The Economic Times
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NAGPUR: Pushing for a less-cash economy, Prime Minister Narendra Modi today said the government's 'DigiDhan' movement for digital payment is a step towards curbing the menace of corruption. While paying rich tributes to Dr B R Ambedkar on his 126th birth anniversary at the Deekshabhoomi here, the Prime Minister also launched two new schemes under the BHIM app for referral bonus to individual users and cash-back for merchants to incentivise them. "This DigiDhan movement is a safai abhiyaan (cleanliness movement). It is to fight the menace of corruption," said Modi addressing a public rally here. Seeking to rope in youngsters to promote cashless transactions, Modi said for every person you introduce to the BHIM app, you will get a cash back of Rs 10. "If you refer 20 people a day, you can earn Rs 200," he said. Notably, the PM had recently expressed gratitude to the people saying over the last few months the country had witnessed an atmosphere in which people in large numbers participated in the digital payment, the 'Digidhan' movement.
The Economic Times
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25% for payments below Rs 1,000 and 0.65% for all other charges," said AP Hota, MD & CEO, NPCI. Hota added that the MDR on UPI could come down if the RBI reduces the fee on debit cards. The RBI on Thursday said it needs more time to decide on new rates on debit cards. NPCI has also developed the BHIM app, which is among the various applications for UPI payment. According to Rajeev Agarwal, MD & CEO, Innoviti, the application makes it possible to enable QR code-based acceptance without any additional capital. "All that is required is an upgrade of the software on the card swipe machine. In some of the newer machines it can be done by a remote, while older machines may require a visit from our representative," Agarwal said. Reliance Retail, which stands to gain from lower charges, is incentivising customers to use the new mode of payment by offering discounts in form of cashback.
The Economic Times
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The Economic Times
6 days
Deliberations are now on, involving the ministry of electronics and IT and the department of financial services. The Cabinet Secretariat will soon decide on the proposal. “The committee of secretaries had said that if they (banks) dont have incentives, they may not go and acquire merchants, so let them have incentives, and merchant will not bear cost and it may be borne from the financial inclusion fund,” the official told ET. After the impending launch of Aadhaar Pay by banks, including the State Bank of India, the government is also considering a merchant version of the BHIM app that is currently functional for only person to person transactions. A senior finance ministry official said that although there is no loss of merchant discount rate (MDR) for banks on settlement through BHIM or Aadhaar Pay as they are network agnostic, the plan is intended to promote payments through these.
The Economic Times
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NEW DELHI: On Tuesday, an internal review meeting was conducted in the ministry where presentations on digital banking were given to union minister for electronics and IT, Ravi Shankar Prasad. According to an official in the know, in the meeting it has been decided that all banks will be given instructions that all accounts have to be net banking enabled by 31st March. Currently, there are 30-35% of accounts in which customers have opted not to enable netbanking. “Banks are being instructed to persuade people to enable netbanking,” the official told ET. The person added that a person who has downloaded BHIM app and wants to transact but doesnt have netbanking facility will be allowed to conduct the transaction by the bankers if the person’s telephone number is authenticated in the system. One of the highlights of the meeting was that success rate of Bharat Interface for Mobile (BHIM), which was launched by the prime minister Narendra Modi in December has been high.
The Economic Times
4 months
The Economic Times
4 months
The Economic Times
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It is equally important to ensure that the money is spent. I would identify just three to five pan-national investment programmes (or revised and aggressive targets for existing programmes) that can absorb increased allocations. I would also announce a transparent and regular monitoring system for these programmes. Recapitalise banks substantially For the financial sector I would do three things. I would allocate a significant amount to expand the coverage of low end payment platforms, specifically BHIM. I would also set aside a significant amount for recapitalization of banks reeling under NPL pressures but disburse this under stringent conditions. I would also do away with the tax on interest income on bank deposits for individuals (not trusts or companies) to revitalize its role as a safe and attractive saving instrument. Cash in on govt land pool To gather resources, I would go in for aggressive monetization of the large pool of land available both with government departments as well as public sector companies.
The Economic Times
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Though BHIM allows sending money to a mobile number, it requires the receiver to be registered with the UPI in order to accept payment. In turn, the long process of generating a UPI PIN by entering debit card details may discourage the poor and the illiterate. “Through Aadhaar, any person — large service providers or independent ones such as plumbers or carpenters, irrespective of whether they are on BHIM or not — can get payments for their services directly into their bank accounts if it is linked to Aadhaar,” said Pandey. He added that almost two crore people are linking with accounts with Aadhaar every month and total figure for such accounts should go up to 50-60 crorehalf the country —in the next two to three months. Currently, there are five payment options on the BHIM appnamely mobile number, bank account or IFSC code, among others.
The Economic Times
5 months
It is a living and breathing platform that enables immediate payments. And it was a wake-up call for banks to get their technology act together. Bharat Interface for Money (or BHIM) is another of UPI’s progeny and applications. The buzz in the tech sphere is that it is the shape of things to come — read, technology and micro-lending. If BHIM has had something other apps dont, it is Prime Minister Narendra Modi’s voluntary endorsement. This counts for a lot in a land where banking access is abysmally low and faith in technology stillborn for more than 500 million people. Unsurprisingly, Modi’s endorsement helped BHIM achieve the same number of downloads in 10 days that a slicker PhonePe app clocked in five months. But here’s the thing: PhonePe is a standalone business and business enabler for parent company Flipkart. Paytm is a red-blooded digital wallet business.
The Economic Times
5 months
It is a living and breathing platform that enables immediate payments. And it was a wake-up call for banks to get their technology act together. Bharat Interface for Money (or BHIM) is another of UPI’s progeny and applications. The buzz in the tech sphere is that it is the shape of things to come — read, technology and micro-lending. If BHIM has had something other apps dont, it is Prime Minister Narendra Modi’s voluntary endorsement. This counts for a lot in a land where banking access is abysmally low and faith in technology stillborn for more than 500 million people. Unsurprisingly, Modi’s endorsement helped BHIM achieve the same number of downloads in 10 days that a slicker PhonePe app clocked in five months. But here’s the thing: PhonePe is a standalone business and business enabler for parent company Flipkart. Paytm is a red-blooded digital wallet business.
The Economic Times
3 months
"In case someone replicates your SIM or steals your phone and places the SIM in a new phone, they would still not be able to do the transactions as they wouldn't have your UPI pin," said Modi. Apart from over a hundred technical controls that the Lucideus team looked at, it also considered multiple scenarios where a potential breach could happen. For example, if you get a call during a transaction on BHIM, and hand over the phone to another person for the call, you will have to re-enter the app PIN after you disconnect the call. Cybersecurity professionals aim to simulate all known vulnerabilities across different points of a possible breach. "However, there is nothing that can be 100% secured — there is always an unknown element, the known unknowns. But what can be done is to ensure that all known controls are tested for and to have an incident response strategy ready in case of a breach," Modi said.