Saturday, November 26, 2016

The positive side of Demonetization in India - Bengaluru Midnight Marathon 2016 is back


              The tenth edition of th December 2016. This year’s marathon will take in the back ground of Demonetization 

Bengaluru Midnight Marathon 2016 will unfurl on 10 December 2016

              The effect of Demonetization on Bengaluru Midnight Marathon 2016  will be minimal as all expenses are normally routed in the Digital Mode only. However, petty expenses could be a challenge. The organisers have another couple of weeks to completely migrate their expenses to the Digital Mode.

              The receipts primarily through Registration Fees and Sponsorship Fees are through the digital mode.

              Rotary Bangalore IT Corridor has announced the X edition of the only midnight marathon in India, the ‘Bengaluru Midnight Marathon 2016’ (BMM). Race day will be on December 10 at the Karnataka Trade Promotion Organization (KTPO) venue in Whitefield. Boxing legend Mary Kom has been announced as the event ambassador for the BMM.

BMM is the main fundraising event of Rotary Bangalore IT Corridor. Funds raised from the Midnight Marathon will be used to expand the scope of the club's activities.

              All the traditional races will be part of the Race Day.

The Race Day is on 10th of December 2016.

All races will start from KTPO, Whitefield.

Event                                               Date                                                 Time
COMMUNITY RELAY                     10th Dec 2016                                5:30PM
IT CITY FUN RUN                           10th Dec 2016                                8:00PM
10K RUN                                          10th Dec 2016                                10:00PM
Full and OLA Half Marathon       10th Dec 2016                                12:00 MIDNIGHT
AIRBUS CORPORATE RELAY         11th Dec 2016                                12:15AM

Participants are advised to check website for final details closer to Race Day.

Brand Ambassador for Bm            : MC Mary Kom

Theme : Run for Happy Schools

Event Sponsors :

              Healthcare Partner for Bengaluru Midnight Marathon 2016: Sakra World Hospital

              Corporate Relay Sponsor for Bengaluru Midnight Marathon 2016: Airbus

              10K Run Sponsor for Bengaluru Midnight Marathon 2016: Akamai

              Half Marathon Sponsor & Ride Partner for Bengaluru Midnight Marathon 2016: OLA
              Connected Technology Partner for Bengaluru Midnight Marathon 2016: Harman

              Registration and Training Partner for Bengaluru Midnight Marathon 2016: mobiefit

              Venue Partner for Bengaluru Midnight Marathon 2016: K T P O

              Charged By for Bengaluru Midnight Marathon 2016: Bisleri

              Timing Partner for Bengaluru Midnight Marathon 2016: Timing Technology

              Official Sports Drink Partner for Bengaluru Midnight Marathon 2016: Gatorade

              Marketing Partner for Bengaluru Midnight Marathon 2016: Meraki

              Creative Partner for Bengaluru Midnight Marathon 2016: Webenza

              Events and More Partner for Bengaluru Midnight Marathon 2016: Magnum Opus

              Official Radio Partner for Bengaluru Midnight Marathon 2016: Radio City 91.1FM

              Security Partner for Bengaluru Midnight Marathon 2016: UNIQ
  
This year, the club has focused on three signature projects with significant social impacts.

Signature Project No 1. Adoption of 7 Government Schools: RBITC has been working with the management of 7 schools (with over 4,000 students) for interventions at multiple levels – infrastructure, science & computer labs, potable drinking water, upgrading toilet facilities, library & books, teachers’ training, conducting classes through volunteers.

Signature Project No 2. Integrated Village Development: RBITC has adopted a village near Hoskote (B. Thimmasandra) for “Integrated Village Development”. This will involve interventions in the areas of healthcare, education, water, sanitation, livelihood and skill development. RBITC have already conducted a medical camp for all the residents (108 families) of the village. It intends to extend this over 9 additional villages in the district.

              Signature Project No 3. Healthcare: In partnership with Sakra World Hospital and Sankara Eye Hospital, RBITC plans to make a difference to over 500 underprivileged bread winners in a family.

The online registration for the individual events of BMM 2016 is open and participants can register online by logging ontohttp://www.midnightmarathon.in. The key events on December 10 – 11, 2016 include: 5k IT City Fun Run, Open 10k Run, Ola Half Marathon and Full Marathon. Pet-a-thon will be held on November 27 i.e tomorrow


The initiative has created a huge platform and has been a most sought after flagship fund-raising event with scores of runners participating from over 20 countries to support the cause.

Sunday, November 20, 2016

21 Positives of Currency Demonetization in India


#Demonetisation
          Time is the ultimate Judge on the ups and downs of Demonetization in India.  I cannot judge on the merits and demerits of Demonetization.
          Every event has a Positive and Negative associated with it.

          This Article highlights the 21 Positives of Demonetization in India.  

Positive No 01:::: ---  Amid Cash Crunch, Sleepless Bank Employees Fulfil Government's Promises

Positive No 02:::: ---  Small Bank Accounts to be upgraded to Prime Minister Jan Dhan Accounts

Positive No 03:::: ---  The Barter economy is back in parts of country

Positive No 04:::: ---  Agricultural prices are in a stage of fluctuation    
      
Positive No 05:::: ---  The informal sector is slowly building up the broken pieces

Positive No 06:::: ---  These links show the varied reactions of folks on social media

Positive No 07:::: ---  Increased awareness of  CashLess modes

Positive No 08:::: ---  PM Narendra Modi thanks bank employees

Positive No 09:::: --- Cash logistics firms emerge as the hero in times of distress

Positive No 10:::: --- Jugaad Payment procedures  to stabilise the cash flows

Positive No 11:::: --- Wavier of Merchant Discount Rates

Positive No 12:::: ---  eWallets are gaining traction

Positive No 13:::: ---  Mixed fare for Donations 

Positive No 14:::: ---  Deployment of Hi-end technology to track evaders     
    
Positive No 15:::: ---  Innovative ways to dodge Demonetisation

Positive No 16:::: --- Demonetisation effects on ATMs – The new temples of India  
   
Positive No 17:::: --- MicroATMs being rolled out in large numbers    

Positive No 18:::: --- cash@PoS machines being popularised
Positive No 19:::: ---           Increase the number of visits to Psychiatrists

Positive No 20:::: ---           Loyalty on the increase

Positive No 21:::: ---           Emergence of Aadhar as a primary Identification document

In the coming days, this number will go up. Readers can mention the key words in the comments column.



Linkedin Articles
01)  Demonetisation - Why Queues for Exchanging Currency?? Published by Viswanathan NS - Group Chief Financial Officer - CARE Hospitals

02) Why 1978 demonetisation didn’t hurt India. Published by Abhilash Gaur - Writer, researcher and editor based in New Delhi, India.

03) DeMonetisation: Mr. Arvind Kejriwal, please keep quiet!. Published by Iran Bharat Saxena - CEO at DYONASIA

04) Demonetisation: Great Move, But…. Published by Adhil Shetty - CEO at BankBazaar.com
The copyright of the above articles rest with the respective authors. The articles were selected randomly.



Tuesday, November 1, 2016

Equitas Small Finance Bank commences issuances of RuPay Debit Cards



         Equitas Small Finance Bank become the 99th Direct Live Member on NPCI’s National Financial Switch. Last month, it started to issue RuPay Debit Cards to its SFB Account Holders. Initially, two variants of RuPay Debit Cards (Classic + Platinum) are being offered.

            Equitas YouTube Video 1

            In September 2016, Equitas Small Finance Bank has commenced its banking operations with 3 branches in Chennai.

            Equitas YouTube Video 2

            Equitas Holidings was one of the 10 companies to receive the ‘in-principle’ approval from Reserve Bank of India to set up. The in-principle approval given in September 2015  and the applicants had  18 months to comply with the requirements.

            The companies which received the ‘in-principle’, approval were Au Financiers (India) Ltd., Jaipur, Capital Local Area Bank Ltd., Jalandhar, Disha Microfin Pvt., Ahmedabad and Utkarsh Micro Finance Pvt. Varanasi, Equitas Holdings Pvt., Chennai, ESAF Microfinance and Investments Pvt., Chennai, Janalakshmi Financial Services Pvt., Bengaluru and Ujjivan Financial Services Pvt., Bengaluru. The RBI also granted permission for RGVN (North East) and Microfinance Ltd., Guwahati, and the Navi Mumbai-based Suryoday Micro Finance Pvt.


            Equitas Holdings  received the final approval from Reserve Bank of India, in June 2016.  Based on the final Reserve Bank of India, Equitas  top management  planned the initial roll-out in September or October 2016.

Equitas would  be the first bank after indepedence from Tamil Nadu and first private bank from Chennai.

            In the initial years, Equitas Small Finance Bank would incur an additional expenses of INR100 crores. The additional expenditure is towards onboarding employees and relocation of its branches.

In mid 2016,  Equitas had  around 9,000 employees of which only three are employed to get money, while balance are in lending and collection.

As the new SFB needs to focus on liability, it needs to add another 3,000 people. This alone would cost around Rs 80-90 crore every year.

The second major cost would be increase in rent as Equitas need to relocate around 400 branches.

Of the little over 580 branches of Equitas, currently around 410 will be converted into full-fledged SFB branches, while the balance will be specialised branches, which will focus on lending.

Almost 400 of these branches are located inside the lanes or on the second or third floors of a building, which will NOT work for a bank, as Bank branches  need to be on the ground floor and on the main roads.

Of the total branches around 50% of it are in South, in West around 30% and balance are in North.

The new  SFB will focus on four key strategies including offering existing range of credit products such as micro-finance, small enterprise loans, business banking loans for tiny to small commercial establishments, commercial vehicle finance and affordable housing finance.

Additionally, the SFB would be looking to offer a few cross sell products such as loan against gold, etc.

Equitas  plans to offers multiple channels to clients to access their accounts with the bank including digital channels such as net banking and mobile banking, offer third party products and services such as insurance, pension and 3-in-1 accounts to enhance the value to clients. The company invested around Rs 20-25 crore in IT infrastructure.

To enable physical support to its millions of customers, Equitas plans to have a net work of Business Correspondents (BC) at branch level taking banking services right to the doorstep of its clients.

Equitas hopes to improve its operational efficiency and risk management through technology-enabled operating procedures which would help in reducing cost to borrowers over time.

The Chennai-headquartered Small Finance Bank, in a statement, said by the end of fiscal FY16-17, it plans to have a network of 412 branches spread across 11 states.

Of these 412 branches, Equitas plans to have 50 per cent in South, 30 per cent in West and the remaining 20 per cent in North. About 25 per cent of bank branches will be located in rural, unbanked villages.

Currently, the bank has advances of about Rs. 6,500 crore, of which about 50 per cent is microfinance, about 25 per cent is used commercial vehicle finance and the remaining in micro and small enterprises and affordable housing finance.
           
PN Vasudevan, Managing Director & CEO, Equitas Small Finance Bank Limited, said: “It is our endeavour to bring a wave of freshness into banking through our focus on making normal banking transaction `Fun’ for the customers and through spreading fun and joy, we hope to impact about 5 per cent of Indian Households by 2025. “




Monday, August 15, 2016

21 Ways to Boost Mobile Banking in India through *99#


          We are witnessing a silent revolution amongst our country folks. The belief that LessCash Transactions are beneficial to the economy is growing.

          We are ready to experiment with Digital Transaction tools, as long as they are Safe and the charges are reasonable.

          In the last few years, there have been numerous efforts by the stakeholders to promote Digital Banking channels.

          One such channel is NPCI’s *99# Channel.

          The FAQs at the NPCI site encourage bank’s customers to migrate to LessCash transactions from Cash transactions.

Q: What is Mobile Banking?
Ans: Mobile banking refers to the use of a smartphone or other cellular device to perform online banking tasks while away from your home computer, such as monitoring account balances, transferring funds between accounts, bill payment and locating an ATM.

Mobile Banking generally requires a Smartphone and Net connectivity. The other option is SMS Based mobile banking.

EG: ICICI  Bank SMS Banking

Kotak Mahindra Bank – Bharat Banking APP

Union Bank SMS Banking
          The data on number/type  of 
transactions is not published by any Bank. Hence, it is difficult to judge the success/failure of SMS based banking.

          Over a period of time, Financial institutions explored USSD sessions for financial transactions.

          Q: What is USSD?

          Ans: USSD (Unstructured Supplementary Service Data) is a Global System for Mobile(GSM) communication technology that is used to send text between a mobile phone and an application program in the network. Applications may include prepaid roaming or mobile chatting.

          Read this to know more about “What’s the difference between USSD, MMI and SS codes?”

The most popular usage of USSD is to access the mobile balance. Each operator has his/her own USSD codes to access its services.

This Google search quotes ‘ussd codes for telecom companies in india’, provides the list of USSD codes of different telecom companies in India.


Types of USSD - There are two types of options:

Push - Network pushed USSD service in which the network (MSC, VLR and / or HLR) sends the USSD message toward mobile subscriber.
Pull - Mobile Subscriber requested USSD with user sending a USSD message towards the Gateway. i.e. using USSD Short Codes. e.g. *100
          The only drawback of USSD is that it is ‘Flash Memory ‘type, this means after the session is over, no data is stored on the mobile.
         
USSD in Financial Sector: These articles explore the various facets of USSD in financial sector.

Always Active Mobile – USSD Push

What is USSD & Why Does it Matter for Mobile Financial Services?

USSD in Indian Financial Sector: - In India Banks started to use the USSD option, only after NPCI unveiled its NUUP service. Through  the NPCI NUUP service, banks could immediately launch the services, without the need to enter into individual agreements with each telecom company. NPCI through the aggregator model has taken care of this aspect.

SWOT Analysis of the present *99# NPCI Service

Strengths
a) An App to mimic the *99# commands
b) Proactive Implementation Team
c) The basic framework has been developed by NPCI and is in place. Banks need not individually negotiate with Telcos on commercials or service level agreements.

Weakness
a) Charges levied by Telcos
b) Service not available for Corporate Phone Connections
c) Dependence on Telcos to complete the transaction cycle
Opportunities
a) Huge growing market
b) As minimal recurring costs are involved, banks can popularise the *99# mobile banking channel
c) *99# services can be accessed from  any part of the world, without any additional costs viz roaming etc
Threat
a) No audit trial of requests raised
b) High transaction charges
c) Transaction charges for incomplete  sessions too


21 ways to popularise *99# services in India

The 21 ways are broadly divided into 4 contributors:-

Contributor 1) Regulatory -- Way 1 TO Way 5

Way 01) ::  Free Transactions  - 15 per month per bank account. Charge per 16th transaction, not to exceed INR1

Way 02) :: Telecom companies to be reimbursed for the free transactions from the USOF Fund

Way 03) :: Fix upper limit per transaction, per day

Way 04) :: Establishment of Awards for promoting *99# service

Way 05) :: Publish Real time MIS like eTAAL

Contributor 2) Banks --  Way 6 TO Way 10

Way 06) ::  Launch Lite APPS for *99# services

Way 07) ::  Promote the ‘App’, through its branches and on-field staff

Way 08) ::  Setup dedicated Help Lines atleast for the initial couple of years, till the stabilisation of *99# services

Way 09) :: Explore ways and means to introduce more value added services to *99# portfolio

Way 10) ::  Encourage Peers viz Regional Rural Banks, Urban Cooperative Banks to launch Apps to promote *99# transactions

Contributor 3) Telecom Companies -- Way 11 TO Way 15

Way 11) :: Popularise *99# facilities on all their communication channels

Way 12) :: Assist bank customers who visit their physical touch-points to install the *99# App and guide them in the initial setup

Way 13) ::  Do not be greedy for transaction charges

Way 14) :: Launch similar Apps for their own USSD messages

Way 15) :: Create a win-win situation for its own customers and banking sector customers to adopt LessCash tools

Contributor 4) Customers -- Way 16 TO Way 21

Way 16) :: Use judiciously the limit of 15 free transactions

Way 17) ::  Double check the relevant data, before you execute a financial transaction

Way 18) :: Do not share your PIN with any one. Do not trust anyone except yourself

Way 19) :: Do not be greedy, and fall into quick money traps

Way 20) :: Spread the Joy of Safe Digital Transactions to your peers

Way 21) :: Give feedback to Regulators, Telcom Companies and Banks on ways and means to increase the transactions under *99# channel.

Q) What is USOF?

Ans: As per the Indian Telegraph Act 1885 (as amended in 2003 and 2006), Universal Service Obligation is defined as access to telegraph service to people in rural and remote areas at affordable and reasonable prices.

The USO Fund was formed through a Universal Access Levy of five% of the revenue earned by the operators under various licences.

The fund aims to boost connectivity in the rural areas.

Read this Article to know the immense possibilities of USOF -
FinMin conservative in allocation under USOF: Telecom Secretary J S Deepak

The following two Graphs (Source USOF website), highlight the resources and tools available with USOF.




Q) What is eTAAL?
Ans: eTaal is a web portal for dissemination of e-Transactions statistics of National and State level e-Governance Projects including Mission Mode Projects.
It receives transaction statistics from web based applications periodically on near real time basis.

As on 15th August 2016, 3,070 eServices have been integrated to the eTAAL Portal.
Read this Press Release to understand the wonders of eTAAL

The economics of financial *99# transactions through ‘Universal Service Obligation Fund’

15 lacs *99# sessions per month through 5 lacs users. No user has exceeded the free limits i.e crossed 15 sessions.

Pay out from USOF at INR1.50 per session = INR7,50,000.


Is it not worth???

Sunday, August 14, 2016

Come April 1, 2018 and Your Banker will be professionally certified


          Today there is no set of standards certificates which a Banker has to obtain to discharge his/her official duties.

          Depending on the job profile, the preferred educational qualifications are highlighted. However, the Super Regulator i.e Reserve Bank of India or any accreditation agency does not lay down mandatory qualifications.

          Come April 1st, 2018 and all this going to change. Reserve Bank of India vide its Notification No DBR.No.BP.BC.4/21.03.009/2016-17 dated August 11, 2016 changes the present approach to capacity building in Commercial Banks and All India Financial Institutions.

          The indicative list of Commercial Banks can be read here

Exim Bank, NABARD, NHB and SIDBI are defined as  All India Financial Institutions for the purpose of this RBI notification.

          Background:  The mandatory certifications requirements are the outcome of the ‘Report of the Committee on Capacity Building in Banks and non-Banks’, released by Reserve Bank of India in September 2014.

          Suggestions were invited by Reserve Bank of India to opertionalise the recommendations of the Committee.

          The first set of directions encompassing the recommendations of the committee was given under RBI Notification No DBR.No.BP.BC.4/21.03.009/2016-17 dated August 11, 2016.

          The highlight of the Notification is the obtention of appropriate Certificates by personnel manning critical departments of the banks. Of course, each employee in the Bank has an important role to achieve customer satisfaction.

          As a beginning, banks should make acquiring of a certificate course mandatory for the following areas:

Treasury operations – Dealers,  mid-office operations.

Risk management – credit risk,  market risk, operational risk, enterprise-wide risk, information security, liquidity risk.

Accounting – Preparation of financial results, audit function.

Credit management – credit appraisal, rating, monitoring, credit administration.

This does not mean that employees working in other banks need not obtain mandatory certificates. Banks are free to require certification for other areas of work also.

The employees working in the aforementioned areas should be asked to acquire certifications within a specified period, say, 6 months. This period can be extended depending on the time required for the certification. Banks should have a specific policy in place for this purpose.

To address the issues of mis-selling and to minimise customer complaints, the employees involved in marketing third party retail products and wealth management products must necessarily undergo an appropriate certification process. Where other financial sector regulators have prescribed any certifications, these must be complied with.

          As the number of employees in Commercial Banks and All India Financial Institutions is quite large, an independent accreditation agency would be useful to all the stake holders.

In this regard, the issue of setting up of an accreditation agency for assuring and accrediting learning initiatives within the banking industry, etc., is being examined separately.

As a stop-gap arrangement, Indian Banks Association (IBA) has been requested to identify in consultation with RBI and provide to its members, by end December 2016, a list of institutions and courses that will meet the certification requirements for different work areas mentioned above.

As IBA has to release the list of institutions and course by December 210, IBA may, form an expert group comprising such agencies, institutions at it deems necessary

After the release of the aforesaid list by the IBA, the banks should identify the courses/certifications that are suitable for their operations and put in place a Board approved policy, mandating obtainment of such certifications by its employees working in the respective areas.

The banks should ensure that by end-March 2017, the employees in relevant areas have commenced the process of obtaining necessary certifications.

It is expected that, w.e.f. April 1, 2018, staff will have first obtained the requisite certification before being posted in the above mentioned functional areas.

If an employee has already acquired relevant graduate, diploma and certificate courses offered by reputed universities, the same can also be considered as an accreditation/ certification. More clarity on this is expected once IBA releases its list.

The employees of Small Finance Banks and Payment Banks too will benefit from this notification. It is expected that this notification will be applicable to Small Finance Banks and Payment Banks too.

It is expected that this notification will be applicable to Regional Rural Banks too.

Recertification every three years through CPD (Continuing Professional Development) certification would enable the bankers to stay update in their chosen specialization.



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All efforts have been made to make this information as accurate as possible, N Prashant will not be responsible for any loss to any person caused by inaccuracy in the information available on this Website. Relevent Official Gazettes Communications may be consulted for an accurate information. Any discrepancy found may be brought to the notice of N Prashant