Financial Awareness – 07/09/2016

Equitas SFB ensures Rs.550-cr deposits: 1460042977-5884Equitas Small Finance Bank (SFB) has ensured around Rs.550 crore of deposit in the first few months from the small savings of its 2.6 million customers in piggy banks. The bank, started with three branches, will add agricultural finance, business loans and gold loan businesses in six months, said senior management officials. Equitas is the second SFB to start operations in the country, after Jalandhar headquartered Capital Small Finance Bank.

MSME need Rs.5.15 lakh cr infusion:

MSME_356_2756_356Highlighting the financial crunch faced by Micro, Small, and Medium Enterprises (MSMEs), a report has pegged the total credit demand for the sector at Rs.45 lakh crore over the medium term, while Rs.5.15 lakh crore needs to be mobilised for the near term. Crisil estimates show Rs.11.37 lakh crore is only a quarter of the total funding demand of MSMEs. The rest is met either through informal sources/self-financing or remains unmet, said a joint study by Crisil-Assocham. Extrapolating this, Crisil believes that Rs.45 lakh crore would be the total credit demand for the MSME sector over the medium term.

Hope Centre will continue to prioritise low inflation: Rajan

downloadMr.Raghuram Rajan, whose tenure as the RBI Governor ended this week, hopes the process of cleaning up Indian banks will be finished and the government will continue to prioritise “low inflation”. Mr. Rajan  said in an interview with the New York Times that he hoped the country would finish “the process of bank cleanup” which is underway.  Mr.Rajan warned low interest rates globally could distort markets and would be difficult to abandon. Low interest rates should not be a substitute for “other instruments of policy” and “various kinds of reforms” that are needed to encourage growth, he added.

Exim Bank plans portal to provide export facilitation services to SMEs:

ngan_hangTo encourage small enterprises to export, the Export-Import Bank of India (Exim Bank) plans to start a portal ‘Exim Mitra’. It aims to facilitate 20-25 services, including registration for undertaking exports, information on the closest bank branch that will provide export credit, and indicative freight cost. Exim Bank Chairman and Managing Director Mr.Yaduvendra Mathur said, “We are looking to open an online facilitation window. We note there is a big information gap. There are a large number of potential exporters, typically smaller companies which are not able to access the whole gamut of facilities and there are many agencies involved (for exports).”]]>

26 FAQ by Reserve Bank of India for KYC

Images source: RBI website
Here’s what RBI says about KYC guidelines:
Q1. What is KYC? Why is it required? KYC means “Know Your Customer”. It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks’ services are not misused. The KYC procedure is to be completed by the banks while opening accounts. Banks are also required to periodically update their customers’ KYC details. Q2. What are the KYC requirements for opening a bank account? To open a bank account, one needs to submit a ‘proof of identity and proof of address’ together with a recent photograph. Q3. What are the documents to be given as ‘proof of identity’ and ‘proof of address’? The Government of India has notified six documents as ‘Officially Valid Documents’ (OVDs) for the purpose of producing proof of identity. These six documents are Passport, Driving Licence, Voters’ Identity Card, PAN Card, Aadhaar Card issued by UIDAI and NREGA Job Card. You need to submit any one of these documents as proof of identity. If these documents also contain your address details, then it would also be accepted as ‘proof of address’. If the document submitted by you for proof of identity does not contain address details, then you will have to submit another officially valid document which contains address details. Q4. If I do not have any of the documents listed above to show my ‘proof of identity’, can I still open a bank account? Yes. You can still open a bank account known as ‘Small Account’ by submitting your recent photograph and putting your signature or thumb impression in the presence of the bank official. Q5. Is there any difference between such ‘small accounts’ and other accounts Yes. The ‘Small Accounts’ have certain limitations such as: — balance in such accounts at any point of time should not exceed Rs 50,000 — total credits in one year should not exceed Rs 1,00,000 — total withdrawal and transfers in a month should not exceed Rs 10,000 — Foreign remittances cannot be credited to such accounts. Such accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months if the holder of such an account provides evidence to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account. Q6. Would it be possible, if I do not have any of the officially valid documents, to have a bank account, which is not subjected to any limitations as in the case of ‘small accounts’? A normal account can be opened by submitting a copy of any one of the following documents as Proof of Identity (PoI): (i) Identity card with person’s photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions; or (ii) letter issued by a gazetted officer, with a duly attested photograph of the person. For Proof of Address (PoA), you may submit the following documents:
  1. Utility bill, which is not more than two months old, of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
  2. Property or Municipal Tax receipt;
  3. Bank account or Post Office savings bank account statement;
  4. Pension or family Pension Payment Orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
  5. Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies. Similarly, leave and license agreements with such employers allotting official accommodation; and
  6. Documents issued by Government departments of foreign jurisdictions or letter issued by Foreign Embassy or Mission in India.
This, however, is not a general rule and it is left to the judgement of the banks to decide whether this simplified procedure can be adopted in respect of any customer. Q7. If my name has been changed and I do not have any OVD in the new name, how can I open an account? A copy of the marriage certificate issued by the State Government or Gazette notification indicating change in name together with a certified copy of the ‘Officially Valid Documents’ in the prior name of the person is to be furnished for opening of account in cases of persons who change their names on account of marriage or otherwise. Q8. Are banks required to categorise their customers based on risk assessment? Yes, banks are required to classify their customers into ‘low’, ‘medium’ and ‘high’ risk categories depending on their AML risk assessment. Q9. Do banks inform customers about this risk categorisation? No Q10. If I refuse to provide requested documents for KYC to my bank for opening an account, what may be the result? If you do not provide the required documents for KYC, the bank will not be able to open your account. Q11. Can I open a bank account with only an Aadhaar card? Yes, Aadhaar card is accepted as a proof of both identity and address. Q12. Is it compulsory to furnish Aadhaar Card for opening an account? No. you may furnish Aadhaar card or any of the other five OVDs for opening an account. Q13. What is e-KYC? How does e-KYC work? e-KYC refers to electronic KYC. e-KYC is possible only for those who have Aadhaar numbers. While using e-KYC service, you have to authorise the Unique Identification Authority of India (UIDAI), by explicit consent, to release your identity/address through biometric authentication to the bank branches/business correspondent (BC). The UIDAI then transfers your data comprising your name, age, gender, and photograph electronically to the bank. Information thus provided through e-KYC process is permitted to be treated as an ‘Officially Valid Document’ under PML Rules and is a valid process for KYC verification. Q14. Is introduction necessary while opening a bank account? No, introduction is not required. Q15. If I am staying in Chennai but if my proof of address shows my address of New Delhi, can I still open an account in Chennai? Yes. You can open a bank account in Chennai even if the address in the “Officially Valid Document” is that of New Delhi and you do not have a proof of address for your Chennai address. In such case, you can submit the officially valid document having your New Delhi address, together with a declaration about your Chennai address for communication purposes. Q16. Can I transfer my existing bank account from one place to another? Do I need to undergo full KYC again? It is possible to transfer an account from one branch to another branch of the same bank. There is no need to undergo KYC exercise again for such transfer. However, if there is a change of address, then you will have to submit a declaration about the current address. If the address appearing in the ‘Officially Valid Documents’ (OVDs) submitted for proof of address is no longer your valid address (i.e. neither your permanent address nor your current address), you need to get an Officially Valid Document for Proof of Address containing the current or the permanent address and furnish the same within six months. In case of opening an account in another bank, however, you will have to undergo KYC exercise afresh. Q17. Do I have to furnish KYC documents for each account I open in a bank even though I have furnished the documents of proof of identity and address? No, if you have opened a KYC compliant account with a bank, other than a ‘small account’, then for opening another account with the same bank, furnishing of documents is not necessary. Q18. For which banking transactions do I need to quote my PAN number? PAN number needs to be quoted for transactions such as account opening, transactions above Rs.50,000 (whether in cash or non-cash), etc. A full list of transactions where PAN number needs to be quoted can be accessed from website of Income Tax Department at the following URL: Q19. Whether KYC is applicable for Credit/Debit cards? Yes. KYC exercise is necessary for Credit/ Smart Cards and also in respect of add-on/ supplementary cards. Since debit cards are issued only to account holders and accounts are opened only after the KYC procedure is completed, there is no need for separate KYC for issuing debit card. Q20. I do not have a bank account. But I need to make a remittance. Is KYC applicable to me? Yes. KYC exercise needs to be done for all those who want to make domestic remittances of Rs. 50,000 and above and all foreign remittances. Q21. Can I purchase a Demand Draft/Payment Order/Travellers Cheque against cash? Yes, Demand Draft/Payment Order/Travellers Cheques for below Rs.50,000/- can be purchased against cash and such instruments for Rs. 50000/- and above can be issued only by way of debiting the customer’s account or against cheques. Q22. Do I need to submit KYC documents to the bank while purchasing third party products (like insurance or mutual fund products) from banks? Yes, all customers who do not have accounts with the bank (known as walk-in customers) have to produce proof of identity and address while purchasing third party products from banks if the transaction is for Rs.50,000 and above. KYC exercise will not be necessary for bank’s own customers for purchasing third party products. However, instructions to make payment by debit to customers’ accounts or against cheques for remittance of funds/issue of travellers’ cheques, sale of gold/silver/platinum and the requirement of quoting PAN number for transactions of Rs.50,000 and above will be applicable to purchase of third party products from bank by its customers as also to walk-in customers. Q23. My KYC was completed when I opened the account. Why does my bank insist on doing KYC again? Banks are required to periodically update KYC records. This is a part of their ongoing due diligence on bank accounts. The periodicity of such updation varies from account to account depending on its risk categorisation by the bank. Periodic updation of records also helps prevent frauds in customer accounts. Q24. What are the rules regarding periodic updation of KYC? Different periodicities have been prescribed for updation of KYC records depending on the risk perception of the bank. KYC is required to be done at least once in two years for high risk customers, once in eight years for medium risk customers and once in ten years for low risk customers. This exercise would involve all formalities for KYC normally taken at the time of opening the account. While periodic updation of KYC has to be carried out in respect of customer categorised as ‘low risk’ also, if there is no change in status with respect to the identity (change in name, etc.) and/or address of such customers the banks may ask such customers to submit only a self-certification about ‘no-change in status’ at the time of periodic updation. Banks may not ask such customers to submit copies of ‘Officially Valid Documents’ for periodic updation. In case of change of address of such ‘low risk’ customers, they could merely forward a certified copy of the document (proof of address) by mail/post, etc. Physical presence of such low risk customer is not required at the time of periodic updation. Customers who are minors have to submit fresh photograph on becoming major. Q25. What if I do not provide the KYC documents at the time of periodic updation? If you do not provide your KYC documents at the time of periodic updation, bank has the option to close your account. Before closing the account, the bank may, however, impose ‘partial freezing’ (i.e. initially allowing all credits and disallowing all debits while giving an option to you to close the account and take your money back). Later, even credits also would not be allowed. The ‘partial freezing’ however, would be exercised by the bank after giving you due notice. Q26. How is partial freezing imposed? Partial freezing is imposed in the following ways: — Banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing’. — After that a reminder for further period of three months will be issued. — Thereafter, banks shall impose ‘partial freezing’ by allowing all credits and disallowing all debits with the freedom to close the accounts. — If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing’ banks shall disallow all debits and credits from/to the accounts, classifying them inoperative. Meanwhile, the account holders can revive accounts by submitting the KYC documents.]]>

Financial Awareness – 06/09/2016

DCB Bank rolls out mVisa, a Card-less solution at retail outlets Financial Awareness for September 06, 2016 DCB Bank, a new-generation private sector bank, has announced the launch of mVisa, a mobile based payment solution that will make payments at retail outlets much easier. Customers can pay now through their smartphones by scanning the unique Quick Response (QR) code at the retail outlet. mVisa is a card-less solution that offers customers the convenience of making digital payments at retail outlets. Customers of any mVisa issuing bank can make digital payments at mVisa enabled retail outlets. DCB Bank has partnered with Chennai-based digital payment companies, M2P Solutions and GI Technology, to implement mVisa. DCB Bank has equipped over 1,000 Smart Shop retail outlets with the mVisa solution and plans to expand it to over 25,000 shops across India in the coming months. Through mVisa, customers can also avail of Cash@POS service and pay for goods and services directly using their smart phones. To get regular Financial awareness updates signup for our website.

Canara Bank bags D&B’s best bank award

Financial Awareness for September 06, 2016Canara Bank was conferred with the Dun & Bradstreet Banking Awards 2016, for being the Best Bank under Priority Sector Lendind category and Best Retail Growth performer amongst the PSBs . The award was received by Mr.Harideesh Kumar B, Executive Director of Canara Bank from Mr.Arjun Ram Meghwal, Union Minister of State for Finance and Corporate Affairs at Mumbai on August 31.

Rajan :Protect RBI’s Right to say NO to Govt

Financial Awareness for September 06, 2016 RBI governor Raghuram Rajan has strongly defended the Central bank’s right to say NO, arguing that it is important for its survival even as he called for a framework that clearly outlines the responsibilities of the RBI, strengthens oversight and clarifies the rank of the central bank chief. On his last day in charge of India’s central bank , Rajan was speaking at St Stephen’s College in Delhi. Recalling the words of his predecessor D Subbarao, Rajan said that though the RBI has to work under a framework set by the government, it cannot “just exist” if its ability to say NO is not protected. To get regular Financial awareness updates signup for our website.

SIT presses RBI to share data with govt

Financial Awareness for September 06, 2016 The special investigation team (SIT) on black money has written to the Reserve Bank of India asking the Central bank to share information on foreign exchange transactions and create a mechanism to track illicit flow of funds with the enforcement directorate, directorate of revenue intelligence (DRI) and CBDT. RBI maintains an internal database for foreign exchange transactions both inward and outward remittances. However, the SIT has said that the data available with RBI could be ‘cross checked with other information available with enforcement authorities and illicit financial flows could be curbed.’ In the wake of the Bank of Baroda scam, the SIT had asked RBI to institutionalise a mechanism for cross checking of advance remittances against ‘Bill of Entry’ irrespective of value of advance remittances sent.

Patel assumes charge, balancing inflation, rate cuts the main challenge

Financial Awareness for September 06, 2016Mr.Urjit Patel, deputy governor of the RBI until a day ago, slipped into his new role as the 24th Governor of the Reserve Bank of India on Monday, an assignment where it is likely he will always be measured against his predecessor and his actions. “Dr Urjit R Patel assumed charge as the twenty-fourth Governor of the Reserve Bank of India effective September 4, 2016 after serving as Deputy Governor since January 2013. He was re-appointed as Deputy Governor on January 11, 2016 after completion of his first three-year term of office,” RBI said in a statement on Monday. The formal handover ceremony, from Rajan, who has decided to go back into academics, to Patel, will take place on Tuesday, since September 4 and 5 were non-working days. Patel’s extensive role in the reforms that the RBI embarked upon during Rajan’s tenure, including heading the Monetary Policy Department, has also convinced observers that RBI policy will not be subject to any drastic changes and continuity will be a primary advantage.To get regular Financial awareness updates signup for our website. MORE FINANCIAL AWARENESS UPDATES]]>

Financial Awareness – 03/09/2016

Centre wants banks to get tough with defaulters: A plan that the government is considering— getting banks laden with bad debt to put the screws on some large defaulting promoters and make an example of them to persuade others to pay up quickly. “A strong message needs to go from all concerned that resolution is important for the system,” said a note on bad loans drawn up after a discussion among regulators and submitted to the government. The government and the Reserve Bank of India are in agreement that banks may need to pick up some cases of significant exposure as laid out in the note. Financial services secretary Ms.Anjuly Chib Duggal had noted, “We have the Joint Lenders’ Forum (JLF) mechanism and somewhere it seems to be a cold-feet mechanism because it doesn’t seem to be working the way it ought to”. Stress on agricultural loans may rise if rainfall remains uneven: SBH chief There is an increasing risk of agricultural assets of banks coming under stress if the projected rainfall continues to remain uneven, according to Mr.Santanu Mukherjee, Managing Director, State Bank of Hyderabad. There has been drought in regions like Marathwada and Hyderabad-Gulbarga regions for the last three years. “This year, even though initial rains were good, still some regions are out of its purview,” Mr.Mukherjee told. “Slowly, farmers are getting impacted leading to problems in repayment,” he said, adding that recovery efforts were also not getting full support from the government and other agencies involved. Equitas to start small finance bank next week : Chennai-based Equitas Holdings, which has received licence from RBI to start a small finance bank, said it will commence the business from September 5. It hopes to start operations with a network of around 400 branches, which would be established through the year. Extending Sarfaesi Act to NBFCs credit positive, says ICRA: The extension of the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 to non-banking financial companies (NBFCs) is credit positive for retail-focussed NBFCs, especially those which extend mortgage-backed loans, according to credit rating agency ICRA. Following a notification by the Finance Ministry, the Act is now applicable to NBFCs having assets of more than Rs.500 crore according to their last audited balance sheet. SEBI seeks major changes to new KYC process: The Securities and Exchange Board of India (SEBI) has written to the Govt stating several market intermediaries such as mutual funds (MFs), brokerages and even banks were facing issues adhering to the new central KYC process. Starting August 1, the government has shifted to the central KYC process, to enable common and one-time KYC for all financial market intermediaries. Central KYC is being implemented through the Central Registry of Securitisation and Asset Reconstruction and Security Interest of India ( CERSAI). In a recent letter to the Ministry of Finance, the capital market regulator has demanded slew of changes, including more time between opening a new account and making an electronic entry with the central KYC registry. As per the norms, every financial institution needs to file an electronic copy of a client’s KYC records with the central registry within three days of an account being opened. Export growth will be slow, but it will be steady: Ms.Sitharaman The Commerce Minister Ms.Nirmala Sitharaman said that growth in exports will not increase substantially, but it will be slow and steady. The growth drivers would be new markets, as traditional markets have started slowing down. She said that in 2015-16 export was valued at $262.3 billion, lower by 15.5%. However from June, this fall was arrested and she attributed this to key developments, which took place in September last year. These are interest subvention scheme and government provided performance based incentive schemes. Exports to the top 15 destinations, which are catered by Indian exporters, dropped. These include, US, UAE, China, UK, Singapore, Germany, Belgium, France and others. New export markets, including Africa, Latin America and others were found and now the ministry is moving forward and taking measures, she added]]>

UPI in simple Words – New Payment system of RBI

UPI ( Unified Payment Interface) is completely different from traditional online transfer methods like NEFT/IMPS. UPI is being developed by NPCI which owns IMPS transfers as well and then integrated with member banks to enable UPI transfers. Let me put it in details about all the available transfer methods before I explain UPI –

  1. What is NEFT ? get bank account number and IFSCcode, transfer the amount it will get credited in bulk on hourly basis by RBI. This need a valid bank account number, need to have net banking enabled and more importantly both the parties should have bank account number.
  2. What is IMPs ? This same as NEFT only thing amount get credited to the beneficiary account instantly. IMPS can only be done between two bank accounts which is must. You can transfer using IMPS using ifsc code and account number or you can transfer if you know the unique MMID and mobile number of beneficiary.
  3. Now WHAT IS UPI ? – This does not require having bank account for anybody who want to transfer and get the money i.e. You should have smartphone, install Bank Mobile App like for hdfc- payzapp, ICICI – Pocket etc.) register with your mobile number, GET unique UPI-ID and start banking. In more under-stable way – It is like Paytm where you can transfer the money from one wallet to another using just mobile number, which is already prevailing for Banks as well but between same banks i.e. If you have hdfc mobile app you can transfer the money between another guy who has hdfc payzapp, if you have icici pocket app you can transfer the money from one pocket app to another using mobile number, BUT WITH UPI YOU WOULD BE ABLE TO TRANSFER THE MONEY FROM ONE HDFC PAYZAPP TO ANOTHER ICICI POCKET APP – This is the essence of UPI. If you dont have bank account then also you can install any bank app and send/receive money in your app from any body who has upi enabled app.
  4. So Here is the detailed steps to use UPI –
    1. UPI is integrated with your bank’s app – Install any bank app and register using mobile number.
    2. Once you register, a unique ‘virtual address’ will be created, which will be mapped with your mobile phone.
    3. You can pay for transactions as low as Rs 50 and go all the way up to Rs 1 lakh. Payments can be made between friends, to merchants and even to delivery boys instead of doing cash on delivery.
    4. All you need is the unique ID of the ecommerce firm, of any merchant, friends etc and transfer the amount instantly.
  5. Review of UPI Features –
    1. You can payall the bills, do recharges, pay utililty bills etc – Yes this can be done in any existing bank mobile app so this is not something new.
    2. You can pay for e-com order which are cash on delivery – Yes this you can do since now you have the capability to transfer money to anybody having UPI-Id.
    3. Banking is moving to Cashless Society – Only to a extent since these apps have limit of 1 lac maximum and that also if you provide the KYC. Still people will prefer going to banks for money related things of business transactions . This UPI will be only used for the tech-loving guys who buy online, watch movies by online ticket, lives in metro cities etc. My 70% of Indian living in villages who have just opened account in banks can not use all these tech-savy app unless literacy or more specific finance literacy is not given to them.
  6. Regarding Original Question How to Download ? – Let the member banks be part of UPI, then banks will integrate with their existing mobile apps and then you can download the upi enable app of that particular banks i.e. If you like HDFC then download HDFC UPI MOBILE APP. I am sure you got it, there is no app which RBI own, RBI is just facilitators for transfers.
  7. Banks providing UPI enabled mobile app on Google Play Store:
    Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, PNB, South Indian Bank, Vijaya Bank and YES Bank.

I think UPI is idea of Outgoing RBI governer Raghuram Rajan with good intentions and yes this will be new breakthrough for new generations who uses smartphone for each and everything, however this can not be used for larger business transactions, can not be used by mid-age middle class people as they are still struggling to use NEFT/IMPS.


Detailed Information

UPI Payment system : RBI Docs

Download as PDF


The Unified Payment Interface allows payments to be initiated by the payer, or by the payee. In the basic payee initiated flows, the payment request is routed by the initiating application through the NPCI switch to the payer for approval. However, in certain instances, where it is possible to connect with the payer immediately, it is preferred that the payee sends a payment request to the payer, who can then initiate the payment request with his credentials.

This leads to a significantly smoother payment experience. Some examples of these include in-app payments – where the merchant app, may send the request to the PSP app on the same device, instead of a collect request via the PSP network. Another example may be for proximity payments, where the payer and payee are using different devices, but are close enough for the information to be transmitted locally.

This document provides the technical specifications for developers to enable inter application payment requests.

  • Usage Examples

Example 1: Seamless in-app payment within the same mobile of the user.

  • Ashok is a student and uses a video application (MyStar) that allows buying on- demand movie on his Android phone.
  • He banks with DiBank (PSP in this case) and uses their mobile application for Android that has implemented UPI features.
  • In MyStar app, Ashok wants to watch a movie for Re.25.
  • MyStar application creates the UPI payment link as per this spec and launches the Android intent with all necessary parameters populated in the URL.
  • Since DiBank PSP app is registered to listen to UPI link/intent, it starts the app and takes Ashok straight to pay screen with all values pre-populated from the link/intent.
  • Ashok verifies the info on screen and click pay to complete the payment.

Example 2: Proximity payment at a merchant using QR code.

  • Mary uses her bank provided UPI application to make payments to nearby grocery store.
  • After the purchase, grocery store PoS application generates a dynamic QR code containing the UPI link (as per this spec) with the payment details.
  • Mary opens the UPI application on her mobile and scans the QR code on the PoS device or on the bill printed by the PoS.
  • UPI application takes her straight to pay screen with all values pre-populated from the link/intent.
  • She verifies the info on screen and click pay to complete the payment.
  • Both merchant and she gets confirmation instantly.

Note that a real small one person shop could simply print a static QR code containing the payee address and name without having software to generate dynamic QR code with other information such as bill number, amount, etc. In the case of static QR code, customer, after scanning, should enter the amount and then make the payment.

Example 3: DTH payment from home.

  • Nadeem subscribes to DTH in his house and wants to make a payment for on- demand subscription.
  • Nadeem selects the channel and clicks “buy now”.
  • DTH shows the details along with a QR code for UPI payment.
  • He verifies the info on screen and click pay to complete the payment.
  • UPI application takes him straight to pay screen with all values pre-populated from the QR code which contained the standard UPI link.
  • Nadeem opens his UPI application on his mobile and scans the QR code on the TV screen.
  • He gets a confirmation on his mobile and the TV channel is automatically turned on for him to view.
  • Link Specification and Parameters

UPI Deep linking URL spec must be as follows. All PSP applications must mandatorily implement listening to “UPI” links within their mobile applications.


Where param-name can be any of the valid parameters (based on mandatory vs optional) listed in below table.

Parameter name

Data type


Mapped to UPI API field






Payee VPA





Payee name





Payee merchant code




Txn –>id

This must be PSP generated id when present. In the case of Merchant payments, merchant may acquire the txn id from his PSP.





Transaction reference ID. This could be order number, subscription number, Bill ID, booking ID, insurance renewal reference, etc.

Conditional – This field is Mandatory for all Merchant transactions.





Transaction note providing a short description of the transaction.




Payee–> Amount–>value

Transaction amount in decimal format.




Txn –>Rules –> MINAMOUNT

Minimum amount to be paid if different from transaction amount.




Payee–> Amount–>curr

Currency code. Currently ONLY “INR” is the supported value.





This should be a URL when clicked provides customer with further transaction details like complete bill details, bill copy, order copy, ticket details, etc. This can also be used to deliver digital goods such as mp3 files etc. after payment.

This URL, when used, MUST BE related to the particular transaction and MUST NOT be used to send unsolicited information that are not relevant to the transaction.

Developers who are developing merchant applications, mobile apps wanting to initiate UPI payment) should form the URL within their application and then do either of the following:

  • If the application and the PSP UPI application is within the same mobile, then do a deep linking using the URL.
  • Create a QR code within the application and allow customers to scan it and invoke their UPI application.
  • Use alternate transfer protocol (such as BT, WiFi Direct, NFC, Sound, etc.) to transfer the URL data to customer mobile on which is gets deep linked to their PSP application.
  • Create the URL and allow standard “share” allowing a UPI payment intent to be sent via chat or email. Receiver will click on the link to then invoke their PSP application.

Using a standard data format and URL scheme allows the actual protocol of data transfer to be separated out and thus allowing any transfer protocol to be used to transfer this from one device to another.

Implementation Samples


The user goes to an ecommerce website (Rohit Stores) on his mobile phone, and places an order. The website generates a link, which the user can click on, to complete the payment.

As per the specification, the link contains the payee details, the transaction reference (order id), and the amount to be paid.


upi://pay?pa=zeeshan@npci&pn=Zeeshan%Khan&mc=0000&tid=cxnkjcnkjdfdvjndkjfvn&tr=4894398 cndhcd23&tn=Pay%to%rohit%stores&am=1010&cu=INR&refUrl= 89e8973e87389e78923ue892

When the user clicks on the link on his mobile browser, it invokes the local PSP application, where the user can confirm the details, and complete the payment.

Because of the design simplicity, user familiarity with hyperlinks, and the ease of sharing, such links can be generated and shared across multiple communication channels, such as email, chat, and social networks.

QR Code

QR code consists of black modules arranged in a square pattern on a white background. The information encoded can be made up of four standardized kinds (“modes”) of data (numeric, alphanumeric, byte/binary, Kanji), or by supported extensions virtually any kind of data.

QR codes can be used for proximity payments with UPI. Developers who are developing merchant applications must generate a URL fully compliant to specification in previous section and then create a QR code of that URL.


upi://pay?pa=zeeshan@npci&pn=Zeeshan%Khan&mc=0000&tid=cxnkjcnkjdfdvjndkjfvn&tr=4894398 cndhcd23&tn=Pay%to%rohit%stores&am=1010&cu=INR&refUrl= 89e8973e87389e78923ue892

Note to PSPs: Considering the simplicity, openness, and wide acceptance of QR codes and its ability to be printed, displayed on PoS devices, and various screens, etc., PSP applications are encouraged to include a QR code scan option within their UPI application so that customers can use a single app to scan and pay.


UPI linking is protocol agnostic and hence allows innovative mechanisms between merchant/proximity devices to send a UPI intent to customer phone.

For example, a merchant PoS application could create the UPI link (as per spec in previous section) and then transmit using sound to the customer device. Customer PSP app or a utility app can listen to that sound, convert it back to the link, and then launch the UPI application on customer phone to make the payment.

Note that there can be 3rd party general purpose utility applications that allows users to scan these QR codes, launch the link, allow other innovative transfer protocols using sound, etc. Such apps can work as a proxy utility that sends/receives these links and then launch the appropriate apps that are listening to these intents.

Financial Awareness – 24/08/2016

Bankruptcy code :Jaitley calls for speedy implementation

Bankruptcy code Jaitley calls for speedy implementation

Finance Minister Arun Jaitley on Tuesday called for time bound implementation of the Insolvency and Bankruptcy Code. “Immediate action is required on the key requirements for implementation of the Code including setting-up of Insolvency and Bankruptcy Board of India (IBBI) and notifying rules for insolvency professionals, insolvency professional agencies and corporate insolvency,” he said at a meeting to review its progress. To promote ease of doing business by faster resolution of insolvency, the government is hoping to implement the Code at the earliest. The Code, which was approved by Parliament in May, provides for time bound resolution of financial distress and bankruptcy of companies and individuals..

Govt fund infusion in banks may top Rs.25,000 crore in FY17, says SS Mundra


The board understanding is that more than the budgeted amount of Rs.25,000 crore may be needed for recapitalisation of public  sector banks in the current fiscal ending March, Reserve Bank of India Deputy Governor SS Mundra said on Tuesday. As the present situation is concerned, I think most of the banks are adequately capitalised to take care of minimum regulatory requirements. We will keep a watch . As we move into the year, We will see  how things pan out. The board sense is that there could be more than Rs.25,000 crore for capital requirements for banks, Mundra said on the sidelines of an industry body event.

RBI reviewing definition of branch to cut operating costs of banks


The Reserve Bank of India is reviewing the definition of bank branches to enable smaller, technology-leveraged operations to be treated as branches, two senior Industry sources told Cogencis. The aim is to help banks to contain costs and have more viable operations in unbanked areas, the sources said. The central bank has received  suggestions from banks and the Indian Banks’ Association on reviewing norms on branch operations and hiring for positions in farflung  areas instead of the current thrust on brick-and –mortar model.Last week, RBI Governor Raghuram Rajan had said an internal panel was studying whether the current definition of a branch needed to be revisited in the wake of availability of new technologies, such that financial inclusion requirements are met without any dilution.

Pace of formation of new bad loans has slowed:RBI


Reserve Bank of India Deputy Governor S. S. Mundra said the pace of formation of new non-performing assets (NPAs) or bad loans has decelerated although some banks have posted losses for the first quarter of the current financial year due to higher provisioning. He also said most of the banks are adequately capitalised and the government has promised additional capital if they require. As far as bad loans are concerned, he said, they are showing a mixed trend.  There are other banks…still they are in middle of it and they would need to do some work before they get out of it,” he said.

Govt considering ban on Rs.3L plus cash transactions cash-transaction

In its efforts to clamp down on black money, the government is actively considering the Special Investigation Team’s (SIT) recommendation of banning cash transactions over Rs 3 lakh, Rani Singh Nair, chairperson, CBDT said on Tuesday. It had also recommended that the permission of the area tax commissioner would be required if someone was holding cash above Rs 15 lakh. “These recommendations have come. It (banning cash transactions over Rs 3 lakh) is under examination,” said Nair. Sources in the department added that the matter will be put forward for the approval of Finance Minister Arun Jaitley before it is notified. The SIT, headed by Justice M B Shah (retired), last month, submitted its fifth report to the Supreme Court on steps needed to curb black money.

Ujjivan Adopts new age digital banking solution


Ujjivan Financial Services which recently received an approval from the Reserve Bank of India (RBI) to set up a ‘Small Finance’ bank (SFB), has adopted CRMNEXT’s integrated ‘Assisted Bank-in-a-Box Edition’ thereby commencing implementation of a new-age digital banking solution. “As we get set to launch our banking operations, customer engagement and satisfaction is our top priority. And we wanted to take-off quickly. We chose CRMNEXT’s Assisted Bank-in-a-Box solution because of synergies in the product’s offerings and our vision. Ujjivan will be focusing highly on mobility solutions and will implement mobile technology using mobiles and handheld devices to reach the rural customers,” said Ittira Davis, COO & Head of Transition, Ujjivan Financial Services

Reactions of Top Financial Executives for appointment of RBI’s new Governor Urjit Patel

The government has announced Urjit Patel as the next governor of the Reserve Bank of India for a three-year term, succeeding Raghuram Rajan who in a surprise announcement in June said he did not want to stay on.
Patel, 52, is currently a deputy governor at the RBI and headed a committee on monetary policy reforms. The recommendations of the committee to set an inflation target and create a new Monetary Policy Committee were backed by Prime Minister Narendra Modi’s government. Here are a few reactions from India Inc and stock brokerages on his appointment.
Gautam Chhaochharia, head of research, UBS Securities India: “The appointment of Urjit Patel as the RBI governor, along with recent reconfirmation of 4 per cent CPI inflation target, suggests that a change in political economy and thus policy loosening may not be obviously imminent.”
Ajay Bodke, CEO & Chief Portfolio Manager, PMS Prabhudas Lilladher: “Institutional Investors both domestic & foreign would welcome the Indian government’s appointment of RBI Deputy Governor Dr Urjit Patel as successor to Dr Raghuram Rajan. It signals a seamless continuity in the policies pursued by the RBI to conduct it’s monetary policy in an independent many ner. One of the most seminal achievements of Dr Rajan was the signing of monetary policy agreement between the government and RBI for “flexible inflation targeting” which was based on the report of the panel headed by Dr Patel. Dr Patel’s path-breaking report has helped India join the league of developed nations where adoption of flexible inflation targeting has helped anchor inflationary expectations and brought about a structural control over inflation. Markets would strongly cheer the appointment”-


Sajjan Jindal, Chairman and Managing Director, JSW Steel group: “I am very glad the Govt has taken a decision on appointing RBI governor as an internal candidate versus from outside as this will support the continuation of the policy at the RBI.”


Gopal Srinivasan, Chairman & MD, TVS Capital Funds Limited: “The Modi administration has established it has the most rigorous  process of evaluating personnel appointments. Hence we should see it as a carefully choice between the two eminent and equal candidates (that the press has consistently projected as front  runners). I believe the administration wants continuity in anti-inflation policies and bank NPA amelioration. As well as a governor whose work will be celebrated, rather than a celebrity as a governor,”


Arundhati Bhattacharya, Chairman, SBI: “Appointment of Urjit Patel comes as a welcome move. Dr. Patel has been at the helm of institutionalizing the inflation targeting regime in the monetary policy framework. His appointment signals continuity of policy intent, both on part of RBI and Government.”


PhillipCapital: “This will mean continuity in monetary policy as all the monetary policies adopted by Rajan were in line with urjit patel committee recommendations. He (Patel) is expected to remain an inflation hawk, liquidity should remain in neutral (possibly not on surplus)… bond yields should react adversely on Monday.”


Edelweiss: “Just the right kind of appointment needed after Dr. Rajan’s exit. The architect of the inflation targeting mechanism. Gives credence to continuation of sound monetary policy. This appointment holds signal value. Modi govt. is not letting the reform agenda get taken over by populism in 2nd half of its tenure. As Banking NPAs go from front page news to indifference and PSB heal the continuation of policy will be a solid foundation for growth.”


Devendra Kumar Pant, chief economist, India Ratings & Research: “Continuation in monetary policy will remain. He is the architect of inflation targeting approach. Investors don’t want any change in policy direction. “He has worked with IMF, he has worked with the corporate sector and he was with the Brookings Institution. So, coming from different areas, he knows how things are and what kind of action is required. “The market will welcome it (his appointment). Maybe you will see a strengthening of rupee vis-à-vis dollar if globally there is no turmoil. You may also see bond yields responding.”


Ananth Narayan, regional head of financial markets, Asean and South Asia, Standard Chartered Bank: “It’s good to have the uncertainty and suspense out of the way; we can focus on the way forward now. Given the monetary policy framework was envisaged by the eponymous Dr. Urjit Patel committee, there should be continuity in this critical aspect. To that extent, global investors and other stakeholders will welcome this appointment.”

Chanda Kochhar, MD and CEO, ICICI Bank: “As the Deputy Governor of RBI, Dr Urjit Patel has played a key role in developing the new monetary policy framework that has focused on reigning in inflation and has imparted stability to the currency. His appointment would ensure a smooth transition and continuity in monetary policy, as India puts in place major structural reforms to transition to a higher growth path. I wish him all the very best in his new role.”


Ritika Mankar, economist, Ambit Capital: “Choice of Urjit Patel is in line with our expectations as he was one among the top two candidates we were working with. “What we like about him is: One, he’s seen RBI change from being a loosely inflation-focused central bank to one that formally targets CPI inflation. And second, his experience as a deputy governor in charge of monetary policy under the governorship of Rajan will hold him in good stead. However, what remains to be seen is how he handles banking as a sector, he probably lacks what a candidate like Arundhati Bhattacharya, would have brought to the table.”


Sunil Godhwani, Whole-time Director & CEO, Religare Enterprises: “The news of Dr. Urjit Patel’s appointment as the RBI  Governor is a step in the right direction. Having worked with Dr. Rajan, and being an existing part of the RBI machinery, this is a welcome and natural  progression. We are hopeful that he will  continue the good work of balancing  inflation while encouraging economic growth”

Venu Srinivasan, chairman, TVS Motor and past president, CII: “It is a very good thing, for the continuity. They got somebody from the Reserve Bank of India itself, that too with wide experience in IMF and others. Very well qualified and very well respected and I think that it is good continuity in the bank that somebody from the bank is elevated rather than somebody from outside. In the last three to four years many of the companies have caught into serious erosion of their equity and NPAs. Broader policy view has to be taken on a one time basis, a major restructuring of loans will be taken and done rather than say that you just have to write it off as NPAs, because these are not mistakes that happened due to the promoter or to the bank’s diligence.

Kiran Mazumdar Shaw, chairperson and managing director, Biocon: “The appointment of Urjit Patel as the new RBI governor is a wonderful decision. It will ensure continuity and stability in the policies. Urjit has worked very closely with Raghuram Rajan. He has a deep understanding of the policies. He has worked with Raghuram for containing inflation, currency volatility and cleaning balance sheet of banks.  Also he starts on a very firm footing. The banks now have much more stronger balance sheets than before. It is now time to spur India Inc. The cost of capital for this is high we should try and attract more investment for India Inc.”

Jay Shankar, Chief India Economist & Director, Religare Capital Markets: “His appointment would ensure continuity of RBI’s policy stance. He should be able to hit ground zero on day one, without needing a lead time to become familiar with policy making process and procedures. Markets – equity and bond – should react positively on Monday.”


Rahul Bajaj of Bajaj Auto: “I am delighted that the Government of India has appointed Mr. Urjit Patel as the new Governor of RBI to succeed Mr. Raghuram Rajan. I do not know Mr. Urjit Patel personally but have heard and read a great deal about him during his two terms as the Dy. Governor of RBI.  All very positive.”

Rupa Rege Nitsure, Group Chief Economist, L&T Finance Holdings: “Dr. Patel’s appointment as the RBI Governor would give a sense of policy continuity. It will assure international investors that the flexible inflation targetting framework will be taken to its logical end and it’s absolutely essential for India’s monetary policy credibility.”
Aneesh Srivastava, CIO, IDBI Federal: “There were few factors we were looking at when it comes to new Governor’s appointment. They are: monetary policy framework, inflation target range, systemic liquidity and continuation of existing policies. The choice of Urjit Patel ensures all these factors are taken care of. Being the man who has seen RBI’s policies and framework, we can expect continuation of what we saw from Rajan.”

Chandrajit Banerjee, Director General, CII: “I’m confident that the new Governor will lead the Central Bank and take its developmental and regulatory agenda to new heights. As in the past, CII is committed to work closely with the Government and the RBI to support the creation of a stable, low inflation and high growth economy. We congratulate Dr Patel on his appointment and wish him all the very best for his new role.”
Harshavardhan Neotia, President, FICCI: “FICCI welcomes appointment of Dr Urjit Patel as Governor, RBI. He is the architect of the current monetary policy stance focussing on inflation and being part of team RBI with current governor will also ensure continuity of ongoing initiatives launched at RBI in recent times.”

Motilal Oswal, CMD, Motilal Oswal Financial Services Ltd: “By appointing Urjit Patel, the author of the monetary policy framework report, as RBI Governor, the government increases its credibility to maintain its fight against inflation. I wish him all the best”

New apps and services by Indian Banks

1) Airtel money – AXIS BANK+AIRTEL
2) Asha Home loan – AXIS BANK
4) Branch on Wheel – ICICI Bank in Odisha
5) Chillar – Hdfc Bank
6) China’s first online Banking “webank” – Tancet Holdings
7) DDA Housing Scheme 2014 – HDFC Bank
8) Digital Banking “POCKET” – ICICI
9) Digital Village Project in Akodara Village of Gujarat – ICICI
10) eforex – SBI
11) E-KYC – SBI
13) E-Wallet – IRCTC
14) Facebook-based funds transfer platform “KayPay” – Kotak Mahindra Bank
15) First home grown INDEX “COMPOSITE INDEX” – SBI
16) I-Mobile app for windows phone – ICICI
17) India’s first” transparent credit card “in association with American Express – ICICI
18) ICICI Apathon App – ICICI Bank launches ‘ICICI Appathon’, a Mobile App Development Challenge
19) India’s first credit card exclusively for GOLF LOVERS – RBL Bank
20) Instant money transfer – BOI
21) Instant Money Transfer (IMT) – Bank of India
22) Kisan card – AXIS BANK
23) Maha Millionaire”, “Maha Lakhpati” – Bank of Maharashtra
24) M-Pesa – ICICI+Vodafone
25) M-Wallet – Canara Bank
26) State Bank Freedom App – State Bank of India
27) Student Travel Card – ICICI
29) Tap and pay – ICICI
30) Twitter Handle account – SBI
31) Video conferencing – Indusuld & federal bank
32) Youth for India – SBI
33) First home grown INDEX “COMPOSITE INDEX” – SBI
34) I­Mobile app for windows phone – ICICI
35) India’s first” transparent credit card “in association with American Express – ICICI
36) India’s first credit card exclusively for GOLF – RBL Bank
37) Instant money transfer – BOI
38) Kotak Bharat’ mobile banking app – Kotak Mahindra Bank (KMB)
39) ‘Saral­ Rural Housing Loan’ Scheme – ICICI Bank
40) Awareness initiative ‘Dhanchayat – HDFC Bank