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Showing posts with label digital banking. Show all posts
Showing posts with label digital banking. Show all posts

Friday, 17 December 2021

08:43

Digital Payment Promotions in Bank will get Incentives From Government

 Digital Payment Promotions in Bank will get Incentives From Government

Cabinet approves an incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M)

Financial outlay for one year is Rs.1,300 crore

With this Digital Modes of Payment will become accessible to unbanked and marginalised populations outside the formal banking and financial system

Posted On: 15 DEC 2021 4:04PM by PIB Delhi

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today has approved an incentive scheme to promote RuPayDebit cards and low-value [uptoRs. 2,000) BHIM-UPI transactions (Person-to-Merchant (P2M)] in the country.                

Under the scheme, the acquiring banks will be incentivised by the Government, by way of paying percentage of value of transactions (P2M) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, at an estimated financial outlay of Rs.1,300 crore for a period of one year w.e.f. April 01, 2021.

This scheme will facilitate acquiring Banks in building robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions, across all sectors and segments of the population and further deepening of digital payments in the country.

It will also help in making accessible digital modes of payments to unbanked and marginalized populations, who are outside of the formal banking and financial system.

India today is one of the most efficient payments markets in the world.  These developments have been the outcome of the initiatives of the initiatives of the Government of India and innovation by various players in the digital payment ecosystem.   The scheme will further spur research and development and innovation in fintech space, and will help the Government in further deepening of digital payments in various part of countries.

Background:

The scheme has been formulated in compliance with the Budget announcements (FY 2021-22) by the Governmentto give further boost to digital transactions in the count

Source:PIBNEWS

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Saturday, 6 July 2019

08:00

Highlights of Union Budget 2019-2020 -Banking and Financial Sector

Highlights of Union Budget 2019-2020 -Banking and Financial Sector

Banking and Financial Sector

NPAs of commercial banks reduced by over Rs. 1 lakh crore over the last year.
Record recovery of over Rs. 4 lakh crore effected over the last four years.
Provision coverage ratio at its highest in seven years.
Domestic credit growth increased to 13.8%.
Measures related to PSBs:
Rs. 70,000 crore proposed to be provided to PSBs to boost credit.
PSBs to leverage technology, offering online personal loans and doorstep banking, and enabling customers of one PSBs to access services across all PSBs.
Steps to be initiated to empower accountholders to have control over deposit of cash by others in their accounts.
Reforms to be undertaken to strengthen governance in PSBs.
Measures related to NBFCs:
Proposals for strengthening the regulatory authority of RBI over NBFCs to be placed in the Finance Bill.
Requirement of creating a Debenture Redemption Reserve will be done away with to allow NBFCs to raise funds in public issues.
Steps to allow all NBFCs to directly participate on the TReDS platform.
Return of regulatory authority from NHB to RBI proposed, over the housing finance sector.
Rs. 100 lakh crore investment in infrastructure intended over the next five years. Committee proposed to recommend the structure and required flow of funds through development finance institutions.
Steps to be taken to separate the NPS Trust from PFRDA.
Reduction in Net Owned Fund requirement from Rs. 5,000 crore to Rs. 1,000 crore  proposed:
To facilitate on-shoring of international insurance transactions.
To enable opening of branches by foreign reinsurers in the International Financial Services Centre.
Measures related to CPSEs:
Target of Rs. 1, 05,000 crore of disinvestment receipts set for the FY 2019-20.
Government to reinitiate the process of strategic disinvestment of Air India, and to offer more CPSEs for strategic participation by the private sector.
Government to undertake strategic sale of PSUs and continue to consolidate PSUs in the non-financial space.
Government to consider going to an appropriate level below 51% in PSUs where the government control is still to be retained, on case to case basis.
Present policy of retaining 51% Government stake to be modified to retaining 51% stake inclusive of the stake of Government controlled institutions.
Retail participation in CPSEs to be encouraged.
To provide additional investment space:
Government to realign its holding in CPSEs
Banks to permit greater availability of its shares and to improve depth of its market.
Government to offer an investment option in ETFs on the lines of Equity Linked Savings Scheme (ELSS).
Government to meet public shareholding norms of 25% for all listed PSUs and raise the foreign shareholding limits to maximum permissible sector limits for all PSU companies which are part of Emerging Market Index.
Government to raise a part of its gross borrowing program in external markets in external currencies. This will also have beneficial impact on demand situation for the government securities in domestic market.
New series of coins of One Rupee, Two Rupees, Five Rupees, Ten Rupees and Twenty Rupees, easily identifiable to the visually impaired to be made available for public use shortly.
Digital Payments
TDS of 2% on cash withdrawal exceeding Rs. 1 crore in a year from a bank account
Business establishments with annual turnover more than Rs. 50 crore shall offer low cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants.

Source:PIBNEWS
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Friday, 25 May 2018

21:07

PayPal Now Fully Integrates With Google Accounts

PayPal Now Fully Integrates With Google Accounts
Add PayPal to one Google service and the entire Google ecosystem can use it to pay for stuff.
Some would argue making payments even more seamless online is a bad thing because it's just so easy to buy all the things. But having to login to a payment service every time you click the purchase button is a hassle, so PayPal is making it easier for anyone who has a Google account.
PayPal already enjoys a relationship with Google, allowing users to pay using their PayPal account through Google Pay in stores, in apps, and online. But that partnership is now being extended to cover the entire Google ecosystem for anyone in the US.

 More Details:Pcmag

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Monday, 12 February 2018

18:35

India Post Payments Bank (IPPB) to enable Digital Payments in Post Offices by April 2018

India Post Payments Bank (IPPB) to enable Digital Payments in Post Offices by April 2018 
India Post Payments Bank (IPPB) Expansion Programme continues to make brisk progress and a nation-wide roll-out is scheduled beginning April 2018.  No decision has been taken to revise the timelines as reported in some sections of the media on Tuesday, 06th February 2018.  Once the proposed expansion is completed, IPPB will be providing the largest financial inclusion network in the country, covering both urban as well as rural hinterland with ability to provide digital payment services at the doorstep with the help of Postmen and GraminDakSewaks (GDS).  IPPB will also enable more than 17 crore active account-holders of Post Office Savings Bank to make interoperable digital payments including the benefit of NEFT, RTGS, UPI and bill payment services.  Additionally, the IPPB will enable acceptance of digital payments across post offices in the country in line with the digital payments initiative of the government.

Source:PIBNEWS


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Friday, 14 July 2017

08:39

Yes Bank to Digitize Loan Business using AI Powered Bots

Yes Bank to Digitize Loan Business using AI Powered Bots

Yes Bank to digitize its retail loan business leveraging technology and AI backed bots
Digitization of retail loan business using AI powered bots will improve process automation and bring down cost for Yes Bank
Mumbai: Yes Bank, India’s fourth largest private sector bank is all set to digitize its retail loan business using technology and eliminate paper usage. This will improve process automation and reduce overall cost to the bank.
Traditionally, availing a loan has being a lengthy process involving loan application, credit bureau’s scrutiny and verification of other documents and then loan disbursement to applicant. The entire process from loan application to its disbursement can take around 7-10 days.
But with the digitization, bank aims to complete the entire process in less than 30 minutes over the next six months. Besides, it also plans to improve customer experience by leveraging AI backed chatbot.
The bot will enable a digitized workflow for retail loans, allowing the customers to get instant conditional approval using their mobile device and popular messenger app. Each customer can get customized solutions on products, pricing and eligibility.
Also, the chatbot will help customers by answering their queries in real-time leveraging integration with bank’s core internal systems. This enables bank’s representative to connect with a prospective customer within the shortest possible turnaround time.
The bank claimed to be the only one to offer virtual demos of cars through a chatbot and expects to service a million customers through this bot in FY 2017-18.
The chatbot is completely device, medium, location and channel agnostic and in the near term, it would have the capability to host pre-filled loan agreements and act as a place holder for enabling e-signatures, thereby creating an ecosystem that would ensure an end-to-end digital journey for customers and channel partners alike.
The retail loan customers will be able to respond to pre-approved offerings from the bank and will get to know their eligibility and EMIs, apply for loans online and get instant in-principle approvals.
The automated retail lending products will be made available in a phased manner over a period of one year and is expected to improve user experience substantially for more than 2.5 lakh customers by this fiscal end.
In addition, Yes Bank informs that it will use an industry first sales productivity tool offering completely digitalized field visit reports with Geo-tagging. This transparent sales monitoring process makes it easier for the frontline workforce to plan their day-to-day activities. Bank’s customer facing sales team members will able to save multiple man hours every day through ‘real time call reporting’ and it will be extended to over 20,000 employees working on the backend side.
“These digital interventions are key milestones in transforming Yes Bank into a truly digital bank. In a world where physical and virtual environments are rapidly converging, we constantly strive to make processes simpler for all our customers and digitizing our retail loans is a definitive step in that direction,” said Pralay Mondal, Senior Group President – Retail and Business Banking, Yes Bank.

Source:ETCIO
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Wednesday, 12 July 2017

09:08

State Bank Of India has set its sights on being one of the world’s top 10 global digital banks.

State Bank Of India has set its sights on being one of the world’s top 10 global digital banks.
How SBI CTO Shiv Kumar Bhasin is driving digital transformation
SBI has set its sights on being one of the world’s top 10 global digital banks.
How do you get a 200- year- old stodgy bank to reinvent itself to keep pace with the digital era?
That's a question you ought to ask Shiv Kumar Bhasin.
As the CTO of SBI, Bhasin is infusing digital techno
logies into the infrastructure and operations of the bank. Ask Bhasin about the enormity of the task at hand and he will tell you at its no walk in the park.
It surely isn't.
The first thing that springs to mind when you think of the State Bank of India, is its sheer scale and size. SBI has over 550 million customers and more than 750 million accounts. It has 25,000 branches, 57,000+ ATMs and 500,000 PoS machines. It accounts for 30 percent of the Indian debit card market and around 45 percent of the transaction volumes of debit cards go through its payment gateways. SBI has 40 million Internet banking and 30 million mobile banking customers. From the balance sheet perspective, it is at the 45th position among global bank.
That probably explains why SBI is the big daddy of India's banking industry. Besides, it has set its sights on being one of the world's top 10 global digital banks. And when a banking behemoth with such a formidable presence and stronghold, goes into a digital overdrive, the process is nothing short of an organizational rebirth.
Bhasin knows this only too well. "A transformation of this magnitude is possible only through reimagination. The exercise of reimagining our business processes and operations cannot be an annual or quarterly target. It has to be an ongoing journey. In the digital era, the cycle of transformation is getting compressed because we customer experience is changing so fast. We have to transform our business processes in terms of customer service, workforce environment, and agile methodologies," he states.
To a certain degree, every bank is now a technology company with a banking license. It has to view its business models through the lens of digital technologies. And rightly so. An infusion of digital technologies is a sure cure to shaking off lumbering legacy systems of the staid but solid SBI.
"IT has come to play such an important role in our digital transformation that business and IT are now closely intertwined," he concedes.
Digitally empowered workforce
With customer experience being the touchstone of success is the digital era, SBI wants its employees to move closerr to customers. So, the people on the front lines need to be vested with the knowledge and awareness of the digital strategy of the bank.
"The workforce has to be digitally enabled and digitally aware. We will impart the digital services to our customers through the various touchpoints and the workforce has to be clued in on these services," he confesses.
Bhasin is orchestrating a robust enterprise mobility management program to facilitate this.
The bank seen a considerable adoption of SBI Workspace, a comprehensive solution which provides secure access to internal applications and resources such as staff facing mobile and tablet applications, intranet applications, email, documents collaboration and other staff collaboration tools etc. 12,300 mobile devices have been enrolled in SBI Workspace since its launch on March 8 2017.
The mobility solution has helped SBI realize a plethora of benefits. it has improved user satisfaction, increased employee productivity, promoted a self-service culture for internal IT services and facilitated faster onboarding of employees and third parties.
In a unique attempt to boost workforce productivity, SBI has launched one of its biggest digital employee empowerment measures enabling its staff to work from home. SBI's enterprise mobility management program sets the tone for its recently launched 'Work from Home' policy.
"We use mobile computing technologies and exercise continuous control over all the enabled devices centrally to manage and secure the data and applications on the mobile devices. We will use carefully designed MIS and dashboard to enable improvements in work from home approach," he says.
In recast mode
SBI has also created a digital platform called SBI Digi Bank. The platform has three pillars- a financial superstore, an online marketplace and a digital bank for an end to end digitization for all products and services.
"This is a step towards creating branchless banking where all transactions will be done with the help of apps, internet banking, and mobile banking. It will be an omnichannel, one-device digital bank which will be available to both new and existing customers. The digital-only bank will be paperless, device-agnostic, will use the Aadhar infrastructure for not only onboard customers but also provide them services online." he says
The bank is trying to reach its digital customer through its 257 sbiInTouch digital branches. SBI InTouch is the bank's state-of-the-art Digital Branch which facilitates instant opening of accounts, printing, and issue of the personalized debit card, and expert advice on investment through video conference. The bank is working towards removing the use of paper from its branches for end-to-end digitization.
"We are also focusing on making our network connectivity robust. Unlike many of the private banks that are urban-centric, we have a presence in deep and remote geographies. This mandates that before we go all out with digital initiatives, our platforms must be in high availability mode. So it's important to transform the entire platform bringing in intelligent networking technology that straddles across platforms like cloud and WiFi. We need scalable networking technology where concurrency can go up to even 20,000 transactions per second. We have recently improved our network bandwidth from 64 Kbps to 2 Mbps link. We plan to increase the network strength from 8 to 10 Mbps which will bring it on par with several other global banks," he says.
In a major breakthrough, the bank is playing a lead role in bringing lenders and tech companies together for using blockchain technology to share information among banks which will eventually help prevent frauds and tackle bad loans.
"The Bank chain initiative is in partnership with IBM, Microsoft, Skylark, KPMG and 10 commercial banks. We have also tied up with a startup firm Prime chain Technologies for this exercise.We are experimenting with credit finance, consortium information sharing and to help prevent frauds and tackle bad loans. We are also working with IIT Kharagpur and Mumbai to carry out research on the potential of the blockchain," he informs.
To enhance workforce productivity the bank is also looking at deploying software robotics in its back office to automate processes and redeploy branch staff to its salesforce.
"These initiatives are notable in the run- up to the digital transformation of SBI," Bhasin signs off.

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Friday, 7 July 2017

09:11

APPLICATION FOR THE BOND:SOVEREIGN GOLD BOND SCHEME 2017-18

APPLICATION FOR THE BOND:SOVEREIGN GOLD BOND SCHEME 2017-18
Government of India in consultation with RBI decides to issue Sovereign Gold Bond Scheme 2017-18– Series II; Applications for the bond will be accepted from July 10, 2017 to July 14, 2017; The Bonds will be issued on July 28, 2017. 
Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds 2017-18 – Series II. Applications for the bond will be accepted from July 10, 2017 to July 14, 2017. The Bonds will be issued on July 28, 2017. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange. The features of the Bond are given below:
Sl. No.
Item
Details
1
Product name
Sovereign Gold Bond 2017-18 – Series II
2
Issuance
To be issued by Reserve Bank India on behalf of the Government of India.
3
Eligibility
The Bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions.
4
Denomination
The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
5
Tenor
The tenor of the Bond will be for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates.
6
Minimum size
Minimum permissible investment will be 1 gram of gold.
7
Maximum limit
The maximum amount subscribed by an entity will not be more than 500 grams per person per fiscal year (April-March). A self-declaration to this effect will be obtained.
8
Joint holder
In case of joint holding, the investment limit of 500 grams will be applied to the first applicant only.
9
Issue price
Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the week (Monday to Friday) preceding the subscription period. The issue price of the Gold Bonds will be ` 50 per gram less than the nominal value.
10
Payment option
Payment for the Bonds will be through cash payment (upto a maximum of Rs. 20,000) or demand draft or cheque or electronic banking.
11
Issuance form
The Gold Bonds will be issued as Government of India Stocks under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into demat form.
12
Redemption price
The redemption price will be in Indian Rupees based on previous week’s (Monday-Friday) simple average of closing price of gold of 999 purity published by IBJA.
13
Sales channel
Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices as may be notified and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents.
14
Interest rate
The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
15
Collateral
Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
16
KYC Documentation
Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required.
17
Tax treatment
The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond
18
Tradability
Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.
19
SLR eligibility
The Bonds will be eligible for Statutory Liquidity Ratio purposes.
20
Commission
Commission for distribution of the bond shall be paid at the rate of 1% of the total subscription received  by  the  receiving offices and receiving offices shall share at least 50% of the commission so received with the agents or sub agents for the business procured through them.

Source:PIBNEWS


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Thursday, 22 June 2017

19:59

Providing physical of identity (IDs) may soon become a thing of the past.

Providing physical of identity (IDs) may soon become a thing of the past.

While it’s not entirely possible to have the correct identification within reach at all times, there may be a new way to certify someone’s identity without the need to produce papers or a plastic ID card, all while promoting cybersecurity in the process.

This week brings us news that Accenture and Microsoft are partnering up to help develop a digital ID network through the use of distributed ledger blockchain technology. This is part of a larger United Nations-backed project to provide legal identification to people around the world without an official document. The goal of this project is to help refugees (currently 1.1 billion people) prove they are who they say they are in order to receive essential services like education and healthcare.
During the second ID2020 Summit in New York this week, the prototype for this distributed ledger network, which will connect with current record-keeping systems with blockchain technology, was debuted. Thanks to the partnership between Accenture and Microsoft, through this new system, refugees will be able to access their virtual paperwork wherever they’re located.
Accenture’s Managing Director of Financial Services, David Treat, highlighted the importance of legal ID access with this new offering. “Without an identity,” he said, “you can’t access education, financial services, healthcare, you name it. You are disenfranchised and marginalized from society.”

Source:PYMNTS.com
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Saturday, 22 April 2017

17:23

Digital push sees HDFC Bank record highest-ever staff cull in a quarter

Digital push sees HDFC Bank record highest-ever staff cull in a quarter

HDFC Bank, India’s second largest private bank by assets and most valued lender, has cut employee strength for the second straight quarter on the back of its digital outreach and slower branch expansion.

The bank’s staff strength has fallen by 6,096 or 7 percent to 84,325 in the quarter ended March 2017 from 90,421 in December 2016.

This reduction is the highest in a quarter and at least one-third more than 4,581 people the bank lost in the previous quarter ending December 2016.

“We have not replaced the staff which has moved out due to attrition and have rebalanced our capabilities due to the increase in digital transactions,” said Paresh Sukthankar, Deputy Managing Director at HDFC Bank.
We have seen an increase in digital transactions which has given us certain efficiencies linked to the digital channel, he said.
The total employee strength now stands at 84,325 as on March end, down from 87,555 a year ago.
Even though bank branches have increased, expansion has slowed from an average of 400 to bout 200 branch additions per year currently.
HDFC bank’s branch network has increased to 4,715 branches and 12,260 ATMs till March 2017, up from 4,520 branches and 12,000 ATMs in March 2016.
This also helped the bank cut its employee costs by 4 percent to Rs 1,553 crore in March 2017 from Rs 1,498 crore in March 2016.
Sukthankar said, “It is fair to say that we will open new branches at a slower pace and it will be at an annual rate of 200 or lower rather than the average we saw earlier. Our people needs will also be lower due to the transaction efficiencies, so it’s also fair to say that our employee count will be around current levels or lower and not grow at the pace it was growing earlier.”
Clearly, given the surge in bad loans that are troubling the banking sector, coupled with reducing costs and increasing efficiencies with the rise of digital technology, the most employable industry is also hurting the job market.

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Saturday, 15 April 2017

13:08

Digital Payment Revolution : Facts & Figures

Digital Payment Revolution : Facts & Figures

Digital Payments Progress

·Lucky GrahakYojana and DigiDhanVyaparYojana launched on 25.12.2016

·100 Digi Dhan Melas held in 100 cities all over the country.

·100 day long information, education and communication campaign led by NITI Aayog to make digital payments a mass movement in India.

· At least 15,000 institutions have gone cashless across just these 100 rural and urban cities across each one of the 27 states and 7 UTs.

·With a turnout of over 15 lakh from cities, small towns and villages, the melas have enabled lakhs to open new bank accounts as well as create new Aadhaar cards.

·Rs.258 crore of prize money won by 16 lakh winners, including customers and merchants belonging to different corners of the country and from varied walks of life.
·The lucky winners of the Mega Draw felicitated by the Prime Minister in Nagpur.
·BHIM App and QR Codes launched

·BHIM App has already created a new world record by registering 1.9 crore downloads in just four months since its launch in December, 2016.

·India haso seen an unprecedented increase in number of transactions made using several user-friendly digital payment methods viz. UPI,USSD, AePS.

· Volume of all digital transactions increased by about 23 times with 63,80,000 digital transactions for a value of  Rs. 2425 crore in March 2017 compared to 2,80,000 digital transactions worth Rs.101 crore  till November 2016.

· Aadhaar Enabled Payments have increased from 2.5 crore in November 2016 to over 5 crore in March 2017.
. Immediate Payment Service (IMPS) transactions have also increased from 3.6 crore to 6.7 crore during the same period.

BHIM-Aadhaar, the merchant interface of the BHIM App

·It will pave the way for making digital payments by using the Aadhaar platform.

·Any Indian citizen can  pay digitally using their biometric data like their thumb imprint on a merchants’ biometric enabled device which could be smart phone having a biometric reader.

·Any citizen without access to smart phones, internet, debit or credit cards will be able to transact digitally through the BHIM Aadhaar platform.

·Already, 27 major banks are now on board with 7.15 lakh merchants so that they can start accepting payments using BHIM Aadhaar.

ONBOARDING

·Total Onboarding (including syndicate update): 7.15 lakhs ,  Transactions: 12.62 lakh

·Aadhar:1.75 Lakh

·BHIM/UPI 4.79 lakh

·QR Code:1.68 lakh  

BHIM – Cash back and Referral Bonus Schemes

·To ensure that the culture of digital payments permeates down to the grassroots.

·Under the Referral bonus scheme both the existing user who refers BHIM and the new user who adopts BHIM would get a cash bonus credited directly to their account.

· Under the Cashback scheme the merchants will get a cash back on every transaction using BHIM. Both schemes are to be administered by MEITY and implemented by NPCI.
·Outlay of Rs. 495 crore for a period of six months.

75 Townships declared Less Cash Townships

·In order to achieve the target of 2500 crore digital transactions during the current financial year, the Prime Minister announced about 75 townships spread all over India as ‘less-cash townships’.

· A less-cash township is one where the deployment of payment acceptance infrastructure is complete, all the families in the township are covered under training programs.

·Selected townships on the basis of third party assessment by Price Waterhouse Coopers (PWC)

·Townships with more than 80% of the total number of transactions being done through digital modes of payments during the review period are included in this list.

·These townships are likely to generate over 1.5 lakh digital transactions every day thereby leading to about 5.5 crore digital transactions in a year.

 Source:PIBNEWS

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Wednesday, 12 April 2017

18:22

Charges on digital transactions

Charges on digital transactions 
 Digital financial transactions are a part of the Government’s strategy to create histories of transactions, including the associated credit, and thereby enable small and micro enterprises to access formal credit, improve tax compliance, and mainstream financial savings into the banking system, which will help mobilise such savings for economic growth.

All payment systems including currency entail costs, which are borne among transacting parties and payment service providers, and the cost structures of various systems differ. Payment systems also differ in the advantages they offer to transacting parties. E.g., digital transactions can be made without having to access cash, and they offer an opportunity to make payments anytime and from anywhere, without loss of interest income. Transacting parties select a payment system not only on the basis of cost but keeping in mind such advantages as well.

State Bank of India has apprised that three cash deposit transactions at branches are available to savings bank accountholders free of charge.  Thereafter, a charge of Rs. 50 plus service tax per transaction is to be levied.  In addition to the free cash deposit transactions at branches, accountholders can also deposit cash using ATM/debit card, into the card-linked account, at cash points (Cash Deposit Machines / Cash Recyclers), any number of times, free of charge.
 This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha on 11.04.2017.

Source:PIBNEWS
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