Well again Indian ePayments are closed on April 18, 2014

RTGS and NEFT, the two predominantly ePayments systems in India are closed on 18/04/2014. The holiday is on account of ‘Good Friday’.

On 18/04/2014, very Banks in very few states are open. Gujarat, Rajasthan and Chhattisgarh are amongst the handful of states which are open on 18/04/2014.

The next day i.e. Saturday April 19, 2014 is a half working day for RTGS and NEFT Payment systems.

ePayment transactions already in Queue on the banks online banking channels would move first on 19/04/2014. As and when the physical bank branches start to open, transactions from the bank branch channels would also join the ePayment channels.

 

Financial Benchmarks – Governance Framework for Benchmark Submitters

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On  February 7, 2014  ‘ Committee on Financial Benchmarks (Chairman: Shri P. Vijaya Bhaskar, Executive Director)’,  submitted its Report  recommending several measures/principles to be adopted in respect of major Indian Rupee interest rate and Foreign exchange benchmarks to strengthen their quality, setting methodology and the governance framework.

Reserve Bank of India has accepted the recommendations of the Committee and as per the announcements made in the First Bi-monthly Monetary Policy Statement 2014-15 on April 1, 2014; the Bank has set in motion the process to implement the recommendations of the Committee.

Reserve Bank of India has held consultations with the Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Foreign Exchange Dealers’ Association of India (FEDAI), to implement the recommendations of the Committee.

Reserve Bank has advised the FIMMDA and FEDAI to act as the Administrator of the Indian Rupee interest rate and Foreign exchange benchmarks respectively and to take necessary steps to implement the recommendations of the Committee.

As there are chances of conflicts of interest in the benchmark setting process arising out of the current governance structure of the FIMMDA and FEDAI, Reserve Bank of India has suggested setting up an independent body, either separately or jointly, by the FIMMDA and FEDAI for administration of the benchmarks.

In case of benchmarks determined based on polled submissions, the FIMMDA and FEDAI may select the Benchmark Submitters on the basis of their standing, market-share in the benchmark/instrument linked to the benchmark and representative character and may put in place a Code of Conduct specifying various provisions including hierarchy of data inputs for submissions as recommended by the Committee.

The Benchmark Submitters thus selected by the respective Administrator, have to necessarily participate in the polling process and comply with the various provisions specified in the Code of Conduct.

Reserve Bank has advised the Benchmark Submitters to implement the following measures, to strengthen the governance framework for benchmark submission:

  • The Benchmark Submitters may put in place an internal Board approved policy on governance of the benchmark submission process.
  • They may put in place an effective conflicts of interest policy which facilitates identification of potential and actual conflicts of interest with respect to benchmark submissions.
  • They may establish a maker-checker system to ensure integrity of the submissions.
  • They may establish appropriate internal controls to secure compliance with the benchmark submission procedures.
  • The transactions which are taken as the basis for submission may be recorded so as to verify that they represent bonafide arm’s length commercial transactions, and are not undertaken solely for the purpose of benchmark submission.
  • They may establish an effective whistleblowing policy to facilitate early detection of any potential misconduct or irregularities in the benchmark data submissions.
  • They may retain all records relating to benchmark submissions and findings of internal and external audits and remedial actions taken thereof for a minimum period of eight years.
  • They may subject the benchmark submissions to periodic internal audit, and where appropriate, to external audit.
  • They may undertake submissions by way robust contribution devices which leave an audit trail to eliminate possibilities of errors.
  • They may conduct a reality self-check of their existing governance framework.

Insurance Coverage for Companies Fixed Deposits – New Business opportunity

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Section 73(2) (d) of the new Indian Companies Act, 2013 provides a new business opportunity for Indian insurance companies.

It is too early as to guess which Insurance company in India will take the lead in offering such a product.

No, not your full company fixed deposit is insured. The maximum amount of the fixed deposit which can be insured is Rs20,000/-. In case the deposit exceeds Rs20,000/-, the depositor will be entitled only for Rs20,000/- and may have to forego the balance deposit amount.

It may be noted that the Companies Act, 2013 – second of tranche of sections was notified March 26, 2014 and is operational from April 1, 2014.

In the near future, the Corporate Affairs Ministry will be initiated against companies that fail to comply with the new ruling.

According to the specific norms, every company under sub-section (2) of section 73 and every other eligible company inviting deposits shall enter into a contract providing for deposit insurance at least thirty days before the issue of circular or advertisement, as the case may be, as specified in clause (d) of sub-section (2) of section 73 of the Act.

It is also clarified that the insurance premium for the insurance of such deposits has to be borne by the company itself and shall not be recovered from the depositors by deducting the same from the principal amount or interest payable thereon.

As there is no Life Coverage, the Fixed Deposit Insurance will fall under Non-Life insurance and will have to be rolled out by Non-Life Insurance companies only. At present IRDA recognizes 28 Non-Life Insurance Companies.

 

 

 

Not to worry – Indian ePayments remain open on April 17, 2014

april17_Fotor            The fifth phase of Indian Elections to the Lok Sabha will take place on April 17, 2014. The voting is spread across 12 States with candidates trying their luck in 121 Constituencies.

However, as Mumbai goes to polls on April 24, 2014, RTGS and NEFT will be open. This is good news as on April 18, 2014, RTGS and NEFT will be closed.

Go Live – India Post ATMs’ Visit them now

India-post-ATM_FotorFinance Minister P Chidambaram inaugurated the first ATM of India Post network in Chennai on 27/02/2014 @ Head Post Office in Thyagaraya Nagar

This was followed by inauguration of two more ATMs in New Delhi on 28/02/2014 by Communications and IT Minister Kapil Sibal.  New Delhi ITO Post Office and New Delhi Kashmere Gate PO were chosen for this coveted honor.

The target is to deploy 2,800+ ATMs’ by March 2015.  AS of now, 64 lakh account holders spread over sixty-two post offices in Delhi, Uttar Pradesh, Tamil Nadu, Karnataka, Maharashtra, Assam and Andhra Pradesh, can access the India Post ATMs.

Shri Kapil Sibal said “Some people only talk about common man but we are among those who work for common man without making noise. This ATM is for ‘Aam Aadmi’ at a common man’s post officer. This is a gift for Aam Aadmi and I congratulate Aam Aadmi,” he said.

“The ATM will serve only Post Office customers for first 6-8 months. After that we will link it with ATMs of other banks. Thereafter customers of any bank will be able to withdraw money and our customer will be able to use other ATM,” Delhi Circle Chief Post Master General Vasumitra said.

The ATMs work on an outsourced model. The cash management, forecasting and loading will be done by the financial services system integrator through its ATM partner. However, physical cash will be supplied by post offices.

Under the India Post 2012 Project, ATMs shall be sourced on a lease model under the scope of the FSI (Financial Services System Integrator). ATM outsourcing includes the machines, ATM managed services, cash management and some part of site preparation.

 

Chai Card – India’s exclusive prepaid card for Tea Lovers

Isn’t cool to sip delicious tea at ChaiPoint outlets spread across Bangalore and Delhi by paying through exclusive ChaiPoint Prepaid Cards.

The ChaiPoint Card project was managed and executed by N Vani.

As of now this prepaid card can be used only at participating Chai Point outlets in India. Partial payment of the bill is not allowed. Of course, the balance cannot be redeemed or refunded with cash.

At present Chai Point stalls are spread over Bangalore and have just set foot in New Delhi.

In case you wish to gift a ChaiPoint Prepaid card to a Chai lover or to yourself, click here now.

At present, the sales of ChaiPoint prepaid cards are yet to pick up. The bill amount is deducted through a BarCode reader at the cashier’s desk.

 

14/04/2014 – Indian ePayments systems NEFT and RTGS are closed

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After a long time, RTGS/NEFT ePayment Systems have two consecutive holidays i.e 13/04/2014(Sunday) and 14/04/2014(Dr.Babasaheb Ambedkar Jayanti)

Reserve Bank of India has declared that NEFT & RTGS are closed on 14th April, 2014 on account of “Dr. Babasaheb Ambedkar Jayanti” Click here for more details

One of Dr.Ambedkar’s famous Quotes is “Life should be great rather than long”.

Nagpur – The Orange City has played a major role in Dr.Ambedakar’s life. It was at Holy Deeksha Bhoomim where Bhrat Ratna Dr. B. R. Ambedkar, embraced Buddhism.