Monday, August 24, 2015
Payments banks: Not corporate biggies but India Post will emerge the dark horse in race for market
The Reserve Bank of India (RBI) has chosen just 11 out of 41 applicants to set up payments banks in the country. Payments banks are institutions that will offer most of the banking services except loans and credit card products to retail customers. Customers can deposit money up to Rs 1 lakh in these banks, transfer money, make payments and buy financial products such as insurance and mutual funds.
The 11 names include India’s postal department, two telecom players (Airtel and Vodafone), three large corporate houses (Reliance Industries Ltd (RIL), Aditya Birla Nuvo and Tech Mahindra), two financial services firms (Fino Paytech and Cholamandalam), two individual entrepreneurs (Dilip Sahnghvi and Vijay Sharma) and National Securities Depository Ltd, a surprise winner.
The names that are absent in the list are equally notable. These include Kishore Biyani of Big Bazaar, George Muthoot of Muthoot Financial Services, prepaid payment instrument issuers (PPIs) such as Oxigen and Itz cash and few other mobile payment services such as My mobile payments, Pay Point and One MobiKwik Systems.
The exclusion of several PPIs from the list is a bit surprising since these entities were originally projected as the deserving candidates to become payments banks from the very beginning - when the idea of payments banks was conceived by an RBI panel headed by Nachiket Mor in early 2014. PPIs are firms that provide cards, which customers can use to make payments with the money that’s stored in them. There are around 24 PPIs in India. “This will be a gradual conversion for them,” Mor had said then.
The reason why the RBI chose not to admit majority of these firms in the list could be the regulator’s apprehensions on their past record, financial strength and apprehensions on the security of transactions once these entities are allowed to become banks and begin collecting deposits from public. Similarly, the exclusion of large hypermarket chain like Big Bazaar indicates that the RBI isn’t yet comfortable with permitting retail chains to do banking.
Having said this, one must note that the central bank has indicated its willingness to issue more licences in the future, when the licensing process will be made based on a continuous (on tap) basis. Companies that failed to get into the current list can apply again then. As the RBI has indicated, it has currently chosen firms from different segments and would want to learn from the experience of their operations.
Most of the companies selected to set up payments banks will hit the ground running since they already have systems in place.
For instance, both Airtel and Vodafone have fund transfer services. Airtel already partly undertakes the functions of a payments bank by offering fund transfer services under Airtel money that has over 1.7 million users. Vodafone too has a similar offering. RIL has a tie-up with State Bank of India (SBI) for the payments bank roll-out. The partnership between India’s largest commercial bank and largest corporate entity comes with huge promises and will be keenly watched.
But as Firstpost has mentioned before, the biggest revolution in the offing is the entry of India Post to the banking sector.
The postal department, which failed to get into the list of full service banks when the RBI gave permits to IDFC and Bandhan in April 2014, has been trying for long to get into the banking business. The department has begun to set up ATMs and connect its offices through core banking solution network. The post expects to connect about 25,000 branches under CBS in next one year.
The India Post has already been active in the deposit-taking activity through its various savings schemes.
As of 31 March 2014 the outstanding balances under the post office savings scheme stood at Rs 6.05 lakh crore, which is nearly equivalent to half the deposits of government-owned State Bank of India, the country's largest commercial bank, and double that of the largest private lender, ICICI Bank Ltd. The department has a network of about 1,55,000 branches across the country, of which about 1,39,040 are in rural areas.
Going by a 2011 estimate of the postal department, about 6,000 people are covered on average by post-offices in rural areas and about 24,000 in urban areas. It also already offers insurance products. Backed by its existing outlets across the country and a gigantic depositor base already in various post bank schemes, Post Bank can offer a stiff competition to State Bank of India and other public sector banks in the deposit market.
Given the fact that India Post is present in many far-flung areas of the country, where even nationalised banks do not have branches, a Post Bank can change the way people save in these parts. Post is a trusted brand name in India’s households and hence, would find it relatively easy to convince customers keep their savings with the new entity.
The only area, where the Post needs to improve is technology. But a lot of work has already gone into this part as well. A senior department official told this writer that the India Post will have to formally approach the government for its permission to set up payments banks.
Since payments banks do not require huge amount of capital (the initial capital requirement set by the RBI for these banks is Rs 100 crore as against Rs 500 crore for full-service banks), India Post will not have to struggle much to seek the capital assistance from the finance ministry, which, in the past, had opposed India Post’s plan to become a full-service banks citing higher capital requirement and lack of experience in offering credit. But, this time, capital shouldn’t be an issue.
Once the whole network of post offices is connected with adequate technology, the biggest bank of India for the poor is ready.
Source : http://www.firstpost.com
AP CIRCLE - AIPEU GDS (NFPE) & AIPEU PM&MTS - CIRCLE COUNCIL MEETING - GUNTUR
23-08-2015 : Day-2 subject committee & Open session :
GDS SUBJECT COMMITTEE
OPEN SESSION - COLLECTORATE PO
P-4 Subject Committee
Saturday, August 22, 2015
AIPEU GDS (NFPE) & AIPEU PM & MTS - JOINT CIRCLE COUNCIL MEETING - A.P CIRCLE
AIPEU GDS (NFPE ) & AIPEU Postmen & MTS Unions of Andhra Pradesh Circle convened a joint Circle Council meeting in Guntur for two days 22nd & 23rd August 2015.
The Council meeting is organized by the NFPE unions of Guntur Divsion under the leadership of Com.R.Sivannarayana, former All India President, AIPEU Gr.C.
22-08-2015
National flag Com.R.Sivannarayana, P4 flag Com. S.K.Humayun, GDS (NFPE) flag Com.P.Pandurangarao were hoisted.
Com.K.Manohar, President, GDS (NFPE) A.P Circle presided the GDS Council meeting.
Com.P.Pandurangarao, General Secretary, AIPEU GDS (NFPE) inaugurated and Com.R.Sivannarayana addressed the GDS Council meeting today. 28 divsions from 5 Regions and about 50 GDS representatives and 11 Circle Office bearers were attended the meeting.
P-4
Com.K.Chandrasekhar, Asst. General Secretary, AIPEU PM&MTS(CHQ) invited as Chief Guest and addressed the meeting. Com.S.K.Humayun, former all India President, P4, Com.S.Dasu, veteran leader of NFPE also attended and addressed the P4 Council Meeting today.
WFTU Supports General strike on 2nd September 2015 in India
The World Federation of Trade Unions (WFTU) That Represents more
than 92 million workers all over the world expresses strong STI Solidarity with
our class brothers and sisters of India, Who prepared a National General Strike
for September 2nd.
During the last years India has met great financial rise. It is
a member of BRICS, you’ve nuclear arsenal and space program. But This financial
boom is not a benefit for MOST of the one billion people of India. Skyscrapers
are built next to the slums. Gathered Extreme wealth is next to starving
people. Become richer while the rich, the wretched are the victims Once More.
The growth of the capitalist economy is always based on the escalation of the
exploitation of the working class. That India Today and Its bourgeois political
forces take pride on the economic and military strength of the Indian Nation;
the vast majority of the people live the contradiction of pauperization.
These conditions in the struggle and the Demands of the Trade
Union Movement of India is just. The WFTU affiliates in India Have Been
preparing esta strike for months, showing the determination and the will of the
class forces to Mobilize the great force of the working people. The success of
the National General Strike in India, on September 2nd will be a success for
the working class of the world.
Especially This Year, STI When the WFTU celebrates 70th
Anniversary Year, we would like to highlight the historic contribution of the
class trade union movement of India to the World Federation STI since foundation.
That it is a fact without the Struggles and the contribution of the trade union
movement of India, the international trade union movement class would not be
the same.
The WFTU expresses ITS internationalist support and solidarity
to the struggle of its Indian brothers and calls all trade union Organizations
of WFTU to stand in Solidarity with the National Strike of the Indian working
class.
Long Live International Solidarity!
Long Live the class trade union movement of India!
All success to the National General Strike of September 2nd!
THE SECRETARIAT WFTU
//copy// VAN
Friday, August 21, 2015
INITIATIVES TO BE UNDERTAKEN FOR PROMOTION OF POSB SCHEMES-REG.
F.No.63-01/2015-SB
Government of India
Ministry of Communications & IT
Department of Posts
(F.S. Section)
Dak
Bhawan, New Delhi
Dated:
30.06.2015
To
Shri R.N. Parashar
Secretary General
National Federation of Postal Employees (NFPE)
1st Floor, North Avenue Post Office Building
New Delhi-110 001
Shri D. Theagarajan
Secretary General
Federation of National Postal Organization (FNPO)
Sub: Initiatives to be undertaken for promotion OF POSB
schemes-reg.
D.G. Posts letter No.
F.No. 63-01/2015-SB dated 30.06.2015.
Sir,
The undersigned has been directed to forward herewith a copy of letter No. F.
No.63-01/2015-SB dated 30.06.2015 on the subject cited above.
2. It is,
therefore, requested to disseminate the contents of the aforesaid letter
through your newsletters/magazines among all the members for taking active
participation in the initiatives to be undertaken for promotion of POSB Schemes
and fulfillment of mandate of financial Inclusion in rural India.
Sd/-
L.K. Sinha
AGD(FS-I)
=============
F.No.63-01/2015-SB
Government of India
Ministry of
Communications & IT
Department of Posts
(F.S. Section)
Dak
Bhawan, New Delhi
Dated: 30.06.2015
To
All Heads of Circles,
Sub: Initiatives to be undertaken for promotion OF POSB
schemes-reg.
This is regarding promotion of Post Office Savings Schemes to meet the
financial inclusion mandate in the rural areas. There are some initiatives
which may promot the opening of POSB accounts. Some of the steps to be taken
are suggested as blow:
i. PO staff
salary and wages accounts can be opened in the Post Offices with cheque
facilities. The PO staff can continue to keep their bank accounts and enjoy
loan and card facilities by simply issuing the POSB cheque towards their bank
accounts and transfer whatever amount and may carry on banking activities.
ii. All staff (Departmental,
GDS/contingency paid and outsiders) may be paid salary and wages through POSB
accounts.
iii.
POSB accounts may be opened in the name of social security beneficiaries (OAP)
for crediting the social security benefits into their respective accounts. (SOP
enclosed).
iv. POSB accounts may be
opened in the name of Landlords who have given their building
on rent to the Post Offices, for crediting the monthly rent to be paid to them.
v. POSB accounts
may be opened to all the pensioners who are getting pension from the Post
Offices for crediting their monthly pension in their respective accounts.
vi. Maturity payments to
RD, TD, PPF, PLI, RPLI etc. may be paid through POSB accounts. Postmasters
may be instructed to persuade the customers to take payment through POSB
accounts.
vii. Delivery staff may be
motivated to carry SB-3 application forms and receipt book so that they may
bring in at least one account per day.
viii. A few GDS may be appointed
exclusively to work as pygmy collectors from 5 PM to 9 PM in the whole
sale or retails market area collecting daily cash from small vendors
(Vegetable vendors,Hawkers, Petty shops/stores etc). SOP is enclosed with a certain
arrangements of solidity and amenability to monitoring.
ix. Deceased claim cases
settlement and payments may be routed through POSB accounts, Beside this
all discharge payment of certificates can also be routed through POSB and
no coercion shall be used.
xi. Under the Member of
Parliament village adoption programme, the entire village may be got
covered-“Samporna Bachat/Bima/Sukanya Scheme “ with necessary support from the
concerned Hon`oble Member of Parliament.
xii. Advance SMS may be sent
in case of maturity instrument and request be made to the customer to open SB
account.
xiii. Reinvestment by the existing
customers may also be ensured.
xiv. The SB account can be opened in
CBS Post Office without taking KYC documents again, if the earlier
investment /account opening has been done after obtaining KYC
documents. It will get linked to CIF, SB Account can be opened at the time of
maturity of any instrument/investment also, if before maturity, KYC documents
are to be collected, wherever applicable. A single AOF form will have to be
filled.
xv. As per prevailing banking
practice, having SB account has many benefits. Internet Banking, Debit
card etc. facilities will also become available in all CBS Account for easy
fund transfer to/from other accounts/instruments, held by him.
These issues with the approval of Member (Banking & HRD)
Sd/-
(Sachin Kishore)
Director (FS)
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