The number of Indians banking with State and District Central Co-operative Banks (StCBs and DCCBs)
is significant. To further enhance the customer services in (StCBs and DCCBs), RBI issued a 38 Page circular containing additional instructions to (StCBs and DCCBs)on other areas of customer service.
Through these additional instructions, the (StCBs and DCCBs) customers can be assured of same customer service levels as in Scheduled Commercial Banks.
The additional guidelines are comprehensive and cover the entire gamut of banking operations.
There are 370 + DCC spread over all over India. The highest number of DCCs is in Uttar Pradesh. The lowest numbers of DCCs are in Himachal Pradesh. The variation could be due the number of districts in each State. Higher the number of districts, higher is the DCC number.
This Banking model consists of a district central bank for each District in every state of India known with a name as a respective District Central Cooperative Bank. The members and their elected directors who represent a multitude of professional cooperative bodies like Milk Unions, Urban cooperatives, Rural cooperatives, agricultural and non agricultural cooperatives and various others, in turn would elect the bank’s President.
These banks are collectively represented by a State Apex Central Cooperative bank for each state and it acts as the ultimate bank and apex body for the DCCs under each state. It has been widely observed all over the country that the local politicians who hold the sway over the cooperatives get elected the president post of the DCC bank and a president post would mean nurturing for their future political ambitions.
The best such examples can be found in Maharashtra State.
It is a well marketing tool that prospective customers must be awarded to try out the new products launched by their companies. The product can be tangible or intangible.
Services can said to be intangible products. It is a bit difficult to launch promotion schemes for Services, as Services can only be experienced and not felt.
IMPS currently has 54 Banks on its rolls. All major banks including a few large co-operative banks are now part of the IMPS platform.
To encourage bank customers to try out it services, IMPS Division of NPCI, has launched a Promotion Campaign between Jan13 to Mar13. The details can be viewed here.
As the IMPS concept is very new to India, such sort of campaigns will convince the Bank Users that it is safe and fast to try out IMPS.
Once the Bank customers are convinced about the benefits of IMPS, the word of mouth advertising will bring in new customers into IMPS fold.
Wishing all of you Best of Luck, in the race to win rewards from NPCI in making IMPS popular.
The ‘Aadhaar Number’, holders can receive funds via the APBS (Aadhaar Payment Bridge System). Next, the moot question is to how they can withdraw the funds. Here, AEPS (Aadhaar Enabled Payment System) comes into play.
It is important for Banks on the ABPS network, also are ready for the AEPS, otherwise it might lead to customer complaints.
AEPS is offered by NPCI, and is based on the ‘Aadhaar number’. Any resident of India holding an Aadhaar number and having a bank account may be a part of the AEPS.
The success of AEPS rests on the availability of large number of Micro ATM’s and ATM’s equipped with Biometric authentication facilities.
As the numbers of ATM’s in rural areas are less, it is expected that BC’s will step in to service the population.
Business Correspondent (BC) is an approved Bank Agent providing basic banking service using a MicroATM (terminal) to any bank customer wishing to avail their bank BC service.
In the short run, BC’s can service only their bank customers. In the long run, it is expected that BC’s will be able to service any bank customer. The back-end integration is taking place.
In the initial stage, NPCI will be offering 4 types of transaction in AEPS. They are:
- Balance Enquiry
- Cash Withdrawal
- Cash Deposit
- Aadhaar to Aadhaar Fund Transfer