Monday, March 31, 2014

Axis Bank offers crop loans at ATMs on Kisan card

Private lender Axis Bank, launched its ‘Kisan Card’ to facilitate easy agriculture lending to farmers through ATMs. 

The electronic Kisan Card on the RuPay platform, will be offered to farmers or agrarian customers of the bank on their cash credit crop loan accounts. The offer will provide the convenience of visiting any ATM for cash withdrawals instead of visiting the branch. 

“The card provides queue free, 24x7 disbursement facility for farmers, allowing them to use their loan limit by withdrawing cash up to Rs 1 Lakh per day, in the required quantum, as and when required, thereby reducing their interest burden and negating the risk of carrying higher volumes of cash,” the bank said in a statement. 

R K Bammi, Executive Director – Retail Banking, Axis Bank said, “The launch of Kisan Card is a significant step towards introducing a branch-less, convenient and secure banking solution to the Agrarian consumer. Normally debit cards are linked to a Savings / Current account. In this case, Kisan Card is linked to the farmer’s Crop Loan account, which negates the need to go to the branch to transact. Almost 90-95 per cent farmers currently use the branch as an interface; we expect about 30 - 40 per cent farmers to migrate on to using this alternate channel actively.”

Axis bank launches Kisan Card

Over a decade after the state-run banks launched Kisan Credit Cards, private sector lender Axis Bank today introduced its own card which is aimed at helping farmers access liquidity round-the-clock.

The bank, the third largest from the private sector space in the country, launched the "Kisan Card" through which a farmer can withdraw up to Rs 1 lakh per day from automated teller machines (ATMs), it said in a statement.

The card will be offered to agrarian customers on their cash credit crop loan accounts and will also help them reduce the interest burden as the interest payments start after drawal of the money, it said.

The bank's executive director and head of retail banking, R K Bammi, said at present 90-95 per cent of such customers come to the bank branch for transactions and the bank expects 30-40 per cent farmers to migrate to this alternate channel.

It can be noted that the Kisan Credit Cards scheme was introduced in August 1998 and since then, a host of banks, a majority of them in the state-run space, have launched such cards.

In the statement, Axis Bank claimed it is "first new generation private sector bank to launch an electronic Kisan Card on the RuPay platform."

Tuesday, March 25, 2014

Karnataka Vikas Grameen Bank launches RuPay debit cards

Karnataka Vikas Grameen Bank (KVGB), a Dharwad-based regional rural bank (RRB) sponsored by Syndicate Bank, has launched Rupay debit cards for its customers. 

“Through this card the bank is trying to usher in a revolution by offering technology-enabled services to customers in remote villages,” said Ashok Reddy, Chairman, Karnataka Vikas Grameena Bank.
“The bank has an important role to play in enabling the rural folk, particularly the farming section, to use the RuPay debit card,” he added. 

KVGB has already introduced National Electronic Funds Transfer (NEFT), RTGS and SMS alert facilities for its customers. 

According to Reddy, the services provided by ATM cards introduced by KVGB are on a par with the services of any commercial bank. Currently these ATM cards can be accessed free at the ATM centres of KVGB and Syndicate Bank.

Thursday, March 20, 2014

Co-op bank gives debit card power - Rupay Card

AHMEDABAD: The Kalupur Commercial Co-Operative Bank Limited (Kalupur Bank) on Wednesday became the first co-operative bank in Gujarat to launch RuPay debit cum ATM card for its customers. And by June, as many as 18 district co-operative banks will give RuPay debit card to over 1.3 crore customers in the state, giving them direct access to 1.6 lakh ATM centres and 8.75 lakh point of sale (POS) terminals (machines used by merchants in shops and malls to accept payment through cards).

RuPay is an Indian domestic card conceived by National Payments Corporation of India (NPCI) and was launched in March 2012. Of the 175 co-operative banks in the state, 22 banks, including six scheduled co-operative banks, provide RuPay card to their customers.

Earlier, the banks issued RuPay card which enabled customers to make only ATM transactions while the new RuPay debit card will help customers to do shopping and also carry out online transactions. NPCI is in talks with e-commerce companies to include RuPay card in their payment options.

"We already have 54,000 customers who use RuPay card. Through RuPay card, we expect to cover one lakh customers," said V G Dadlani, general manager and CEO, Kalupur Bank.

The cost of using RuPay card is also low. "The cost is one-third in comparison to that of international debit cards. For every transaction through RuPay card, banks have to pay 90 paise irrespective of the amount while the cost for transactions through international cards comes at Rs 3 on average," said A P Hota, managing director and CEO, NPCI.

RuPay debit cards aim at financial inclusion of more people. "Over 1.3 crore customers of 18 district co-operative banks will join the national financial switch through RuPay debit card by June," said Ajay Patel, chairman, Gujarat State Co-op Bank Ltd.

National Bank for Rural and Agriculture Development (NABARD) will provide technology for RuPay cards at subsidized rates. NABARD will also connect the co-operative banks with core banking solutions (CBS) with the help of Tata Consultancy Services.

"Many co-operative banks have begun the process of providing services like RTGS, NEFT and internet banking to customers. The rest of the banks will get it in next 2-3 months. Also, all Kisan Credit card (KCC) holders will be given RuPay cards," added Patel.

Friday, March 7, 2014

India's NPCI selects Fime for RuPay certification program

National Payments Corporation of India (NPCI), the umbrella organisation of all retail payment systems in the country, has appointed advanced secure-chip testing provider Fime to deliver its RuPay certification programme.

NPCI will utilise FIME's expertise in setting up EMV-based certification board for its card payment scheme, RuPay.

FIME will define the certification specification, laboratory setup, test plan specification, test tools and operate the certification board for RuPay. FIME will also be involved in setting up the certification process including the associated administrative and business operations. This certification board will be effective from March 2014.

This will ensure all payment cards and point-of-sale terminals deployed under the brand align to the requirements of RuPay specifications. It will also ensure necessary infrastructural alignment of acquirers and issuers with the payment system.

Prakash Sambandam, Director of FIME India says: "Many countries have, or are in the process of migrating to the EMV payment standard. Transitioning to a chip payment infrastructure will take time and require the implementation of new product development cycles. Adhering to RuPay, an EMV payment scheme, will ensure that the products achieve the required functional and security standards and perform as intended, once live in the marketplace. This level of compliance is vital to ensure product interoperability and security optimisation".

In addition to enhanced security, the new payment platform presents opportunities to deliver advanced payment solutions - such as mobile and contactless payments - which are based on secure-chip technology.

Prakash further explains: "The deployment of RuPay, an EMV payments technology in India, will create an international transaction framework which will support India's long-term payment needs. This is an exciting time for payments in India and we are delighted to be performing such an integral role in the evolution of this infrastructure."

Monday, March 3, 2014

DK becomes first district in State to provide RuPay cards

Dakshina Kannada district became the second district in the country after Raigad in Maharashtra, to introduce the facility of debit cards to farmers and customers of the Central Co-operative Banks. 

NABARD Chief General Manager B R Chinthala launches RuPay Kisan Card at  a programme held at SCDCC Bank in Mangalore on Tuesday. DH Photo

With the South Canara District Central Co-operative Bank (SCDCC) introducing RuPay Kisan Card to the farmers, a large number of farmers with their accounts in Central Co-operative Banks in the district, who were deprived of electronic payment system facility, will now get an opportunity to use debit cards like any other customers of commercial banks. The SCDCC management, introduced RuPay Kisan Card for farmers and RuPay Debit Card for its other customers, with the assistance from NABARD, at a formal programme at the bank’s head office in the city on Tuesday.

Speaking on the occasion, SCDCC Chairman M N Rajendra Kumar said that the SCDCC was the first co-operative bank in the State to introduce the facility, wherein nearly 90,000 farmers with Kisan Credit Card will avail the facility of debit card. Micro ATMs ill be placed in all the 166 primary co-operative societies and in their branches, and in all the branches of the SCDCC Bank, enabling the RuPay Kisan Card holding farmers and RuPay Debit Card holding customers to swipe and withdraw or deposit money in their account.
Farmers who have availed Kisan Credit loans can open an account with the SCDCC Bank through Primary Co-operative Societies and make use of the debit card facility.

Aadhaar number can be linked to the same account, for availing the government subsidy facilities. The account holders can use the debit card in any of the ATM machines with RuPay symbol. The SCDCC Bank has plans to introduce internet banking and inter-bank mobile payment system in the days to come, Rajendra Kumar said.

NABARD extends support

Launching the facility, NABARD Chief General Manager B R Chinthala said that the Central government has directed the NABARD to introduce core banking solutions or electronic payment systems in all the Central Co-operative Banks at the earliest.

Though debit cards were first introduced in a co-operative bank in Raigad in Maharashtra, Dakshina Kannada is the first district to introduce the facility in a full-fledged manner.

“If such facilities are not offered to customers, there is a danger of CCB customers, migrating to commercial banks. Therefore, the NABARD intends to introduce the facility in all the CCBs of Karnataka within six months, following the footprints of Dakshina Kannada. The NABARD has extended a financial support of Rs 1.75 crore to the SCDCC Bank for introducing debit card facility and we are ready to offer the required amount to any of the co-operative banks in the State,” he said.

Further, he said that the RuPay system was more advantageous for the banks in cost cutting, as the banks normally shell out Rs six per transaction to the US based companies, in Master and Visa cards.

The RuPay gateway system is designed by the Government of India, and the banks need to shell only 40 paise per transaction. The government has entrusted the NABARD, the task of ensuring that all co-operative banks are brought under RuPay.

“The RuPay cards are not just restricted to transact business from ATMs of co-operative banks or Point-of-Sale (POS) machines, but also enable the transaction of commercial establishments anywhere.

RuPay Kisan Cards
and RuPay Debit Cards were symbolically distributed to five farmers and five customers, on the occasion.