7 Merchants go Live on UPI Autopay – Hm, Not fully Live!!

         NPCI has launched the functionality of UPI AutoPay for recurring payments.

With this new facility introduced under UPI 2.0, customers can now enable recurring e-mandate using any UPI application for recurring payments such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds among others.

Recurring payments can be defined as payments that

are made every month or at least once in three months.

The following Seven Merchants as per NPCI website are Live on UPI AutoPay as on 15^th January 2021.

1.    Angel Broking

2.   CRY

3.   Goonj

4.   CAMS

5.   The Hindu

6.   PayG

7.   Danamojo

However, few merchants have yet to update the UPI AutoPay facility on their website. Hopefully the merchants will update the UPI AutoPay process on their websites very soon.

 

Angel Broking: Angel Broking has become the first in the industry to offer Unified Payment Interface (UPI) AutoPay for mutual funds, the company said. It has received approval from the National Payments Corporation of India (NPCI) for the new service.

This new implementation will simplify the process while cutting down the e-mandate authentication time to less than a minute, Angel Broking said in a statement. UPI AutoPay will eliminate the e-mandate registration cost as well and has "made its management possible with the touch-of-a-button experience".

The complete statement can be read @ https://www.livemint.com/mutual-fund/mf-news/angel-broking-to-allow-upi-autopay-facility-for-mutual-fund-11604660144945.html

 

CRY: As per CRY website, it's Vision is " A happy, healthy and creative child whose rights are protected and honoured in a society that is built on respect for dignity, justice and equity for all."

    As on date, CRY website does not mention about UPI AutoPay as a way to donate.

In case you wish to know more about CRY option for UPI AutoPay drop an email on

cryinfo.mum@crymail.org and wait for a response.

Goonj: As per Goonj website, Goonj envisions to grow as an idea across regions, economies and countries using urban discard as a tool to alleviate poverty and enhance the dignity of the poor in the world. Address basic but neglected issues of the poor by involving them in evolving their own solutions with dignity and urban material as reward.

As on date, Goonj website does not mention about UPI AutoPay as a way to donate.

In case you wish to know more about Goonj option for UPI AutoPay drop an email on mail@goonj.org and wait for a response.

 

CAMS: CAMS offer’s UPI AutoPay via CAMSPay. CAMSPay is a Bespoke payment platform built for Mutual Funds, NBFCs and Insurance companies to collect payments from their customers.

In fact, Angel Broking offers UPI AutoPay to its customers via CAMSPay only.

Read more @ https://www.livemint.com/mutual-fund/mf-news/angel-broking-now-allows-upi-autopay-for-mutual-funds-11604558857577.html

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Angel Broking has partnered with CAMSPay to process UPI recurring payments. The service will be integrated into its other platforms shortly as well.

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The Hindu: The Hindu website has a detailed FAQ page regarding the various subscription plans.

The complete set of FAQs can be read here : https://subscription.thehindu.com/recur_subscription

The UPI Autopay for recurring subscriptions is yet to be officially announced on ‘The Hindu’, website.

The following specific FAQs may be helpful:: -

16. How are digital subscriptions billed?

As a digital subscriber, you can pay via debit or credit card, net banking, e-wallet, UPI.

 

UPI and e-wallet and net banking are not applicable if you have opted for a recurring plan.

______

31. What does a recurring plan mean?

If you have selected a recurring plan, your subscription will get renewed automatically when it expires, and payment will be deducted from your connected account. Right now, recurring plans are available only on the 1-month and 1-year plans for our first time subscribers.

 

37. What payment modes are accepted for recurring payments?

Recurring payments are available via all credit cards, select debit cards (CITI, ICICI, PNB, KOTAK). It is not available for payments via UPI, wallets and net banking payment modes.

    In case you are interested to more about ‘The Hindu’, UPI AutoPay feature, drop a mail @  customersupport@thehindu.co.in and wait for response.

PayG: PayG- Unified Platform!. As per PayG's website, PayG is a customized, fully integrated, Omni channel payment solutions provider will help your business to grow by collecting payments from customers easily and securely through any device in any mode.

PayG has a dedicated webpage regarding UPI AutoPay. The page can be accessed @ https://payg.in/upi-autopay-the-next-generation-payment-platform.html

danamojo: danomojo tagline is " experience the magic of giving". As per danomojo website, it is 'India’s first payment solutions platform for NGOs'.

The UPI AutoPay is enabled on danomojo website but is valid only for UPI users holding an ICICI or SBI UPI id.

Please refer to the below screenshot for more details.

 

Disclaimer: These are my personal views only. Trademarks if any rest with the original trademark owners only.

LEI makes a debut in Centralised Payment Systems

 

        Reserve Bank of India vide Cir No RBI/2020-21/82 DPSS.CO.OD No.901/06.24.001/2020-21 dt. January 05, 2021 laid down the road map for ‘rollout of Legal Entity Identifier for Large Value Transactions in Centralised Payment Systems’.

        The circular is addressed to ‘The Chairman / Managing Director / Chief Executive Officer of member banks participating in RTGS / NEFT’

Q: What is The Legal Entity Identifier (LEI)?

Ans: The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial transactions worldwide.

Legal Entity Identifier (LEI) was conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.

Q: What is the Legal Entity Identifier (LEI) background?

Ans: LEI has been introduced by the Reserve Bank in a phased manner for participants in the over the counter (OTC) derivative and non-derivative markets as also for large corporate borrowers.

The first circular on LEI was issued by Reserve Bank of India in November 2017, vide Cir. No RBI/2017-18/82 DBR.No.BP.BC.92/21.04.048/2017-18 dt. November 02, 2017

 

Q: What are the attributes of the of Legal Entity Identifier (LEI) ?

Ans: The International Organization for Standardization (ISO) 17442 standard defines a set of attributes or legal entity reference data that are the most essential elements of identification. The Legal Entity Identifier (LEI) code itself is neutral, with no embedded intelligence or country codes that could create unnecessary complexity for users.

 

The ISO 17442 standard specifies the minimum reference data, which must be supplied for each LEI. This data is usually referred as Level 1 Data - Who is who:

Q: What is the structure of Legal Entity Identifier (LEI)

Ans: An LEI number (Legal Entity Identifier) is a unique identification number which is issued to companies which operate in the global financial system. LEIs are based on ISO standard 17442:2012.

An LEI is issued only once for each company and consists of 20 characters:

·        The first 4 characters are unique to the LOU which has issued the LEI.

·        The 5th and 6th characters are the same for each company – 0.

·        The following 12 characters consist of letters and numbers and are unique for each company.

·        The final 2 characters are known as the checking characters.

The first LEIs were issued in December 2012. As of 3 January 2018, LEIs are mandatory for all companies that trade in securities.

Q: What is the change in Reserve Bank of India Cir No dt No RBI/2020-21/82 DPSS.CO.OD No.901/06.24.001/2020-21 dt. January 05, 2021?

Ans: RBI has intimated respective participants to roll-out the LEI system for all payment transactions of value ₹50 crore and above undertaken by entities (non-individuals) using Reserve Bank-run Centralised Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).

Q: What are the preparatory steps advised by RBI for the LEI rollout?

Ans: In preparation for the wider introduction of LEI across all payment transactions, member banks should:

advise entities who undertake large value transactions (₹50 crore and above) to obtain LEI in time, if they do not already have one;

Q: In what fields should the LEI Number be included in RTGS and NEFT Payment Messages?

Ans: Banks should include remitter and beneficiary LEI information in RTGS and NEFT payment messages (details of the identified fields in the messaging structures of RTGS and NEFT for inclusion of LEI information are at Annex);

Q: How can the entities obtain LEI?

Ans:  Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF), the body tasked to support the implementation and use of LEI.

In India, LEI can be obtained from Legal Entity Identifier India Ltd. (LEIL) (https://www.ccilindia-lei.co.in), which is also recognised as an issuer of LEI by the Reserve Bank under the Payment and Settlement Systems Act, 2007.

Q: What is the effective roll out date of this directions?

Ans: The rollout date is April 1, 2021.

 

Annex:

Bank Customers who must obtain LEI - All non-individual customers initiating or receiving transactions of ₹50 crore and above through RTGS and / or NEFT.

Fields in NEFT and RTGS payment messages to be used for recording Remitter and Beneficiary LEI :

·        For RTGS customer payment transactions, LEI information shall be provided in ‘Remittance information’ field.

·        For NEFT outward debit messages, LEI information shall be provided in ‘Sender to Receiver Information’ field.

 

#OruTeaSollunga – BharatPe and Tata Tea Chakra Gold please rollout out across India to boost UPI Transactions

             The race towards #2billionUPI is in full pace and the challenge is to finish off this October 2020 month with 2 Billion UPI transactions. Nothing more, Nothing less.

            Any initiative to boost UPI transactions is welcome.

            One such initiative to boost UPI transactions i.e #OruTeaSollunga caught my eye.

            At this moment, this campaign is restricted to Tamil Nadu. However, tea from local tea vendors is a favourite across India. Many long-lasting friendships have blossomed over a cup of tea around the tea vendor shop.

            This campaign can be rolled-out across India with focus on Tier III to Tier VI towns or still smaller towns.

            As the initial infrastructure is already in place, it will not be difficult for a Pan-India rollout.  

How # OruTeaSollunga can boost UPI Transactions?

01)  Motivate local tea vendors to onboard the digital transactions platform

02)  Motivate the local tea vendors clients to pay their tea purchases via UPI only.

03)  As the confidence levels increases, both the tea vendors and their clients will prefer UPI as the payment mode.

 The way ahead –

·         Extend this campaign across India, with local hashtags

·         Let the micro-donations of INR10/- per tea cup flow from across India into the designated pool account

·         Encourage local tea-vendors to opt for UPI QR Merchant codes. Design a unique QR display board

·         Set a limit of 100 teacups per Merchant per day. Once the 100 teacups limit is reached, transfer INR100/- or any other amount as decided by the Operations Committee, to the merchant from the designated pool account.

·         Announce the daily collection and daily disbursements by 9 am every day

·         Let the campaign run till 30th June 2021.

·         Stop the collections from 1^st July 2021, and let the disbursements continue till the funds in the designated pool account become ZERO

·         Highlight the fastest tea vendors i.e who have reached the set target very early through dedicated YouTube videos.

 

 

Safeguards:

·         KYC to ensure that the same physical location does not have more than 1 associated UPI QR Merchant code i.e same merchant obtaining more than 1 QR Codes for the same physical location.   

·         Valid Transactions are only price of 1 Cup tea or multiples

·         Purchases towards other items available with the local tea seller are not valid

·         The vendor should on board the program on trial basis for 30 days and basis the data collected; velocity levels be set up. This is to minimise fraudulent transactions.

 Additional Reading:

a)      BharatPe banner @ https://oruteasollunga.bharatpe.com/#/

b)      Tata Tea Chakra Gold launches campaign to support tea shops in Tamil Nadu  @ https://brandequity.economictimes.indiatimes.com/news/advertising/tata-tea-chakra-gold-launches-campaign-to-support-tea-shops-in-tamil-nadu/75826981

c)       Tata Tea’s #OruTeaSollunga campaign aimed at getting Chai Kadais back to their feet @ https://www.thehindubusinessline.com/companies/tata-teas-oruteasollunga-campaign-aimed-at-getting-chai-kadais-back-to-their-feet/article32819456.ece

d)      Executive Summary of Study on Domestic Consumption of Tea in India @ http://www.teaboard.gov.in/pdf/Executive_Summary_Tea_Consumption_20062018_pdf5940.pdf

e)       

 

 

 

Thank you Apple India Online for including UPI as a payment channel

 

Apple Online Store is now officially open in India and there are a wide variety of payment options.

The Apple Fan can choose to pay for his/her product via

·        Credit Card, Debit Card or EMI of Visa, Mastercard, AMEX, Discover, Diners Club, RuPay Brands

·        Net Banking

·      UPI

·        Credit Card on Delivery

Cash On Delivery is not yet activated due to the ongoing Covid19 Pandemic

It is a great feeling to see UPI as a payment option from Day 1 on Apple Online Store

 Apple has tied up with BillDesk for facilitating the UPI Payments

All Electricity Boards please follow the Kerala Model of 5% discount for Online Bill Payments

 

Should all States/UTs follow the Kerala example? 5% Discount for Online Bill of Kerala Electricity Bill Payments

To encourage Digital transactions and eliminate Cash / Cheque transactions, KSEB is offering 5% discount for online bill payments.

The 5% discount is the biggest offer so far offered amongst State Electricity Boards.

Very few state electricity boards offer a discount for online bill payments.

Normally, Payment Apps viz Paytm, Amazon Pay, etc offer cashback for 1^st time users. This attracts users and the users before payment of any electricity bill search Google for cashback offers.

The 5% discount offered by KSEB is in addition to the cashback offered by different payment apps.

The only drawback in Online Bill Payments, if for any reason, stupid or otherwise, the payment gets reversed after some time.

This leads to a very bad customer experience. The reversal is more painful, when the digital bill payment is paid via a third-party bank account or wallet.

BBPS (Bharat Bill Payment System) major benefits:

01) Biller’s customers can pay their bills in cash too across numerous touch points. The customers will get instant receipts of the payment. The only pain point is the processing fee per bill, if any charged by the collecting agents. The processing fee may be less as INR5/- . This discourage customers to pay via Cash at BBPS Counters and pay at the Biller’s physical collection only.  

Ideally, customers should not pay more than the bill amount and the processing fees of the BBPS touchpoints should be paid by the biller only.

The billers operating cost of own physical collection centres will be far more as compared to the processing fees paid to BBPS Cash collection touch points.

It would be beneficial to the Utility companies, if they offer 5% discount or cashback for digital payment of bills. It’s a win-win situation for the companies as well as the customers.

Hopefully, other states will follow the Kerala model very soon.

 

Few Examples:

Karnataka BESCOM statement dt. 16^th February 2015.

The honourable KERC has approved a rebate of .25% on the bill for those consumers who pay their bill through ECS. Moreover, ECS consumers will not be on the disconnection list. Consumers account will be debited only on the due date and not before that.

 

Reference Articles:

Watch the video of Kerala State Electricity Board 5% Cashback Offer|Electricity Bill Payment Online @ https://www.youtube.com/watch?v=gWrrBvCaL8E

KSEB not to cut off connections over non payment of bill; to levy penalty instead @ https://english.mathrubhumi.com/news/kerala/kseb-not-to-cut-off-connections-over-non-payment-of-bill-to-levy-penalty-instead-1.5015971

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12.69 lakh people who paid the electricity bill online for the first time got 6.05 crore cash back

12.69 lakh consumers got 5 % cash back announced by KSEB for the first time to pay the electricity bill online. From May to August, a total of 6.05 crore rupees was given for cashback in this way.

In May, 6,78,162 people, 1,74,614 in June, 2,11,984 in July, and 2,04,262 in August paid the electricity bill for the first time using online payment system.

5 % cash back offer for first time online payment available till 2020 December 31

 

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