Aadhaar Enabled Payment System

Study, BFSI News, ET BFSI

November 9, 2021 root Banking & Finance

[ad_1]

Read More/Less

MUMBAI: A study published by the State Bank of India (SBI) has said that business correspondents, who are channels for most Jan Dhan account transactions, are overcharging public sector banks (PSBs) by routing transactions in a manner aimed at maximising fees. The report has called for changes in norms for business correspondents to promote financial inclusion.

Business correspondents connect to banking systems using handheld devices that are similar to credit card-swipe machines. These machines are capable of using Aadhaar biometric or debit cards for authorisation.

If the business correspondent provides service to customers of a bank using an application of the same bank, the transaction is considered as an ‘on us’ transaction by the bank.

If the service is provided to a customer using an application of another bank, the transaction becomes an ‘off us’ for the bank where the customer holds their account and the bank ends up paying an interchange fee.

The report, authored by SBI group’s chief economic adviser Soumya Kanti Ghosh, has called upon the RBI to disincentivise business correspondents who are converting ‘on us’ transactions of public sector banks into ‘off us’ ones on the Aadhaar-enabled Payment System (AePS) to earn interchange fee and more commission.

Business correspondents have taken centre stage in rural banking after the RBI’s new branch authorisation policy of 2017 recognised them as providing service for a minimum of four hours a day for five days a week as banking outlets. Their number has risen from 34,000 in 2010 to 12.4 lakh in December 2020. They have been the cornerstone of servicing the 43.7 crore Jan Dhan accounts, 78% of which are with public sector banks.

According to the report, the problem lies in the flexibility given to business correspondents concerning interoperability of transactions, which has allowed them to game the system.

“We estimate that the PSBs could be paying Rs 600-700 crore per annum as interchange fee. This money could be used by PSBs to further financial inclusion more holistically,” said Ghosh.

The report has suggested that the AePS should work like the point-of-sale (PoS) terminal used by merchants. Converse to what is happening among business correspondents, in PoS machines the acquiring bank pays a fee to the issuing bank.

“Alternatively, there could be rationalisation in interchange fee as there is no level playing field in infrastructure provided by all banks,” the report said.

[ad_2]

CLICK HERE TO APPLY

Leave a comment Aadhaar Enabled Payment System, aeps, Jan Dhan account, PSBs, public sector banks, RBI, sbi, Soumya Kanti Ghosh, state bank of india

Average ticket size of AePS transactions rising: Rapipay Fintech

July 9, 2021 root Banking & Finance

[ad_1]

Read More/Less

The average transaction size for Aadhaar Enabled Payment System has increased in recent months along with the volume of transactions on the platform with greater adoption.

“The average ticket size of AePS transactions has increased from ₹2,500 to ₹2,900 in the last two quarters, showing increasing trust and usage of AePS in India, especially in the rural markets,” said Yogendra Kashyap, MD and Founder, RapiPay Fintech.

Monthly data from the National Payments Corporation of India had revealed that AePS transactions in June stood at 8.75 crore in volume and ₹24,667.8 crore in value. In contrast, there were 8.42 crore transactions worth ₹24,619.24 crore in May on the platform.

Daily AePS transactions in July have also remained high. On July 6, there were 31.7 lakh AePS transactions amounting to ₹854.95 crore.

Rapipay reported an 18 per cent increase in AePS transactions in June this year compared to May.

Kashyap attributed this growth to reopening of markets and movement of people in June after lockdown restrictions were eased.

“This gave required impetus to businesses across industries and hence cash withdrawal requirement in both urban and rural markets increased,” he said.

Rapipay also reported an eight per cent increase in overall cash out transactions from AePS and Micro ATMs in the first quarter of the fiscal as against the fourth quarter of 2020-21.

[ad_2]

CLICK HERE TO APPLY

Leave a comment Aadhaar Enabled Payment System, AePS transactions, digital payement, RapiPay Fintech

Paytm Visa physical debit cards soon; Paytm Payments Bank eyes 45 lakh cards in FY22

May 28, 2021 root Banking & Finance

[ad_1]

Read More/Less

Paytm Payments Bank has enhanced the debit card experience with this offering by making the entire process digital.

Paytm Payments Bank will launch physical debit cards issued by Visa. Currently, it offers physical debit cards by Rupay, and virtual debit cards by Visa to customers. Paytm said that Visa physical debit cards will allow customers to use these at over 50 lakh Visa acceptance points and will allow them to tap and pay for contactless transactions. Paytm Payments Bank has already issued over 45 lakh virtual debit cards. It has now set a target to issue over 10 lakh physical debit cards by the end of this fiscal. Paytm is among largest issuer of RuPay Debit Cards in the country, which can be used by customers at all the major online merchants which accept Rupay cards

How to apply for physical debit cards by Visa?

Through the Paytm Payments Bank section on the Paytm app, customers can apply for a physical card. They can set the PIN once they receive the card. This debit card will let customers avail Visa offers, along with features such as international payments and ‘tap-and-pay’ transactions. According to the company’s management, this is another step to democratise the digital financial ecosystem in the country. “Physical cards will help more people have another payment method to rely on whenever they are out buying services or shopping. This partnership will allow millions of our customers to avail the benefits of Visa debit cards along with the power to make international transactions,” Satish Kumar Gupta, CEO & Managing Director, Paytm Payments Bank Ltd, said.

Paytm IPO on cards

Paytm is planning to come out with an initial public offer worth $3 billion later this year, PTI reported citing sources as saying. Upon successful launch of IPO, Paytm would be the largest such offer. Coal India’s Rs 15,200 crore-IPO launched in 2010 is the country’s largest public issue till date. The SoftBank and Alibaba-backed company is looking at raising around $3 billion (over Rs 21,700 crore) at a valuation of well over $25 billion, the sources privy to the development said.

Paytm registers 97.5 crore digital transactions in Mar’21

Last year, Payments Bank had enabled banking services through Aadhar authentication by integrating the Aadhaar enabled Payment System (AePS). It also launched the Direct Benefits Transfer (DBT) facility, enabling customers to receive the benefits of over 400 government subsidies directly into their Paytm Payments Bank Savings Account. Paytm registered over 97.5 crore digital transactions in March 2021, led by the transactions on Paytm Wallet, Paytm FASTag, Paytm UPI, and internet banking over the last several quarters.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

[ad_2]

CLICK HERE TO APPLY

Leave a comment Aadhaar Enabled Payment System, aeps, direct benefits transfer, paytm payments bank, paytm rupay debit card, paytm visa physical debit cards, rupay debit cards

RapiPay Fintech records nearly 50 per cent rise in cash withdrawals

May 23, 2021 root Banking & Finance

[ad_1]

Read More/Less

New Delhi-based RapiPay Fintech Pvt Ltd has been recording a nearly 50 per cent rise in cash withdrawals on its network for the past two months, with many parts of rural India still seeking cash for emergency and essential services.

The contribution of cash withdrawals to overall business increased to 47 per cent so far in May this year (till date) from 31 per cent in March. The average ticket size of Aadhaar Enabled Payment System (AePS) transactions rose to ₹2,905 in May from ₹2,500 in March, according to RapiPay Fintech’s internal data.

The average ticket size of Micro ATMs (M-ATMs) withdrawals also rose to ₹3,970 for the reporting month from the earlier ₹3,636 in March.

“Even though people have started using digital payment modes, the second wave of the pandemic has caused some uncertainties, with people preferring to hold on to cash in case of a crisis. People are withdrawing more cash from their neighbouring stores or banking correspondents to pay for emergency and essential services,” RapiPay Fintech Managing Director and Chief Executive Officer Yogendra Kashyap said.

“Because of the lockdown, people are unable to travel to ATM machines or banks in rural areas, and withdrawals are mainly to meet immediate cash requirements for medicines and doctors’ consultation fees among. Also, citizens are withdrawing payments received under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), which is also adding to the withdrawals,” he added.

About 40 million people had applied for jobs under MGNREGS in April up from 36 million in March, while about ₹20,000 crore has been credited to nearly 9.5 crore farmers under the PM-KISAN scheme.

For May, Meghalaya topped the charts in AEPS with an average ticket-size of ₹7,810 versus ₹6,313 in March followed by Nagaland ₹5,174 (₹3,790 in March), Goa ₹5,290 (₹1,433), Assam ₹3,950 (₹3,600) and Kerala ₹3,706 (₹3,200). On the M-ATMs front, Jammu & Kashmir topped the list with an average withdrawals of ₹7,235 (₹3,291 in March), followed by Manipur ₹5,019 (₹5,000), Nagaland ₹4,950 (₹4,600), Kerala ₹5,190 (₹4,169) and Arunachal Pradesh ₹4,602 (₹4,600).

Across India, the transaction value of AePS rose 166 per cent in the last six months.

[ad_2]

CLICK HERE TO APPLY

Leave a comment Aadhaar Enabled Payment System, ATM, MGNREGS, PM-KISAN, RapiPay Fintech