Friday, January 30, 2015

The launch of Junior RuPay Debit Cards

            Now, school students can have access to exclusive RuPay debit cards. This would have been unthinkable a few years ago.

            The rollout of the RuPay cards by NPCI has made this possible.

            Pragathi Krishna Gramin Bank – an amalgamation of erstwhile Pragathi Gramin Bank (Sponsored by Canara Bank with Head Office at Ballari) and erstwhile Krishna Grameena Bank (Sponsored by State Bank of India with Head Office at Gulbarga.

            The amalgamated bank has its Head Office in Ballari. The amalgamated bank has physical presence with 632+ branches spread over 11 Karnataka Districts.

            Pragathi Krishna Gramin Bank is the first Regional Rural Bank (RRB) and one among a few commercial banks in the country to launch a new initiative of introducing banking to schoolchildren.

            The highlights of this initiative are:
01) The bank will distribute Junior ATM Rupay Debit Cards to schoolchildren above 10 years of age, introducing them to banking and helping inculcate the habit of saving money.

02)A child can open a savings bank account in any of the 632 branches in the 11 districts by submitting a filled-in application form with passport size photograph, along with a declaration-cum-no objection certificate from the guardian to open the savings bank account and issue of Junior ATM Rupay Debit card, a certificate from school authorities and ‘know your client’ documents of the guardian.

03)The account can be opened with zero balance and the account holder gets a passbook and Junior ATM Rupay Debit Card.

04)On the child attaining 18 years of age, the account gets converted into a normal account after a few simple formalities.

05)In turn, the child could use the card to draw cash upto Rs. 5,000 a day from any of the ATMs and also make payments upto Rs. 2,000 at point of sale.

06)Guardians would receive SMS alerts to their registered cell phones to enable them to know about the cash withdrawals and transactions of their child.

07)Guardians could remit funds to their children’s account through NEFT/RTGS/mobile banking anytime.

08) No cash transactions are in the pipeline.

09) Cheque books will not be allowed.

Sunday, January 18, 2015

SBI Quick – The Brand name for SBI mobile enquiries

            By now all banks in India offer the mobile enquiry service, through which the respective bank customers can get wide ranging information pertaining to their bank accounts through a MISSED CALL facility.

            The process is simple to use and the response time is super fast.

            Bank customers have to simple give a missed call or SMS to a specified mobile number to receive specific information.

            The chief motivating factor for this service is that the MISSED CALL is free of cost. The information is received as a SMS which is saved in the phones memory.  This acts as a record for the requested information.

            SBI is on a spree to launch technology based services for its customers. SBI Quick is one more service which is delivered through technology.

            The core differentiator here is the Sub-Brand name. No other bank in India has thought to give a brand name to its mobile enquiry service. Way to go, State Bank of India.  

SBI brands its passbook printing kiosk as ‘Swayam’ – 5 Usage Tips

            State Bank of India has forayed into the world of passbook printing kiosk. Yes, we Indians trust banks passbooks.

            Bank passbooks are in integral records of the financial health of the respective bank account. The main drawback of account statements on banks website is the time frame of old entries.

            The Passbook has the advantage of viewing transactions from the account opening date in bank supplied stationery.

            Pass Book kiosks in Indian banking have been around for the last couple of years. However, the key differentiator is the branding for the passbook printing kiosks.      
            No other bank in India has branded its passbook printing kiosks though majority of the banks have introduced them in branches and self services areas.

            Read here a newspaper article on this launch.

Swayam will be rolled out at more than 2,500 branches of the Bank. Customers can print their passbooks of Savings, Recurring Deposit as well as PPF account through the facility round the clock, even after branch timings.

There are no immediate plans to add ‘Swayam’, in ATM kiosks or Cash Deposit Machines kiosks. In the near future, depending on space availability it would be very helpful if the ATM Kiosks or Cash Deposit Machines kiosks too have ‘swayam’, machines.

5 usage tips for the Bank customers:
01) Immediately approach your branch and get the Barcode affixed on your passbook.
02)Keep the passbook in a covered pouch.
03)Do not fold the passbook.
04)Update the enteries at regular intervals.

05)Spread the joy of safe eTransactions.

Wednesday, January 14, 2015

Kumbh Mela 2015 @ Nashik-Why there should be no ATMs in the Mela Area

            Nasik will host the 2015 Kumbh Mela. Over 30 million visitors are expected to visit the Mela area during the 2 months Mela period.

The value of commercial transactions will range from INR1 to INR10,000/-, with the average transaction expected around INR500.

            The mela visitors would mainly be interested in lodging, boarding and puja articles. Donations are another area where cash will play a major role.

            5 Reasons why there should be no ATMs in the Mela Area

01) Cost of installation is high. Mobile ATMs are an option, but the same too have to be mounted on trucks with adequate safety.
02)Operating cost is high
03)Refilling cost is high
04)Attraction for anti-social elements.
05)Promote Cash transactions

If NO ATMs, than what is the alternative? The Alternative is CHOTA ATM

a)    Chota ATM has the capability to handle both cash withdrawals and bills
b)   Installation cost is nominal
c)    Operating cost is minimal
d)   Refilling cost is negligible
e)    Safety is high

Sunday, January 4, 2015

Gyan Sangam Ripple-Electronification of Bank Payments in India

            The word ‘Electronification’ refers to conversion of a paper based transaction to an electronic transaction.
            The paper can be physical cash or a banker’s instrument like Cheque/Demand Draft.
            As a step towards Safe Transactions, India's Central Vigilance Commission way back in 2004 has advised all institutions under its jurisdictions to switch over to ECS/EFT mechanism instead of payments through cheques/demand drafts.

            One of key takeaways for Public Sector Banks from Gyan Sangam 2015 is to digitize top 30 processes of the banks.

            In the top 30 process, one process which has to be included is processing payments to Vendors/Suppliers/Agencies/Utility Providers.

            The whole processing cycle can be digitized. As this process exists in all the Banks, it will be feasible to adopt a common processing platform.

            This will also be a forerunner to assist their customers to move from paper based transactions to electronic transactions.

            Another advantage is the learning’s can be adapted to the proposed Bharat Bill Payment System which is expected to take shape in 2015.

            The institutions under Central Vigilance Commission jurisdiction are:

01)  Public Sector Enterprises
02) Public Sector Banks
03) Insurance Companies
04) Autonomous Organisations / Societies

Majority of the PSEs have already switched over to Electronification of their vendor payments.

Saturday, January 3, 2015

Axis Bank@Gyan Sangam

            By now the proceedings of Gyan Sangam 2015 would have been over.  Peer recognition in any field is a valuable feedback tool.
            At Gyan Sangam 2015, one of the innovative Indian Banking products taken up for discussion was “Axis Bank - the Mobile Youth account Retail banking Product design based on life insights”
            Axis Bank launched this project way back in November 2012. At that time, this product was way ahead of its similar products.
            7 Innovative features of the Axis Bank Mobile YOUth Account

01) The target group is 18-25years i.e Youth who have just entered college and are willing to try out new features.

02)Personalized images on Debit Cards. This feature was later adopted by many Indian Banks.

03)Personalized Debit Card offers linked to their lifestyle

04)Mobile to Mobile Transfer. Way ahead of its time, YOUth account holders could transfer funds to other Axis Bank accounts just by keying the registered mobile numbers. This encouraged YOUth account holders friends to open accounts with Axis Banks.

05) Autopull amounts up to a predefined limit from linked accounts. A very pioneering feature as reduced the dependence of the sender to transfer funds.

06)No concept of Minimum Balance. This translated into high average balances rather than low average balances.  

07)Mobile recharge through a dedicated YOUth account App

Read here for a Case Study on the launch of Axis Bank YOUth Account