Wednesday, January 26, 2011

Federal Bank – Unlimited Free Access to all Indian ATM’s



Federal Bank – Unlimited Free Access to all Indian ATM’s

On the occasion of the 62nd Republic Day Celebrations, Kerala based Federal Bank unveiled a novel customer retention campaign  i.e  ‘NO TRANSACTION FEE ‘ will be levied for its customers  on transactions,  at  other bank ATMs  even beyond the cap of five transactions per month.

At present a debit card holder of a particular bank can do transactions at an ATM of a different bank up to five times a month. From the sixth transaction, most of the banks levy Rs20 per transaction.

With the introduction of the new facility, a Federal bank debit card holder can transact through any Banks ATM in the country, any number of times, without being levied any charges. This facility is extended to all debit card holders, irrespective of the type of account they hold,

QUOTE
Federal Bank introduces a new facility, wherein Federal bank's debit card holders can transact through any Bank’s ATM in the country, any number of times, without being levied any charges.
UNQUOTE

Yes, this will enable Federal Bank to shore up its CASA Balances but as a Safe ePayments motivator, I believe this step will increase cash transactions.

In majority of the Retail Outlets charge 2% of the Bill if a Credit Card/Debit Card is used to settle the Bill.

It would have been more attractive if Federal Bank waived this charge. As it is there is a waiver of the fuel surcharge.

Federal Bank on its website has a separate sub-section highlighting all its Paper Advertisements. The ATM Free Offer Advertisement will add luster to the section. Trust the same will be added soon.




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Tuesday, January 25, 2011

UIDAI Tenders – Should funds move in Paper Mode or Electronic Mode ?


UIDAI Tenders – Should funds move in Paper Mode or Electronic Mode ?

Let me confess, I am a bit confused as to where to position the UIDAI or the AADHAR, as it is now called.

Will it fit in Safe ePayments, Innovation in Banking or Simply Banking?

For the time being, AADHAR Blog Posts will be in Innovation in Banking.

Ok, where do I start off?

There are plenty of sites on UIDAI/AADHAR.

Each site is doing a wonderful job in spreading the role of UIDAI/AADHAR.

As with everything new, there are plus and minuses of UIDAI/AADHAR

I will be concentrating on the Plus Points and hope that the Minuses will be converted into Pluses on the way.

The basic question is what AADHAR is?
As per UIDAI site, it is a 12 digit numbers.

Clarity is required what is the relevance of each digit in the 12 number strands. Maybe it is too early for this information to be made public.

Several articles have been published on the AADHAR’s dependence for opening Bank Accounts i.e promoting electronic payments.


can be clicked for a introduction on UIDAI vision on micropayments.

But, what I find strange is that UIDAI still relies on Paper Instruments i.e Demand Drafts for purchase of of its tender documents

For eg:

QUOTE

The tender document containing eligibility criterion, scope of work, terms & conditions and draft agreement can be obtained from the undersigned by remitting an amount of Rs. 500/- in cash or DD in favour of    “PAO, UIDAI” or downloaded from the  website www.uidai.gov.in.

Those who download the tender document from website should enclose an additional DD for Rs 400.00 in favour of “PAO, UIDAI”, payable at New Delhi, along with their tender bid in the Cover-I “Technical Bid. The bid security (EMD) of Rs 10,000/- (Rupees ten thousand only) should be paid by Demand Draft in favour of “PAO, UIDAI” payable at New Delhi

UNQUOTE

As a fanatic of Safe ePayments I would have preferred the funds to move in the Electronic Mode i.e National Electronic Funds Transfer (NEFT)

This would have also sent the right signals about ePayments to the followers of UIDAI





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Sunday, January 23, 2011

“IOB Sampoorna” and “IOB Smile”



“IOB Sampoorna” and “IOB Smile” schemes
Indian Overseas Bank has kicked off its 75th Anniversary Celebrations’.

As part of the 75th Anniversary Celebrations, IOB has identified 75 villages across the country and launched IOB Sampoorna and IOB Smile, as part of its Corporate Social Responsibility.

The following are few of the facilities that the citizens of the 75 villages can look forward to: -
1.     All the eligible residents are provided with a No Frills Savings Account in the bank,
2.     Biometric cards
3.     An overdraft of Rs 1,000 if requested by the beneficiary

As IOB has not yet updated its website with the details of Sampoorna and Smile Schemes, the link is not provided.

IOB commenced its operations in 1937: Shri.M.Ct.M. Chidambaram Chettyar establishes the Indian Overseas Bank (IOB) to encourage overseas banking and foreign exchange operations.

As the name suggested the focus was on overseas banking from Day 1.

IOB started up simultaneously at three branches, one each in Karaikudi, Madras (Chennai) and Rangoon (Yangon). It then quickly opened a branch in Penang and another in Singapore. The bank served the Nattukottai Chettiars,

M.Ct.M.Chidambaram Chettyar was popularly known as M.CT. 

Apart from founding Indian Overseas Bank he also founded two Insurance Companies vis  The United India Life Assurance Co.Ltd and, The United India Fire & General Insurance Co.Ltd., that proved as successful as his previous venture.

Nattukottai Chettiars,   hail from the Sivagangai and Pudukottai districts of Tamil Nadu State in India. 

They are often referred to as Nattukottai Chettiars to distinguish them from other groups of Chettiars. The term "Nattukottai Chettiars" means "people with palatial houses in the countryside".

Nattukottai Chettiars,  are a part of the larger Vysya Clan i.e the Trading Community of India.

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Thursday, January 20, 2011

DhanLaxmi Gift Card


DhanLaxmi Gift Card

Dhanlaxmi has expanded its Alternate Payments Portfolio, by introducing the DhanLaxmi Gift Card

Dhanlaxmi Bank Gift Card is a rupee denominated, pre-paid, non-reloadable card.

It can be used at any of the over 450,000 Visa enabled merchant outlets across the country that possess a Point of Sale terminal (POS)

The Press Release of can be accessed @

I was just wondering, with no festivals in the near future, what could be DhanLaxmi Bank’s strategy in launching Gift Cards now?.

What is a Pre-paid, Non-refundable card?

Basically, it’s the same as a regular prepaid card – a payment card preloaded with your own money, which you can then use to make purchases wherever the payment card is accepted.

 But with one major difference. As the name suggests, this type of card is non reloadable – meaning that once you have spent the money loaded onto it, the card is no longer usable and is disposed of. 



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Sunday, January 16, 2011

State Bank of India – Bank on Bike


State Bank of India – Bank on Bike

Banks are re-drawing their strategies to spread the financial inclusion drive in their allotted villages.

Financial Inclusion in the last couple of decades did not take off. With Reserve Bank of India, taking more pro-active role in the Financial Inclusion agenda, things have started to improve.

The State Level Bankers Committee (SLBC) is now fixing targets to member banks for financial inclusion. The Banks are being allotted Villages to ensure financial inclusion is over for the allotted villages.

Hence, Banks are racing against time to meet the Financial Inclusion drive.

Each Bank is adopting multiple approaches for the same

In this regard, State Bank of India, on 14/01/2011, launched the ‘Bank on Bike’, to service unbanked villages.

Cheriyal in Medak district of Andhra Pradesh, about 60 km from Hyderabad, became the first village in the country to welcome SBI Bank on Bike initiative.

More details on this can be accessed @


Top 6 characteristics of State Bank of India’s Bank on Bike Scheme are :

01)  It is more cost effective than a 4 wheeler.

02)                A person on the bike will carry a laptop and data card to access specially designed SBI Internet site for the purpose.

03)                The Services can be accessed through a biometric interface and thereby facilitates transactions for illiterate people too.

04)                GeoSansar’s (SBI’s Business Correspondent) representative will visit three places every day, at designated times.

05)                The BC will access a specially designed Internet site.

06)                Presence of BC at Fixed timings will encourage the villagers to route their financial transactions through.  

State Bank of India, in the medium run, is looking to expand this service to other locations too.










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Tuesday, January 11, 2011

Indusind Bank – Check on Cheque.



Indusind Bank – Check on Cheque.

Indusind’s new idea – check on Cheque is yet to catch the customer’s fancy. This is a radically new initiative and it will take a couple of months for the industry/customers to appreciate the benefits.

Numerous departments’ have to co-ordinate at the Back end, for this initiative to be a success. A combination of man and machine in perfect sync only will enable 100% success of this initiative.

The facility is available to both Savings and Current Accounts.
This facility is for Cheques paid @ Pan-India Branches.


Top 5 benefits of Check On Cheque are:


01)                       Ist mover advantage

02)                       The first of kind in the Indian Banking Industry.


03)                       Difficult for Peers to replicate the same feature.

04)                       Sure fire Magnet to attract CASA Accounts


05)                       Future complaints viz., wrong cheques paid, eliminated. 

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Monday, January 10, 2011

Indusind Bank – WOW Customer experiences - Choice Money





Indusind Bank – WOW Customer experiences - Choice Money

The more CASA Deposits Banks have, the more they will be profitable.

Each Bank has a boutique of CA/SB Account types with various benefits attached to the Accounts basing on the Average Balance.

All the Banks have similar Banks, and hence the need of the hour is to offer Services which can create a WOW factor.

WOW factor can be created at various customer touch points – i.e Branch, Phone Banking, Webpage, Internet Banking.

The latest trend is for the WOW factor is at ATM’s and Statement of Account.
HEFC started the trend with 40% faster ATM’s and Indusind Bank has taken the ATM experience to another level.

It is wooing customers with ‘Choice Money’, at it’s ATM’s

The ATM denomination selection service is called ’Choice Money ATM’.
Under the ‘Choice Money’, the customers can select the Denomination, instead of the ATM choosing to dispense notes of its choice.

There have numerous instances wherein customers withdraw Rs1, 000/-, the ATM dispenses 2 Rs500/- notes and the customers walk into the branch for change!!!!



This is the first of its kind in the Indian Banking industry, and is sure to attract numerous customers to its ATM’s.

Top 5 Benefits of the Choice Money ATM Service from Indusind Bank.

01)                      1st of its kind in the Indian Banking Industry.

02)                      Revenue stream – via higher Interconnect Charges.

03)                      Higher % of recall amongst potential customers.


04)                      Flexibility to top-up its ATM machines, with denomination’s according to the usage pattern.

05)                      Higher % of conversion of cold customers.




Sunday, January 2, 2011

50 Paisa Coins - Minimum Denomination Coin





50 Paisa Coins  - Minimum Denomination Coin

Like all good things coming to an end, the era of 25 paisa is also coming to an end by 30th June, 2011.

10 paisa and 5 paisa coins have also become invisible in the market.

Come June 30 2011, 50 paisa will be the minimum coin accepted in the markets as all denominations below it will cease to be legal currency.


Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries.


The Central Government, Ministry of Finance has notified on December 20, 2010 to call in from circulation the coins of denomination of 25 paisa and below, issued from time to time, with effect from June 30, 2011.



From this date, coins below 25 paisa shall cease to be a legal tender for payment as well as on account. The procedure for call in shall be notified separately by the Reserve Bank of India.


Consequently, from June 30, 2011 onwards these coins will not be accepted in transactions.


The minimum denomination coin acceptable for transaction will be 50 paisa from that date.

Also, in accounting, i.e. the entries in books of accounts, pricing of products/services/taxes shall also be rounded off to 50 paisa or whole rupee from that date. 


The notification was issued in exercise of the powers conferred by sub-section 15A of the Coinage Act, 1906 (3 of 1906).

So, folks time to search your cupboards for 5,10,25 paisa coins and store them carefully. These coins will now will become collector’s items and be associated with nostalgia.





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Saturday, January 1, 2011