Centre calls urgent meet of DMs to address hitches in cash transfer scheme


Right now, District Magistrates of the 121 targeted districts for Direct Benefits Transfer (DBT) subsidy programme, must be rushing to Delhi. Today, i.e28/04/2013, an urgent meeting was called by Central Government officials to discuss and streamline the process of UPA’s flagship program i.e Direct Benefits Transfer (DBT) subsidy programme.

Shri.Manmohan Singh, Prime Minister was candid enough to admit that the scheme has run into unexpected glitches, and the same have to be addressed very fast.

The meeting on 29th April, 2013 will be addressed by Finance Minister P Chidambaram, Rural Development Minister Jairam Ramesh, Petroleum Minister Veerappa Moily and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

At the meeting, feedback would be sought from the DMs particularly of 43 districts where the scheme is operational since January 1. DMs of other 78 districts, where the scheme is to be rolled out on July 1, are expected to report the progress made in groundwork done for the launch.

The prime agenda of the meeting is to find ways and means to ensure “glitch-free” implementation of the programme which is expected to cover one-fifth of the country.

The meeting will take place against the backdrop of concerns expressed by Prime Minister Manmohan Singh over the “unsatisfactory nature of tracking and monitoring systems” in various departments.

The prime minister, while reviewing the implementation of the scheme at a high- level meeting here earlier this month, had observed, “We have also run into difficulties that we had not anticipated when we began the programme. We must, therefore, renew our efforts for successful implementation of the programme.”


MICR Code Line Structure – the remaining 3



This post is in continuation of my previous post dt.20/07/2010

The following 3 fields complete the MICR code on the physical cheque. The MICR Code structure is the same for CTS 2010 as well as non-CTS 2010 cheque leaves.

iii) Account number field, consisting of six digits followed by a delimiter, is an optional field. In the case of Government Cheques issued by RBI alone, the account number is of seven digits. The Government Account number is 10 digits in length – 7 digits occurring in the Account number field and three in the transaction code field.

In an automated processing of cheques, the banks IT applications usually tag the cheque to the correct account based on the 6 digit short account number and the printed cheque number.

(iv) Transaction code field comprising of two digits in all instruments except Government cheques drawn on RBI which have a 3 digit transaction code. Control documents – batch and block tickets – have a three digit representation in the transaction code field.


(v) The last field represents the amount field and consists of 13 digits bounded on both sides by a delimiter. The amount is encoded in paise without the decimal point.

The first 4 fields are printed at the time of the cheque printing and only the fifth field i.e Amount field is inputted later, as the amount is blank at the time of printing the cheque.

Under CTS scenario, the amount field in the MICR Code line structure is not relevant at all

Federal Bank – India’s first private sector bank to launch Rupay Debit Card

In April 2013, Federal Bank unveiled its Rupay Brand Debit Card. This is the first launch by a private sector bank in India. Shri N. R. Narayana Murthy Chairman Emeritus of Infosys Limited did the honors at a function in Kochi.

The main advantage for Federal Bank will be the early mover strategy with respect to RBI’s guidelines dt 28/02/2013 on Securing Card Payment Transactions

The advisory requires banks to ensure that all new debit and credit cards are   issued only for domestic usage unless international use is specifically sought by the customer.

It has been noticed that majority of the fraudulent debit card transactions involving swiping them abroad. The main complaint of the card holder is that he/she was in India when the fraudulent transaction took place; hence, the liability is not accepted by the card holder. With the debit card being restricted only for domestic usage, this will eliminate fraudulent transactions being executed on his/her card from outside India.

Hence, with Rupay in place, Federal Bank can offer to its new customers a pure domestic usage card immediately.

Federal Bank has a pre dominantly NRI retail account base, and this card would be beneficial to their family holders in India.

Once NPCI starts building up Rupay POS acceptance base, the participating banks would find it easier to encourage their account holders to switch to Rupay.