Showing posts with label Nabard. Show all posts
Showing posts with label Nabard. Show all posts

Saturday, February 18, 2017

RBI mulls giving banks freedom to fix bank service charges for transactions



In an attempt to promote cashless transactions in the country, Reserve Bank of India (RBI) has given banks the freedom to fix bank service charges for transactions, stated Santosh Kumar Gangwar, Minister of State in the Ministry of Finance, in Lok Sabha on Friday. 

RBI has deregulated interest rates on credit card dues. Interest rates are determined by banks with the approval of their respective Board of Directors subject to regulatory guidelines on the interest rate on advances issued by RBI from time to time. RBI does not maintain information on the rate of commission charged. 

National Bank for Agriculture and Rural Development (NABARD) has approved a scheme for giving 0.5 percent incentive on payments made through the Aadhaar Enabled Payment System (AEPS) to merchants. 

With regards to debit card transactions on PoS devices, between January 1 and March 31, 2017, Merchant Discount Rate (MDR) has been capped at 0.25 percent for transaction up to Rs. 1,000, and for debit card transactions value between Rs. 1,000 and Rs. 2,000, MDR has been capped at 0.5 percent. 

RBI has decided that till March 3, 2017, banks and prepaid payment instrument issuers shall not levy any charges on customers for transactions up to Rs. 1,000 settled on Immediate Payment Service (IMPS), Unstructured Supplementary Service Data (USSD) and Unified Payments Interface (UPI). 

Further, Government has issued a direction in public interest to all public sector banks not to charge fees for transactions settled on IMPS and UPI in excess of rates charged for National Electronic Funds Transfer (NEFT) for transactions above Rs. 1,000, with service tax being charged at actual; for USSD transactions till March 3, 2017, above Rs. 1,000, a further 50paise discount is provided. 

NPCI has waived switching fees for RuPay Card transactions (both for PoS and e-commerce), IMPS, UPI, National Unified USSD Platform (NUUP) and AEPS, with effect from January 1 to March 31, 2017. 

Credit card, debit card, charge card and other payment card services by banks have been exempted from payment of service tax for transactions of up to Rs. 2,000. The government has introduced Lucky Grahak Yojana for customers and Digi Dhan Yojana for merchants to promote means of cashless transactions. 

In terms of Office of Controller General of Accounts Office Memorandum dated December 14, 2016, the applicable Merchant Discount Rate (MDR) charges on debit cards for payment up to Rs. 1, 00,000 shall be absorbed by the Government. 

In terms of Department of Public Enterprises letter dated December 9, 2016, all Central Public Sector Enterprises (CPSEs) are required to ensure that transaction fees, MDR charges associated with payment through digital means shall not be passed on to the consumers and all such expenses shall be borne by CPSEs. 

RBI has also cautioned the users, holders and traders of Virtual Currencies (VCs), including Bitcoins about the potential financial, operational, legal customer protection and security related risks that they are exposing themselves to. The creation, trading or usage of VCs including Bitcoins, as a medium for payment have not been authorised by the Reserve Bank of India. 


Rs 27,000 crore saved under Direct Benefit Transfer scheme since November 9

Union Minister, RuPay, Haryana, Haryana Education Minister, DBT

Since digital transactions took off rapidly from November 9, 2016, Rs 27,000 crore has so far been saved under the Direct Benefit Transfer scheme, this was informed at an event held at Panchkula today.
Also, about 35 per cent people have taken to debit card, RuPay card and e-wallet services for making payments in Haryana.
This was disclosed in the presence of the Union Minister of State for Social Justice and Empowerment, Krishan Pal Gujjar, and the Haryana Education Minister, Ram Bilas Sharma, at the inaugural function of the ‘Digi Dhan Mela’ and ‘Basant Utsav’, at Panchkula, near here, today, a Haryana government statement said here.
Speaking on the occasion, Gujjar said that 100 Digi Dhan Melas were being organised in the country to encourage people to adopt cashless transaction system for making payments.
So far, 56 such melas have been held. This is the third such mela in Haryana after Gurugram and Sonipat.
Gujjar urged the people to make digital transactions to realise the dream of Prime Minister Narendra Modi, and also encourage others to adopt this system.
The main aim of Digi Dhan Mela is to give people message of ‘Mera Mobile-Mera Bank-Mera Batua’, he added.
Speaking on the occasion, Ram Bilas Sharma thanked Arjuna awardee Sanjay Phogat, international shooter, Gauri Sheoran, and Kings XI Punjab (IPL) player, Manan Vohra, and others for attending the mela and expressed hope that such events would inspire people to adopt digital payment methods.
Vice-Chairman, National Payments Corporation of India, Pushpendra Singh, and Deputy Director, NITI Aayog, Sukhdeep Kaur, gave detailed information about various digital schemes.

Monday, September 14, 2015

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.

Sunday, April 5, 2015

UP: Co-op societies get Rupay Kisan Card

kisan credit card

Nabard’s UP chief general manager has launched ‘ Rupay Kisan Card’ at the head office of district cooperative bank in Pilibhit. The new computerised banking system will enable about a hundred thousand farmers.

Farmers with bank accounts can now deposit or withdraw or carry out any transactions with nationalized banks across the country. The Times of India report quotes Nabard sources as saying the new plan would not only boost transparency in banking activities but also check illegal transactions.

Sources say Nabard would provide cooperative bank and cooperative societies with 90 percent of the total cost of the plan in the form of a grant-in-aid. The plan is estimated to cost about Rs 1 crore.
Nearly 76 cooperative societies operating in the district would be equipped with micro computer devices fitted with the core banking solutions, sources add.

Cooperators seem upbeat about the consequences of the new plan as they are confident this would end a delayed cumbersome system based on manual labour.

Monday, February 2, 2015

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.

Monday, September 22, 2014

Nabard to highlight co-op role in RuPay implementation

The initiative of South Canara District Central Cooperative (SCDCC) Bank Ltd to make primary agricultural cooperative societies (PACS) as part of the payment system under the RuPay Kisan credit card will be taken as a model by Nabard.

GR Chintala, Chief General Manager of Nabard, Bangalore, told Business Line here on Saturday that the Nabard will issue a circular in this regard in another one-and-half months. 

The initiatives of Raigad and Rampur district central cooperative banks in Maharashtra and Uttar Pradesh, respectively, will also be showcased as models. Highlighting the SCDCC Bank model, he said both the tiers of cooperative banking have retained their identity while implementing RuPay cards. 

Here PACS, under SCDCC Bank’s jurisdiction, directly give loans to farmers. For the implementation of RuPay card, these societies open accounts in the books of SCDCC Bank.
Though the accounts are maintained at SCDCC Bank, the funds are routed in such a way that the farmer need not approach the SCDCC Bank branch. He said that the farmer will continue to transact at the micro ATMs at PACS level. 

In Raigad, farmers are the members of PACS but they have their loan accounts at the branches of DCCB (district central cooperative bank). All the accounts are transacted through the DCCB in Raigad. 

The Raigad model will be suited for those districts where the loans to farmers are extended directly through DCCB branches. 

Those districts that follow the practice of extending loans to farmers through PACS can study the SCDCC Bank model. 

He said that 167 PACS come under SCDCC Bank. It has jurisdiction over the revenue districts of Dakshina Kannada and Udupi. The boards of 163 PACS have given their nod for being a part of the implementation of RuPay Kisan credit cards to farmers.

Wednesday, July 23, 2014

PM Modi set to revamp financial inclusion; new scheme to be unveiled on August 15

PM Modi set to revamp financial inclusion; new scheme to be unveiled on August 15




Prime Minister Narendra Modi is set to give a big boost to the ongoing financial inclusion drive by unveiling a comprehensive programme at the Red Fort in his address to the nation on the Independence Day.

The proposed comprehensive financial inclusion programme envisaging insurance and pension cover, apart from a default cover for lenders, is likely to envisage opening 15 crore more bank accounts, 12 crore of which will be in rural areas over next four years, according to a note sent to the Indian Banks Association (IBA) by Financial Services Secretary G S Sandhu.

According to the note, Mr Modi’s new comprehensive financial inclusion programme has three major shifts from the one pursued by the previous government.

First, the earlier efforts at financial inclusion had villages as the unit for coverage while the current plan focuses on coverage of households.

Secondly, only rural areas have been the focus so far while both rural and urban areas have been included now, says the ministry note.

Thirdly, the current plan is proposed to be implemented as a ‘mission mode’ project. It envisages a comprehensive coverage of all excluded households by a six-pillar approach in two phases, according to the note.

The first phase of the programme, which begins from August 15 this year and ends on August 14, 2015, will provide basic banking accounts with overdraft facility of Rs. 5,000 and RuPay debit card with inbuilt accident insurance cover of Rs. 1 lakh and creation of credit guarantee fund for coverage of defaults in overdraft accounts, according to the ministry.

The second phase, which will begin on August 13, 2015 and conclude by August 14, 2018, will cover micro-insurance and unorganised sector pension schemes like Swavlamban.

When contacted, IBA said already state-owned banks, insurers and regulators are working overtime to ensure a smooth kick-start.

“We are currently busy chalking out the modalities of implementation of the project, which will be implemented in the entire country after it is declared by the Prime Minister on August 15,” IBA chairman K R Kamath, who is also the chairman of Punjab National Bank, told PTI.

It is a good scheme as it envisages going beyond the geographical boundaries and promises of connecting each and every household, he said, adding that more than being commercially viable, it is important to link every household with the banking system.

“Through this programme, we are looking at providing two savings bank account facility-one each for the husband and the wife-to all those households which not served by the banking system so far,” MR Kamath said.

“Of course, these basic banking accounts will come with some in-built overdraft facility and RuPay debit cards with an inbuilt accident cover of Rs. 1 lakh. We are awaiting the final announcement of the scheme by the Prime Minister.”

Inclusive pension is also one of the pillars of the proposed comprehensive financial inclusion programme.

“Pension under ‘the mission mode’ will lay emphasis on this facility for the lower income segment and the unorganized workers,” said R V Verma, acting chairman of the Pension Fund Regulatory and Development Authority (PFRDA).

“We will seek to achieve and expand the scope of the National Pension Scheme (NPS) to serve the disadvantaged sections of the population through active involvement and participation of all categories of intermediary institutions like banks, NBFCs, MFIs, NGOs, corporates and annuity service providers,” Mr Verma added.

Though micro-insurance will come in the second phase of the programme, insurers have already started working on it.

“While the already existing 4,000 micro offices of the four PSU general insurers would be strengthened, over 2 lakh existing business correspondents will be asked to sell micro insurance products to ensure the last mile connectivity,” New India Assurance chairman and managing director G Srinivasan said.

“Though micro-insurance will come in the second phase only, we have already started working on it,” he added.

The premium for the low-cost insurance products, which is to be paid by the beneficiaries or from subsidy under the Rashtriya Swasthya Bima Yojana scheme, will range between Rs. 100 and Rs. 300 per annum, New India Assurance general manager K Sanath Kumar said.

Nabard will provide the initial Rs. 1,000 crore to create a credit guarantee fund to cover possible defaults on overdraft accounts under the scheme, a Nabard official said.

Several rounds of meetings have already been held by the Department of Financial Services with all the stakeholders of the programme, including state-owned banks, insurance companies and pension regulator PFRDA.

The banking sector would be expanding itself to hire an additional 50,000 business correspondents (BCs), launch over 7,000 branches and more than 20,000 new ATMs in the first phase, Sandhu told the IBA, adding that around 50,000 BCs are likely to be appointed in rural areas for the programme alone.
 

Monday, July 14, 2014

National Bank for Agriculture and Rural Development launches RuPay Kisan cards



National Bank for Agriculture and Rural Development (Nabard) today rolled out RuPay Kisan Card and RuPay Debit Card here today.

"This is the first time that RuPay Card, which is in the nature of ATM cum Debit Card, is being issued by any cooperative bank in the state of Haryana," said Nabard Chief General Manager (Haryana) D V Deshpande.

He said the issue of RuPay cards by cooperative banks will enable them to improve their customer service and bring it on par with any other bank to farmers and other customers.

Meanwhile, Haryana Chief Minister Bhupinder Singh Hooda asked Nabard to increase the refinance given to cooperative banks from 50 per cent to 75 per cent.

Speaking on the occasion of its 33rd Foundation Day here today, Hooda said reducing groundwater level and shrinkage of fertile land posed big challenges which could be met by promoting piped and drip irrigation, constructing green houses, promoting dairy and techniques of vertical farming.
Hooda asked Nabard to work at the micro level for the expansion of these techniques and said it should provide finance for setting up water bodies in the state.

He said while Kisan Clubs have been set up in all sub-divisions of the state, there is a need to set up Kisan Clubs in all villages.

"Nabard should extend a helping hand in doing so. These clubs would act as a bridge between NGOs, self-help groups, farmer groups," he added.

Friday, June 20, 2014

Rupay Kisan Credit Card Scheme to start from July 12


 REPRESENTATIVE IMAGE: As per the RBI guidelines, farmers across the country are to be issued credit cards to boost paperless cash credit system by March 2015. 


CHANDIGARH: Farmers across the states for the first time will get facility of credit cards by the end of financial year in the country. The RBI mandated scheme is targeted to provide ease of transaction through credit cards to farmers instead of prevailing cheque based Kisan Credit Cards.

The NABARD funded program is being undertaken by National Payment Corporation of India. As per the RBI guidelines, farmers across the country are to be issued credit cards to boost paperless cash credit system by March 2015. The initiative is part of the modernization bid of cooperative banks to aid them tackle competition from the commercial banks.

"Axis Bank will be sponsor bank to issue credit cards to farmers in Haryana covered by the Central Cooperative Banks," managing director, HARCO State Cooperative Apex Bank, Naresh Chaudhry said.

In Haryana the new scheme known as 'Rupay KCC Card' will be launched from Ambala on July 12 on the occasion of foundation day of National Bank for Agriculture and Rural Development (NABARD). This State wide scheme will be launched from Cooperative Bank of Ambala

As per the scheme, farmers covered under Primary Agriculture Co-operative Societies will get facility of credit cards for paperless loans for crops and other needs. Under the scheme, the loans will incur interest of 7 per cent up to the limit fixed under the Kisan Credit Card scheme. At present crop loans up to 3 three lakh are provided to farmers under Kisan Credit Card Scheme. "In Haryana farmers are provided interest subvention of three per cent in case of timely payment," CEO, Amabala Central Cooperative Bank Gurpreet Kaur said.

"It will reduce transaction cost of banks and also provide ease of credit transactions to farmers," says CEO, Gurgaon Central Cooperative Bank, Ved Parkash Yadav.

Cooperative banks in the country are burdened by rising Non Performing Assets and credit cards are suspected to further deteriorate the asset quality of the banks. " Ease of credit will encourage farmers to pay back loans on time," says Yadav.The scheme could provide new lease of life to cooperative banks that are losing ground to commercial banks. "Crop loans is mainstay of business of cooperative banks unlike commercial banks," says Yadav.

Haryana Co-Op banks to provide credit cards to farmers



For the first time, now the Cooperative Banks in Haryana would also provide credit cards to farmers.

Chief Minister Bhupinder Singh Hooda would launch a new scheme known as 'Rupay KCC Card' on July 12, on the occasion of foundation day of National Bank for Agriculture and Rural Development (NABARD).

This state-wide scheme will be launched from Cooperative Bank of Ambala in Ambala by issuing such cards to five farmers.

On the same day, Hooda would also introduce a new scheme 'Dairy Area Development Scheme' for dairy owners.

It aims at developing dairy through ultramodern scientific methods so as to make dairy business more profitable.

The 'Rupay KCC Card;' would be similar to ATM card which farmers can use at any ATM, an official release said here.

The banks would also provide finance to dairy owners adopting ultramodern scientific methods.

In a meeting held here today, the Chief Minister discussed both the schemes with Chief General Manager, NABARD, D V Deshpande.

Hooda said the state government has taken a number of decisions for the welfare of farmers and dairy owners.

These decisions have benefitted farmers and dairy owners and enhanced their economic status.

He said that the state government would continue to take such decisions.

Highlighting 'Rupay KCC Card' scheme and 'Dairy Area Development Scheme', Deshpande said dairies with up to 10 cattle would be provided funds under the 'Dairy Area Development Scheme'.

He said the 'Rupay KCC Card' scheme is being introduced by Cooperative Banks in the State for the first time.

Deshpande informed the Chief Minister that today NABARD released Rs 20 crore to Irrigation Department for strengthening the irrigation canals in the State and has sent a new project costing Rs 200 crore for approval to headquarters.

Hooda also asked Deshpande to get a project approved for four water bodies to be set up in the State to minimise threat of flood in various districts.

Deshpande said progressive farmers and bankers with commendable performance would also be honoured in the function to be held on July 12.

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.

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.

Tuesday, March 19, 2013

RuPay cards to reach out to more farmers by June 30

Source:http://articles.timesofindia.indiatimes.com/2013-03-06/pune/37498838_1_national-payments-corporation-kisan-credit-cards-rupay-cards

PUNE: The National Bank for Agriculture and Rural Development (Nabard) wants the RuPay-enabled debit cards to reach out to a larger rural population and has asked all district central cooperative banks to implement core banking system by June 30.

The government, through the National Payments Corporation of India (NCPI), had introduced the domestic card scheme, RuPay, to rival Visa and Mastercard. The NCPI then went on to work with major banks to get them on board to launch the RuPay Kisan Card and the first to launch it was the Bank of Maharashtra, which has issued it to farmers who have accounts with the bank. "We have issued more than 30,000 RuPay-enabled cards. The cards will ensure judicious use of cash limits by farmers. Once the loan is credited to the account of farmers, they can purchase things using the card as per the requirement," said Balasaheb Tavhare, assistant general manager, information technology and management information systems, Bank of Maharashtra.

Now, to accelerate the process, Nabard has provided financial assistance to 11 district central cooperative (DCC) banks for implementing core banking system, in addition to funding regional rural banks that have farmers as account holders in large numbers. Other DCC banks, such as those in Raigad, Mumbai, Pune, Akola and Sangli, have either completed or are in the final stage of implementing CBS and have borne the cost of implementation from their own resources. Nabard is also making point of sale (POS) machines available at all the district and tehsil level, said an official. Nabard will also fund these banks for issuing RuPay cards and point of sale machines.

The card can be used in urban areas as well. The core banking system enables a customer to access his/her bank account from any branch. The facility is further extended to automated teller machines, estimated to be over 1 lakh across the country, which the account holder can use to withdraw money. The RuPay-enabled card will act as a debit cardfor farmers for withdrawal of cash, said a senior Nabard officer.

As per the 2011 census, there are 1.30 crore rural households in the state of which 34 lakh have Kisan credit cards (KCC). Kisan card is the Union government's initiative for connecting farmers to banks and channelize funds and assistance to their accounts. The RuPay card is being issued first to farmers who hold the Kisan credit cards. All the rural households in the state would also get RuPay cards eventually.

P M Ghole, general manager at the regional office of Nabard, said, "Nabard will bear the entire cost of making the cards to be distributed to farmers and subsequent transactions for the first three years. We have also asked the DCC banks to appoint correspondents with point of sale machines and conduct training programmes for rural people who will be using such cards for the first time."

RuPay is India's own domestic card payment network to rival Visa and Mastercard and was launched in March, 2012. To promote RuPay, the Reserve Bank of India has permitted private players to set up ATM machines connected to the RuPay platform in urban and rural areas. Once all the credit and debit cards issued by rural, public sector and private commercial banks get linked on the RuPay platform, a card holder will be able to withdraw cash from any ATM machine in the country.

30,000 farmers issued RuPay Kisan Card by Bank of Maharashtra

All district central cooperative banks asked by NABARD to implement core banking system by June 30 to widen RuPay penetration in rural parts

NABARD is also funding 11 such banks for speedier implementation of core banking system
Total Number of Card holders in the country: 3,330 lakh