This presentation gives an overview about how is India progressing into making UN's Vision 2020 goal (of financial inclusion) a reality.
It's a technology breakthrough India has been achieved in combat to score financial data security in 21st century and independence from reliance over other nations to provide multilateral system of payments in India.
2. Financial Inclusion
“...the delivery of banking services at affordable costs to the vast sections of
disadvantaged and un-served segments of society.”
EBT – Electronic Benefits Transfer
Banking service available through business
correspondents
Plug gaps and leaks in public subsidies and
welfare programmes
Providing formal credit avenues
Creating a platform for inculcating the habit to
save money
'no frills' account either with 'NIL' or very
minimum balances
3. Financial Inclusion
“...aimed at provide financial services available to every household.”
1. 'no frills' account either with 'NIL' or very minimum
balances
2. Each household to have at least one bank account
-to cover about 7.5 crore unbanked households
3. Overdraft facility of ₹5000
-after 6 months of operation
3. RuPay Debit & RuPay Kisan Cards
-In built accidental insurance cover of ₹1 lakh
-In built life insurance cover of ₹30,000
5. As on date,
-4.18 crore accounts have been opened & counting
6. BSNL to provide m-wallet services
7. Wage seekers under MNGREGA will receive payments
-4.41 crore individuals to open their account using Job
card
Formally launched on
‘28 August 2014’
By Prime Minister
‘Shri Narendra Modi’
जन धन योजना
People’s Wealth Scheme
www.financialservices.gov.in
4. Operations
“...aimed to operate for the benefit of all the member banks and
their customers.”
Incorporated as a Section 8 Company under The Companies Act, 2013.
5. Card Payment Scheme
“…to offer a domestic, open-loop and multilateral system of payments in India.”
To consolidate
and integrate
various payment
systems in India.
Launched:
26th March 2012
Inaugurated by:
Pranab Mukherjee
(President of India)
Introduced as an open scheme.
6. ‘Desi’ alternative
“To emerge as an alternative of
international payment gateways like
VISA or MasterCard.”
- in Asia’s 3rd largest economy
Benefits:
No participation fee for banks and other FIs.
Protection of information related to Indian consumers.
Lower cost of clearing and settlement for each transactions.
Inter-operability between various payments channels and products.
A domestic scheme committed towards development of customized product
and service offerings for Indian consumers.
8. Operations
“go 'global' in a strategic tie-up ”
Transaction fees:
0.45% up to Rs. 2000
0.65% above Rs. 2000
Mutual Fund, Insurance, Education and Government - ₹10
a sub-one rupee switching fee scheme:
60paise(Issuing Bank)+30paise(acquiring bank)
network-to-network alliance
9. Take control…
Execution:
Regulate the allocation of RuPay Debit card in
addition to standard issue of MasterCard/VISA
Debit card.
Support e-commerce growth
Encourage online payment for
purchase
Adoption at ATM, Micro ATM & PoS
service
Encourage cashless transactions
Contactless EMV Cards
Further plans:
Provide Credit to existing
debit card holders
10. Gaining stance
"(RuPay Card transactions are) just a drop in the ocean at the moment. But drop
by drop we are increasing our size."
-A P Hota, chief executive of NPCI
“RuPay will not only reduce dependence on cash, but will offer users diverse
set of payment option within the country.”
-President Pranab Mukherjee
RuPay users has now almost
doubled from 23 million at the end
of July; expected to rise to 160
million, with more than 60 percent
of the increase coming from the
government scheme.
“Jan Dhan itself would provide a big opportunity for the domestic card brand
to be a formidable force.”
- A P Hota, chief executive of NPCI
http://economictimes.indiatimes.com/industry/banking/finance/banking/jan-dhan-camps-by-banks-on-all-saturdays-1-84-cr-a/cs-opened/articleshow/41200595.cms
Under the scheme, a person from an unbanked household, opening an account will get a RuPay debit card with a Rs 1 lakh accident insurance cover. An additional Rs 30,000 life insurance cover will also be given if the accounts are opened till January 26, 2015.
On an inauguration day alone,
-more than 77,852 camps were held all over the country
-approx. 1,84,68,000 accounts were opened
http://www.npci.org.in/
http://en.wikipedia.org/wiki/National_Payments_Corporation_of_India
NPCI has been incorporated as a Section 25 company under The Companies Act 1956, is now under Section 8 of The Companies Act, 2013.
Took over the operations of National Financial Switch (NFS) from the Institute of Development and Research in Banking Technology (IDRBT).
IMPS(Immediate Payment Service) earlier known as (Inter Bank Mobile Payment Service) offers an instant, 24X7, interbank electronic fund transfer service through mobile phones.
NACH(National Automated Clearing House) is a web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature.
AEPS(Aadhar Enabled Payment System) is a bank led model which allows online interoperable financial inclusion transaction at PoS (MicroATM) through the Business correspondent of any bank using the Aadhaar authentication.
RuPay is a new card payment scheme has been launched to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments.
DBT (Direct Benefit Transfer) is a scheme launched by Government of India to transfer the benefits and subsidies of various social welfare schemes like LPG subsidy, MNREGA payments, Old Age Pension, Scholarships etc. directly in the bank account of the beneficiary.
To function as a hub in all electronic retail payment systems.
http://en.wikipedia.org/wiki/Card_scheme
Banks and any othe xz r financial institutions can become a member of the scheme to issue or acquire the transactions performed within the scheme.
RuPay is a new card payment scheme has been launched to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments at lower transaction prices.
http://www.business-standard.com/article/finance/banks-should-cut-transaction-charge-on-debit-cards-rbi-112032700032_1.html
http://www.medianama.com/2013/06/223-rupay-e-commerce-roadmap/
No participation fee for banks and other FIs.
Lower cost of clearing and settlement for each transactions.
Processes around 5.5 million inter-bank ATM transactions a day.
Protection of information related to Indian consumers.
Economically more feasible for banks to offer to their customers.
Inter-operability between various payments channels and products.
A domestic scheme committed towards development of customized product and service offerings for Indian consumers.
http://www.npci.org.in/
http://en.wikipedia.org/wiki/National_Payments_Corporation_of_India
NPCI has been incorporated as a Section 25 company under The Companies Act 1956, is now under Section 8 of The Companies Act, 2013.
Took over the operations of National Financial Switch (NFS) from the Institute of Development and Research in Banking Technology (IDRBT).
IMPS(Immediate Payment Service) earlier known as (Inter Bank Mobile Payment Service) offers an instant, 24X7, interbank electronic fund transfer service through mobile phones.
NACH(National Automated Clearing House) is a web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature.
AEPS(Aadhar Enabled Payment System) is a bank led model which allows online interoperable financial inclusion transaction at PoS (MicroATM) through the Business correspondent of any bank using the Aadhaar authentication.
RuPay is a new card payment scheme has been launched to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments.
To function as a hub in all electronic retail payment systems.
It is well poised to support the growth of retail electronic payments in India.
Currently being at Phase 3, RuPay cards are accepted at all ATMs across India under NFS, PoS and as a e-commerce payment gateway and under the NPCI's agreement with DFS, RuPay cards are accepted on the international Discover network.
https://www.tfl.gov.uk/fares-and-payments/contactless/what-is-contactless
http://www.business-standard.com/article/pf/penetration-of-cashless-transaction-in-india-is-still-meager-113090500390_1.html
http://en.wikipedia.org/wiki/Contactless_payment
http://en.wikipedia.org/wiki/Point_of_sale
http://articles.economictimes.indiatimes.com/2014-09-07/news/53653082_1_fps-fair-price-shops-ration-card-holders
LIC, the country's largest financial institution, will offer a life cover of Rs 30,000 while HDFC Ergo will provide a Rs 1-lakh personal accident cover to RuPay cardholders.
RuPay is a new card payment scheme has been launched to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments at lower transaction prices.
http://www.business-standard.com/article/finance/banks-should-cut-transaction-charge-on-debit-cards-rbi-112032700032_1.html
http://www.medianama.com/2013/06/223-rupay-e-commerce-roadmap/
No participation fee for banks and other FIs.
Lower cost of clearing and settlement for each transactions.
Processes around 5.5 million inter-bank ATM transactions a day.
Protection of information related to Indian consumers.
Economically more feasible for banks to offer to their customers.
Inter-operability between various payments channels and products.
A domestic scheme committed towards development of customized product and service offerings for Indian consumers.
RuPay is a new card payment scheme has been launched to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments at lower transaction prices.
http://www.business-standard.com/article/finance/banks-should-cut-transaction-charge-on-debit-cards-rbi-112032700032_1.html
http://www.medianama.com/2013/06/223-rupay-e-commerce-roadmap/
No participation fee for banks and other FIs.
Lower cost of clearing and settlement for each transactions.
Processes around 5.5 million inter-bank ATM transactions a day.
Protection of information related to Indian consumers.
Economically more feasible for banks to offer to their customers.
Inter-operability between various payments channels and products.
A domestic scheme committed towards development of customized product and service offerings for Indian consumers.