Category Archives: IMPS

Cash on Delivery – India’s Gift to Amazon


            The Cash on Delivery is not a payment option in any Amazon eCommerce site, except India.

            In December 2013, through a tie up with India Post, Amazon added the Cash On Delivery payment method to its Payment Options.

            The model has been so successful that Amazon is planning to roll-out similar services in China and Japan. Yes, you have read it right, Amazon will offer Cash on Delivery in China and Japan.

            As an introductory offer, there is no additional service fee for Cash of Delivery.             Cash on Delivery is not yet available for all pin codes. This is due to limitations of courier services we use. However, in near future the same would be available for  all Indian Pin codes

The present Terms & Conditions of Cash on Delivery as displayed on the companies’ website are as under:

  • The payment option of Cash on Delivery is available only for all orders Fulfilled by Amazon and for certain Seller fulfilled orders.
  • Cash on Delivery can be used as payment method only for orders less than   50,000. The order value limit could be lower depending on the pin code of your address.
  • Convenience fees of   39 will be charged on orders placed using Cash on Delivery. However, for a limited period, no convenience fees will be charged on any orders placed using Cash on Delivery.
  • Cash on Delivery cannot be used to pay for orders containing a mix of seller fulfilled items and items Fulfilled by Amazon.
  • The order amount has to be paid in full before receiving the package and signing the delivery sheet. The package can be opened only after the payment is made.

Indian GIRO Advisory Group – My views


This is with reference to the Report of the GIRO Advisory Group, wherein comments from general public were invited.

The following are my comments:

01)            Unique ID for every customer:

a)    Each Biller has a unique allotted to their customers under which various sub-accounts are operated. Each customer in the Bharat Bill Payment System domain should be allotted a unique number. The number has to be quoted by the customer while entering into a service contract with the biller. This unique number can be compared with the “Unique Customer Identification Code for banks’ customers in India”, as advocated by Reserve Bank of India vide Notification No: RBI/2011-12/594 DBOD. AML.BC. No.109/14.01.001/2011-12 dt.June 08, 2012.

b)   In the initial stages this number might be kept optional, as the rural customers might find it difficult to adhere to this rule. However, incentives should be offered to customers who opt for the Unique Number.

c)    All the Billers should populate this number while on boarding new customers and aim to migrate the existing customers in a reasonable time-frame.

d)   This unique number will be beneficial to students as the education timeline can be tracked over a period of time, thereby reducing educational certification fraud.

e)   This unique number can also be incorporated for scholarship payments i.e the same number can be utilized for receipts and payments into a customer’s account

f)    Over a period of time, it is expected that substantial sensitive data will be associated with the Unique Numbers. Hence, appropriate access levels to be in place.

02)            Loyalty Points:

a)    To motivate quick migration of customers to the BBPS graded loyalty points should be introduced.

b)   The loyalty points to start with registration of the customer and be added as and when payment is made.

c)      Loyalty points can be redeemed against Outstanding Bills.

3) Billers: The scope of the billers can be extended. Payment can be on a generated bill or on demand.

a) Monthly Railway season tickets

b) Monthly Bus passes

c) Metro season passes

d) Monthly Toll way passes

e) Religious institutions

f) Club / Association fees

g) Monthly Maintenance charges of housing societies

h) Cinema Tickets

i) Event Tickets

j) Life Insurance

K) Non-Life Insurance

l) Magazine subscriptions


4) Single BBPS website:

a) Multiple payment modes should be made available viz Debit Card, Credit Card, Net Banking, Semi-closed cards, IMPS.

b) Each payment is authorized through OTP (One-Time Password).

c) This OTP can be in addition to the authentication done by the Payment provider.

5) APPS :

a) Appropriate APPS be developed for BBPS payments.

b) The focus should be on fewer footfalls at Customer Service Points (CSPs)

6) Gas Companies – Special Category

a) A substantial amount of cash is collected by LPG Gas Agencies and deposited at the Banks. The cash collection will be double in case the subsidy amount is also included.

b) Concerted efforts should be made to migrate the cash payments to the LPG Gas agencies to the BBPS platform. This will substantially reduce the retail cash collections in our country.

c) Option: –  i) BBPS to have a eWallet. ii) LPG cylinder amount to be blocked on LPG refill booking. Iii) On delivery, the amount to be released and transferred to the LPG company.

07) Late Payments:

a) Late payments up to a certain number of days after the due-date should be accepted.

08) Settlement model:

a) Settlement Model B is preferable

09) BBPS Head Office:

a) It should be in Hyderabad,

b) IDBRT is already in Hyderabad

c) Centralization in Mumbai is avoided

10) Security:

a) Billers should have access to the billing information of only their services

b) They should not have access to the billing information of other service providers, as the data might be misused

c) No companies should be allowed to scan the billing information especially credit agencies

11) ACH (Debit) Integration:

a) Customers would have given ACH (Debit) mandates to the billers. Online updation of ACH transactions should be in place

b) Once the bill amount is received through ACH (Debit) mode, no demand for the same bill to be made on the BBPS platform

12) Complaint Resolution:   

a) The website to have a complaint resolution module.

b) Customers to be penalized in case of frivolous complaints.

10 strategies to achieve success on Snapdeal’s Launchpad

Snapdeals’ Launchpad aims to make life easy for Indian eCommerce Sellers.

The tie-up with  IIM Ahmedabad’s technology incubator – Centre for Innovation, Incubation and Entrepreneurship and IIT Bombay’s Entrepreneurship Cell will assist wannabe sellers to understand the dynamics of Online selling.

The below 10 pointers will assist you on a successful journey on Snapdeal:

01)Select a niche product

02)Create a Facebook page, Blog around your product

03)Constantly update your FB Page/Blog

04)Encourage buyers to opt for KlickPay

05)Offer loyalty points to your sellers, yes loyalty points add stickiness to your products. Loyalty points can be offered when the seller uploads his/her photo along with your product on social networking sites.

06)Offer freebies to your frequent buyers/top referrers

07)Once you gain traction, tie up with a NGO. Advertise that part of your profits will be donated to the NGO.

08)Launch festival specific products.

09)Indians love food, offer food coupons to frequent buyers.

10)Think and Innovate

The future is yours


Differential Rate of Interest for Micro and Small Enterprises (MSEs) – Loan Insurance

Banks receive incentives for advances to MSEs in the form of the credit guarantee cover of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and also the benefit of zero risk weight for capital adequacy purpose for the portion of the loan guaranteed by the CGTMSE.

The cover provided by CGTMSE helps banks to protect risk arising out of default as the loans are insured by the guarantee fund trust.

To provide bank credit at competitive rates to MSE Borrowers,  Reserve Bank of India, vide Notification No RBI/2013-14/564 DBOD.Dir.BC.No.106/13.03.00/2013-14, has advised banks to appropriately price the loans after taking into consideration the benefits to the banks on account of the above incentives.

However, banks should note that such differential rate of interest is not below the Base Rate of the bank.

Micro and Small Enterprises (MSEs)– Definition of Micro, Small and Medium Enterprise Manufacturing and Service Segments.

Manufacturing Sector Services Sector
Micro Enterprise The investment in Plant and machinery ( Original Cost) does not exceed Rs 25 lakhs The investment in Equipment does not exceed Rs 10 lakhs
Small Enterprise The investment in Plant and machinery ( Original Cost)is more than Rs 25 lakhs but does not exceed Rs 500 lakhs The investment in Equipment is more than 10 lakhs but does not exceed Rs 200 lakhs
Medium Enterprise The investment in Plant and machinery ( Original Cost) is more than 500 lakhs but does not exceed Rs 1000 lakhs The investment in Equipment is more than Rs 200 lakhs but does not exceed Rs 500 lakhs



CGTMSE covers  Any collateral / third party guarantee free credit facility (both fund as well as non fund based) extended by eligible institutions, to new as well as existing Micro and Small Enterprise, including Service Enterprises, with a maximum credit cap of Rs.100 lakh (Rupees Hundred lakh only).

CGTMSE takes two types of fees i.e Guarantee Fee and Annual Service Fee.  It is left to the credit institutions to pass the incidence of Guarantee Fee and Annual Service Fee to the borrower or alternatively they may decide to bear it themselves.