Tuesday, April 25, 2017

BHIM Referral Bonus and Cash Back credits to be routed through NPCI ACH Credit Module


            One of the important marketing tools to attract new users to a product is the referral bonus tool. The same tool is being implemented to scale up BHIM Transactions. The download numbers for BHIM APP are huge, however the number of transactions is not equivalent of the APP downloads.

            To scale up transaction volumes, Shri Narenda Modi has announced referral bonus for BHIM users, for individuals as well as merchants.

            The detailed guidelines can be read here.

            As BHIM is not a eWallet, the cashback cannot be stored in BHIM, the hard cash has to be credited to a proper bank account.

            This is where the power of NPCI ACH Credit Module comes in. The referral bonus and the merchant cashback credit will be routed through the NACH ACH Credit Module to the respective bank accounts. NPCI already has the details of the connected bank accounts of VPA. Hence, basing on the eligible BHIM users VPA, the bank accounts are pulled out and the NACH Credit file is prepared.

            The details of the new ACH Credit session are as under:

Session Name – ACH CR 5

Type – BHIM Customer Referral / Merchant Cash Back

Presentation timings – 07:00 hrs to 10:00 hrs

Return session timings -  (T+9) – 12:00hrs to 17:00hrs

Important points:

01) The beneficiaries account details are derived from the actual BHIM transactions, hence there should be NIL Returns.

02) In the rare event of Banks unable to credit the respective bank accounts for reason ‘bank account closed’,   or similar reasons, Bank should issue DD/PO favouring the customer/merchant and inform NPCI.

03) Still if the banks desire to return any transactions, they should isolate such transactions and inform NPCI of their decision to return the transactions. NPCI in consultation with the banks will decide further course of action.

04) NPCI will monitor the return (response) data submitted by  banks and will reject the upload the return response files for the below two scenarios::--

a)    Return transactions are uploaded without prior approval from NPCI
b)   The response uploaded with the required data  is not in the format as prescribed by NPCI /data missing/invalid data/junk information.

The referral bonus  and merchant cash back is valid only for “Unique BHIM users”:

  “Unique BHIM users”: A user will be categorized as unique user only if his/her mobile number, bank account is unique to any other BHIM user. Below table showcases all the cases but not limited for identification of unique users. NPCI will determine in our sole discretion whether the customer is a unique user Mobile No. Bank Account Category

            The latest version of BHIM has a separate window for ‘Rewards’

The interface to verify your Referral Rewards is user-friendly. Just follow these 3 steps, nothing more-nothing less,

1.     Input your Login Pin in the BHIM app in your mobile and in the main menu tap on ‘transactions’ option.

2.    Now click on the top right corner and Tap on ‘rewards’ button.

3.    By pressing it a menu will open. Here all your referral credits will be listed. This will be NIL till you are eligible for BHIM rewards.


Sunday, April 23, 2017

AU Small Finance Bank kick-starts operations


          The transformation of AU from a NFBC to a small finance bank is over.  It has informed BSE as it has received Banking licence from Reserve Bank of India to convert its existing Non-banking Finance Company (NBFC) to Small Finance Bank (SFB), it has done so, and hence w.e.f April 13, 2017., the  Company changed its existing name from Au FINANCIERS (INDIA) LIMITED to AU SMALL FINANCE BANK LIMITED.

          The new web address of AU Small Finance Bank is https://www.aubank.in/. The landing page on the webpage displays this message.


          In order to leverage the RBI License for Small Finance Bank, AU management have finalised a three-pronged operating model i.e Focus on existing customer base, be cost efficient and have technology driven hub-and-spoke branches.

          Au Financiers (India) Limited was one of the ten applicants that were issued in-principle approval on September 16, 2015, for setting up small finance banks.

AU started as a NBFC and was engaged in business of commercial and personal vehicle loans, Micro, Small and Medium Enterprise (MSME) loans and SME loans serving primarily low and middle income, under-served and unreached customer segment.

As a NBFC, AU had network of 300 branches spread across 10 states – Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Punjab, Delhi, Haryana, Himachal Pradesh, Chhattisgarh and Goa.  It intends to start Bank branches in all such locations in next couple of months. In the initial stages, its NBFC branches may be converted to Small Finance Bank Branches.

Excerpts from message of Shri Sanjay Agarwal-Managing Director of AU Small Finance Bank

Quote:
          AU SFB is fully aligned with vision of our Hon’ble Prime Minister of Financial Inclusion & Digital Banking and is stalwartly endorsing this through Aadhar Enable Paperless Account Opening, Paperless Transactions (No/ Minimal Forms), No Base Branch Concepts, etc. at our bank. AU SFB intends to uncomplicated banking with its immensely talented workforce which is groomed to continuously challenge the status-quo, rethink and reinvent. AU SFB is an equal opportunity employer providing a collaborative and rewarding platform to all our colleagues.

Unquote:
Read the journey of AU Group here.

Among those, Capital Small Finance Bank, Equitas Small Finance Bank, Utkarsh Micro Finance, Suryoday Microfinance, Ujjivan Small Finance Bank and ESAF Small Finance Bank have already commenced their operations.

The vision of Small finance banks are to provide  basic banking services like accepting deposits and lending to unserved and underserved including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.
  


Sunday, April 16, 2017

RBI imposes Monetary Penalty of Rs5 lacs on M/s Hinduja Leyland Finance Ltd


              Reserve Bank of India vida a Press Release informed to public at large regarding imposing a monetary penalty of ₹5 lakh on M/s Hinduja Leyland Finance Ltd. (the company).

The monetary penalty was for violation of directions/orders issued by Reserve Bank of India from time to time.

Reserve Bank of India officials inspected books and accounts of the company as on March 31, 2015 between December 30, 2015 and January 14, 2016.

RBI officials observed that the company process of charging interest and its communication to the borrower was done in non-transparent manner which was in violation of the Fair Practices Code guidelines issued by the Bank under Section 45 L of the RBI Act, 1934.

Accordingly, the company was issued a Show Cause Notice (SCN) on July 29, 2016 for imposition of penalty. The company’s response to the SCN was not found to be satisfactory. The company was also accorded a personal hearing by RBI on February 22, 2017.

After considering the facts of the case and the company’s reply, as also, personal submissions made during the hearing, RBI came to the conclusion that the violations as observed during scrutiny were substantiated which warranted imposition of monetary penalty on the company. Accordingly, a penalty of ₹5 lakh has been imposed on the company.

The complete Fair Practice Code of  Hinduja Leyland Finance Ltd can be read here.

Hinduja Leyland Finance Ltd (HLF) was incorporated on November 12, 2008. HLF is one of India's leading vehicle finance NBFCs  with a focus on urban and semi-urban markets.

HLF though its vast network of branches, finances a wide range of commercial and personal vehicles, which include medium and heavy commercial vehicles (“MHCVs”), light commercial vehicles (“LCVs”), small commercial vehicles (“SCVs”), cars, multi-utility vehicles, three wheelers, and two wheelers, as well as various kinds of used vehicles.

HLF also finance tractors and construction equipment, and provide loans against property (“LAP”). In September 2015, HLF received a certificate to commence housing finance business through their  wholly owned subsidiary, Hinduja Housing Finance Limited, which focuses on providing finance for affordable housing loans.

The promoters of HLF are Ashok Leyland Limited (“ALL”) and Hinduja Power Limited. HLF leverages the relationship with ALL¸ which is the second largest carrier in the MHCV segment in India (Source: IAI Report, 2015).

HLF through preferred financier arrangements with various motor vehicle OEMs provides vehicle finance products to their customer base.

Apart from financing normal vehicles, HLF speciality is financing ‘Construction Equipment Finance’. HLF offers finances to :-
1.  Earth Moving Equipments
2.  Road Construction Equipments
3.  Concrete Equipments
4.  Other machines





Saturday, April 15, 2017

M/s Shriram City Union Finance Ltd hit with INR 20 lacs monetary penalty


      
              Reserve Bank of India has imposed a monetary penalty of 20 lacs on M/s Shriram City Union Finance Ltd.

              The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹20 lakh on M/s Shriram City Union Finance Ltd. for violation of directions/orders issued by Reserve Bank of India from time to time.

              Reserve Bank of India officials conducted a scrutiny of sample loan accounts of the company during November, 2015.

Reserve Bank of India officials observed that the company has violated various provisions of the Fair Practices Code guidelines issued by the Bank under Section 45 L of the RBI Act, 1934.

Hence, the company was issued a Show Cause Notice (SCN) on August 1, 2016 for imposition of penalty.

The company’s response to the SCN was not found to be satisfactory.

Hence, the company was also accorded a personal hearing by RBI under section 58G (2) of the RBI Act, 1934 on February 14, 2017.

After considering the facts of the case and the company’s reply, as also, personal submissions made during the hearing, Reserve Bank of India came to the conclusion that the violations as observed during scrutiny were substantiated which warranted imposition of monetary penalty on the company.

Accordingly, a penalty of ₹20 lakh has been imposed on the company.

Reserve Bank of India Guidelines on Fair Practices Code for NBFCs can be read here

The fair practices code of M/s Shriram City Union Finance Ltd can be read here.

M/s Shriram City Union Finance Ltd offers the following types of loans :

01)   Non corporate small business loans
02)   Two wheeler loans
03)   Gold loans
04)   Personal loans
05)   Auto loans
06)   Home loans
07)   Generator loans – Loans for 5 KVA sets to 2000 KVA generator sets


No, Shriram City Union does not have the option to remit its loans dues through the BHIM APP


Friday, April 14, 2017

BHIM Version 1.3 launched with additional Safety Features


          The volumes in BHIM have encouraged NPCI to release the new version of BHIM with additional features.

National Payment Corporation of India released the BHIM 1.3 version on Google Playstore on April 13th, 2017.

One of major irritants for BHIM users were the COLLECT requests from unknown users. The Version 1.3 addresses this major concern.

The new features in this version are:

* New Languages Supported: Marathi, Punjabi & Assamese
Benefit:: This will encourage users from interiors of Maharashtra, Punjab and Assam to transact through BHIM.

* Send money using Phone contacts (To BHIM/*99# users)
Benefit:: Reduces overall transaction time to complete the transaction.

* Blocking/Unblocking feature to protect users from unknown collect requests
Benefit:: Ensures ‘collect’, requests from known users are only acted upon. Minimises fraudulent transactions. Increases the trust factor of BHIM App

* Easy access to saved beneficiaries
Benefit:: Quickly send money to beneficiaries, no need to remember VPA too.

* Scan QR saved in phone gallery to send money
Benefit:: Eliminates wrong keying of VPA details.

* Download transaction history to keep track of your payments via BHIM
Benefit:: Reduces time for reconciliation, encourage users to transact frequently through BHIM

* SBI Maestro are now accepted
Benefit:: Major irritant of State Bank of Account Holders resolved. Read this link for the Indian jugaad

* One time option to edit non-mobile VPA
Benefit:: Choice to users to update their desired VPA
Go ahead and make use of the new features of BHIM 1.3, and spread the Joy of Safe eBanking.




List of Banks Supporting Banks as on 14th April, 2017.  
Allahabad Bank | Andhra Bank | Axis Bank | Bank of Baroda | Bank of India | Bank of Maharashtra | Canara Bank | Catholic Syrian Bank | Central Bank of India | City Union Bank | Corporation Bank | DCB Bank Ltd. | Dena Bank | Federal Bank | HDFC Bank |HSBC | ICICI Bank | IDBI Bank | IDFC Bank | Indian Bank | Indian Overseas Bank | IndusInd Bank | Karnataka Bank | Karur Vysya Bank | Kotak Mahindra Bank |Lakshmi Vilas Bank |Oriental Bank of Commerce | Punjab National Bank | RBL Bank | South Indian Bank | Standard Chartered Bank | State Bank of Hyderabad | State Bank of Bikaner & Jaipur | State Bank of India (SBI) |State Bank of Mysore| State Bank of Patiala | State Bank of Travancore | Syndicate Bank | TJSB | UCO Bank | Union Bank of India | United Bank of India | Vijaya Bank | Yes Bank Ltd

Coming Soon:

Punjab And Maharashtra Co-Operative Bank Limited| Punjab & Sind Bank | Jammu and Kashmir Bank