Monday, February 2, 2015

Gramin Bank introduces Rupay cards for minors


M.G. Bhat, Chairman of PKG Bank (centre) along with his colleagues, displaying the Junior ATM Rupay Debit Card to be distributed among school going children having bank accounts.
Pragathi Krishna Gramin Bank, headquartered in Ballari, with jurisdiction over 11 districts, will be the first Regional Rural Bank (RRB) and one among a few commercial banks in the country to launch a new initiative of introducing banking to schoolchildren

M.G. Bhat, Chairman of the Bank, told presspersons here on Wednesday that as part of the initiative, the bank will distribute Junior ATM Rupay Debit Cards to schoolchildren above 10 years of age, introducing them to banking and helping inculcate the habit of saving money. 

A child can open a savings bank account in any of the 632 branches in the 11 districts by submitting a filled-in application form with passport size photograph, along with a declaration-cum-no objection certificate from the guardian to open the savings bank account and issue of Junior ATM Rupay Debit card, a certificate from school authorities and ‘know your client’ documents of the guardian. The account can be opened with zero balance and the account holder gets a passbook and Junior ATM Rupay Debit Card. With the child attaining 18 years of age, the account gets converted into a normal account after a few simple formalities, he said. 

In turn, the child could use the card to draw cash upto Rs. 5,000 a day from any of the ATMs and also make payments upto Rs. 2,000 at point of sale. Guardians would receive SMS alerts to their registered cell phones to enable them to know about the cash withdrawals and transactions of their child. Guardians could remit funds to their children’s account through NEFT/RTGS/mobile banking anytime. 

He said that 35,000 cards would be distributed to as many children simultaneously in bank branches from Thursday. 

G.R. Chintala, Chief General Manager, Regional Office of National Bank for Agriculture and Rural Development (NABARD) Bengaluru, will be launching the scheme in Ballari at St. Philomena High School. 

S. S. Bhat, Chief General Manager, Canara Bank, Bengaluru, will preside. Pushpinder Singh from National Payments Corporation of India, Mumbai, will be among other chief guests.

Government pushes use of RuPay cards with cashback offer



The government, which is striving to take banking to every household in the country and reduce the number of cash transactions, is aggressively promoting the use of state-backed RuPay cards by offering 1% cashback, in a direct challenge to card companies such as Visa and MasterCard.

RuPay is an Indian domestic card scheme launched by the National Payments Corporation of India that can be used at ATMs, PoS terminals and e-commerce websites. Apart from all public sector banks, regional rural banks and co-operative banks issue RuPay cards in an effort to promote financial inclusion. Other countries have encouraged the use of plastic money by incentivizing people through cash-back and lower tax.

"South Korea had offered similar encouragement and the result was phenomenal," said AP Hota, managing director and CEO, National Payment Corporation of India, adding, "There are places where if you pay by card, tax on goods is lowered." Under the Pradhan Mantri Jan-Dhan Yojana, the number of accounts opened was 11.5 crore as of January 17 after a survey of 21.02 crore households.

Of the total bank accounts opened, 3.23 crore have deposits worth Rs 9,188 crore, finance minister Arun Jaitley had said on Tuesday. RuPay cards have been issued to more than 10 crore beneficiaries so far under the scheme as the government tries to move to a cashless society in the long-run. There is an overdraft facility under the scheme.

All RuPay cardholders under the Jan-Dhan scheme are eligible for personal accident as well as life insurance cover, the charges of which are lower than other cards in the market. But despite the lower processing fee compared with MasterCard and Visa, the RuPay isn't widely used as yet.

Uttar Pradesh farmers to get 4.2 mn RuPay credit cards




and (RRB) would issue over 4.2 million Kisan Credit Cards (RuPay KCC) to farmers across the state.

National Bank for Agriculture and Rural Development (NABARD) has sanctioned Rs 30 crore to these financial institutions for the purpose.

RuPay KCC is a smart card used by farmers at automated teller machines (ATM) or point of sales (PoS) machines, where it could be swiped for withdrawing cash or making payments. It does away with the necessity of visiting Primary Agriculture Cooperative Societies (PACS) or bank to operate the account.

Under the project, has extended support of Rs 19 crore and Rs 11 crore respectively to all seven RRBs and 15 cooperative banks operating in the state.

To ensure doorstep delivery of banking services to farmers, NABARD has also supported these financial institutions to deploy over 11,000 micro-ATMs/PoS machines at all their branches.

Recently, NABARD UP region chief general manager K K Gupta had convened a meeting to review progress made under the scheme. Advising banks to improve implementation of the project, he said NABARD would provide assistance of Rs 5 crore to cooperative banks in setting up over 100 ATMs in rural areas and utilising PACS as their Deposit Mobilising Agents.

NABARD support for technology adoption in cooperative banks and RRBs would benefit not only farmers, but also rural populace in general, who have opened accounts under Pradhan Mantri (PMJDY).

Besides, NABARD has supported cooperative banks and RRBs to set up 189 financial literacy centres in rural areas of UP with grant of over Rs 8 crore for disseminating information and creating awareness on various financial products and services.