DOCSLIB.ORG

Integration and Interoperability of Financial Services Is

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Integration and Interoperability of Financial Services Is Integration and Interoperability of Financial Services Good for the Poor, Great for Banks and Governments MicroSave Research Puneet Chopra, Nitish Narain, Abhay Pareek, Nishant Kumar, Sharad Bangari, Sonal Agrawal, Akhilesh Singh, Ritika Srivastava, Anurodh Giri July 2012 Integration and Interoperability of Financial Services for the Poor Table of Contents Acknowledgement ............................................................................................................................................................ 4 Abbreviations .................................................................................................................................................................... 5 Executive Summary .......................................................................................................................................................... 7 Major Findings .............................................................................................................................................................. 7 Summary of Recommendations .................................................................................................................................... 9 Background ..................................................................................................................................................................... 12 Objectives ................................................................................................................................................................... 12 Defining Inter-operability ........................................................................................................................................... 13 Chapter 1 – Urban Markets ............................................................................................................................................. 15 Aspirations and needs of the unbanked population in metros and large cities............................................................ 15 How is the supply-side equipped to meet urban consumers’ demand for remittances? .............................................. 19 What is the size of the unaddressed market? .............................................................................................................. 22 Chapter 2 – Recommendations for Urban Markets ......................................................................................................... 25 Can greater integration and inter-operability aid in addressing service provider challenges and meet aspirations of the urban poor? ........................................................................................................................................................... 25 Enabling Channel Inter-operability ......................................................................................................................... 25 Bringing RRBs on to Core Banking ....................................................................................................................... 25 Enhanced Integration of Financial Inclusion (FI) and Mainstream Banking Systems ............................................ 25 Enhancing Transaction Limits ................................................................................................................................ 26 What are the potential business opportunities? ........................................................................................................... 27 Business Opportunities for BCNMs and Agents .................................................................................................... 27 Business Opportunities for Banks ........................................................................................................................... 28 Consumer challenges due to lack of integration and inter-operability ........................................................................ 29 Case Studies: Issues and Concerns of BC Account Holders ....................................................................................... 30 Chapter 3 – Rural Markets .............................................................................................................................................. 33 Aspirations and needs of the unbanked in rural areas ................................................................................................. 33 Rural Poor’s Channel Awareness and Preferences ..................................................................................................... 34 Channels for Savings .............................................................................................................................................. 34 Sources of Credit ..................................................................................................................................................... 35 Case Study: Why poor like BC channel and how it has impacted their lives? ........................................................... 36 Channels for Inward Remittance ............................................................................................................................. 37 Channels for Receipts of Wages under MGNREGS ............................................................................................... 37 MicroSave – Market-led solutions for financial services P a g e | 1 Integration and Interoperability of Financial Services for the Poor Channels for Receipts of Social Assistance ............................................................................................................ 38 Why Rural Consumers Prefer Banks and BCs? .......................................................................................................... 40 Unmet Needs and Aspirations..................................................................................................................................... 42 Summary of Aspirations of Rural Poor ....................................................................................................................... 44 Readiness of suppliers to meet aspirations of rural unbanked .................................................................................... 46 What is the feedback from the field? ...................................................................................................................... 46 Applying lessons learned from ATMs ........................................................................................................................ 47 Chapter 4 – Recommendations for Rural Markets .......................................................................................................... 53 Recommendations to address service provider challenges and meet aspirations of rural unbanked .......................... 53 Business Friendly Climate ...................................................................................................................................... 53 Greater Use of BCs by Government Departments .................................................................................................. 54 Enabling Common Infrastructure ............................................................................................................................ 55 Greater integration of BC Channel with mainstream banking ................................................................................ 55 Driving Client Protection ........................................................................................................................................ 56 Adoption of Standards ............................................................................................................................................ 57 Chapter 5 – Study Approach ........................................................................................................................................... 60 Research Approach ..................................................................................................................................................... 60 Methodology ............................................................................................................................................................... 60 Literature Review / Secondary Research ................................................................................................................ 60 Primary Research – Demand Side .......................................................................................................................... 60 Primary Research – Supply Side ............................................................................................................................. 60 Sample......................................................................................................................................................................... 61 Profile of Respondents ................................................................................................................................................ 61 References ....................................................................................................................................................................... 62 MicroSave – Market-led solutions for financial services P a g e | 2 Integration and Interoperability of Financial Services for the Poor Table of Exhibits Exhibit A.1: Awareness / usage of banking service
Load more

Recommended publications
  • Press Release: Launch of BHIM UPI in Bhutan
    Embassy of India Thimphu Press Release: Launch of BHIM UPI in Bhutan BHIM UPI was jointly launched in Bhutan on 13 July 2021 by Hon. Finance Minister o India !ir"ala #itharaman and Hon. Finance Minister o Bhutan $yon%o !am&ay 'sherin&. 'he launch e(ent was also attended by Minister o #tate )r. Bhagwat *ishanrao *arad+ ,o(ernor o the -oyal Monetary .uthority o Bhutan )asho Penjore+ #ecretary+ )epart"ent o Financial #er(ices #hri )ebashish Panda, ."bassador o India to Bhutan -uchira *amboj, ."bassador o Bhutan to India ,eneral /etso% !am&yel+ M) and 012 o !PCI #hri )ili% .sbe and senior officials fro" the Go(ern"ent o India and the Royal Go(ern"ent o Bhutan. 'he cere"ony included a li(e transaction by Hon. Finance Minister o India !ir"ala #itharaman+ who "ade a cashless pay"ent throu&h her BHIM app by scannin& the 4- code o 2,2P+ an outlet in 'hi"phu that sells resh ar" produce "ade or&anically by Bhutanese rural co""unities. 5ith the launch+ Bhutan beco"es the 6rst country to ado%t UPI standards or its 4- deploy"ent and the 6rst country in the i""ediate nei&hbourhood to acce%t "obile based pay"ents throu&h the BHIM app. 'his initiati(e is e7%ected to boost Bhutan8s econo"y+ pro"ote inte&ration o the 6nancial syste"s and au&"ent cashless transactions between the nationals o India and Bhutan. 'he co""it"ent to launch BHIM UPI in Bhutan ste"s ro" the Joint #tate"ent issued durin& Pri"e Minister Modi8s #tate /isit to Bhutan in .u&ust 2019 when it was decided that alon& with the launch o -uPay+ a easibility study or use o India8s Bharat Inter ace or Money (BHIM; app in Bhutan will be undertaken.
    [Show full text]
  • State Bank of India
    State Bank of India State Bank of India Type Public Traded as NSE: SBIN BSE: 500112 LSE: SBID BSE SENSEX Constituent Industry Banking, financial services Founded 1 July 1955 Headquarters Mumbai, Maharashtra, India Area served Worldwide Key people Pratip Chaudhuri (Chairman) Products Credit cards, consumer banking, corporate banking,finance and insurance,investment banking, mortgage loans, private banking, wealth management Revenue US$ 36.950 billion (2011) Profit US$ 3.202 billion (2011) Total assets US$ 359.237 billion (2011 Total equity US$ 20.854 billion (2011) Owner(s) Government of India Employees 292,215 (2012)[1] Website www.sbi.co.in State Bank of India (SBI) is a multinational banking and financial services company based in India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services company in India by assets.[2] The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. Government of Indianationalised the Imperial Bank of India in 1955, with Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.
    [Show full text]
  • S. No. Regional Office Party/Payee Name Individual
    AGRICULTURE INSURANCE COMPANY OF INDIA LTD. STATEMENT OF STALE CHEQUES As on 30.09.2017 Unclaimed amount of Policyholders related to Stale Cheques more than Rs. 1000/- TYPE OF PAYMENT- REGIONAL INDIVIDUAL/ FINANCIAL AMOUNT (IN S. NO. PARTY/PAYEE NAME ADDRESS CLAIMS/ EXCESS SCHEME SEASON OFFICE INSTITUTION RS.) COLLECTION (a) (b) (c) (d) (e) (i) (j) (k) (l) (m) 1 AHMEDABAD BANK OF BARODA, GODHARA FINANCIAL INSTITUTION STATION ROAD ,GODHARA 2110.00 EXCESS COLLECTION NAIS KHARIF 2006 2 AHMEDABAD STATE BANK OF INDIA, NADIAD FINANCIAL INSTITUTION PIJ ROAD,NADIAD 1439.70 EXCESS COLLECTION NAIS KHARIF 2006 3 AHMEDABAD STATE BANK OF INDIA (SBS),JUNAGADH FINANCIAL INSTITUTION CIRCLE CHOWK,JUNAGADH 1056.00 EXCESS COLLECTION NAIS KHARIF 2007 4 AHMEDABAD UNION BANK OF INDIA, NADIAD FINANCIAL INSTITUTION TOWER,DIST.KHEDA,NADIAD 1095.50 EXCESS COLLECTION NAIS KHARIF 2007 5 AHMEDABAD BANK OF BARODA, MEHSANA FINANCIAL INSTITUTION STATION ROAD,MEHSANA 1273.80 EXCESS COLLECTION NAIS KHARIF 2008 PATNAGAR YOJANA 6 AHMEDABAD BANK OF INDIA, GANDHINAGAR FINANCIAL INSTITUTION 13641.60 EXCESS COLLECTION NAIS KHARIF 2008 BHAVAN,GHANDHINAGAR 7 AHMEDABAD ORIENTAL BANK OF COMMERCE, UNJHA FINANCIAL INSTITUTION DIST.MEHSANA,UNJA 16074.00 EXCESS COLLECTION NAIS KHARIF 2008 OTHERS 8 AHMEDABAD NAJABHAI DHARAMSIBHAI SAKARIYA INDIVIDUAL DHANDHALPUR, CHOTILA 1250.00 CLAIMS KHARIF 2009 PRODUCTS OTHERS 9 AHMEDABAD TIGABHAI MAVJIBHAI INDIVIDUAL PALIYALI, TALAJA, BHAVNAGAR 1525.00 CLAIMS KHARIF 2009 PRODUCTS OTHERS 10 AHMEDABAD REMATIBEN JEHARIYABHAI VASAVA INDIVIDUAL SAGBARA,
    [Show full text]
  • Payment Systems in India: Opportunities and Challenges
    Journal of Internet Banking and Commerce An open access Internet journal (http://www.icommercecentral.com) Journal of Internet Banking and Commerce, April 2016, vol. 21, no. 2 Payment Systems in India: Opportunities and Challenges DEEPANKAR ROY Assistant Professor, National Institute of Bank Management (NIBM), Kondhwe khurd, Pune, 411048, Maharashtra, India, Tel: 919890448546; Email: [email protected], [email protected] AMARENDRA SAHOO Professor, Flame University, 1102 5a, Kalpataru Estate, Pimple Gurav, Pune, Maharashtra, India, Tel: 919503394455; Email: [email protected] Abstract An efficient payment system acts as an enabler for speeding up liquidity flow in the economy, apart from ensuring proper utilization of limited resources it also eliminates systemic risks. Flow of funds across borders demands the security, integrity of the payment system and the harmonization of the systems in the related countries. The paper dwells with the need to modernize the payment system and migrate from paper-based to electronic mode of payment system to enhance efficiency and save cost. It delves in to the core of payment systems in the select countries with a comparative analysis. Benchmarking against the BIS core principles of Systemically Important Payment Systems revised as core principles of Financial Markets Infrastructure has been done to ensure convergence with the international best standards for Governance of Payment systems. The payment system of any country, though advanced and sophisticated, does face various risks, viz. bank failures, frauds, counter-party failures, etc. Such aberrations could JIBC April 2016, Vol. 21, No.2 - 2 - trigger a chain-reaction that might ultimately result in disruption and distrust of the payment system.
    [Show full text]
  • Unit 1. Evolution of Banking
    DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45 Subject – Banking And Finance - I (115 B) Class: FYB.COM (2019 Pattern) Unit 1. Evolution of Banking Introduction Money in the Economy is like blood in the human body”. The flow of money in the economy determines the characteristics of any economy. Robust money and capital markets are essentials for a developed economy. The short term and long term needs of money of individuals and institutions can be efficiently met by financial intermediaries. Pooling of scanty deposits into a large capital base and lending it to the desirable sectors is the core of banking business. In a developing economy like India, the role of banking sector becomes even more critical. In the initial years of economic development, when other sophisticated financial institutions were not present, banks were the only financial intermediaries which helped in bring about the change. The sense of confidence in the ethical functioning of financial intermediaries, in the minds of common man, was brought about by well-regulated commercial banks. The word ‘bank’ is of Germanic origin though some persons trace its origin to the French word ‘Banqui’ and the Italian word ‘Banca’. It referred to a bench for keeping, lending, and exchanging of money or coins in the market place by money lenders and money changers. According to Banking Regulation Act, 1949 of India, “Banking means the accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, and an order or otherwise”. A bank is a financial institution which deals with deposits and advances and other related services.
    [Show full text]
  • State Bank of India Companyname
    VISIT NOTE STATE BANK OF INDIA J uggernaut geared for the next cycle India Equity Research| Banking and Financial Services COMPANYNAME We met State Bank of India’s (SBI) top management team to assess the EDELWEISS 4D RATINGS bank’s business strategy and growth & asset quality outlook. Key Absolute Rating BUY takeaways: a) focus is on consistently delivering on earnings and Rating Relative to Sector Performer improving visibility while building on business momentum (10% loan Risk Rating Relative to Sector Low growth target); b) incremental stress is on expected lines with SBI Sector Relative to Market Overweight maintaining slippages & credit cost guidance of 2%; c) performance of subsidiaries has been impressive and potent value unlocking is imminent; MARKET DATA (R: SBI.BO, B: SBIN IN) and d) while consolidation of PSU banks is a pragmatic move, CMP : INR 265 management assuaged concerns of SBI being coerced into it. We believe, Target Price : INR 338 SBI is better positioned among peers—CET-1 at 9.8%, NNPLs at <5.3% and 52-week range (INR) : 352 / 232 CASA at ~45%. Maintain ‘BUY’ with TP of INR338. Share in issue (mn) : 8,924.6 M cap (INR bn/USD mn) : 2,365 / 32,620 Recent events largely one-off with restricted impact on SBI Avg. Daily Vol.BSE/NSE(‘000) : 24,517.5 Management perceives recent events as an off shoot of global factors; however, underlying macros of Indian economy continues on a strong footing. SBI has 6% stake SHARE HOLDING PATTERN (%) in IL&FS and debt exposure is at SPV level.
    [Show full text]
  • Rupay: the Emergence of an Indian Card Giant (A Marketing Perspective)
    International Journal of Scientific and Research Publications, Volume 9, Issue 2, February 2019 525 ISSN 2250-3153 RuPay: The Emergence of an Indian Card Giant (A Marketing Perspective) Siddharth, Vijayraj, Subham Dash, Varun Chadha, Varun D. Nankani Christ (Deemed to be University) - Bannerghatta Campus Bangalore, India 2019 DOI: 10.29322/IJSRP.9.02.2019.p8667 http://dx.doi.org/10.29322/IJSRP.9.02.2019.p8667 Abstract- There have been turbulent changes in the banking sector gain an international scheme. As of July 2018, these cards were of the world which lead to capitalisation of various untapped issued to savings and current bank account holders across 1100 opportunities. One such opportunity was interbank transfers using banks including cooperative banks and Regional Rural banks. It ATM cards. VISA and MasterCard were the ones that decided to has 65% of the Indian market share and is accepted at all the capitalise on this opportunity and became the biggest payment ATMs, e-commerce portals and Pos terminals. networks of the world. RuPay is India’s very own card scheme to promote debit and It has various advantages leading to its mass acceptability. credit card transactions, which was launched in 2012, by National • The occurrence and settlement of transactions happen Payment Corporation of India (NPCI). The cost of the transaction domestically, the cost is lower and thus is affordable. in India was high in spite of the fact that in India 90% of the credit • As it is domestic in nature, it is aiming at customized transactions and almost all debit transactions are domestic.
    [Show full text]
  • Icici Coral Debit Card Movie Ticket Offer
    Icici Coral Debit Card Movie Ticket Offer Unintroduced Britt sometimes lubricates any ricochet drive-ins naturalistically. Pictural and insomnious Wiley thattests Elijah her chaplain blow-outs menage very closer. indulge and finding heatedly. Affirmative Ronen mark-down her barters so ostensively Vouchers or solicitation or card offer applicable to redeem your total number Icici sapphiro debit card usage, coral debit card offer at sole discretion. Is extreme only on ICICI Bank Coral Rubyx Sapphiro Debit Cards. ICICI Bank revises benefits on some Credit Cards starting 15. Buy 1 Get 1 free fuel on your ICICI Bank Emerlade. And lower this bluff was originally designed exclusively for high-flying snow- and business- class passengers it's now accessible to all guests flying on the airlineif they're willing to good that is. Offer is an amazing discounts and pay cashback on minimum amount cannot be back with icici offer throughout the landing page and not disabled temporarily not? The card consists of advise very good features like me movie library free with every purchase and movie ticket from book review show However customer is on. Which debit card for lounge access? Anyone have ICICI debit card that great free movie tickets offer. Which Icici debit card gives lounge access? The card offers NRI's with its buy 1 get 1 free we offer at BookMyShow with a maximum of 2 tickets per month valued at Rs 250 per ticket. That i change the limit on debit cards seems amex this program or until the selected icici bank instant discount movie a part is icici movie discounts on! Can evaluate sleep in airport lounge? Offer applicable on ICICI Bank Coral Rubyx Sapphiro Debit Cards 31-03-19.
    [Show full text]
  • Payment Gateway
    PAYMENT GATEWAY APIs for integration Contact Tel: +91 80 2542 2874 Email: [email protected] Website: www.traknpay.com Document version 1.7.9 Copyrights 2018 Omniware Technologies Private Limited Contents 1. OVERVIEW ............................................................................................................................................. 3 2. PAYMENT REQUEST API ........................................................................................................................ 4 2.1. Steps for Integration ..................................................................................................................... 4 2.2. Parameters to be POSTed in Payment Request ............................................................................ 5 2.3. Response Parameters returned .................................................................................................... 8 3. GET PAYMENT REQUEST URL (Two Step Integration) ........................................................................ 11 3.1 Steps for Integration ......................................................................................................................... 11 3.2 Parameters to be posted in request ................................................................................................. 12 3.3 Successful Response Parameters returned ....................................................................................... 12 4. PAYMENT STATUS API ........................................................................................................................
    [Show full text]
  • BHIM UPI to Foray Into Bhutan in Collaboration with Royal Monetary Authority (RMA) of Bhutan
    Press Release BHIM UPI to foray into Bhutan in collaboration with Royal Monetary Authority (RMA) of Bhutan ● The service will be formally launched by Hon'ble Finance Minister of India Smt. Nirmala Sitharaman and Hon'ble Finance Minister of Bhutan Mr. Lyonpo Namgay Tshering on July 13, 2021 ● With this launch, Bhutan will become the first country to adopt UPI standards for its QR deployment and second country after Singapore to have BHIM UPI Acceptance at merchant locations Mumbai, 13 July 2021: NPCI International Payments Ltd (NIPL), the International arm of National Payment Corporation of India and Royal Monetary Authority (RMA) of Bhutan have partnered for enabling and implementing BHIM UPI QR-based payments in Bhutan. The service will be formally launched by Hon’ble Finance Minister of India Smt. Nirmala Sitharaman on 13 July 2021 at a virtual ceremony in presence of Hon’ble Finance Minister of Bhutan, Lyonpo Namgay Tshering, Governor of Royal Monetary Authority of Bhutan, Dasho Penjore, Secretary (Department of Financial Services) Shri Debasish Panda, Ambassador of Bhutan to India General V Namgyel, Ambassador of India to Bhutan, Ruchira Kamboj, MD & CEO of NPCI, Dilip Asbe and other distinguished guests. The launch of BHIM UPI in Bhutan will add a new milestone in financial integration between the two economies. The collaboration between NIPL and RMA will enable acceptance of Unified Payments Interface (UPI) powered BHIM App in Bhutan. RMA will ensure that the participating NPCI mobile application through UPI QR transactions is accepted at all RMA acquired merchants in Bhutan. The launch will benefit more than 200,000 tourists from India who travel to Bhutan each year.
    [Show full text]
  • List-Of-Public-Sector-Banks-In-India
    1 List of Public Sector Banks in India Anchor Bank Merged Bank Established Headquarter Vijaya Bank Bank of Baroda 1908 Vadodara, Gujarat Dena Bank Bank of India 1906 Mumbai, Maharashtra Bank of Maharashtra 1935 Pune Maharashtra Canara Bank Syndicate Bank 1906 Bengaluru, Karnataka Central Bank of India 1911 Mumbai, Maharashtra Indian Bank Allahabad Bank 1907 Chennai, Tamil Nadu Indian Overseas Bank 1937 Chennai, Tamil Nadu Punjab & Sind Bank 1908 New Delhi, Delhi Oriental Bank of Commerce Punjab National Bank 1894 New Delhi, Delhi United Bank of India State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of India 1955 Mumbai, Maharashtra State Bank of Mysore State Bank of Patiala State Bank of Travancore Bhartiya Mahila Bank UCO Bank 1943 Kolkata, West Bengal Andhra Bank Union Bank of India 1919 Mumbai, Maharashtra Corporation Bank List of Private Sector Banks in India Bank Name Established Headquarters HDFC Bank 1994 Mumbai, Maharashtra Axis Bank 1993 Mumbai, Maharashtra Bandhan Bank 2015 Kolkata, West Bengal CSB Bank 1920 Thrissur, Kerala City Union Bank 1904 Thanjavur, Tamil Nadu DCB Bank 1930 Mumbai, Maharashtra Dhanlaxmi Bank 1927 Thrissur, Kerala Federal Bank 1931 Aluva, Kerala 2 Bank Name Established Headquarters ICICI Bank 1994 Mumbai, Maharashtra IDBI Bank 1964 Mumbai, Maharashtra IDFC First Bank 2015 Mumbai, Maharashtra IndusInd Bank 1994 Mumbai, Maharashtra Jammu & Kashmir Bank 1938 Srinagar, Jammu and Kashmir Karnataka Bank 1924 Mangaluru, Karnataka Karur Vysya Bank 1916 Karur, Tamil Nadu Kotak
    [Show full text]
  • 25222 SIPA White Paper [Digital Revolution]-PPG.Indd
    In 2016, the Nasdaq Educational Foundation awarded the Columbia University School of International and Public Affairs (SIPA) a multi-year grant to support initiatives at the intersection of digital entrepreneurship and public policy. Over the past three years, SIPA has undertaken new research, introduced new pedagogy, launched student venture competitions, and convened policy forums that have engaged scholars across Columbia University as well as entrepreneurs and leaders from both the public and private sectors. New research has covered three broad areas: Cities & Innovation; Digital Innovation & Entrepreneurial Solutions; and Emerging Global Digital Policy. Specific topics have included global education technology; cryptocurrencies and the new technologies of money; the urban innovation environment, with a focus on New York City; government measures to support the digital economy in Brazil, Shenzhen, China, and India; and entrepreneurship focused on addressing misinformation. With special thanks to the Nasdaq Educational Foundation for its support of SIPA’s Entrepreneurship and Policy Initiative. SIPA’s Entrepreneurship & Policy Initiative Working Paper Series Digital Revolution, Financial Infrastructure and Entrepreneurship: The Case of India Arvind Panagariya1 Digital Revolution has been sweeping across the world I divide the paper into three parts. Part 1 focuses on over the last three decades. This revolution has spread the spread of financial technologies in India. Part 2 far more rapidly, especially in developing countries, considers how the digital revolution has helped spawn than was the case with either the Industrial or Agricul- and transform the nature of entrepreneurship in the tural Revolution. Indeed, the spread has been so rapid country. Part 3 offers some concluding remarks that China has become its major driver with India emerging as one as well.
    [Show full text]