Monday, September 14, 2015

NPCI plans to roll out three new versions of RuPay

National Payments Corporation of India will launch a Mudra card, a credit card and an international card within the next one year

In a bid to promote the use of RuPay, the Indian version of payment settlement card, the National Payments Corporation of India (NPCI) is planning to roll out three new versions of the card within the next one year.

Currently, RuPay card is being issued as debit and Kisan cards, along with the opening of the saving bank accounts.

The company will launch a Mudra card, a credit card and an international card. NPCI, which had launched the RuPay payment scheme, is in talks with the US, Japanese and Chinese bank card associations to enable Indians avail of international services wherever these firms are operating.
RuPay is a card payment settlement system that competes with Visa and MasterCard. Since its launch in March, 2012 until August 2014, 35 million such cards had been issued.

Mudra Bank co-branded card will be a new card which will be introduced in association with Mudra Bank, to cater to entrepreneurs while the new credit card will pave way for the further acceptance of the RuPay brand among the customers.

Speaking to reporters here on Monday, M Balachandran, chairman, NPCI said for the international card, the corporation has tied-up with Discover Network Merchants, which is the third largest in the US and Europe and the issuer of Diners card and is in the final stages of talks with JCB (Japan Credit Bureau) and China UnionPay.

As per the terms with the credit bureaus, while their cards will be allowed to used in India, through NPCI network, and similarly through their network RuPay cards will be allowed to access in any part of the world. “With these tie-ups we will be able to cover almost major parts of the world,” said Balachandran.

He was in Chennai to kickstart a nation- wide e-Payment literacy workshop on the eve of World Financial Literacy Day.

To increase the user base, the government has asked all the public sector banks to issue their customers the RuPay cards. Balachandran said that currently NPCI has a capacity to handle 20 million transactions per day, and it will be expanded to 40 million in the next two months and further to 100 million in one year’s time in order to facilitate all the government subsidy transactions. DBT transactions alone estimated to be around R1,159 crore through 44 schemes in 94 districts across the country.

“Once the state governments also start using our system, we need to have more capacity for which we are getting ready,” said Balachandran.


NPCI would invest around R100-150 crore every year as capital expenditure to enhance capacities. Transactions under NPCI include withdrawals from ATMs, point of sale operations and quench clearing.

http://www.financialexpress.com/article/industry/banking-finance/npci-plans-to-roll-out-three-new-versions-of-rupay/131971/

RuPay cards in currency among bank users: official



Around one lakh of the nearly two lakh customers of Puduvai Bharathiar Grama Bank, the only Regional Rural Bank in the Union Territory of Puducherry, have been given RuPay cards, said D. Devaraj, Chairman of the bank at an e-Payments Literacy Workshop on Tuesday.

The workshop held in Puducherry is among 115 such workshops being held across the country as a programme of the National Payments Corporation of India (NPCI), an initiative of the Reserve Bank of India and an umbrella institution for all retail payment systems in the country. Here, the workshop was conducted by the Puduvai Bharathiar Grama Bank in association with NABARD.
A booklet on e-payments literacy manual was also launched at the event by Shanthamurthy, Joint Director, Planning and Research Department.

The workshops are aimed at promoting e-payments and safe banking practices. Around 200 customers and staff of the Puduvai Bharathiar Grama Bank participated in the interactive workshop.

New app planned

A.R. Ramesh, chief project officer, NPCI, Mumbai, took the audience through various aspects of e-payments like safe usage of ATM cards, fund transfer through IMPS (Immediate Payment Service), benefits of linking Aadhaar card and mobile phone number to bank account, and answered their doubts. Mr. Ramesh said that the NPCI has plans to launch a mobile application bringing on board a large number of billers for the convenience of customers. He also spoke about the benefits of the RuPay card, an initiative of NPCI, with the card being linked to insurance schemes, such as Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana.

“The RuPay card is as good as cash. It is accepted on leading websites, including 30,000 merchant websites, besides booking on IRCTC website and airlines websites also,” he said.

Puducherry has high usage of e-payments, said Ravichandran from Puduvai Bharathiar Grama Bank, adding that more than 50 per cent customers at the bank use some kind of e-payment methods. The event was also attended by O.S. Gnana Sekaran, Assistant General Manager, Indian Bank Zonal Office, Puducherry, and P. Veerashankar, Deputy General Manager, NABARD, Chennai. A workshop was also held at Karaikal.

One year of Jan Dhan: Many loose ends yet to be tied

One year of Jan Dhan: Many loose ends yet to be tied

Paramjit Kaur, a resident of Salempur village in Punjab's Ludhiana district, can barely hide her excitement when asked about the launched last year. She was one of the first women from her village to open what she calls the "zero balance" account. And she is one of the lucky few to have a passbook.

The entries, all in English, show her as a student (she is actually a home maker) and that she has not made a single transaction since the account was opened on August 28, 2014. Her father's name is given in the column for wife and the nomination column says "not registered".

All the people this reporter spoke to in the village had opened "zero balance" accounts. Few of them received passbooks. None has received a yet. They were not aware of the benefits of the scheme and did not know about the conditions to claim them.


The situation was no different in the neighbouring Humbran village where 55-year-old enrolled himself for the scheme and has a passbook. But he, too, has not made a single transaction and is yet to receive the RuPay card, making him and others like him ineligible for the overdraft facility and accident and life insurance benefits that come with these accounts.

According to the details of the scheme, an account holder becomes eligible for an overdraft of up to Rs 5,000 only after satisfactory operation of the account for six months and the RuPay card that comes with the account has an inbuilt accident insurance cover of Rs 1 lakh. According to government data, 179 million accounts were opened under the scheme till August 26, 2015. However, only "10 lakh (one million) accounts have been found eligible for overdraft. Out of these, the overdraft facility has been availed by 164,962 account holders."

The sense one gets after talking to a number of bankers is the scheme, though laudable in its objective, is suffering because of procedural complexities. "Since most of these accounts were opened in a great hurry and at organised camps, many entries need to be checked and rechecked. The feedback I receive is that entries, at least in 60-70 per cent cases, with regard to nomination just do not exist. In such a scenario, how can insurance claims be settled?" asked a middle-level banker with a leading public sector bank posted in Ludhiana.

Bankers say the reason so few account holders are eligible for overdraft is many of them have not strictly followed the know-your-client (KYC) norms. Non-existence of mandatory transactions within 45 days of the opening of the account is another reason. "We sent RuPay cards to addresses given by the customers. A majority of them came back to us as those addresses just do not exist. It is a huge problem for us," a Delhi-based banker with another government-owned bank told this reporter.

Bankers also say that since other schemes like the Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and are linked with Jan Dhan accounts, their success will depend on how the loopholes in the Jan Dhan accounts are plugged. "Suppose the premium for any of these schemes is to be deducted from the Jan Dhan account. If there is no transaction and hence no balance, how will the premium be deducted?" observed another banker.

Lack of awareness about the scheme, especially in villages, has created a situation where expectations are turning into disappointment. "All the workers who work in my field had opened Jan Dhan accounts. Once in 15-20 days they go to bank branches to check whether they have received some money. Once they get to know that no amount has been credited, they come back thoroughly disappointed," Jagjit Singh, sarpanch of Chankoin Khurd village in Ludhiana district, told this reporter.

(Our experience with how the Jan Dhan Yojana has unfolded in some villages in Ludhiana district raises questions about the sustainability and effectiveness of the financial inclusion scheme. We must, however, make it clear that we have not conducted an all-India survey, but base our observations on discussions with a few villagers in Ludhiana, selected at random, and a few bankers. The picture may be different in other parts of the country.)


http://www.business-standard.com/article/economy-policy/one-year-of-jan-dhan-many-loose-ends-yet-to-be-tied-115091200834_1.html