Kotak Mahindra Bank - BBPS real-time integration for recovery of Overdue Loans

 

            Two recent Press Releases by Kotak Mahindra Bank caught my attention.

Press Release 01) Missed an EMI Payment on Your Kotak Loan? Now, Simply Pay Your Overdue EMI Through Your Preferred Payment App @ https://www.kotak.com/content/dam/Kotak/about-us/media-press-releases/2021/media-release-kotak-overdue-loan-repayments-on-payment-apps-742021.pdf

 

Press Release 02) A Simple but Powerful Message – Kotak Home Loans @ 6.65% p.a. Kotak Launches Multi-media Campaign on its ‘Unbelievably Low’ Home Loan Rate  @ https://www.kotak.com/content/dam/Kotak/about-us/media-press-releases/2021/media-release-hl-campaign-6-65.pdf

 

Press Release 02 focuses on Loan disbursements, Press Release 01 focuses on recovery of Loan overdues.

            Both the activities are bread and butter for any lending financial institution. Both are interlinked for the continuous growth of a lending financial institution.

            BBPS has revolutionised the way for collection of Loan EMIs including overdue EMIs.

            There are few parallels for BBPS in other countries. In majority of the countries there is a fragmented approach for collection of loan EMIs.

            The benefits of BBPS are many and it is very welcome that the numbers of the Billers on the BBPS platform is on the increase.

Q: Why the Press Release 01 is important?

            Kotak Mahindra Bank has real-time integration between BBPS and its Loans module. What the BBPS displays as Amount Due for a particular loan, is the real-time amount. There is no time lag i.e Start of Day balance, or 1-day old balance, or holidays not calculated etc.

            This is a great innovation that drastically reduces customer friction. 100 % assurance for customers, that only the correct overdues are being repaid.

            Customers can choose to pay the full displayed due amounts or part amount. There is no necessity that only the full due amount has to be paid.

            This reduces the pressure on the loan borrowers to pay the full amount. The borrower can repay in small amounts as and when required.

            The payments made via the BBPS channel will reflect in real time in the respective loan accounts.

            This means repayments made on holidays and after banking hours will reflect immediately in the loan account. The issue of delayed accounting is history now.

            BBPS channel is open 24*7, 365 days a year.   

 

Quote

Details of any EMIs that are past the due date will be displayed and the payment will reflect in the

customer’s loan account on a real-time basis.

This repayment facility is available on all KMBL terms loans such as Personal Loan, Home Loan,

Consumer Durable Loan, Business Loan, Gold Loan, Loan against Property as well as Commercial

Vehicle Loan, Tractor Finance Loan, Construction Equipment Loan etc.

Unquote

            At present, Kotak Mahindra Bank offers a real-time facility for overdue EMIs only and not for regular EMIs. Lots more system integration is required for a real-time facility for regular EMIs.

A start is made, and the day is not far off when there will be a real-time facility for regular EMIs. This will be another game-changer for the loan recovery process in India.  

 

Q: What are overdue loans?

Ans: Overdue loans are loans in which borrowers have missed to repay a particular EMI.

Q: What is the traditional collection process of overdue loans?

Ans: NACH(Debit), NEFT, Cash, 3^rd party aggregators

Q: What are the drawbacks of the traditional collection process of overdue loans?

Ans: DB 01) High collection costs

DB 02) Delayed reflection of repayment in the loan account

DB 03) Difficult to see the total missed EMIs amount          

DB 04) Difficult to repay part amounts

DB 05) Difficulty in interpreting narration in customer’s accounts at a later date

 

The BBPS channel can be deployed for collection of overdues in the following loan segments i.e Home Loans & LAP, PL, BL, and Consumer Durables, Credit Cards, CV/CE, Agriculture Division and Tractor Finance

 

Disclaimer: These are my personal views only. The bottom line is Mission #LessCashNotCashLess. Nothing More - Nothing Less

 

Reference Articles:

https://www.bharatbillpay.com/ - Pay anytime and from anywhere

This Bank Allows EMI Payment Via Google Pay, PhonePe, Paytm Wallets: How Will This Work?

 

NPCI’s Bharat BillPay, en route to a billion transactions, is set to be the next payments disruption

Jupiter.Bullet – UPI Now, Pay Later – Why I use it every day?

 

I am a big fan of all varieties of Digital Transactions.

The Joy of money moving in or out digitally is just different as compared to handling physical money i.e. cash.

In simple terms, Jupiter.Bullet is a FinTech App that offers UPI Now, Pay Later facilities for its onboarded customers.

Jupiter.Bullet was in Beta mode till last month. At present, the same is available for the general public.  

 

Why I use it every day?    

Reason 01) Simple to use

Reason 02) Ultrafast QR Scanning speed, the QR code can be scanned from any angle

Reason 03) No risk of exposing my main bank accounts for digital transactions

Reason 04) Comprehensible account statement / transaction details

Reason 05) Reasonable credit limit for daily transactions, no fear of over-spending, and scratching my head when the bill arrives.

Reason 06) NIL cluttering of my main bank accounts, with small value digital transactions

Reason 07) Opportunity to invest the credit limit in Liquid Mutual Funds and earn some income.

 

What will make it more amazing?

 

Amaze 01) Customised Billing dates.  Instead of standard 5^th and 20^th due dates, customized billing dates, say like 10^th and 25^th etc, at least for 1-year vintage users.  

Amaze 02) Categorisation of the expenses i.e groceries, eateries, medicines etc

Amaze 03) Dynamic increase of credit limit, say up to 10 % within a credit cycle

Amaze 04) Rewards for quick payment after the Bill Generation.

Eg: Bill is generated on 12.01am, 01/03/2021.

INR75/- cashback if bill is paid within 2 hours of generation

INR50/- cashback if bill is paid within 6 hours of generation

INR25/- cashback if bill is paid within 12 hours of generation

Amaze 05) Assignment of Bullet Limits to other 1 or 2 users

EG: I am eligible for INR 10,000/- Bullet Limit. My ward 18 years old, has no credit history, has an Aadhaar / PAN Number. I should be able to crave a limit of say INR3,000/- and allot to my ward.

The payment responsibility rests on me only.

Amaze 06) After the rollout, stabilisation and success of ‘Amaze 05’, the same can be extended to Mom n Pop store employees as a paid subscription model.

Amaze 07) After the rollout, stabilization and success of ‘Amaze 05’, the same can be extended to employees on rolls of HR Aggregators i.e M/s Team Lease etc, as a paid subscription model.

 

  Pain Point – Only 1 Pain Point – Rare connectivity issues. 

Read more @ https://bullet.money/ and download the Jupiter.Bullet App on Google Play / App Store

Reference Article: Exclusive: Jitendra Gupta set to launch micro-lending app Bullet Money

 

Disclaimer: These are my personal views only. The bottom line is Mission #LessCashNotCashLess

 

 

 

OffWallet – Zero Internet Wallet Patent Granted

 

          BetaBuilds Team can now proudly say from ‘Patent Pending’ to ‘Patent Granted’.

          The team has successfully navigated the various levels for ‘Patent Granted’, badge, with a Vision & on a mission to “Bridge the Digital Divide”,

  

BetaBuilds team has multiple patents, & recently received GRANTED status  for their unique “OffWallet” Technology that allows users to make payment and receive them, without internet, and the tagline of OffWallet highlights the same --  “We enable your Wallet to Work without Internet”.

          The thought process of BetaBuilds team is guided to enable bank account holders to safely transfer their money from one account to another account, without any dependency on the internet.

          There are multiple challenges associated with digital internet transactions. To overcome these challenges and simplify the digital transaction process without the internet, is the prime focus area of BetaBuilds.

          Due to falling mobile rates, more and more account holders are shifting to digital transactions. However, the challenge of sudden connectivity failures is a major limiting factor.

 

          BetaBuilds has come up with a patented FinTech technology for account holders to transact over mobile on

01) No Data Mode

02) No Network Mode

Under – ‘No Data Mode’, transactions via financial apps is possible with No Wifi or Mobile Data

Under – ‘No Network Mode’, limited transactions via financial apps is possible with No Wifi or Mobile Data or Voice/SMS

BetaBuilds patented technology can be adopted by BFSI Industry’s Financial Apps for

01) Digital Payments Wallets

02) Banking Apps i.e. MOBILE BANKING APPS/ NEFT/RTGS/IMPS

03) Credit/Debit Card payments

04) Bill Payments

05) Insurance and EMI Payments

06) UPI Based payments

07) POS Payments

In short, any financial app which leads to a Debit (Payment) or Credit (Receipt) in a bank account.

The bank account can be of individuals or merchants.

Under Mission #LessCashNotCashLess, my preferred usage of OffWallet is BBPS (Bharat Bill Payment Systems) transactions.

OffWallet can minimise / eliminate the worst-case scenario of bank account holders losing internet connectivity while transacting a BBPS bill payment.

In case of transaction disruption due to connectivity failure, the account holder is not sure of the transaction success. The respective utility companies do not respond in time for the query. Thereby discouraging BBPS transactions via mobiles.

 

 

 

The OffWallet technology can add the extra assurance for a successful BBPS transaction.

FinTech patents are relatively a new area in the Patent World.

FinTech companies require patent protections to recover the costs associated with a new technology or process.

Without patent protection, the company that spent the time and development costs in creating new FinTech solutions would always lose out to second-mover advantage.

FinTech is all about tech, so patents are uniquely powerful over copyright and trademark protections.

Patents specifically prevent others from making, using, or selling services based on a protected technology.

Patent laws are designed to help you hold onto market share while you reimburse your R&D investment.

          354 patents are under various process stages at inPASS with the keyword ‘Banking’ @ https://ipindiaservices.gov.in/PublicSearch/PublicationSearch/Search

          This shows the scope of FinTech innovation going in India, with a focus on patent obtention to safeguard future revenues.

Looking forward to early adoption of BetaBuilds OffWallet technology by Financial Apps across the world.    

 

References:

Patents filed by India-domiciled companies in US continue to decline; here’s the key reason

Economic Times — FinTech Patents — Finance Technology Innovations Implemented Over Digital Platform

View the demo of OffWallet - https://youtu.be/fL5jujtme2M

Check out the complete OffWallet process flow @ http://betabuilds.com/

 

 

  

 

 

 

 

    

www.pensionseva.sbi to benefit 58,00,000 + pensioners all over India

             Keeping up with the digital wave sweeping India, State Bank of India unveiled a dedicated website for pensioners receiving pension through SBI.

            The dedicated website is only an addition to the offline offices. SBI will continue to service pensioners through the offline mode too.

            The dedicated website only assists pensioners to access their pension account details, eliminating the need to visit offline offices.

            The facility to update investment details, download Form 16 is a boon for pensioners to file their IT returns.

            This also enables pensioners to save tax wherever possible.

             State Bank of India through its 16 CCPCs and 1 specialized CCPC for defence pensioners serves 58 + lacs pensioners all over India.

            SBI is the largest pension paying Bank in India serving pensioners of Central Government Agencies, State Government departments, and also pensioners of various autonomous bodies.

            The 17 Pension CCPCs report into a CDC-CPPC, Navi Mumbai.

            01) CPPC Ahmedabad

02) CPPC Amravati

03) CPPC Bangalore

04) CPPC Bhopal

05) CPPC Bhubaneshwar

06) CPPC Chandigarh

07) CPPC Chennai

08) CPPC Guwahati

09) CPPC Hyderabad

10) CPPC Jaipur

11) CPPC Kolkata

12) CPPC Lucknow

13) CPPC Mumbai

14) CPPC New Delhi

15) CPPC Patna

16) CPPC Trivandrum

17) CCPC Defence Pensioners

The below facilities are available on the SBI Pension Site

A.      Download of Pension Slip

B.      Download of Form 16

C.      Pension Transaction Details

D.     Arrear Calculation Sheet

E.      Investment Related Details

F.      Life Certificate Status

G.     Pension profile details

 

Offline Services:

SMS alert on mobile with pension payment details

Jeevan Pramaan facility at branches

Pension slip through email

Pension slip through paying branch

Facility to submit Life Certificate at any SBI Branch

 

 

 

RBI announces Issue price for ‘Sovereign Gold Bond Scheme 2020-21 - Series XII’

            Reserve Bank of India vide Press Release dt.,

February 26,2021 announced the issuance price for Sovereign Gold Bond Scheme 2020-21 - Series XII.

            The issuance price is ₹4,662/- (Rupees Four thousand six hundred and sixty-two only) per gram of gold.

            The issuance price of the bond is calculated on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. February 24 - 26, 2021.

            The base notification for the issuance of the Sovereign Gold Bonds are 01) GoI notification F.No.4(4)-B(W&M)/2020 02) RBI circular IDMD.CDD. No.730/14.04.050/2020-21, dated October 09, 2020

            The issuance window is open for subscription for the period from March 01, 2021(Monday) to March 05, 2021 (Friday).      

           

February 24, 2021:    IBJA Gold 999 Purity Rate @ INR4,658

 

February 25, 2021:    IBJA Gold 999 Purity Rate @ INR4,626

 

February 26, 2021:    IBJA Gold 999 Purity Rate @ INR4,684

 

Total for 3 Days @ INR13,968

 

Average Price for the 3 Days @ INR4,656

            To boost Digital Transactions, a discount of INR50/- per gram less than the nominal value is offered to investors applying online mode and payment made via digital mode.

For such investors, the issue price of Gold Bond will be ₹4,612/- (Rupees Four thousand six hundred and twelve only) per gram of gold.

The online window opens at 12.01am March 01, 2021 and closes at 11.59pm March 05, 2021.

Series XII will be the last tranche for the financial year 2021-2022