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

Friday, August 8, 2014

BMB rolls out RuPay debit card


 Bhartiya Mahila Bank (logo).jpg

Bharatiya Mahila Bank (BMB) has launched BMB RuPay debit card with an EMV chip. The card was launched by Usha Ananthasubramanian, Chairperson and Managing Director, BMB, in the presence of AP Hota, Managing Director and CEO, National Payments Corporation of India (NPCI), in Mumbai. EMV chip technology is becoming a global standard for credit card and debit card payments. It is named after its original developers — Europay, Mastercard and VISA.

Bharatiya Mahila Bank (Hindi: भारतीय महिला बैंक) (BMB) is an Indian financial services banking company based in New Delhi, India.Former Indian Prime Minister Manmohan Singh inaugurated the system on 19 November 2013 on the occasion of the 94th birth anniversary of former

Indian Prime Minister Indira Gandhi. Although initially reported as a bank exclusively for women, the bank allows deposits to flow from everyone, but lending will be predominantly for women. India is the third country in the world to have a bank especially for women, after Pakistan and Tanzania.
The bank has been criticized as adopting a segregational approach to gender equality. Uma Shashikant of the The Hindu writes:

Women-only banks are another instance of wanting to treat women ‘differently’. We guise this in many forms, some in garbs of reverence, some as protection, but they are all forms of discrimination that promote gender-based stereotyping. Women-only organisations stem from this eagerness to patronise women in the name of preferential treatment

MP govt to launch financial inclusion drive across state

This will ensure timely payment of wages and other compensation against various government-sponsored welfare schemes



To meet the total financial inclusion programme to be launched by Union government on August 15 this year Madhya Pradesh has geared up to launch its total financial inclusion drive in its all 51 districts. This will ensure timely payment of wages and other compensation against various government-sponsored welfare schemes. 

"The banking service area mapping has been completed in all 51 districts in Madhya Pradesh. The area of operation has been allotted for implementation of total financial inclusion (Sampoorna Vittiya Samavesh) to all banks in all districts has also been completed. Opening of accounts of Head of every household will commence from August 15 in camp mode," a senior government official said.

Every bank will prepare a monthly and quarterly calendar for holding camps in allotted areas and connectivity issue is to be informed to state level bankers committee. "The bank will have rights to shift the business correspondent, who will operate accounts, locations to the village within 5 km radius, where connectivity is available. If there is no connectivity in any of the villages, banks will have to explore to provide satellite connectivity through VSATs for those locations," the official said, adding, Ministry of Finance may be requested to reimburse the cost of the same to banks through the financial inclusion fund.

At least one account for every household in the country is mandatory, for the head of the household. Every household will have access to banking services within 5 km by September 2015 except hilly, tribal, forest and desert areas.

"The idea was floated by state government to provide banking services by bank branches within periphery of five kilometers," the official said. Under the plan Issuance of Rupay Card in accounts is to be encouraged. But the bankers will have to ensure that the card and accounts should not become dormant through motivating account holder to make card transactions.

"An overdraft limit of Rs 5,000 is to be allowed to the account after a reasonable period and after taking into consideration the saving or credit history of account holder," the official said.

Modi’s Financial Inclusion Plan - Rupay Card News

Who pays Who benefits?


One of prime minister Narendra Modi’s ambitious plans is the massive financial inclusion drive which envisages a bank account for 150 million Indians by August 2018. The idea of financial inclusion is not new—it has been the buzzword at the Reserve Bank of India (RBI) since 2005, but without much success. In fact, several thousand new bank accounts, opened under pressure from RBI, remained dormant or did not have a single transaction. Why will it be different this time? Well, Mr Modi reportedly proposes an overdraft facility of Rs5,000 for each account, besides a RuPay debit card with inbuilt accident insurance cover of Rs1 lakh. The overdraft will be backstopped by a Credit Guarantee Fund.

Had something like this been announced by the Congress government, it would have been immediately dubbed a loan mela or another subsidy scheme. But Mr Modi’s spectacular election campaign and the 12-year Gujarat development record have ensured that doubts and misgivings remain muted.

Financial inclusion and empowering the poor is a necessity. There is no doubt at all that the poor are forced to borrow at significantly higher rates, are badly exploited by moneylenders and also forced to pay more for all goods and services. When financial inclusion was attempted though micro-finance, it led to exploitation by rapacious micro financiers, insurers and others.

Will Modi sarkar succeed in getting the same government officials to deliver where others have failed? Will moneylenders not exploit the Rs5,000 overdraft facility for repayment of old borrowings? What will the Modi government do to prevent poor, unbanked, rural folk from blowing up the overdraft, as they usually do, on marriages and religious ceremonies and on liquor?

It is significant that KR Kamath, chairman of the Indian Banks Association, while talking about how bankers were working overtime on this project said, “More than being commercially viable, it is important to link every household with the banking system.” But what happens when the overdraft has been spent and there is a default in the books of our nationalised banks? It will not only be a cost to the exchequer, but all the householders, who were recently included, will be excluded from the system again. We will watch for answers, when the prime minister unveils his grand plan for financial inclusion from the Red Fort on Independence Day.

The second phase of the financial inclusion plan talks about a pension scheme for the lower income and unorganised sector and micro-insurance through the nationalised insurance companies. Premium for insurance products will come from schemes like the Rashtriya Swasthya Bima Yogana.

A catchy name, terrific tag line, nice logo and a marketing blitzkrieg is all very well, but we would much rather hear a discussion on how the Modi government has studied and fixed all the leakages and malpractices that prevented government-directed financial inclusion and insurance schemes from working.

Instead, all we are hearing from officials and bureaucrats, desperate to please a powerful prime minister, is about the spending and hiring spree (20,000 ATMs, 50,000 banking correspondents and 7,000 branches) planned to meet the ambitious targets.