MaxWholesale – The newest kid with its own UPI Handle

 

 

            MaxPe is the brand name of Maxwholesale’s UPI handle.

(+) MaxPe: Payments with UPI

MaxWholesale went live on March ,2021 under SDK model with HSBC

Q: What is UPI SDK Model?

Ans: NPCI provides an SDK to all PSPs on UPI network to enable them to provide a consumer facing application which can be built using the SDK.

This is an intent flow wherein the end customer can complete the payment within the merchant app itself without being redirected to the UPI app on the mobile device.

This is particularly useful when the merchant’s want’s customers to experience a seamless payment experience while safeguarding your brand identity.

Normally, when the customer clicks on the UPI Pay button, in the merchant app/website, the customer is shown the most popular UPI Apps or an option to key in his/her UPI ID.

This means the customer to move out of the primary merchant app to the UPI Payment app. This adds friction to the whole shopping experience. And, also increases the overall TAT to complete the transaction.

The UPI SDK model reduces the check-out friction for end customers and increases the successful conversion rate.

One of the drawbacks under UPI SDK model, is the dependency on one bank only. Technical issues with the sponsor bank payment channel will lead to high failure cases.

One way out is to display other UPI apps payment buttons too or provide the option to key in manually an UPI VPA.

 

MaxWholesale is a wholesale platform for General Trade (GT) Kirana retail stores to buy inventory.

MaxWholesale current sphere is currently limited to Delhi NCR and Chandigarh area.

Earlier in 2020, MaxWholesale had raised $3 Mn in a Series A funding round led by Indian Angel Network (IAN) Fund I and Abu Dhabi-based private family office Al Falaj Investment Company (AFI).

 

Through MaxPe, MaxWholesale intends to reduce the checkout time for its customers. In the long run, MaxWholesale plans to opens its kirana store ecosystem to non-banking financing companies’ (NBFC) lenders.

The icing on the cake will be when MaxWholesale integrated BBPS into MaxPe. This will enable its merchants to pay all their utility bills via MaxPe directly. The utility bills data can be an excellent alternate data point for NBFCs lenders.  

 

 

 

 

AePS Off-Us Mini Statements. Why do bank account holders like them so much?

 

 

 

Banking Services Offered by AePS

Cash Deposit   _____ Financial Transaction

Cash Withdrawal _____ Financial Transaction

Balance Enquiry   ------ Non – Financial Transaction

Mini Statement ------ Non – Financial Transaction

Aadhaar to Aadhaar Fund Transfer _____ Financial Transaction

Authentication ------ Non – Financial Transaction

BHIM Aadhaar Pay _____ Financial Transaction

            The volumes of Non-Financial transactions i.e Balance Enquiry and Mini Statement requests are not in public domain.

            NPCI vide Cir No : NPCI/2020-21/AEPS/011 Date: March 30th, 2021 addressed to, ‘All Members of Aadhaar Enabled Payment System,’ informed about Implementation of monthly limit for Off-us Mini Statement.

This new rule was necessary as the AePS System witnessed significant growth in volume of Off-us Mini Statement transactions.

At the same time, it was noticed there has been decrease in Balance Enquiry transactions and disproportionate increase in Mini Statement transactions.

Hence, in order to provide convenience to users and bring uniformity in services, NPCI has advised banks to implement a minimum monthly limit of 5 Mini Statement transactions.

Q: What is Off-Us transaction, financial or non-financial

Ans: An inter-bank (OFF-US) transaction is one where there is the movement of funds from one bank to another necessitating an interbank settlement.

Customer can approach other Bank terminals for availing AePS Service.

Under non-financial mode, customer’s preferred Mini Statement feature over Balance feature.

 

Balance or Mini Statements?

Q: Why do bank account holders choose Mini Statements in AePS

Ans: One reasonable explanation for the Mini Statements craze via AePS, is its simplicity and no-cost feature.

Account Holders can obtain Mini Statement via ATMs, but for this Debit Card and Debit Card PIN is mandatory.

Account Holders can obtain Mini Statement via Mobile Phones, but for this a bit of tech-savvy is required.

Only the Balance service is not attractive, as account holders would like to details of the last few transactions. This is more important when the account holders are expecting credits from government departments.

            NPCI vide circular dt.11^th March 2020 advised AePS members not to put any limit for any non-financial transactions i.e Balance Enquiry and Mini Statement

Quote from NPCI Cir No March 30^th, 2021

 Post 5 Mini Statement transactions per customer (per month), issuer bank can decline the transaction with appropriate response code as per NPCI specifications or charge the customer as per their discretion.

Banks should duly notify their customers if they wish to charge customers, for the services above prescribed limit.

Unquote

 

Q: What is Aadhaar Enabled Payment System?

 

Ans: Aadhaar Enabled Payment System(AePS) is a payment service empowering a bank customer to use Aadhaar as his/her identity to access his/ her respective Aadhaar enabled bank account and perform basic banking transactions like balance enquiry, cash deposit, cash withdrawal, remittances through a Business Correspondent.

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

 

7 Highlights and 7 Benefits of IHMCL RFP for Common Tolling System (CTS)

 

            For Bankers, CTS means Cheque Truncation System, in the near future they have to be familiar with another CTS i.e. Common Tolling System.

            The funds movements between the various stake holders will be via Bank Accounts / eWallets/Pre-Paid Cards or other new payment tools.

            IHMCL has released an RFP for Selection of Vendor for Design, Develop, Commissioning and Operations & Maintenance of Common Tolling Software (CTS)

CTS RFP Highlights: -

Highlight 01) CTS Application will run on Distributed Ledger System.

Highlight 02) CTS Application will have 5 major modules i.e A) General System Requirements B) Finance and Accounts Module C) Integration Module D) Employee Module E) Maintenance Module

 

Highlight 03)     Complete integration with all lane level equipment i.e a)Incident Capture Camera b) RFID Reader c) Automatic Vehicle Classification System (AVC) d) Automatic lane exit barrier e) Recognition camera  f) Induction loop for vehicle detection g) Weigh-in-motion  sensor h) Overhead lane sign / Canopy lane status display (CSLD) i) Toll Collector Terminal g) Credit / Debit / CSC terminal / validator   

Highlight 04) The System is also required to ensure a minimum throughput per hour per toll lane, for the vehicles as per various collection modes a) FASTag __ 1200 vehicles per hour b) Cash __ 240 vehicles per hour c) Smart Card __ 600 vehicles per hour d) Validation __ 600 vehicles per hour

Highlight 05) The primary recovery mode of Toll in CTS is via FASTag. If the vehicle is not FASTag enabled or there is insufficient balance in the FASTag wallet, then toll has to be recovered via Cash, Credit/Debit Card, UPI, Mobile Wallets or any other legal tender

Highlight 06) Provision of Weigh-in Motion Bridge to calculate the vehicle load and levy penalties for overloaded vehicles as CMVR, 1989  provisions.

Highlight 07) Provision for issuance of paper receipts in case of non-FASTag payments.

 

CTS Benefits: -

Benefit 01) Minimal waiting time for travellers at the Toll Gates

Benefit 02) Users can choose to pay in a variety of modes i.e FASTag is the preferred choice. Otherwise, Cash, Credit/Debit Card, UPI, Mobile Wallets or any other legal tender as and when such facilities are available.

Benefit 03) Reward Programs for frequent users can be executed without much hiccups

Benefit 04) Reduction in the overall travelling time, with AI based traffic prediction programs

Benefit 05) Reduction in Turn Over Time to resolve vehicle breakdowns

Benefit 06) Reduced stress for Drivers as the overall journey experience can be predicted in advance

Benefit 07) Minimal disruptions by Toll Operators, as toll passage is deemed free under MoRTH notification no. GSR 427(E) dated 18 January 2018, if at a toll plaza, the FASTag system is unable to read a tag or generate a receipt, passage through the toll plaza is deemed free.

Such a failure could be on account of (1) failure at the back-end at the level of the NETC, in

recording the transaction, or (2) failure at the level of the toll plaza to read the FASTag or classify

the vehicle, or failure to compute the toll collectible, or failure to record the transaction locally.

 This does not apply in case of a defective tag, including tags with insufficient balance

 

            So, toll plaza commuters get ready for an amazing experience as you criss-cross toll plazas across India.

 

Disclaimer: These are my personal views only. The bottom line is Mission ‘#LessCashNotCashless’. Nothing more, Nothing less.

           

 

 

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