO CASH, SAY YES TO ELECTRONIC PAYMENTS         .

Twice a month, I wish folks would use Electronic Payments for all their purchases and not Paper Cash.

Ok, let me be a little realistic,

Anything of purchase value above 2 Digits should be paid via Electronic Payments.

I propose the 1^st Sunday and last Sunday of every month.

For Starters, the following are the Dates

31/10/2010

07/11/2010

What are the modes of Electronic Payments?

Few modes are

01)                       Sodexho Coupons

02)                       Credit Cards

03)                       Debit Cards

04)                       Gift Cards

05)                       Petro Cards

06)                       Pre-Paid Cards

07)                       Cash Cards

In short, any mode which the Buyer and Seller exchange value, excluding  physical cash.

Where can the Electronic Payments facility be availed?

a)     Supermarkets

b)    Malls

c)     Cinema Theatres

d)    Petrol Bunks

e)     Multiplexes

f)      Hospitals

g)     Internet Sites

In short, any location where your needs are satisfied.

Spread the word of NO CASH, ONLY ePAYMENTS