Showing posts with label apply rupay card. Show all posts
Showing posts with label apply rupay card. Show all posts

Tuesday, October 20, 2015

How Aadhaar card has made your life easier



How Aadhaar card can make your life easier


Supreme Court allows more instruments to use the biometric card.

Image: Many transactions in the financial sector are finally getting linked to the biometric card. Photograph: Reuters
Soon, linking the employee provident fund account with the Aadhaar card can make life much easier for employees.

K K Jalan, central provident fund commissioner, Employee Provident Fund Organisation, explains: "With the Supreme Court (SC) deciding to allow linking of PF with Aadhaar, it will help us go totally online. We wanted to use Aadhaar to give unique benefits to subscribers, like settlement of accounts through the online method. This can only be done if the account is linked with the biometric card. At present, for claims settlement, we are totally offline."

With the SC adding four more schemes (Jan-Dhan Yojana, Mahatma Gandhi Rural Employment Guarantee, EPF and pensions) where Aadhaar may be used, many transactions in the financial sector are finally getting linked to the biometric card.

Earlier, the use was limited to getting foodgrain and kerosene under the Public Distribution System and for cooking gas.

Image: Aadhaar has been allowed for pension schemes. Photograph: Reuters
Benefit
Says Guru Malladi, partner & leader, advisory services (government & public sector), EY: "For multi-channel service providers this is a welcome step. While there can be no denial of service if one does not have the card, it will help make things simpler for ones who decide to share their Aadhaar details."
For example, as Aadhaar has been allowed for pension schemes, the money can be deposited directly to a pensioner's account.
Even if the pensioner dies, things can move rapidly if his/her nominee's card details are with the department.

At present, it takes three to six months for transfer of such details.
Sushila Pai (name changed) lives with her 92-year- old mother in Mumbai's outskirts.

When her brother who'd retired from a state government organisation passed away, the pension amount was supposed to have passed to the nominee, their mother.

However, as the mother was 92 years and could not travel to the bank or even sign, bank officials had to come every month to get her thumbprint on cheques for withdrawal of pension. Frustrated with the process, the family withdraws the pension once in a quarter or six months.

Even the transfer of pension took over six months because bank officials had to come several times to take the thumbprints.

If Pai's mother had an Aadhaar card and had shared the details with the bank as the nominee of her son's pension, the transfer would have been much simpler.

Image: Usage of Aadhaar will soon be extended to other instruments like purchase of mutual funds. Photograph: Reuters
More products?
When Attorney General Mukul Rohatgi requested the SC to add the opening of bank accounts with a unique identification number, the court would not make more modifications.

However, experts hope this usage of Aadhaar will soon be extended to other instruments like purchase of mutual funds (MFs), insurance policies and so on. Chief executives of MFs believe this development will allow them to exponentially extend their reach.

At present, if distributors have client applications from another city, it is a big problem, as the process of physical verification is long.

Many online distribution companies do video conferencing as physical verification.

Image: The issue is about the authenticity and veracity of the database. Photograph: Reuters
Quiet spread
Backed by the Reserve Bank of India's permission to use Aadhaar, many banks have already started using it aggressively.

Some even insist on the card when one applies for a bank account or loans.
Also, the income tax department is making life easier for taxpayers who are willing to link their Aadhaar while filing returns.

Despite filing a return online, taxpayers had to take printouts of the acknowledgement and send it by post to the department. Now, those who have linked the card need not do it.

The problem
The apex court has not allowed mandatory use of Aadhaar. Without this, most financial institutions will be wary.

However, experts also believe such a development would be premature, for many reasons. At present, the Unique Identification Number covers only 900 million accounts, roughly 75 per cent of the population.

"Once we have reached 90 per cent or more, the courts will look at the government's plea to make it mandatory more favourably," says a tax expert.

 However, it is not only about coverage. Take the case of Anwar Sheikh, an assistant with a law firm, as an example.

He applied for the card, with his family. While the others got their cards in a couple of months, his brother and he did not.

After chasing the department and calling the helpline several times, he was told his documentation had not been received. He reapplied and got his card after a year.

What is more surprising is that when he made contact with the department, he was asked to send the details in a format.

When he did so, there was no response. "How can someone's documentation, eye scan, fingerprints simply disappear from the system? It is what worries me about the idea of a single identity like Aadhaar," says the lawyer.

Image: There is a lot of personal data already floating around. Photograph: Reuters

Voluntary vs mandatory

There is a strong debate on whether it should be made mandatory or not.
Pawan Duggal, cyber security lawyer, feels the government should not do so as of today because Aadhaar is based on biometric information, collected using a computer system. This means it is based on information in electronic form.

It is, therefore, governed by the Information Technology Act, which states that such information needs to have adequate security.

"It's not normal data - it's sensitive personal data. If it's not properly retained and securely maintained, it can be leaked out and the entire identity will be compromised," says Duggal.

Image: It won't be a bad idea to get an Aadhaar card and use it for transactions you are comfortable with. Photograph: Reuters
The bigger problem, as Duggal highlights, is that one doesn't know how the government is complying with the IT Act, as there's no information on data safety procedures adopted. People are clueless on the compliances done under the Act.

Some others feel the privacy issues will be resolved over time. "It is an opportunity for us to review our 70-year-old privacy laws. The security establishment around the card has to be created," adds Malladi.

According to him, there is a lot of personal data already floating around.
For example, with travel to the US and UK, one has to give biometric data even before entering the countries. Many others, like Dubai, seek data for people who are there even in transit. All this data can theoretically be misused.

The issue is about the authenticity and veracity of the database. This is the reason why some financial institutions, like MF companies, are not allowed to accept it as a proof, which can have bigger financial ramifications.

While this debate will be on for some time, or perhaps a very long time, it won't be a bad idea to get an Aadhaar card and use it for transactions you are comfortable with.

What is the Aadhaar case about?
  • After a few government departments made Aadhaar compulsory, several petitions were filed
  • Supreme Court impleads all states and Union Territories in the case
  • The principal opposition to Aadhaar in the SC turns out to be the question of privacy
  • The government's defence: Only basic identity data required
  • SC restrains UIDAI from transferring information to any agency without the written consent of the Aadhaar card holder
  • The attorney-general argues that a Right to Privacy is not guaranteed under the Constitution
  • SC refers the privacy question to a larger constitutional bench
  • A five-judge bench, accordingly, set up to hear the petition
  • Going forward, SC to look at whether there is any Right to Privacy guaranteed under the Constitution

Friday, June 12, 2015

‘55% of RuPay cards active under Jan Dhan Yojna’

 AP HOTA, MD and CEO of NPCI

Exploring the feasibility of networking with China, says NPCI chief

As India’s own card-payment scheme RuPay aims to go global, National Payments Corporation of India (NPCI), which conceived and launched the scheme, has tied up with Chinese and Japanese companies to help citizens of these countries use Indian ATMs and Point-of-Sale terminals. AP Hota, Managing Director and CEO of NPCI, says the corporation plans to take this one-way relationship further and bring more activity into the home-grown card network. Edited excerpts from an interview:

How will the tie-up with China UnionPay International be beneficial?
We are exploring the feasibility of network-to-network relationship with China. Initially, the relationship will be one-way, that is, China’s UnionPay card-holder when they come to India can use Indian PoS terminals and ATMs. Currently, all the ATMs and 99 per cent of PoS terminals are part of NPCI.
Next, we will look at commercial arrangements between NPCI and China Union. They will have their approval and we will now seek approval from our member-banks and we can expect this in the next two months.
Later, the technical integration will be done and, in anticipation, we have already started the process. We may look at going the other way later — that is, our card-holders can use ATMs and PoS terminals in China.

What is the status on cards under Jan Dhan Yojna? How many are active?
Over 130 million cards (13.7 crore according to the Pradhan Mantri Jan Dhan Yojna website) have been dispatched as on April-end. According to Finance Ministry data, 55 per cent of the 140 million cards issued under Jan Dhan are active, though previously it was 70 per cent. However, we are hopeful that once MNREGA is implemented, the level of inactive accounts will come down. Direct Benefits Transfer (DBT) has also helped in making them active.

The RBI has said it will roll out guidelines for issuing mobility cards. When will they be launched?
We are working with the Ministry of Transport to make payments easier in smart cities by issuing mobility cards. We have built the specifications based on both national and international standards.
This will facilitate usage of the cards at grocery shops or while buying tickets for any mode of transport through the contact-less system.
Also, the requirement of contact-less transactions will be huge and procuring large terminals in accordance with Indian standards will also serve the ‘Make in India’ campaign. We have made several presentations and the Ministry is examining our specifications. 

Will you be using the same debit cards?
Yes, it will have to be EMV (Europay, MasterCard, and Visa) enabled and have NFC (near field communication) technology. From September onwards, we will have to issue EMV-based cards as per RBI mandate.
It will be a challenge to replace the existing Jan Dhan Yojna cards into EMV-enabled ones. As of now, the RBI has not given any deadline on the replacement.

Wednesday, March 4, 2015

NPCI to come out with virtual form of RuPay debit card

After launching the RuPay debit card, National Payments Corp (NPCI) is set to come out with its virtual form in the next few months, a move that will give further push to smartphone-based transactions.

"We are planning to go for pilot of a virtual RuPay card over the next 4-5 months," NPCI Managing Director and Chief Executive A P Hota said here today.

 

NPCI is the nodal agency for all retail payment systems under the Jan Dhan scheme.
The physical plastic RuPay card carries a 16-digit number. Under the virtual form, there will be no need of a physical card and a transaction can be done with the help of the 16-digit number alone.
The initiative will enable all account-holders send and receive money from their smartphones with a single identifier which may include the Aadhaar number, mobile number or virtual payment address without entering any bank account information.

Average value of the card payment system per head as on date was Rs 1,500 and an average remittance stands at Rs 2,500. Under the new virtual system, the amount would be much less and may include school fee and grocery payments, he said.

The proposed payments banks are likely to provide this virtual card facility from the beginning, Hota said. "The specifications standards are now available for payments banks and hence it is a great opportunity for them."

Around Rs 8,000 crore worth of transactions are taking place through IMPS (immediate payment service) per month. What we are doing now is just putting another extra layer on the already existing system so as to make transaction more easy, Hota explained.

Currently, only around 20 per cent of the total transactions are happening through IMPS and hence NPCI is working on further simplification of the facility so as to make it more popular in future, he added.

Talking about authentication system for the virtual RuPay card, former Chairman of UIDAI Nandan Nilekani said "with everybody having cellphones, going forward the single- factor authentication can be the cellphone, replacing the physical cards."

"Later, Aadhaar-based authentication will come on mobile phone in 12-18 months. Second factor of authentication will be the Aadhaar number. We hope millions of transactions to take place through this mode in the country in days to come," Nilekani said.

Sunday, January 11, 2015

Private banks lag behind PSU lenders in opening Jan Dhan a/c

Private banks lag behind PSU lenders in opening Jan Dhan a/cPrivate sector banks are way behind their PSU peers when it comes to opening financial inclusion accounts under the Prime Minister's Jan Dhan Yojana, with just about 30 lakh in over four months.

The state-owned banks have opened 8.62 crore such accounts in the same period. The number of such accounts opened by even regional rural banks stands at 1.92 crore.

Private banks have a market share of about 20 percent, but their contribution in this flagship financial inclusion programme of the government is only about three percent.

As per the latest Finance Ministry data, 13 private sector banks have opened 30.47 lakh Jan Dhan bank accounts as against 8.62 crore by state-owned banks as on January 7.

Prime Minister Narendra Modi launched the financial inclusion scheme on August 28, 2014. The initial target was to open 7.5 crore such accounts, but the later it was revised upwards to 10 crore to be completed by January 26, 2015. However, this target has already been achieved.

Taking into account the regional rural banks, so far a total of 10.84 crore Jan Dhan accounts have been opened so far by all banks in the country.

Among private banks, just three of them -- HDFC Bank, ICICI Bank and J&K Bank -- account for about two-third of total accounts opened by private sector lenders.

HDFC Bank has opened 7.8 lakh such accounts, followed by ICICI Bank's 6.67 lakh and Jammu and Kashmir Bank's 6.06 lakh.

Country's third largest private sector lender Axis Bank have opened 2.45 lakh accounts and Kotak Mahindra Bank has opened just 54,000 accounts.

As far as public sector banks are concerned, they have opened more than 8.62 crore Jan Dhan accounts.

Country's largest bank SBI has opened 2.15 crore accounts, followed by Punjab National Bank (61.74 lakh), Bank of Baroda (58.47 lakh), and Canara Bank (53.79 lakh).

The main features of the PMJDY scheme include Rs 5,000 overdraft facility for Aadhaar-linked accounts, RuPay Debit Card with inbuilt Rs 1 lakh accident insurance cover.

Besides, account holders under the scheme will get life insurance cover of Rs 30,000. This was additional benefit announced by the Prime Minister during the launch of the scheme. Private banks lag behind PSU lenders in opening Jan Dhan a/c

Wednesday, September 24, 2014

How to apply for RuPay Card



We have seen a lot of MasterCard and Visa. It is time now to switch over to a card scheme which is more Indian. It looks like that India is now ready to welcome its very own card and payment scheme named as RuPay.

RuPay is going to be an Indian venture into the world of card schemes. However, before you jump the guns, you should know that although RuPay is India’s brainchild, it is not hundred percent Indian. RuPay cards are being created in affiliation with Discover Financial Services, which as we all know, is a US based financial company. Nonetheless, RuPay is going to be more Indian than American.

How to apply for RuPay card?

Many public banks of India have already started offering the RuPay card to the consumers. Therefore, if you want to get the RuPay card you can ask your bank for it. The application process is pretty simple depending upon the bank.

While most of the private banks issue the debit cards over the phone after verifying your identity (by asking the TPIN number), the government or public banks require you to fill the form and follow a process to get the new debit card. You can call up your bank and ask about the process to get the RuPay card issued.

Not many private banks are offering the RuPay cards at this time but it is expected that it will be available soon with all of them. The Reserve Bank of India has mandated RuPay card for all the banks but they have been given some time to get it incorporated in their systems.
If you are an existing customer of the bank which already offers the RuPay card then you can apply for a new debit card. If you are opening a new bank account then at the time of depositing the money you can ask the bank to issue the RuPay card.

Will MasterCard and Visa cards be phased out?

No. Reserve Bank of India has no such plans to phase out the existing and popular Master and Visa cards. In fact, the users of these cards will be able to continue using these cards as they have done before.

With the introduction of RuPay card, there will be a tough competition for these financial giants though. You will be able to use your existing debit cards at all the ATM machines and for online shopping as you used to do it before.

What are the benefits of RuPay card?
There are several benefits of using the RuPay card for the Indians. Since Master and Visa cards are provided by the foreign financial institutions the transaction costs are higher. With RuPay cards, the cost of transaction will be lesser because it will happen within India involving no international processing. People will also enjoy bigger savings due to the low transaction fees.

However, there are certain disadvantages too. For instance, while Master and Visa cards offer the reward points 1on every purchase, there is no such thing with the RuPay cards.