Jan Dhan Account Deposits after Demonetisation – Key Summary

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The biggest financial decision made in the history of Indian economy – DEMONETISATION has impacted various sectors badly. However the biggest beneficiaries was the banking sector. The deposits in the bank account post currency ban has swelled significantly giving banks a much needed smile.

However the Jan Dhan accounts which were lying dormant before the demonetisation, has now seen a record breaking deposits 45 days after the ban. Funds deposited into these account was highest in the first week of currency ban. But after this week, the deposit amount went down. Bogus transaction was one of the technique used by black money holders to turn black money into white.

Action by income tax department:

The upper cap under JDA is Rs. 50, 000. But due to these startling deposits, Income tax department is going to scrutinize the deposits and take action on individual account holder with suspicious account activity. And action would be taken on individuals who used their account to deposit other’s money. It has been observed that people holding black money in cash used bank account of poor for cash depositing.

The sole objective of doing this is to prevent black money holders to make illegal use of the account.

Here are some of the key highlights of Jan Dhan Deposits after Rs. 500 & Rs. 1000 currency note ban:

87, 000 Crore: Total amount deposited within 45 days of the note ban i.e as on 01Jan2017.

41, 523 Crore: Amount deposited in Jan Dhan account between 10th November 2016 – 23 December 2016.

48 lakh bank account: Number of bank accounts in which 41, 523 Crore was deposited.

45, 637 Crore: The deposit amount in Jan Dhan accounts across India before 09 November 2016.

2, 022 Crore: Worth of cash deposited as on 30 November 2016.

Uttar Pradesh, West Bengal & Rajasthan: The highest number of deposits came from these 3 states.

Withdrawals:

3,285 Crore: The total withdrawn sum from the Jan Dhan accounts in the last fortnight.

10, 000: Maximum amount that can be withdrawn every week from the account provided the account is KYC compliant. This will put curb on black money holders wanting their money back.

5, 000: Maximum amount account holder can take out if it is a non-KYC compliant.

Unknown Transfers:

Many people have reported suspicious transactions. And this includes, amount worth Rs. 99, 99, 99, 394 nearly 100 crore deposited into the bank account of women from Meerut.

Rs. 9, 860,681 unknown transfer reported by grocery store owner in Uttar Pradesh.

Both these accounts have been freezed for now. And account will soon become operational.

About Pradhan Mantri Jan Dhan Yojana:

PMJDY was launched in August 2014 with a sole objective of providing zero balance bank account in every Indian household and at the same time promote financial inclusion.

 

 

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UPI Vs. NEFT/RTGS/IMPS & Wallets: 28 Differences

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Digital revolution in India has begun as more & more service providers are adopting advanced technologies to provide good customer experience. Banking industry is at the forefront of this adoption and unified payments interface (UPI) is one such highly advanced technology backed by government of India and Reserve bank of India to promote cashless economy.

UPI is a funds transfer technology which can be done via bank’s app on smartphone. Although such type of transfer already exists; the biggest differentiating factor is that the sender does not need receiver’s bank account details for sending the money. Only thing required is the virtual payment address. Read more on how to transfer money through UPI app.

There are many differences between UPI and NEFT/RTGS/IMPS as listed in the below table.

Sr. No.FeatureUPINEFT/IMPS/RTGSWallets
1Through which device transfer can be doneOnly smartphoneWebsite and appWebsite and app
2Transfer speedInstantTime consuming. But is instant & real time in case of RTGS.Instant
3Can you send money abroadNoYesYes
4Can you transfer money 24*7YesOnly RTGSYes
5How complex are the transfer detailsVery easy, requiring just virtual payment addressIFSC code is bank & branch specific and difficult to rememberVery easy
6Can recurring billing be setup?NoYesYes
7Time taken for new payee registrationNo need to add payeeTakes minimum 30 minutesLess time consuming
8Are bank account details must for the transferNoYesYes
9Can you reject money received incorrectlyYesNo such option available unless someone reported to the bankNo such option available
10From where is the money credited/debitedFrom bank accountFrom bank accountFrom wallet
11Is there any transfer chargeYes. Rs. 0.50 per transactionAt least Rs. 2.50 & Rs. 5 for NEFT & IMPS respectivelyNo
12Is smartphone must for transferYesNoNo
13Any money collection alert sentYesNoNo
14Any payment approval alert receivedYesNoNo
15Any interest received on the money keptYesYesNo
16Payee registration timeInstantTakes timeInstant
17Can you use app of non-bank account for transactionYesNANA
18Any transfer limitYes. Rs. 1, 00,000Rs. 10, 00,000No
19How many authentication details requiredUPI app login & 4-6 digit M-PIN neededInternet/mobile banking logins and OTP/transaction password/debit card gridInternet/mobile banking logins and OTP/transaction password/debit card grid
20Is OTP required for transferNoYesYes
21How easy is the beneficiary additionVery easy, requiring just virtual payment addressAddition of bank account details and bank approval is needed before transferVery easy
22Are beneficiary details neededOnly virtual ID is requiredPre-addition of details is neededNo
23Does beneficiary addition require bank's approvalNoYesNo
24Is beneficiary addition mandatoryNoYesNo
25Any payment gateway involved during transferNoYesYes
26How many banks offer this payment method21Almost every bank in India offers this payment methodNA
27Can you pay anyone with this payment methodNo. As of now only an individual or merchant.Anyone i.e. individual, merchants, various service providersAnyone i.e. individual, merchants, various service providers
28Can you do eCommerce transactionsNoYesYes

As you can see above it is a very customer centric technology. UPI is certainly a game changer in India’s banking history similar to what ATM was during its beginning. As of now, only banks are allowed to integrate UPI in their apps. However as more and more people start using this technology, UPIs would be scaled up and mobile wallets will also be allowed to integrate it in their apps. As of now, 160 merchants have implemented UPI in their systems.

It is estimated that over 1 million transactions will be done by UPI by the year end i.e. by March 2017. And IMPS and UPI combined the figures is expected to cross 1.2 million transactions.

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21 UPI Payment Apps: How to Transfer, Receive Money via UPI

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Post demonetization, cash crunch is easing at a decent pace. But meanwhile bank customers can make use of the newly launched feature by National Payments Corporation of India which is Unified Payment Interface (UPI) to transfer money via smartphone instantly.

What is UPI?

It is an electronic money transfer method through which one person can send/receive money to another person (individual or merchant). Transactions can be done only via smartphone and are instant. The most striking feature is that there is no need to enter bank account details such account number, IFSC code, credit card number of the recipient, or key in net banking username or password like you do normally while making the transfer. Only details required for funds transfer is the virtual payment address (VPA). Read more on benefits of UPI.

How to transfer money using UPI App?

The most basic requirement to send money via UPI is that you need to have a smartphone.

You also need to check with the bank whether UPI is supported in their app.

Download the respective bank’s app from android/iOS store on your smartphone. Listed below are the banks which have enabled support for UPI inside their app.

Once the app is downloaded, you need to perform following steps:

  • Login to the app
  • Tap on UPI
  • Create virtual payment address: For e.g. if you are a ICICI bank customer & using Pocket app: you can create VPA as [email protected] For e.g. if name is Ramesh, VPA can be [email protected] Availability of this VPA would be checked (similar to when Email-ID is created on gmail/yahoo/outlook etc.). If you have already created VPA, then you can link the existing VPA
  • Add bank account: You can also add multiple bank accounts.
  • Link VPA: So each VPA will be linked to a bank account.
  • Transfer funds: Once VPA is been set-up, you can now transfer funds. For this, go to funds transfer menu in the app, select UPI, Click on Pay using VPA. Choose your VPA, Enter payee/recipient’s VPA, Enter amount, Enter remarks, Click on Submit.
  • Confirm funds transfer details: After entering details as mentioned in the step above, screen will open asking you to confirm the details. Once you click on submit, funds transfer will be successful.

Which banks have enabled UPI in their apps or have launched new app specially for UPI?

As of now following 21 banks have upgraded or launched new apps to include UPI. Here is the list of the banks and the name of their app.

Name of Bank Supporting UPIApp Name
Federal BankLotza
South Indian BankSIB M-Pay (UPI Pay)
Punjab National BankPNB UPI
Union Bank of IndiaUnion Bank UPI
DCB BankDCB Bank
Canara BankCanara Bank UPI - Empower
Bank of MaharashtraMAHAUPI
Catholic Syrian BankCSB UPI
ICICI BankPockets & iMobile
United Bank of IndiaUnited UPI
Oriental Bank of CommerceOBCUPI PSP
UCO BankUCO-UPI
HDFC BankHDFC Bank Mobile Banking
Vijaya BankVijaya UPI App
Andhra BankAndhra Bank ONE
Axis BankAxis Pay
Karnataka BankKBL - Smartz
State Bank of IndiaSBI Pay
Bhartiya Mahila BankBMB m-Xpress
TJSB Sahakari BankTranZapp

How to receive money?

For this, open UPI app and click on collect money. Enter VPA of the person you wish to receive money from and the amount. And click submit after confirming the details of the transfer. Submit will initiate a collect payment. Payment request will be received by the other person. Once authorisation is done by the other person, money will get credited into your account. You will then get notification upon receiving the funds.

Does recipient also need to have virtual payment address?

Yes. It is mandatory to have VPA by the recipient.

What is the transaction limit via UPI?

At a time, maximum amount that can be transferred is Rs. 1, 00,000 (1 Lakh).

Are the UPI payment apps available on App Store?

No. As of now money transfer from UPI enabled app can be done only on android devices. Apple phones cannot be used.

UPI is a revolutionary digital technology to transfer and receive funds. It is very fast and easy compared to NEFT, mobile wallets, IMPS and other existing payment methods. As more and more users start using the UPI,  it will help India to become a cashless economy.

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28 International Debit Cards: Benefits, Features, Charges

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When it comes to travelling abroad and spending money, there are few widely used options:

  1. Local currency cash
  2. Credit card
  3. Prepaid travel card
  4. International debit card
  5. Travelers cheque

Each of the above mentioned payment options has its own pros and cons and picking an incorrect option would result in traveler spending extra money from his/her pocket. For e.g. using credit card can result in foreign transaction, withdrawal and conversion fee.

In this article we’ll discuss on international debit card, its benefits/features and different cards available for Indians travelling abroad.

What is international debit card?

First of all let’s understand the meaning of such card. It is similar to the domestic debit card but only difference is that you can use this card internationally for various purposes such as making online purchase in different currency, use at ATMs worldwide or in-store purchases abroad and many others. These features are not available in a domestic card and it can be used only in India.

Benefits or features of international debit card:

  • You can make transactions in currencies other than Indian rupee either online or in-store.
  • As you don’t have to carry paper money, it gives more relief from theft or loss of money. Moreover if the card is lost or stolen then card holder can immediately block the card.
  • In order to operate the card, PIN is must. So this gives additional level of security level. Moreover banks offer EMV chip cards i.e. information is encrypted in a micro chip.
  • You can withdraw cash from ATMs abroad in local currency.
  • Money automatically gets debited from the account linked with the card. So there is no need to wait for the monthly bill like credit card and then pay the bill. Also this helps in building saving habit.
  • Apart from the above advantages, many international debit cards also offers cashback, fuel surcharge waiver, and free accidental cover.

How to get international debit card in India:

Almost every bank in India offers pre-approved international debit card or you can apply for them separately. Here’s the list of few cards offered by prominent banks in India.

Bank NameName of Debit Card
SBIGlobal International
Axis BankVisa Classic
Axis BankBurgundy World
Axis BankTitanium Prime
Axis BankTitanium Prime Plus
Axis BankMasterCard Classic
Axis BankSmart Privilege
ICICI BankVisa Platinum
ICICI BankSapphiro
ICICI BankRubyx
ICICI BankCoral
ICICI BankUnifare DMRC Platinum
ICICI BankSapphiro Business
ICICI BankVisa Signature
ICICI BankMasterCard World
ICICI BankPlatinum Identity Chip
ICICI BankPrivilege Banking Titanium
ICICI BankPrivilege Banking Gold
Indian Overseas BankInternational Visa
HDFC BankJetPrivilege World
HDFC BankEasyShop Platinum
HDFC BankEasyShop Titanium Royale
HDFC BankEasyShop Titanium
HDFC BankEasyShop Business
HDFC Bank
EasyShop Imperia Platinum Chip
HDFC Bank
EasyShop Gold
HSBC
Advance Platinum
HSBCPremier Platinum

Factors to consider before opting for an international debit card / various charges:

You can use your debit card in foreign country with ease and also it is easily available compared to credit card. However there are few essential points to remember before choosing the card as follows:

  1. Check whether the bank has ATM presence in the country where you are travelling. Otherwise you would be charged ATM withdrawal fee for using the card at other bank’s ATM.
  2. Annual and joining fee: Unlike annual fee on credit cards, debit card for travelers also carry an annual fee and it varies for each bank. Some banks may also offer this card for zero fee. So if you are travelling for only a short duration then avoid buying cards carrying annual fee.
  3. Conversion fee: Similar to credit cards, if you use debit card abroad very frequently then it’s must to know the currency conversion fee.
  4. Transaction fee: Any purchase made using a credit card in a non-local currency carries a transaction fee. Minimum fee is between 2%-3%. However this fee may vary or might be zero for international debit card. So check with the bank and know about the foreign transaction fee.
  5. Daily withdrawal limit: It’s quite common to face cash crunch in foreign country. Moreover many a times, you won’t have an option to use debit card everywhere. In such cases, ATM withdrawal is the most feasible option. But before withdrawing the cash, it’s important to be aware of the withdrawal limit for various countries in order to avoid any extra fee.
  6. Daily transaction limit: In addition to the withdrawal limit, every card carries a point of sale transaction limit. And crossing the limit would result in a penalty. And it’s always recommended to be aware of this charge.
  7. Loss or damage: Losing/damaging a card or being stolen brings is a nightmare for any traveler especially when there is no other payment option possible including cash. Although you can get a new card immediately but it is not free of cost. An extra charge has to be borne by the traveler. Remember to report loss of card immediately. This is because bank offers protection from illegal charges accrued on the card.
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SBI Mingle: Features, How to Use & Registration Steps

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Technology advancements are.entering into every industry. And banking sector is considered to be the most effective implementer of latest technologies. Private banks have always been leading this space. And to keep pace with private sector banks, State Bank of India has lately been implementing various digital initiatives such as mVisa, Virtual Card, SBI Card mobile app and many others.

Latest to the list is SBI Mingle App, a social media banking platform. Through this platform, SBI customers can perform various banking services through SBIs official Facebook page (https://apps.facebook.com/sbionfacebook/.

SBI Mingle offers different features for FB and Twitter as follows:

Facebook:

  • Account balance inquiry
  • Generate mini statement
  • Send funds from SBI account to another SBI account
  • Send funds from SBI account to any other non-SBI account
  • Beneficiary management – Add beneficiary,

Twitter: Using hashtags customers can avail following two services:

  • Check account balance
  • View mini statement

How to use this service?

The two most basic requirements SBI customers should have are:

  1. Facebook/Twitter account
  2. One time registration for this platform is must. They can register either through their account number or ATM/Debit card details.

How to register for SBI Mingle App through Facebook?

Using Debit Card:

  1. Visit https://www.facebook.com/ and login
  2. Search for SBI Mingle in the Facebook search box and click on Apps
  3. Click on it and then click on Use Now
  4. This will open SBI’s official facebook app page (https://apps.facebook.com/sbionfacebook/) as shown below
  5. SBIMingle-FacebookClick on Register Now button
  6. Now you can register either using Debit card number and PIN or SBI account number as shown in the below image in order to start using this app.
  7. SBIMingle-RegistrationOnce you enter the debit card details, click on Validate and enter password as per the requisite format i.e. numeric.
  8. SBIMingle-DebitCardAccept the terms and conditions and Submit. You will get successful registration message and you would be redirected to the login page. You will have to again login again to use the app.
  9. Password for Mingle app should be numeric and has to be used everytime you use the app

Using Account Number:

Other option for registration is using SBI account number. And here are the steps to register:

  1. Select Account Number from the dropdown.
  2. Following screen will be displayed asking you to enter few account details as shown in the below image:
  3. SBIMingle-AccountNumberEnter the details and click Validate.
  4. You will receive OTP on your registered mobile number.
  5. Once you enter OTP, you will have to enter numeric password of your choice, accept terms and conditions and click on Submit
  6. You will get Successful Submission message and would be redirected to the login page

What are the other services bank going to add on these two platforms?

  • Cheque book request
  • Stop cheque
  • Registration for mobile & internet banking, SMS alerts, block ATM/Debit cards. This card blocking facility will be of tremendous help to their customers in the event of lost or stolen cards.

Customer Care Details:

In case of any queries, customers can get in touch either through E-mail or Phone: [email protected] & 022-27592092

Considering to the fact that Facebook is the world’s widely used social media platform and after United States, India is the second country with highest active FB users. Making use of FB to create customer satisfaction is certainly going to help SBI. This will also reduce banking done traditionally.

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14 Bank Account, Debit Cards for Kids in India: Eligibilty, Features & More

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Teaching your child value of money is must for their financial future. No school will ever teach this important thing. And it is the responsibility of the parents to make their child learn on how to save and spend as they grow. One way they can do is by opening savings account for them and regularly contribute money into it. So when the child starts managing the account and starts to understand the concept of interest, he/she will become knowledgeable enough to understand the need of saving for long term and its benefits.

Along with the bank account for minors, banks also offer debit cards, but with certain terms and conditions. However considering the age of the child, banks put a transaction limit on the card. This in a way, teaches the value of spending – when and where.

Here are some of the banks offering debit card for minors, along with the eligibility:

Bank Name
Account/Debit Card Name
Card Features
Age - Eligibility
ICICI
Young Stars
1) Daily withdrawal/transaction/online transaction limit of Rs. 5000
2) Zero Liability Protection in case of loss/theft of card
3) Payback Rewards
For children with age between 1day to 18 years
ICICI
Smart Star
1) Daily withdrawal/transaction/online transaction limit of Rs. 500010 years to 18 years
IDBI
Kids Debit Card
1) Insurance cover upto Rs. 8000
2) Daily withdrawal/transaction limit of Rs. 2000
3) Get 2 loyalty points per Rs.100 spent"
NA
HDFC
Kids Advantage Account
1) Card can be issued on child's name
2) ATM withdrawal limit of Rs. 2500
3) Daily shopping limit of Rs. 10000
4) Free cash withdrawal at any bank's ATM
For minor upto 18 years of age
SBI
Pehla Kadam & Pehli Udaan1) Withdrawal/POS limit of Rs. 5000
2) Photo of minor embossed on the card
1) Pehla Kadam - Any age
2) Pehli Udaan - Above 10 years
Kotak Mahindra
My Junior Account
Daily withdrawal limit of Rs. 5000
NA
Axis
Future Stars
1) Personal accident insurance cover of upto Rs.2,00,000
2) Lost Card Liability and Purchase protection liability of up to Rs. 50,000
Below 18 years
YESMy First YES Account
Customized daily withdrawal limits between the range Rs.1000/2000/5000For minors of age 10 years and above
Central Bank of India
CENT Bal Bhavishya
NA
Child upto age 12 years
Bank of Baroda
Gen-Next Junior
NA
Children upto 18 years
Karur Vysya
Jumbo Kids
1) No charge on issue as well as no AMC
2) PoS transactions permitted
Child upto age 12 years
CitibankJunior AccountLimit can be set on card to control expensesChild above age 15 years
South Indian BankJunior Savings AccountATM cum debit card is free of costAge 10-18 years
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Missed Call Mobile Recharge by HDFC: Activate, Recharge, Benefits

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In India, usage of prepaid card is very high compared to postpaid. Whereas in countries like US, UK and others the consumer’s preference is opposite i.e. they prefer postpaid over prepaid.

There are many ways to recharge prepaid card be it of Airtel, Vodafone, Reliance and others. Here are the most preferred options of recharging used by Indian consumers:

  1. By visiting company’s store physically or any other local store who offers prepaid recharge facility
  2. Online on company’s website or their app
  3. Deals sites such as Paytm, groupon, coupondunia and their apps
  4. Through bank website or their app

2-4 above mentioned options are fast but they consume internet and sometimes not secured as there is a risk of internet fraud. And paying through app, consumes internet which incurs charges.

Taking advantage of digital technology to further provide better customer service, HDFC bank has launched Missed Call Mobile Recharge ServiceMissed Call Pe Instant Recharge. Using this service, customers can give missed call and get instant recharge done.

How to top-up your prepaid card using this service and what are the requirements?

You can only recharge the mobile number registered with the bank. And it involves two steps:

  1. One time activation
  2. Recharge

Activation:

For activating the service, customer has to send one SMS to 7308080808. The default recharge amount set by HDFC bank is Rs. 50. But choice has been given to the consumers to set favorite amount from minimum Rs. 10 to a maximum of Rs. 250.

For activation, you have to type ACT <Operator Name> <Last 5 Digits of Account Number> and send SMS to 7308080808 from the registered mobile number. If you use some other number then it will not work.

For e.g. your account number is 1234567898765 and operator name is IDEA, then you will have to type:
ACT IDEA 98765 and send this to 7308080808. You will receive confirmation message that Activation Successful.

Recharge:

Next step is recharge which you can do as per your preferred amount and time. And here’s how to do this:
Recharging is very simple and customer has to dial 7308080808 and automatically the card will be credited by the set recharge amount. Your mobile screen will display the message Recharge Successful. This amount will then get deducted from the bank account of the customer.

To further benefit their customer, HDFC bank has also extended the service for the customer’s family members and friends. And 2 extra numbers can be added. And to use missed call mobile recharge service for them, you need to follow the same procedure i.e. activation and recharge as follows:

  1. Activation: ACT <10 digit mobile number> <Operator Name> <Last 5 digits of account number>
  2. Recharge: Now these two persons can recharge by dialing 7308080808 from their cell phone. And the money will automatically debited from the account.

Benefits of recharging prepaid card using missed call for the customers:

  • It is much faster compared to the above mentioned four options
  • It will save time and money. The time and cost of visiting store or using internet is high.
  • It is secured. While recharging online there is always a danger of fraud.
  • No need of wallet, app, internet.
  • If a consumer is travelling or is in a remote location, then missed call mobile recharge service will work wonderful. Because in India, especially in remote location, availability of store or internet is difficult. So recharging by just giving a missed call would be efficient.
  • The scheme will benefit consumers from villages and small towns.
  • You can recharge mobile number of any telephone operator.

How it will benefit the bank:

  • With this, they will increase customer satisfaction
  • This is one of the way of keeping the dormant accounts active especially the ones opened under under Pradhan Mantri Jan Dhan Yojana.
  • Bank will analyze customer data and offer them products to increase life time value

Such an innovative recharge method looks to be the world’s fastest and simplest way to recharge. In future, HDFC bank is expected to offer the service to their credit card customers.

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PMJDY Success Story: 21 Crore Accounts Opened, 33074 Crore Deposits

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With an objective of providing one basic saving account (zero balance) per household, Pradhan Mantri Jan Dhan Yojana has proven to be a big success. It is the biggest financial inclusion scheme in the world launched on 28th August, 2014. Announcement was done on 15th August, 2014.

Why PMJDY is a big success?

  • Simplying the account opening process was a big challenge especially in country like India but through strong processes, it was made possible.
  • e-KYC (electronically – know your customer) played a key role in speeding up the account opening. Another benefit of e-KYC is to the environment as it greatly reduces the paper work. And also is a time saver for everyone involved mainly banks and customers.
  • Account opening form consists of one page only, which has further speed up the process.
  • Accounts could be also be opened during the extended working hours in the banks
  • PMJDY was a gateway to multiple interconnected financial products such as RuPay debit card, savings bank zero balance account, mobile banking, life and accidental insurance.
  • Over draft facility for those who operate the account for the 6 months after their account is opened

What PMJDY achieved in the first year?

As per the official website of PMJDY, here are the key statistics:

  • 17.6 Crore – Accounts opened
  • 22, 000 Crore – Total deposit amount

How was this achieved?

  • This was possible because of 1.26 lakhs bank mitras equipped with online devices capable of e-KYC based account opening in addition to the participating banks.
  • 131012 – Mega financial literacy camps organized
  • 89876 – Financial literacy counters were organized. Their main objective was to educate people about PMJDY benefits to their lives and government, uses of RuPay cards etc.
  • 2567 – Schools/colleges participated in raising awareness
  • 147418 – Students from these education institutions were trained on financial literacy
  • 847 – Life insurance claim successfully settled
  • 387 – Accident insurance claim settled
  • 8.17 Crore – Beneficiaries enrolled in Pradhan Mantri Suraksha Bima Yojana (PMSBY)
  • 2.76 Crore – Beneficiaries enrolled in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
  • 6.83 Crore – Enrolled under Atal Pension Yojana
  • JDY account is an umbrella account which can be used to enroll social security schemes such as PMSBY, PMJJBY and APY. However this is as per the terms and conditions of the scheme.
  • Andhra Pradhesh is one of the first state in India to achieve 100% financial inclusion.
  • More and more people are making transactions through the RuPay debit card issued at the time of opening the account. Read benefits of RuPay card.

Here are the latest statistics from the official website of PMJDY as on 24th Feb, 2014:

  • Over 21 crore accounts have been opened
  • 33074 crore deposit amount
  • 9.37 crore enrolled under Pradhan mantra suraksha bima
  • 2.95 crore enrolled under Jeevan jyoti bima policy
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Unified Payments Interface (UPI): How it Works, Benefits, Features

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In order to promote cashless transactions and move towards hassle free payments or digital money and ultimately increase financial inclusion, National Payments Corporation of India (NPCI) will launch world’s first unique payment system requiring just a single unique identifier to make transaction called as unified payments interface. Launch date is April, 2016.

  • It is an interface through which account holder of one bank can transfer/receive money to someone having account in same/different bank through smartphone.
  • Multiple bank accounts can be linked to a single cell phone.
  • There would be no need to enter bank account details such as account number, OTP etc.
  • Transaction can be carried out by entering either 10 digit Aadhar card number, 10 digit mobile phone number.
  • Bank customers can also make payments for various services such as online shopping, cab services and others.

How it works?

  1. Banks will have to first enable UPI system
  2. Customers will have to ask their banks to connect them to the UPI system.
  3. For making any transaction, two options are available i.e. you can either global or local address.
  4. Global address means mobile number, Aadhar number and bank account number.
  5. Local address means a virtual address, which banks will provide you.
  6. So if you want to make payment through smartphone, let’s say to a grocery store owner then just provide your virtual address to the owner. Normally you provide either the bank account number or swipe your credit/debit card and enter security PIN.
  7. Owner will then enter this address in his mobile phone.
  8. You will then receive message on your cell phone requesting authentication.
  9. You need to then authenticate this transaction by entering a password. So if you receive any unauthorized request, it can be easily rejected.
  10. If all the steps go correctly, transaction will be successful.
  11. Money will be directly debited from your bank account and get credit into the bank account of the service provider. In this case, grocery store owner.
  12. Thus neither the taxi driver nor you, would be required to share each other’s bank account details. And there is no need of swiping debit/credit card, keying in your confidential PIN.

Features of UPI:

  • It will work on real time system
  • It would be available 24*7
  • The transactions are carried out in a highly secured environment which nullifies any kind of risks.
  • Transactions can be done between person to another, entity to person and vice versa
  • Virtual payment address can be a combination of IFSC code and bank account number (e.g. [email protected]) or account id (e.g. [email protected]) or [email protected] or [email protected] This address will be mapped by the respective bank with the account details of the customer.
  • Most importantly, NPCI will earn 50 paise for each transaction. Now if you, carry out this transaction using Mastercard or Visa or others, then transaction charge is high. Moreover this money moves out of India. But with UPI, money will flow within the country. Check out difference between RuPay debit card and Mastercard.

Benefits of Unified Payments Interface:

  • Direct benefit transfer, a government scheme will gain more boost.
  • Since cash transactions will be reduced it will reduce the cost of producing paper money or currency coins.
  • Transaction charge would be less compared to what we currently to international players offering mastercard or visa card.
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Re-KYC: Importance, Form Details, Documents Required

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Re-submitting KYC documents are often requested by the banks when an account is being held inactive for a longer period or when there are too many or too less changes in the deposits or when the account is very old. That is depending on the risk category of the customer, banks might ask to redo KYC formalities so that they can have their database updated with the latest details of the customers. And banks do this, in order to comply with the RBI guidelines and this is a very common process.

So if you think that carrying out too many transactions from different sources or move to a different city or country and keep account inactive then resubmission of KYC documents would be required. Banks will send you notification via E-mail or letter to resubmit KYC documents.

Objective of asking for re-KYC benefits both the entity viz. bank and customer as follows:

  • Prevents money laundering
  • Any type of fraud or irregularity
  • Safeguard financial transactions of the person

Re-KYC declaration form and mandatory documents:

Re-KYC form is very simple which can be obtained from the bank or by scanning the documents and uploading the same on the bank’s website (if the facility is available). Banks can also send the form to their customer’s home. and here are the common details required to be filled in the banks:

  • Customer ID
  • Account Number
  • Personal details and address – Name, address, contact number
  • Occupation and income details – Whether salaried, business, self employed, housewife, student, company name, source of income, residence type, gross annual income, nature of business
  • Address and identity proof. Self attested.
  • You also need to affix one photograph and sign the form.
  • If the account is hold jointly, then each individual has to fill the form.

Once the customer completes all the mandatory documentation and other details, banks will verify the same and take minimum 7 working days for processing the request.

In what scenario, Re-KYC is not required when:

  • You move to another city or change residence
  • Maintain the account actively
  • Account is opened newly
  • Have taken any type of loan such as personal/car/home etc.
  • Have opened FD or RD account with the bank

Although failure in re-submitting KYC documents does not mean that account will be sealed or closed. There is as such no guideline set by the RBI. Many banks viz. ICICI bank, HDFC bank, Axis bank, IndusInd and others have started asking their customers to redo KYC.

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