ATM Safety
Today I am highlighting few points on ATM Safety usages. Majority of the Banks are recommending Customer’s to avail ATM Services. At the same time, Customer’s too prefer ATM’s for their ease. However, for secure ATM Transactions, little actions, will be beneficial not only to the Customer’s but also to the Bank’s.
1. Try to avoid using an ATM by yourself. Either take someone with you or only use an ATM when others are around.
2. When using a drive-up ATM, make sure all passenger car doors are locked and windows are up. Do not leave your car unlocked or engine running when you get out to use an ATM.
3. While many ATMs are available 24 hours a day, some may be open only during local business hours. To be on the safe side, plan your withdrawals ahead of time.
4. Check with your financial institution to determine what the daily limit of funds that can be withdrawn from your account is.
5. If possible, avoid using an ATM after dark. If you must, choose one that is well lit and does not have tall bushes nearby.
6. When you arrive at an ATM, look around. If you see anything that makes you uncomfortable or anyone who looks suspicious, do not stop. Either use an ATM at a different location or come back later. Notify police.
7. Have your access card and any other documents you need ready when you approach an ATM. While you are fumbling with a wallet or purse, you are easy prey for a thief.
8. If someone else is using the ATM, stay alert to your surroundings. Look up and around every few seconds while transacting your business.
9. When using an enclosed ATM that requires your card to open the door, avoid letting strangers follow you inside.
10. Protect your Personal Identification Number (PIN). Do not enter your PIN if anyone else can see the screen or keypad. Use your body to shield your PIN from onlookers. Don't give your PIN out to others. This is the leading cause of theft.
11. When your transaction is finished, be sure you have your card and your receipt, and then leave immediately. Avoid counting or otherwise displaying large amounts of cash.
12. As you leave, be aware of anything suspicious. If you think you are being followed, go to an area with a lot of people and call the police.
13. If you notice something suspicious about the card slot on an ATM (like an attached device), do not use it and report it to the responsible authorities.
14. Periodically check your account balances on Internet or by requesting your bank or credit agency to send you statements to ensure that no transactions are happening behind your back.
Tuesday, December 30, 2008
Monday, December 29, 2008
Internet Banking Kiosk by SBI
MUMBAI: State Bank of India (SBI) on Saturday launched internet banking kiosk at ATM centres located in railway stations.
The facility would enable customers to avail themselves of internet banking to reserve railway tickets for all trains available at the IRCTC site on the kiosk, SBI said in a press statement.
Customers will get the printed electronic reservation slip instantly after the transaction, the bank said.
Apart from ticket booking, customers can avail themselves of services like fund transfer, balance enquiry, bill payments, inter-bank fund transfer facility and tax payments, the release said.
SBI opened its first kiosk at the Mumbai Central Railway station. — PTI
The facility would enable customers to avail themselves of internet banking to reserve railway tickets for all trains available at the IRCTC site on the kiosk, SBI said in a press statement.
Customers will get the printed electronic reservation slip instantly after the transaction, the bank said.
Apart from ticket booking, customers can avail themselves of services like fund transfer, balance enquiry, bill payments, inter-bank fund transfer facility and tax payments, the release said.
SBI opened its first kiosk at the Mumbai Central Railway station. — PTI
SBI plans to set up 383 similar kiosks by the end of this financial year.
At the kiosks, the bank's customers can book their tickets through the IRCTC gateway and get a printed electronic slip instantly.
For the service, the customers have to pay Rs 10 per booking to SBI besides the fees that IRCTC charges
http://www.thehindu.com/2008/12/28/stories/2008122855841200.htm12 Steps for Safe Navigation on the Internet Banking Sites
12 Steps for Safe Navigation on the Internet Banking Sites
2. Do not save User Id’s/Passwords on your mobile, as in case of mobile theft, they can be misused.
3. Do not provide User Id’s/Passwords to anyone.
4. Do not provide User Id’s/Passwords online in any website.
5. Do not access the Internet Banking site through an other site or email.
6. Do access only through directly typing the URL in your browser. The URL should always begin with https(s denoting secured site).
7. Do not have multiple users on your PC.
8. Do not leave the PC unattended after logging into the Internet Banking Site.
9. Do not respond to e-mails requesting for User Id’s/Passwords and Debit Card Information.
10. Do not access Internet Banking at Internet Café and Public places. My preferred practice is to access the Internet Banking, for financial transactions, in office as most of the offices are equipped with the latest Anti-Virus and Firewall for Security.
11. Do ensure that your PC is installed with the latest Anti-Virus and Firewall for security. My favorite technique, is to switch on the PC, access the Banking Internet Site, in a single session, and than switch off the PC. This minimizes, the security threat.
12. Do not shop Online/Bank at Internet Sites, which do not have Security Certification.
Friday, December 12, 2008
FAQ's on Electronic Clearing Service-Credit(ECS-Cr)
Electronic Clearing Service(ECS) - FAQs
Q.1. What is Electronic Clearing Service (ECS)?
Ans It is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
Q.2. What are the types of ECS? In what way they are different from each other?
Ans There are two types of ECS called ECS (Credit) and ECS (Debit).
ECS (Credit) is used for affording credit to a large number of beneficiaries by raising a single debit to an account, such as dividend, interest or salary payment.
ECS (Debit) is used for raising debits to a number of accounts of consumers/ account holders for crediting a particular institution.
Working of ECS Credit System
Q.3. Who can initiate an ECS (Credit) transaction?
Ans ECS payments can be initiated by any institution (called ECS user) who have to make bulk or repetitive payments to a number of beneficiaries. They can initiate the transactions after registering themselves with an approved clearing house. ECS users have also to obtain the consent as also the account particulars of the beneficiary for participating the ECS clearings.
The ECS user's bank is called as the sponsor bank under the scheme and the ECS beneficiary account holder is called the destination account holder. The destination account holder's bank or the beneficiary's bank is called the destination bank.
The beneficiaries of the regular or repetitive payments can also request the paying institution to make use of the ECS (Credit) mechanism for effecting payment.
Q.4. How does the ECS Credit system work?
Ans The ECS users intending to effect payments have to submit the data in a specified format to one of the approved clearing houses. The list of the approved clearing houses or the list of centres where the ECS facility has been provided is available at www.rbi.org.in.
The clearing house would debit the account of the ECS user through the account of the sponsor bank on the appointed day and credit the accounts of the recipient banks, for affording onward credit to the accounts of the ultimate beneficiaries.
Q.5. At which of the centres ECS facility is available?
Ans At present ECS facility is available at more than 60 centres and the full list is available at the web-site of RBI.
The beneficiaries need to maintain an account with one of the banks at these centres in order to avail of the benefit of ECS.
Q.6. How does a beneficiary participate in ECS (Credit ) scheme?
Ans The beneficiary has to furnish a mandate giving his consent to avail of the ECS facility. He should also communicate to the ECS user the details of his bank branch and account particulars. Such authorisation form is called a mandate.
Q.7. Will there be any need for the beneficiary to alter this mandate?
Ans Yes. In case the information/account particulars undergo change, then he has to notify the ECS user to carryout changes in order to ensure continued benefits from the ECS user. In case the account particulars at the destination branch do not match, the destination branches would return the credit through their service branch to the clearing house.
Q.8. Who will communicate the beneficiaries' about the credit?
Ans It is the responsibility of the ECS user to communicate to the beneficiary the details of credit that is being afforded to his account, indicating the proposed date of credit, amount and the relative particulars of the payment, so that the beneficiary can match the same with the details furnished by the bank in the account statement/passbook.
Q.9. What are the advantages to the ultimate beneficiary?
Ans
• The end beneficiary need not make frequent visits to his bank for depositing the physical paper instruments.
• He need not apprehend loss of instrument and fraudulent encashment.
• The delay in realisation of proceeds after receipt of paper instrument.
Q.10. How does the scheme benefit the ECS user-like corporate bodies/ institutions?
Ans
• The ECS user saves on administrative machinery for printing, dispatch and reconciliation.
• Avoids chances of loss of instruments in postal transit.
• Avoids chances of frauds due to fraudulent access to the paper instruments and encashment.
• Ability to make payment and ensure that the beneficiaries' account gets credited on a designated date.
Q.11. What are the advantages to the banks?
Ans
• Banks handling ECS get freed of paper handling.
• Paper handling also creates lot of pressure on banks as they have to encode the instruments, present them in clearing, monitor their return and follow up with the concerned bank and customers.
• In ECS banks simply get the payment particulars relating to their customers. All they need to do is to match the account particulars like name, a/c number and credit the proceeds
• Wherever the details do not match, they have to return it back, as per the procedure
Q.12. How can the customer track-down these payments?
Ans Banks have been advised to ensure that the pass-books/statements given to the customers reflect the particulars of the transaction provided by the ECS users. Customers can match these entries with the advice received by them from the payment institution.
Q.13. Is there any limit on the amount of Individual transactions?
Ans No value limit on the amount of individual transactions has been prescribed under the scheme.
Q.14. What are the Processing / Service charges? Is it a costly service?
Ans RBI has since deregulated Service Charges to be levied by sponsor banks. As regards Processing Charges levied by RBI and other banks managing the clearing houses, the same has been waived till March 31, 2009.
Q.15. Is it necessary for the corporates/institutions to collect mandate from the investors?
Ans Yes. A model mandate form has been prescribed for the purpose. Payment processing by banks becomes easier once the database is prepared. SEBI has also issued guidelines to investors to furnish their account numbers in their share applications for printing the same on the interest/dividend warrants, collecting the account particulars and mandates may not pose much problem.
Source: http://rbidocs.rbi.org.in/rdocs/ECS/DOCs/19631.doc
Q.1. What is Electronic Clearing Service (ECS)?
Ans It is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
Q.2. What are the types of ECS? In what way they are different from each other?
Ans There are two types of ECS called ECS (Credit) and ECS (Debit).
ECS (Credit) is used for affording credit to a large number of beneficiaries by raising a single debit to an account, such as dividend, interest or salary payment.
ECS (Debit) is used for raising debits to a number of accounts of consumers/ account holders for crediting a particular institution.
Working of ECS Credit System
Q.3. Who can initiate an ECS (Credit) transaction?
Ans ECS payments can be initiated by any institution (called ECS user) who have to make bulk or repetitive payments to a number of beneficiaries. They can initiate the transactions after registering themselves with an approved clearing house. ECS users have also to obtain the consent as also the account particulars of the beneficiary for participating the ECS clearings.
The ECS user's bank is called as the sponsor bank under the scheme and the ECS beneficiary account holder is called the destination account holder. The destination account holder's bank or the beneficiary's bank is called the destination bank.
The beneficiaries of the regular or repetitive payments can also request the paying institution to make use of the ECS (Credit) mechanism for effecting payment.
Q.4. How does the ECS Credit system work?
Ans The ECS users intending to effect payments have to submit the data in a specified format to one of the approved clearing houses. The list of the approved clearing houses or the list of centres where the ECS facility has been provided is available at www.rbi.org.in.
The clearing house would debit the account of the ECS user through the account of the sponsor bank on the appointed day and credit the accounts of the recipient banks, for affording onward credit to the accounts of the ultimate beneficiaries.
Q.5. At which of the centres ECS facility is available?
Ans At present ECS facility is available at more than 60 centres and the full list is available at the web-site of RBI.
The beneficiaries need to maintain an account with one of the banks at these centres in order to avail of the benefit of ECS.
Q.6. How does a beneficiary participate in ECS (Credit ) scheme?
Ans The beneficiary has to furnish a mandate giving his consent to avail of the ECS facility. He should also communicate to the ECS user the details of his bank branch and account particulars. Such authorisation form is called a mandate.
Q.7. Will there be any need for the beneficiary to alter this mandate?
Ans Yes. In case the information/account particulars undergo change, then he has to notify the ECS user to carryout changes in order to ensure continued benefits from the ECS user. In case the account particulars at the destination branch do not match, the destination branches would return the credit through their service branch to the clearing house.
Q.8. Who will communicate the beneficiaries' about the credit?
Ans It is the responsibility of the ECS user to communicate to the beneficiary the details of credit that is being afforded to his account, indicating the proposed date of credit, amount and the relative particulars of the payment, so that the beneficiary can match the same with the details furnished by the bank in the account statement/passbook.
Q.9. What are the advantages to the ultimate beneficiary?
Ans
• The end beneficiary need not make frequent visits to his bank for depositing the physical paper instruments.
• He need not apprehend loss of instrument and fraudulent encashment.
• The delay in realisation of proceeds after receipt of paper instrument.
Q.10. How does the scheme benefit the ECS user-like corporate bodies/ institutions?
Ans
• The ECS user saves on administrative machinery for printing, dispatch and reconciliation.
• Avoids chances of loss of instruments in postal transit.
• Avoids chances of frauds due to fraudulent access to the paper instruments and encashment.
• Ability to make payment and ensure that the beneficiaries' account gets credited on a designated date.
Q.11. What are the advantages to the banks?
Ans
• Banks handling ECS get freed of paper handling.
• Paper handling also creates lot of pressure on banks as they have to encode the instruments, present them in clearing, monitor their return and follow up with the concerned bank and customers.
• In ECS banks simply get the payment particulars relating to their customers. All they need to do is to match the account particulars like name, a/c number and credit the proceeds
• Wherever the details do not match, they have to return it back, as per the procedure
Q.12. How can the customer track-down these payments?
Ans Banks have been advised to ensure that the pass-books/statements given to the customers reflect the particulars of the transaction provided by the ECS users. Customers can match these entries with the advice received by them from the payment institution.
Q.13. Is there any limit on the amount of Individual transactions?
Ans No value limit on the amount of individual transactions has been prescribed under the scheme.
Q.14. What are the Processing / Service charges? Is it a costly service?
Ans RBI has since deregulated Service Charges to be levied by sponsor banks. As regards Processing Charges levied by RBI and other banks managing the clearing houses, the same has been waived till March 31, 2009.
Q.15. Is it necessary for the corporates/institutions to collect mandate from the investors?
Ans Yes. A model mandate form has been prescribed for the purpose. Payment processing by banks becomes easier once the database is prepared. SEBI has also issued guidelines to investors to furnish their account numbers in their share applications for printing the same on the interest/dividend warrants, collecting the account particulars and mandates may not pose much problem.
Source: http://rbidocs.rbi.org.in/rdocs/ECS/DOCs/19631.doc
Thursday, December 11, 2008
FAQ's-Electronic Clearing Service-Debit (ECS-Dr)
Electronic Clearing Service(ECS) - FAQs
Q.1. What is Electronic Clearing Service (ECS)?
Ans It is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
Q.2. What are the types of ECS? In what way they are different from each other?
Ans There are two types of ECS called ECS (Credit) and ECS (Debit).
ECS (Credit) is used for affording credit to a large number of beneficiaries by raising a single debit to an account, such as dividend, interest or salary payment.
ECS (Debit) is used for raising debits to a number of accounts of consumers/ account holders for crediting a particular institution.
Working of ECS Debit System
Q.3. What is ECS (Debit) scheme?
Ans It is a scheme under which an account holder with a bank can authorise an ECS user to recover an amount at a prescribed frequency by raising a debit in his account. The ECS user has to collect an authorisation which is called ECS mandate for raising such debits. These mandates have to be endorsed by the bank branch maintaining the account.
Q.4. How does the scheme work?
Ans Any ECS user desirous of participating in the scheme has to register with an approved clearing house. The list of approved clearing houses is available at RBI web-site www.rbi.org.in. He should also collect the mandate forms from the participating destination account holders, with bank's acknowledgement. A copy of the mandate should be available with the drawee bank.
The ECS user has to submit the data in specified form through the sponsor bank to the clearing house. The clearing house would pass on the debit to the destination account holder through the clearing system and credit the sponsor bank's account for onward crediting the ECS user. All the unprocessed debits have to be returned to the sponsor bank within the time frame specified. Banks will treat the electronic instructions received through the clearing system on par with the physical cheques.
Q.5. What are the advantages to the ultimate beneficiary?
· Trouble free- Eliminates the need to go to the collection centres/banks by the customers and no need to stand in long ‘Q’s for payment
· Peace of mind- Customers also need not track down payments by last dates.
· The debits would be monitored by the ECS users.
Q.6. How does the scheme benefit the ECS user-like corporate bodies/ institutions?
Ans
· The ECS user saves on administrative machinery for collecting the cheques, monitoring their realisation and reconciliation
· Better cash management.
· Avoids chances of frauds due to fraudulent access to the paper instruments and encashment.
· realise the payments on a single date instead of fractured receipt of payments.
Q.7. What are the advantages to the banks?
Ans
· Banks handling ECS get freed of paper handling.
· Paper handling also creates lot of pressure on banks as they have to encode the instruments, present them in clearing, monitor their return and follow up with the concerned bank and customers.
· In ECS banks simply get the mandate particulars relating to their customers. All they need to do is to match the account particulars like name, a/c number and debit the accounts.
· Wherever the details do not match, they have to return it back, as per the procedure.
Q.8. Can the mandate given once be withdrawn or stopped?
Ans Yes. The mandate given is on par with a cheque issued by a customer. The only stipulation under the scheme is that the customer has to give prior notice to the ECS user, to ensure that they do not include the debits.
Q.9. Can the customer stipulate any maximum debit, purpose or validity period for the mandate?
Ans Yes. It is left to the choice of the individual customer and the ECS user to finalise these aspects. The mandate can contain a maximum ceiling; it can also specify the purpose as also a validity period.
Q.10. What is the current coverage of the scheme?
Ans At present the scheme is in operation at 15 RBI centres (ie centres where RBI manages the Clearing House operations) and at other centres where Public Sector Banks manage the clearing operations. The list of centres is available at the RBI web-site under the procedural guidelines.
Q.11. Processing charges on individual transactions
Ans RBI has deregulated the service charges that could be levied by sponsor banks. RBI has waived the processing charges levied by RBI and other banks managing the clearing houses till March 2009.
Q.12. Which are the institutions eligible to participate in the ECS Debit scheme?
Ans Utility service providers such as telephone companies, electricity supplying companies, electricity boards, credit card collections, collection of loan installments by banks and financial institutions, and investment schemes of Mutual funds, etc.
Source: http://rbidocs.rbi.org.in/rdocs/ECS/DOCs/19631.doc
Wednesday, December 10, 2008
Debit Cards-Safety Tips
This article offers few tips to keep your Debit Card safe.
One more component of EPayments are Debit Cards. Debit Cards are a very recent phenomena in India, and at present the % of Debit Cards habit, in Shopping establishments is very less.
Majority of the Banks offer a Debit cum ATM Card, instead of two Stand-alone cards.
The end result is the same, i.e Debiting the Card Holder’s Account, with the amount transacted. But, when the Debit cum ATM Card, is lost/misplaced, than the wisdom of two separate cards dawns!
Hence, it is a better idea, to persuade your Banker for Stand-alone Debit Card and ATM Card.
What is the basic difference between a Credit Card and a Debit Card? A credit card enables you to use the bank’s money to pay your bills. This sum has to be repaid within a specified time. Alternatively, you are allowed credit on payment of interest on the unpaid balance.
A debit card allows you to pay for your purchases from your bank account. With a swipe of the debit card through the electronic terminal, at say a departmental store, the amount of your bill is deducted immediately from your bank account. It is as good as paperless or electronic cash.
Debit Cards have witnessed exponential growth. According to a latest release by the RBI here are some facts of Debit Cards in India.
• 2 Million debit card customers are added every month
• The Debit Card user base in India now stands at 85 Million
• Debit Card user base has doubled in 2 years
• State bank of India has issued the largest number of debit cards - 30 million
• ICICI bank has issued 20 million debit cards
• Debit Cards double up as ATM cards and are mostly used for the withdrawing money
• The average spend at merchant establishments using debit cards is mere Rs 1,000
• A very small percentage of people actually use debit cards for retail shopping in India. Most Debit Card purchases are for - Petrol, Restaurant and Clothes.
• People still prefer to use Credit Cards for purchase of Air Tickets, Jewellery or White Goods
Do's and Don't s
All of us carry some form of plastic money with us, whether as a debit card, ATM card, smart card or credit card. Here are Ten Do's and eight Don'ts that will help you safeguard your plastic money.
Do--
1. Do--Sign on the card immediately on receipt. Unsigned cards are invitations for misuse.
2. Do--Keep the card in a prominent place in wallet / vault. This will help you to notice if any of your cards is missing. Many times cardholders realise very late that their card is missing.
3. Do--Ensure that the card you got back after the transaction is yours before putting in the wallet. Many times, Card Member's cards get exchanged at crowded merchant location like service station /Super market.
4. Do--Keep all card number, expiry date and contact number of the issuing bank at a secure place for ready reference. It has to be kept in a different place than where you normally keep cards.
5. Do--Inform issuing bank immediately if you lose the card or it is stolen from you. Always follow up with a written intimation.
6. Do--Memorise PIN and destroy the mailer PIN is an important validation of your identity. The use of PIN along with card is considered as your authentic signature. Keep it secret always.
7. Do--Inform change of address to card issuing bank immediately. Inform postal authorities also about the forwarding address.
8. Do--Keep all charge slips till you get statement from bank Check all charge slips against the statement. If there is a mismatch immediately contact the issuing bank.
9. Do--When going for shopping, carry only one Debit Card.
10. Do--Store the Issuing Bank’s customer service email id in your Blackberry.
Do not --
01. Do not -- Throw away the expired card. Always cut the card before disposing. This will ensure that the expired card cannot be used for counterfeit / skimming.
02. Do not -- Reveal your card number / expiry date /personal details to outsiders. Do not reveal personal details and card numbers in response to any suspicious scheme/ caller. This could be a social engineering attack.
03. Do not -- Hand over your card to any one including your friends / family members. Card is meant for your use only. Even when you are requested to hand it over to authorised bank representative, always ensure to cut the card into two before handing over.
04. Do not -- Allow the card to be taken out of your sight in a merchant location. Insist that all verification to be done in your presence.
05. Do not -- Attempt to use your Debit Care for internet transaction or Provide your card number details on the internet.
06. Do not -- Keep the PIN number written anywhere. Do not reveal your PIN to any one. Do not keep the PIN written anywhere especially in the wallet along with the card.
07. Do not -- Expose the card to excessive heat /magnetic field. In a simple case, where the card came into contact with the magnetic lock on the ladies bag, the data on the magnetic stripe of the card got erased.
08. Do not -- Dispose statement /charge slips /bank mail before destroying. Many identity theft cases had taken place through mail sniffing / garbage pilfering techniques. Please shred the statement /charge slips /bank mail before disposing.
09. Do not -- keep all your cards in one location.
10. Do not -- Ever store your PIN Numbers in your mobile.
Safety Tips
• DO sign your card the moment you receive it.
• DO always sign the card with a ballpoint pen.
• The moment you get your debit card, DO note down the card number and the emergency number. Then, should your card ever get misplaced or stolen, having these numbers ready will enable you to report the loss immediately.
• DO keep these two numbers in a place other than the wallet that holds your card. Then, if your pocket gets picked, you won't have to hunt for the emergency number frantically.
• For reasons of security, DO keep with you a photocopy of the front and reverse of your debit card.
• If you are going abroad, DO make a note of the card company's (Visa/MasterCard/ Amex) emergency phone number in the country you are going to.
• DO report a lost or stolen card immediately.
• DO try and memorize the PIN instead of noting it down somewhere.
• DON'T lend your card to anyone. DO be well aware of who has access to your cards. If a member of your family (spouse, child, parent) borrows your card, with or without your knowledge, you are responsible for the transactions they make with it.
• NEVER reveal the card number unnecessarily.
• DON’T give your debit card number over the phone or the Internet. The ICICI Bank Debit Card cannot be used for transactions through the Internet, phone or e-mail.
• At a shop or restaurant, NEVER leave your card unattended.
• DO make sure that the card returned to you at a merchant establishment is your own.
• When using your card at a merchant establishment, only your signature is needed. NEVER reveal any other personal detail about yourself, be it your address or phone number.
• NEVER sign an incomplete sales slip. DO make sure that totalling has been done.
• DO always keep a copy of the bill and the payment slip for a transaction and the ATM receipts for cash withdrawals.
• DO always check your billing statement. DO check the purchases and DO compare them with the bills and receipts in your possession.
• If you are returning or handing over your card to the bank, DO cut it into two and DO make sure you give it to a bank official only. This will ensure that the card can never be used again.
Again, at the cost of repeation, persuade your Banker to offer Stand-alone Debit and ATM Cards.
One more component of EPayments are Debit Cards. Debit Cards are a very recent phenomena in India, and at present the % of Debit Cards habit, in Shopping establishments is very less.
Majority of the Banks offer a Debit cum ATM Card, instead of two Stand-alone cards.
The end result is the same, i.e Debiting the Card Holder’s Account, with the amount transacted. But, when the Debit cum ATM Card, is lost/misplaced, than the wisdom of two separate cards dawns!
Hence, it is a better idea, to persuade your Banker for Stand-alone Debit Card and ATM Card.
What is the basic difference between a Credit Card and a Debit Card? A credit card enables you to use the bank’s money to pay your bills. This sum has to be repaid within a specified time. Alternatively, you are allowed credit on payment of interest on the unpaid balance.
A debit card allows you to pay for your purchases from your bank account. With a swipe of the debit card through the electronic terminal, at say a departmental store, the amount of your bill is deducted immediately from your bank account. It is as good as paperless or electronic cash.
Debit Cards have witnessed exponential growth. According to a latest release by the RBI here are some facts of Debit Cards in India.
• 2 Million debit card customers are added every month
• The Debit Card user base in India now stands at 85 Million
• Debit Card user base has doubled in 2 years
• State bank of India has issued the largest number of debit cards - 30 million
• ICICI bank has issued 20 million debit cards
• Debit Cards double up as ATM cards and are mostly used for the withdrawing money
• The average spend at merchant establishments using debit cards is mere Rs 1,000
• A very small percentage of people actually use debit cards for retail shopping in India. Most Debit Card purchases are for - Petrol, Restaurant and Clothes.
• People still prefer to use Credit Cards for purchase of Air Tickets, Jewellery or White Goods
Do's and Don't s
All of us carry some form of plastic money with us, whether as a debit card, ATM card, smart card or credit card. Here are Ten Do's and eight Don'ts that will help you safeguard your plastic money.
Do--
1. Do--Sign on the card immediately on receipt. Unsigned cards are invitations for misuse.
2. Do--Keep the card in a prominent place in wallet / vault. This will help you to notice if any of your cards is missing. Many times cardholders realise very late that their card is missing.
3. Do--Ensure that the card you got back after the transaction is yours before putting in the wallet. Many times, Card Member's cards get exchanged at crowded merchant location like service station /Super market.
4. Do--Keep all card number, expiry date and contact number of the issuing bank at a secure place for ready reference. It has to be kept in a different place than where you normally keep cards.
5. Do--Inform issuing bank immediately if you lose the card or it is stolen from you. Always follow up with a written intimation.
6. Do--Memorise PIN and destroy the mailer PIN is an important validation of your identity. The use of PIN along with card is considered as your authentic signature. Keep it secret always.
7. Do--Inform change of address to card issuing bank immediately. Inform postal authorities also about the forwarding address.
8. Do--Keep all charge slips till you get statement from bank Check all charge slips against the statement. If there is a mismatch immediately contact the issuing bank.
9. Do--When going for shopping, carry only one Debit Card.
10. Do--Store the Issuing Bank’s customer service email id in your Blackberry.
Do not --
01. Do not -- Throw away the expired card. Always cut the card before disposing. This will ensure that the expired card cannot be used for counterfeit / skimming.
02. Do not -- Reveal your card number / expiry date /personal details to outsiders. Do not reveal personal details and card numbers in response to any suspicious scheme/ caller. This could be a social engineering attack.
03. Do not -- Hand over your card to any one including your friends / family members. Card is meant for your use only. Even when you are requested to hand it over to authorised bank representative, always ensure to cut the card into two before handing over.
04. Do not -- Allow the card to be taken out of your sight in a merchant location. Insist that all verification to be done in your presence.
05. Do not -- Attempt to use your Debit Care for internet transaction or Provide your card number details on the internet.
06. Do not -- Keep the PIN number written anywhere. Do not reveal your PIN to any one. Do not keep the PIN written anywhere especially in the wallet along with the card.
07. Do not -- Expose the card to excessive heat /magnetic field. In a simple case, where the card came into contact with the magnetic lock on the ladies bag, the data on the magnetic stripe of the card got erased.
08. Do not -- Dispose statement /charge slips /bank mail before destroying. Many identity theft cases had taken place through mail sniffing / garbage pilfering techniques. Please shred the statement /charge slips /bank mail before disposing.
09. Do not -- keep all your cards in one location.
10. Do not -- Ever store your PIN Numbers in your mobile.
Safety Tips
• DO sign your card the moment you receive it.
• DO always sign the card with a ballpoint pen.
• The moment you get your debit card, DO note down the card number and the emergency number. Then, should your card ever get misplaced or stolen, having these numbers ready will enable you to report the loss immediately.
• DO keep these two numbers in a place other than the wallet that holds your card. Then, if your pocket gets picked, you won't have to hunt for the emergency number frantically.
• For reasons of security, DO keep with you a photocopy of the front and reverse of your debit card.
• If you are going abroad, DO make a note of the card company's (Visa/MasterCard/ Amex) emergency phone number in the country you are going to.
• DO report a lost or stolen card immediately.
• DO try and memorize the PIN instead of noting it down somewhere.
• DON'T lend your card to anyone. DO be well aware of who has access to your cards. If a member of your family (spouse, child, parent) borrows your card, with or without your knowledge, you are responsible for the transactions they make with it.
• NEVER reveal the card number unnecessarily.
• DON’T give your debit card number over the phone or the Internet. The ICICI Bank Debit Card cannot be used for transactions through the Internet, phone or e-mail.
• At a shop or restaurant, NEVER leave your card unattended.
• DO make sure that the card returned to you at a merchant establishment is your own.
• When using your card at a merchant establishment, only your signature is needed. NEVER reveal any other personal detail about yourself, be it your address or phone number.
• NEVER sign an incomplete sales slip. DO make sure that totalling has been done.
• DO always keep a copy of the bill and the payment slip for a transaction and the ATM receipts for cash withdrawals.
• DO always check your billing statement. DO check the purchases and DO compare them with the bills and receipts in your possession.
• If you are returning or handing over your card to the bank, DO cut it into two and DO make sure you give it to a bank official only. This will ensure that the card can never be used again.
Again, at the cost of repeation, persuade your Banker to offer Stand-alone Debit and ATM Cards.
Tuesday, December 9, 2008
Credit Card-Some Safety Tips
One of the important components of EPayments world-wide is Credit Card. The word credit comes from Latin, meaning "trust"
Credit is a method of selling goods or services without the buyer having cash in hand. A credit card is only an automatic way of offering credit to a consumer. Today, every credit card carries an identifying number that speeds shopping transactions. Imagine what a credit purchase would be like without it, the sales person would have to record your identity, billing address, and terms of repayment.
Concept of credit card:
Progress in civilisation in its turn has brought out radical changes in the manner of trading. The need for something intrinsically useful and easily applicable in everyday dealing is clearly felt. Cash in the form of currency notes and coins makes up just one form of the payment system. Development in banking while also giving inputs to the further development of cash brought about a second phase in payment namely paper instructions such as cheques and credit transfers. The requirement for greater flexibility and convenience has led to electronic payments, and this is where plastic cards have proved their worth. It allows the card issuers to limit the sum of money the card-holders wish to spend. The spending of card-holders who have defaulted on payments or who are over their credit limit can be restricted until the balances are cleared.
The credit card market in India, which started out in 1981, is on the verge of an unprecedented boom. Credit Card usage is a recently new phenomena in India, and it is only in the last decade, that the Industry has seen a explosive growth. This can be attributed mainly to the growth of India as a IT Superpower.
Credit cards are one of the great conveniences of modern life. They eliminate the need to carry around large amounts of cash for large purchases or emergencies. All of this power creates new risks to your finances. Fortunately, it’s easy to protect yourself with just a few simple steps.
The risks from Credit Cards can be divided into two parts
01) Online Usage at various Internet Portals
02) Offline usage at shops/petrol stations/hotels etc.
Apart from the above, the major risk is through lost /misplaced cards.
It can therefore be said that the biggest risk for credit card frauds online is not from online security problems but from the possibility of the credit card data being offline in a hotel or a shop where the user parts with the card for sometime.
Today I am highlighting few basic tips to keep your Credit Card safe and to prevent its misuse, when the information/credits card falls into wrong hands.
Ultimately keeping you credit card safe is you responsibility. Indeed, in a worst case scenario, if it can be proven you may have been negligent in keeping your credit card safe, you may find yourself liable for the cost of all transactions made fraudulent on your account should you lose the card. To help you avoid this, here basic credit card safety tips:
01) The three Important things necessary to execute a valid Credit Card Transaction on the Internet, are 01) Card Number 02) Expiry Date and 03) CVV Number. On receiving your new Credit Card, affix your signature; Photocopy it, both the sides on a single page. Delete the CVV number. This prevents misuse, when the credit cards are lost, and the thief will not be able to use on Internet Portals, as the CVV number is not there.
02) It is better to have two different cards, one for Internet Transactions and the other for Physical transactions. The CVV Number on the Physical Transaction Card can be deleted, as while physical shopping, the CVV Number, will not be essential It is prudent to keep the two cards separate, as it will be a rare occasion, when both the cards will be required simultaneously.
03) Never have more cards than you need. While it is always advisable that you have more than 1 credit card, in case it gets lost, you should never have more credit cards than you actually need to use. The principal reason why this is the case is because it becomes harder to keep a track of which cards you have and where you have kept them with the more cards you have.
04) Always keep a photocopy of your cards. How many times have you been asked what you card number is only to find yourself looking for your card to get the number? Now, what happens if you have a card stolen and no credit card statement to-hand? You have a problem! For this reason, it is always best practice to take photocopies of you credit cards to so that always know where to find the number should anything unfortunate happen to your card. Keep a copy of your credit card number and the issuer’s phone number somewhere safe – i.e. not in your wallet. This is in case your credit card is lost or stolen you can report it quickly. This is especially important when you go on vacation as you won’t have easy access to a copy of your billing statement. Also, make sure that strangers will not have access to this information – i.e. keep it locked up.
05) Always keep your receipts separate. Among the most important of the basic credit card safety tips you’ll receive is never to keep your credit cards and credit card purchase receipts in the same place – because likely as not if you have lost your card, or if it is stolen, then you’ll have lost or stolen the receipts as well. Now there is no way for you to vouch which transactions were yours and which where not – or, there is no way to tell which was the last genuine transaction you made.
Moreover, never keep a record of your PIN with your card, this is only asking for trouble!
06) Never give your account number to someone you don’t know. If you are ever asked to give your credit card details to someone you don’t know, or who as initiated a discussion with you (rather than the other way round) over the phone or via email, you should always refuse. Worst come to the worst, phone the card issuer and ask them if it is okay for you to divulge the information or phone the enquirer back. If the enquirer seems reluctant to accept this, you have to ask yourself why!
07) Never leave your account details open to public viewing. It may sound rather basic to say you should never let ‘aam janta’ see your credit card account details, but ask yourself this question: “How often have you received a publication subscription form in postcard format?” Now, suppose you complete this with your credit card details filled in. Suddenly half the world has access your credit card number, expiry date and signature!
08) When you use your card in public try to keep the number hidden. Thieves will try to get your credit card number any way they can. That includes looking over your shoulder and memorizing it while you are in line at the store. An easy way to keep the number hidden is to keep your finger over the numbers on one side and keep the other side close to your body. A better way is to keep the card in your wallet as long as possible and put it right back in your wallet as soon as you can.
09) If your credit card is lost or stolen, report it to the issuer immediately. Yes, your credit card agreement probably says you are only liable for Rs.1,000/- of any charges the thief makes, but this is usually contingent upon you reporting the loss in a timely manner. Besides, you cannot use your credit card in physical stores unless you have the actual card and your card issuer will not send you a new one unless you report the loss.
10) Monitor your statement closely. Look for any charges that you did not make. If you are sure you did not make them, report them to your credit card issuer. This is similar to the recommendation to monitor your credit report once or twice per year, but you can and should check your credit card statement every month. Shred your statements and receipts when you dispose of them.
It may sound like a lot of work, but it boils down to keeping your credit card number out of the hands of people who have no legitimate need to have it. Of course not. Treat your credit card number the same sort of protection. With these few simple steps, you can protect yourself and your credit from thieves.
Although the above may sound like 10 basic credit card safety tips you already know, you would be surprised to see how many people fail to follow one or all of them!
Tuesday, December 2, 2008
Frequently Asked Questions (FAQ) on NEFT System National Electronic Funds Transfer System
Q.1. What is NEFT System?
Ans National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch.
Q. 2. Are all bank branches in the system part of the funds transfer network?
Ans No. As on November 28, 2008, 51585 branches of 92 banks are participating. Steps are being taken to widen the coverage both in terms of banks and branches.
Q.3. Whether the system is centre specific or has any geographical restriction?
Ans No, there is no restriction of centres or of any geographical area inside the country. The system uses the concept of centralised accounting system and the bank's account, that are sending or receiving the funds transfer instructions, gets operated at one centre, viz, Mumbai only. The individual branches participating in NEFT could be located anywhere across the country, as detailed in the list provided on our website.
Q.4. What is the funds availability schedule for the beneficiary?
Ans The beneficiary gets the credit on the same Day or the next Day depending on the time of settlement.
Q.5. How does the NEFT system operate?
Step-1: The remitter fills in the NEFT Application form giving the particulars of the beneficiary (bank-branch, beneficiary's name, account type and account number) and authorises the branch to remit the specified amount to the beneficiary by raising a debit to the remitter's account. (This can also be done by using net banking services offered by some of the banks.)
Step-2: The remitting branch prepares a Structured Financial Messaging Solution (SFMS) message and sends it to its Service Centre for NEFT.
Step-3: The Service Centre forwards the same to the local RBI (National Clearing Cell, Mumbai) to be included for the next available settlement. Presently, NEFT is settled in six batches at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays
Step-4: The RBI at the clearing centre sorts the transactions bank-wise and prepares accounting entries of net debit or credit for passing on to the banks participating in the system. Thereafter, bank-wise remittance messages are transmitted to banks.
Step-5: The receiving banks process the remittance messages received from RBI and effect the credit to the beneficiaries' accounts.
Q.6. How is this NEFT System an improvement over the existing RBI-EFT System?
Ans The RBI-EFT system is confined to the 15 centres where RBI is providing the facility, where as there is no such restriction in NEFT as it is based on the centralised concept. The detailed list of branches of various banks participating in NEFT system is available on our website. The system also uses the state-of-the-art technology for the communication, security etc, and thereby offers better customer service.
Q.7. How is it different from RTGS and EFT?
Ans: NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and works on Net settlement, unlike RTGS that works on gross settlement and EFT which is restricted to the fifteen centers only where RBI offices are located.
Q.8. Any limit on the amount of individual transaction?
Ans There is no value limit for individual transactions.
Q.9. What about Processing Charges/Service Charges
Ans While RBI has waived the processing charges till March 31, 2009; levy of service charges by banks is left to the discretion of the respective banks. The bank-wise details of charges levied are available on the RBI website.
Q.10. How will I know which are the branches participating in the NEFT?
Ans RBI publishes the list of bank branches participating in the NEFT on its website i.e. https://www.rbi.org.in/scripts/neft.aspx
Q.11. What is IFS Code (IFSC)? How it is different from MICR code?
Ans Indian Financial System Code (IFSC) is an alphanumeric code designed to uniquely identify the bank-branches in India. This is 11-digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch. The MICR code has 9 digits to identify the bank-branch.
Q.12. How I will know, what is the IFS Code of my bank-branch?
Ans RBI had since advised all the banks to print IFSC on cheques leaves issued to their customers. You may also contact your bank-branch and get the IFS Code of that branch.
Q.13. Whom I can contact, in case of non-credit or delay in credit to the beneficiary account?
Ans Contact your bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted on nefthelpdeskncc@rbi.org.in or write to -
The General Manager,
Reserve Bank of India,
National Clearing Centre
First Floor, Free Press House
Nariman Point
Mumbai – 400 027
Q.14. Is it necessary to have a bank account to originate the NEFT transaction?
Ans Yes, NEFT is an account to account funds transfer system.
Q.15. Is it necessary that the beneficiary should have an account at the destination bank-branch?
Ans Yes, NEFT is an account to account funds transfer system.
Q.16. Can I receive foreign remittances through NEFT?
Ans This system can be used only for remitting Indian Rupee among the participating banks within the country.
Q.17. Can I send remittances abroad using the NEFT?
Ans No
Q.18. Can I originate a transaction to receive funds from another account?
Ans No
Q.19. Can I send/receive funds from/to NRI accounts?
Ans: Yes, subject to applicability of provisions of FEMA
Q.20. Would the customer receive an acknowledgement of money credited to the beneficiary?
Ans: No, however electronic acknowledgement is generated for the customer that his money is received by the beneficiary at the sender branch.
Q.21. Would the remitting customer get back the money if it is not credited to the beneficiary’s account?
Ans: Yes, the remitting customer gets back the money if it is not credited to the beneficiary account.
Q.22. Till what time NEFT service window is available?
Ans: There are six settlements at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays.
Q.23. What is the essential information that the remitting customer would have to furnish for the remittance to be effected?
Ans: The essential information that the remitting customer has to furnish is:
• Beneficiary details such as beneficiary name and account number
• Name and IFSC of the beneficiary bank branch.
Q.24. Is there any way a remitting customer can track the remittance transaction?
Ans: The remitting customer can track the remitting transaction through the remitting branch only, as the remitting branch is informed about the status of the remitted transactions.
Frequently Asked Questions (FAQ) on NEFT System
Courtesy - RBI
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