Data Localisation – RBI cracks the whip on AmEx and Diners Club

The Reserve Bank of India (RBI) informed to the public at large that, by order dated April 23, 2021, it has imposed restrictions on American Express Banking Corp. and Diners Club International Ltd. from on-boarding new domestic customers onto their card networks from May 1, 2021.

This action was necessary as these entities have been found non-compliant with the RBI directions on Storage of Payment System Data.

Reserve Bank of India has clarified that the order will not impact existing customers. The order only restricts onboarding new customers

American Express Banking Corp. and Diners Club International Ltd. are Payment System Operators authorized to operate Card Networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).

The following are the present AmEx Card Variants, available in India:

·        American Express Platinum Card

·        American Express Smart Earn

·        American Express Membership Rewards

·        American Express Platinum Reserve

·        American Express Gold Card

·        American Express Platinum Card

·        Jet Airways American Express Platinum

AmEx card volumes for the last few months are us under: -

 

Diners Club operates as a co-branded card with HDFC Bank hence independent card statistics are not in public domain

The following are Diner Club Card Variants, available in India :

·        Diners Club Black

·        Diners Club Privilege

·        Diners ClubMiles

·        Diners Club Premium

·        Diners Club Rewardz

 

Each card variant has different privileges.

QUOTE

 

1950

DINERS CLUB BECOMES THE WORLD’S FIRST MULTIPURPOSE CHARGE CARD

For businessman Frank McNamara, forgetting his wallet while dining out at a New York City restaurant was an embarrassment he resolved never to face again. Luckily, his wife bailed him out and paid the tab.

A year later in February 1950, he returned to Major’s Cabin Grill with his partner Ralph Schneider. When the bill arrived, McNamara paid with a small cardboard card, known today as a Diners Club Card. The event was hailed as the First Supper, paving the way for the world’s first multipurpose charge card.

UNQUOTE

Background for RBI Press Release dt 23^rd April, 2021.

RBI takes supervisory action on Card Networks – American Express Banking Corp. and Diners Club International Ltd

 

In terms of RBI circular on Storage of Payment System Data dated April 6, 2018, all Payment System Providers were directed to ensure that within a period of six months the entire data (full end-to-end transaction details / information collected / carried / processed as part of the message / payment instruction) relating to payment systems operated by them is stored in a system only in India.

 

They were also required to report compliance to RBI and submit a Board-approved System Audit Report (SAR) conducted by a CERT-In empanelled auditor within the timelines specified therein.

 

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

Good to read: -

Our card members come from all walks of life: Manoj Adlakha, American Express

 

 

Apple Podcast Subscriptions – Please choose UPI AutoPay. Standing Instructions on Credit Cards will be difficult.

 

Apple India today vide a Press Release announced the start of a new service to Apple Phone users.

            The new service is Apple Podcast Subscriptions. 

            This is a major change and its podcast listeners will have an opportunity to be inspired more by a long list of illustrious podcast creators.

            The new change will roll out from May 1^st, 2021 in over 170 countries.

            Basically, there are two parts of charges in the Podcast subscriptions services.

            The first part is for the Podcast Creator and the second part is for the Podcast listener.

              Creators have to pay Apple for Access to multiple tools to enhance the overall Podcast experiences for listeners

 

            Subscribers have to pay  Apple for Access to premium channels, shows, including early access.

 

            In India, INR1799/- is the yearly fees Podcast creators have to pay every year to Apple.           

            Once the podcast creator signs up for Podcast Subscriptions’, he/she can offer 3 plans to listeners.

            Free – Fans listen to shows for free.

            Freemium – Fans listen to shows for free and subscribe for additional benefits.

            Paid – Fans pay to subscribe and listen.

            Freemium and Paid plan.

            One more feature, which is introduced is ‘Discover Channels’. Channels are simple ways to group shows. A creator can create multiple channels with individual logos, artwork, and description.

            All Channels are accessible to fans only under the Paid model. Creators can choose to move shows from Paid to Freemium or Free after a specified period.

            Pricing for each subscription is set by creators and billed monthly by default.

            Creators can additionally offer annual billing, which subscribers can manage from their Apple ID account settings, now accessible from Listen Now.

            Listeners will also be able to access free trials and sample episodes offered by creators and move to subscription if they wish to.

            Creators will receive 70% of the subscription price at each billing cycle, minus applicable taxes.

            After a subscriber accumulates one year of paid service, creators net revenue increases to 85% of the subscription price, minus applicable taxes.

            Of course, creators another podcast revenue — including any ads — is 100% of creators only.

            Apple has yet to announce the actual payment channels for Creators and Subscribers. If there are recurring subscription charges, there might be a challenge for Apple to set up a Standing Instruction on Debit or Credit Cards.

           

            This article may be helpful in understanding Apple’s challenges in India,  “Explained: The RBI’s order on recurring payments on credit cards “, @ https://indianexpress.com/article/explained/explained-why-auto-payment-for-ott-platforms-may-not-go-through-from-april-1-7251728/

            Vide RBI Circular on 'Framework for processing of e-mandates for recurring online transactions' dt. March 31, 2021, Reserve Bank of India has made it clear that during the extended timeline, no new mandate for recurring online transactions shall be registered by stakeholders, unless such mandates are compliant with the framework.

            The next best option is UPI AutoPay service. Let us wait and watch for the final guidelines.

 

           

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

            Source Article: https://www.apple.com/in/newsroom/2021/04/apple-leads-the-next-chapter-of-podcasting-with-apple-podcasts-subscriptions/

 

            I do not own an Apple Phone hence not sure of the the popularity of Apple’s Podcasts in India.

This article published in 2019, may offer some insights. ‘Is podcast the latest trend amongst millennials in India?’ @ https://economictimes.indiatimes.com/magazines/panache/podcasting-growth-is-slowly-picking-up-in-india/articleshow/67398243.cms?from=mdr

This is another interesting article on top Podcasts "Food For Thought: These Unique Podcasts Need To Be Bookmarked" @ https://lbb.in/delhi/best-podcasts-online/

 

             

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.