Utility Bills Providers – Offer Cashback for early payment of your Bills

 

This is a #FinFiction Post

Just provide a cashback of 1% to your consumers and see the monies flow early into your accounts.

Consumers are willing to pay the bill within 3-4 days of the bill generated date if the respective utility companies offer a reasonable cashback.

Example 01) My Airtel Landline Account

Latest Bill Date is 12/09/2020

Due Date is 01/10/2020

Bill Amount is INR1532.00

I have opted for Kotak Mahindra Bank’s Automatic Bill Pay Module and my bank will debit my Bank Account on 27/09/2020 to remit the bill amount to Airtel.

If I am offered a cashback of say 1% i.e INR15/- for payment within 17^th September, I will pay my bill withing 17^th September, instead of waiting till 27^th September.

Like me there will be lakhs of Airtel consumers are willing to take the early payment offer.

So, will Airtel roll out this offer and make itself happy.

 

Example 02) My BESCOM (Electricity Bill) Account

Latest Bill Date is 12^th September, 2020

Bill due date is 1^st October, 2020

Bill amount is INR1729.00

 I have opted for Kotak Mahindra Bank’s Automatic Bill Pay Module and my bank will debit my Bank Account on 22/09/2020 to remit the bill amount to Airtel.

If I am offered a cashback of say 1% i.e INR175/- for payment within 17^th September, I will pay my bill withing 17^th September, instead of waiting till 22^nd September.

Like me, there will be lakhs of BESCOM consumers willing to take the early payment offer.

So, will BESCOM roll out this offer and make itself happy.

 

The cashback offer can be dynamic integrated with BBPS at the time of Fetch and Pay option.

Basing on the Fetch and Pay Date, the cashback amount can be calculated and displayed to the customer.

 

OR

The cashback offer can be static, i.e Bill Date 12/09/2020, pay before 17/09/2020 and get a cashback of % in your next bill.

 

 

 

 

 

One Nation One Card Mobility Card to Go Live at Delhi Phase IV Metro Stations

 

Delhiites have to wait for a pretty long time to use the NCMC Mobility card at Delhi Metro stations.

As per the current plans, Delhiites will be able to use the NCMC on the Delhi Phase 4 metro stations.

The first train under Delhi Metro Phase 4 is planned to go live only in 2024 or 2026.

The exact launch dates will be announced once the construction works pick up speed and there is clarity on the end dates.

Prime Minister Narendra Modi in March 2019 had launched the indigenously-developed NCMC to enable people to pay multiple kinds of transport charges, including for metro and bus services across the country, through a common card.

However, in a major boost to travelers on the Delhi Metro Airport Express Lines, NCMC is expected to go live by this year-end.

Basically, the Delhi Metro Airport Express Train Line is independent of the main DMRC. It has its own AFC (Automatic Fare Collection) system. Hence, its bit easy for DMRC to integrate the NCMC into the Airport Express AFC.

The Delhi Metro Airport Express train line, known as the Orange Line, opened in February 2011.

A much-anticipated part of Delhi's expanding Metro train network, it cuts travel time to Delhi airport from at least one hour to about 20 minutes.

Trains, imported from Spain, travel the 22 kilometers (13.7 miles) at 120 kilometers per hour. Almost 16 kilometers (10 miles) of the track are underground.

DMRC Chief Mangu Singh Quote

“We are working to continuously improve our system, with better technological and other interventions, to improve our rolling stocks and energy efficiency. In Ph-IV, our AFC system will fully accept the national common mobility cards, which can be used in any cities,” he told PTI.

“Also, a mobile phone will effectively work as smart card, and riders will be able to use to enter or exit the AFC gates, in Ph-IV lines,” Mr. Singh said.

The managing director of the Delhi Metro Rail Corporation, however, underlined that e-payment system and technology are fast-evolving and by the time the Ph-IV work is complete, new technologies may emerge.

“But, we have been working on it for quite some time, and the facilities of NCMC and entry and exit using mobile phones might be available by the end of this year on the Airport Express Line” he added.

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Under the approved segment of Phase-IV, 61.679-km of new metro lines shall be constructed across three different corridors comprising 45 metro stations. 

These new sections shall provide interconnectivity among the already operational lines of the Delhi Metro.  Out of this, 22.35 kilometres will be underground.

 

The 3 approved corridors are:

Mukundpur-Maujpur - 08 stations

R K Ashram-Janakpuri West  22 stations

Aerocity-Tughlakabad - 15 stations

 

Revolut Digital Bank official launch in Japan with subscription-based Billing

 

Digital banking service Revolut officially launched in Japan after a successful beta launch, a couple of days back.

            Revolut after a successful beta launch for its premium accounts has now expanded its offerings to the general public.

            The fintech is entering Japan with 3 subscription-based accounts. Account-holders have to pay to Revolut the subscription fees as per their chosen account type.

The tag line of Revolut pricing plans is " Our Pricing Plans - No surprises, just fair and honest pricing. Simply choose a plan with the features that you want."

            The 3 subscription-based accounts types are:

01)  Standard @ ¥0/m

02)  Premium @ ¥980/m or INR677/- as per present forex exchange rates

03)  Metal @ ¥1800/m or INR1244/- as per present forex exchange rates

 

Read more about Revolut Japan pricing plans @

https://www.revolut.com/en-JP/our-pricing-plans

 

Quote:

Nikolay Storonsky, CEO and founder of Revolut, said: “When spending or transferring money overseas, most people are unaware of the hidden fees that banks are charging them.”

“According to a report from the World Bank, international remittance fees in Japan are 2 times higher than in the US. The world is becoming more connected, and financial services should be supporting this, not hindering it.”

Unquote

As well as cutting remittances costs, Revolut users in Japan will have access to the fintech’s ‘super app’ which will allow them to track and budget their spending, split bills and create savings pots.

As reported, Revolut’s initial rollout in Japan will be limited to “international transfers” and “managing money in 23 currencies.” Registered users will also reportedly receive a Revolut-branded Visa debit card.

The Revolut App has so far been downloaded mostly by expats. The subscription plans may appeal to the local residents to try this out.

Subscription-based services are popular in Japan.

The Japanese subscription market broadly covers eight industries including fashion, restaurants and entertainment.

According to Yano Research Institute, the Japanese subscription market, covering eight industries, was estimated to be worth ¥562.74 billion ($5.18 billion) in fiscal 2018 ended last March. That’s projected to reach ¥777.80 billion in fiscal 2021 and ¥862.35 billion in 2023, it said

Toyota Motor Corp. became the first Japanese automaker to introduce a subscription-based car-leasing service. Hyundai Motor Co., Porsche AG and Ford Motor Co. already offer subscription services overseas.

In the beverage industry, Kirin Brewery Co.’s Home Tap service delivers 4 liters of fresh, direct-from-the-factory beer, to homes for a monthly fee of ¥8,100. The company attempted to reach consumers willing to pay more for a higher-quality product rather than those wanting to save money, but temporarily had to stop accepting orders for Home Tap due to strong demand.

So, the subscription-based Revolut plans are not new to Japanese residents, and they may be willing to try out the 2 fee-based plans.

  

Reference Articles:

01)  UK's Revolut launches digital banking app in Japan @ https://asia.nikkei.com/Business/Finance/UK-s-Revolut-launches-digital-banking-app-in-Japan

02)  Revolut Rolls Out Core App Services in Japanese Market @ https://www.financemagnates.com/fintech/payments/revolut-rolls-out-core-app-services-in-japanese-market/

 

Parentlane – India’s first Biller under the NPCIs BBPS Subscription category

 

In line with NPCIs BBPS Team philosophy new biller categories are being added to the BBPS (Bharat Bill Payment System) platform.

The latest biller category on BBPS is ‘Subscription Category’.

Subscription Bills are bills for services availed frequently. Subscription can be

01) for physical goods i.e Delivery of Milk every day, alternate day, only on weekends etc

or

02) for services eg., access to Gym daily over a month, quarter etc.

Under the subscription billing model, the customer pays in advance for a defined period to avail the goods or services.

Normally, at the end of the billing period, the charges for the next billing period are collected via Standing Instructions setup.

With subscriptions, customers make recurring payments for access to a product or service. A subscription might not seem much different from a one-time purchase of a t-shirt or water bottle.

To manage subscription payments, billers need to retain more information about its customers, so customers can be charged automatically in the future and maintain have access to your product.

Billers which specialise in specialised categories and do not fall under the broad biller categories i.e Electricity Bills, Phone Bills, Taxes etc can be clubbed under Subscription Biller Category.

‘Parentlane’, is one such biller which offers specialised services and does not fit into the broad biller categories.

Hence, the Subscription Biller Category fits Parentlane correctly.

Quote

Parentlane is India's first AI powered digital health platform empowers the new millennial women & doctors to monitor key indicators, get insights and proactive care solutions right from fertility, pregnancy till the baby's age of 5 years for a healthy development.

Parentlane is Incubated at Accel Partners Startup Pad, Bangalore and have raised Angel round of funding from Prominent Entrepreneurs

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Access the Parentlane website @ https://www.parentlane.com/

As of now, Parentlane has tied up with Razorpay to collect the recurring payments. Customer has to enter the Card Details and choose the subscription plan. Future payments on the chosen card will be done automatically as per the subscription plan.

The Payment facility via BBPS is not yet updated on Parentlane website. Hopefully, the same will be updated in the next couple of weeks.

 

Karnataka Government – Please onboard BBPS for Loan Recoveries

 

Reference Article for this Blog @ https://www.newindianexpress.com/states/karnataka/2020/aug/22/poor-can-pay-home-loans-via-pigmy-collectors-2186886.html

Synopsis: Rajiv Gandhi Housing Corporation Limited is the nodal agency for enabling affordable flats in the government constructed apartments to the EWS (economically weaker sections) in Karnataka.

Under some schemes, the house owners have to repay the Loans granted by Rajiv Gandhi Housing Corporation Limited.

Karnataka Housing Minister V Somanna desires that there should be a frictionless way of loaner payment by the housing loan borrowers.

One option is collection of loan amounts on a daily basis by Pigmy Collectors ‘ .

****

Rajiv Gandhi Housing Corporation Limited was created in the year 2000 as a special purpose vehicle “To provide housing for socially and economically weaker sections of the society through effective implementation of Central and State housing schemes”.

 The Pigmy Collection process is a huge success in Karnataka. The Pigmy Collection process was pioneered by Syndicate Bank. The same was replicated by numerous financial institutions across the country.

In the present digitisation era, BBPS is beneficial over Pigmy Collection process. BBPS is a product of NPCI and is 100% Indian.

The transactions on the BBPS platform and is fast becoming the de-facto mode for a variety of Billers.  

A number of Banks are also familiar with the BBPS System Architecture and the integration with Rajiv Gandhi Housing Corporation Limited can be done seamlessly.

In fact, Karnataka can take the lead in driving loan recoveries via BBPS. The model if goes LIVE, can be replicated by other State Governments too.

To encourage Loan Borrowers to repay via BBPS without any breaks, a Reward Program can be designed.

This reward program can be a great motivator for the borrowers to pay regularly and minimise defaults.

Motivators: Reward Program for high performers

01) INR51/- cashback for the first loan repayment of the Day. The day starts at 12:01am

02) INR52/- cashback for the last loan repayment of the Day. The day ends at 11:59pm

03) INR53/- cashback to the highest loan re-payer of the Day. EG: One person may pay INR100/-, another personINR300/- another person INR500/- on the same day. So, cashback of INR53/- can be given to the person who has paid INR500/-.

04) INR21/- cashback to persons who have continuously paid for Seven Days. The payment can be little as INR25/- on a single day.

05) INR101/- cashback to persons who have continuously paid for Fifteen Days. The payment can be little as INR25/- on a single day.

06) The Cashback awards to be announced every working day by 11.00am. This will build up the excitement.

07) Brief details of the daily award winners can be highlighted in the social media pages of the respective departments. This will build up the excitement to repay every day, whatever small amount it may be.

08) The cashback amounts can be reset as per public demand.   

 

Loan Collections via BBPS is very simple and can be done by the Loan Borrower/immediate family without much effort.

A)     Rajiv Gandhi Housing Corporation Limited onboards BBPS as a biller.

B)     RGRHCL Loan Recovery Module is linked to BBPS. The module should be capable of real-time data capture.

C)     Online Repayment – Net Banking/Mobile Banking/eWallets/Apps like PhonePe, Paytm, Google Pay, NPCI-BHIM etc.  The Loan Borrowers log into any BBPS App and initiate the loan repayment.

D)    Offline Repayment – i.e Cash. The Loan Borrowers walk into any BBPS Physical Counter and repay the loan amount via Cash Deposit.  

 

 

Quote:

Poor can pay home loans via pigmy collectors

The state government, which claims it to be the first such initiative in the country, is expected to launch it by the first week of September.

 

The Department of Housing is soon introducing a novel way for the poor, who have bought affordable flats in the government constructed apartments, to pay home loans easily. Instead of paying equated monthly instalments (EMIs), they can opt to pay small amounts every day through pigmy collectors.

 

The state government, which claims it to be the first such initiative in the country, is expected to launch it by the first week of September. Over one lakh flats are under construction now, of which 50,000 are in BBMP limits. Under the housing scheme for economically weaker sections, a one-BHK house would cost Rs 10.56 lakh, of which the state and central governments give a subsidy of Rs 2.71 lakh for general and Rs 3.50 lakh for SC/ST beneficiaries.

 

The government has selected close to 86,000 beneficiaries. Two BHK costs Rs 15 lakh and will be allotted through auction. Payment options for 2BHK will be initiated later. Rajiv Gandhi Housing Corporation Ltd chairman Ram Prasath Manohar said the novel initiative is the brainchild of Housing Minister V Somanna. Most of the beneficiaries are daily wage workers, who may find it difficult to pay EMIs.

 

“That’s why we are introducing the pigmy system, where one can pay every day Rs 50-100 to the authorised pigmy collector. We will draw pigmy collectors from banks, and each collector will be given 100 beneficiaries and a hand-held device. They will go to the doorsteps of beneficiaries, collect the amount and enter the amount on the machine on the spot. Immediately, an SMS alert will be sent to the beneficiary,’’ he said. The housing project is expected to be completed by 2022.

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