Tag Archives: Direct Benefit Transfer

Quick Customer Service tips on transaction processing on National Automated Clearing House (NACH) System

The payment channel adopted by Government of India, to move DBTL (Direct Benefit Transfer-LPG Subsidy) amounts is the NPCI’s NACH system.

NACH System in India is the latest addition to India’s retail ePayment products. NACH has been rolled out for commercial usage in mid 2012. The first batch of DBT transactions were processed 5 months back.

The major boost to NACH is the Government’s decision to roll out DBTL from 01 June 2013. As the transaction volumes under DBTL are huge, the member banks had no choice but to upgrade their infrastructure.

In the final phase of DBTL rollout it is expected that each processing cycle will have a minimum of 10 lac transactions.

Hence, the Banks have to ready to quickly scale up their IT infrastructure as well as customer service desks. Already, the destination banks customer service cells, are receiving queries associated with DBTL.  This is a good sign; as such queries will assist the respective banks to fine-tune their delivery channels.

NPCI vide it’s circular dt.31 May 2013 has advised the NACH member banks on a couple of aspects to minimize customer grievances.

The top 3 points are:-

01)   Transaction Narration in Customer Account Statement: On successful transaction processing Destination banks needs to print the value in User Name (Narration text) + User Credit Reference (sponsor bank transaction ref. no.) into the Account statement / Pass book for Beneficiary customers.

 

02)   Return and Response Files: The destination banks are required to provide the status of all the inward files/transactions received at their end. The status of the transactions not received in the response file cannot be treated as a “Deemed Acceptance/Success” as there is no such status called “Deemed Acceptance/Success”.

03)   System Processing Capacity: Member banks are advised to put in place necessary infrastructure having adequate capacity to process transactions in the range of 5-10 lakh or any other number in tune with the customer base and Aadhaar Numbers’ seeded in a window of 2-3 hours.

 

 

Indian Post Office Bank Savings Account to be ready for DBT-AEPS by 01/10/2013

 

In the corridors of power, hectic parleys’ are going to ensure that the Savings Accounts of Indian Post Office are part of the DBT-AEPS platform.

The full roll out of DBT schemes in 51 Districts will be rolled out by 01/10/2013. With the grand success of DBTL, now the efforts have been doubled.

One of the main objectives of Project Arrow launched by Indian Post in 2008 is to adopt the CBS for its saving accounts. Infosys’s Finance is the chosen software for the CBS project.

Project Arrow’s Blue Book lays down in detail the detailed planning for change in Indian Post psyche.

As per data shared with Parliament, there were over 26 crore operational small savings accounts in post offices as on March 31, 2012, having deposits worth Rs.1.9 lakh crore

“Government has initiated an ambitious IT driven project to modernize the postal network at a cost of Rs. 4,909 crore. Post offices will become part of the core banking solution and offer real time banking services. I propose to provide Rs. 32 crore for the project in 2013-14,” said the FM in his recent budget speech

Whether Indian Post will get a full fledged banking license is not yet sure.  The Department of Posts will move a Cabinet note in order to apply for a banking licence by the stipulated deadline of July 1, 2013.

 

The UPA government intends to put the world’s biggest job guarantee programme – MGNREGA – on its “game-changer” money transfer platform – the Direct Benefit Transfer (DBT) from this October.

This is possible only if  the government agencies are able to provide unique identification or Aadhaar numbers to entire population in 51 districts, where the government intends to put MGNREGA under DBT mode, and the banks and posts offices come on Aadhaar payment bridge.

The Prime Minister’s Office, which is directly monitoring the DBT, has asked Nandan Nilekani led unique identification authority of India (UIDAI) to speed up Aadhaar enrollment in these 51 districts and ensure that the entire population is covered by July.

At the same time, directions have also been issued to the postal department for entire computerisation of the post offices and connect them with a secured internet line. Multiple teams are working to enable the Indian postal department to implement its new Aadhaar enabled information technology solutions to help its integration with the DBT.

 

Six post offices of Nagpur region are among the 124 offices in the country where India Post will be first implementing core banking solutions (CBS).

In the pilot phase, eight postal circles have been selected. They include Andhra Pradesh, Assam, Delhi, Karnataka, Maharashtra, Rajasthan, Tamil Nadu and Uttar Pradesh.

There are also plans to introduce ATMs, about 1000 of them, in all HOs

Andhra Pradesh saves Rs300/- crs due to ePayments of Students Scholarship

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Shri N.Kiran Kumar Reddy, Andhra Pradesh Chief Minister, while speaking in Hyderabad at  the launch function of on the at the Direct Benefit Transfer of LPG Subsidy (DBTL) scheme has said that the Government of Andhra Pradesh is able to save Rs300/- crores annually through the  introduction of online payment system for post-matric scholarships and fee reimbursement.

The online payment system was instrumental in eliminating the bogus beneficiaries.  Well, read the news article here.

The online payment system through the various inbuilt checks has also sped up the whole verification and disbursement process. The main advantage of online payments is the audit trial which is present in the whole IT Application.

ePASS (Electronic Payment & Application System of Scholarships) is the name of IT Application which is used by AP Government  for online sanction and disbursement of Post Matric Scholarships from the year 2008-09 under Social Benefits Management System (SBMS).

The ePASS scheme took off in 2009, and since then has played a stellar role in ensuring government scholarships reach the students quick and in an efficient manner.

Five Banks have been identified as Nodal Banks for this purpose. They are State Bank of India, State Bank of Hyderabad, Andhra Bank, Syndicate Bank and Indian Bank. Based on the principle of “One Institution – One Bank”, all the students of an Institution shall have to open their Bank accounts only in the Bank attached to their Institution.

State Bank of India has decided to issue eZ-Pay Cards instead of opening bank accounts. eZ-Pay Card  are prepaid cards, where the scholarship amount is the top-up amount.