Funded Interest Term Loan (FITL)
In simple words, Funded Interest Term Loan (FITL) is giving a loan for repaying an existing loan. It’s a kind of loan restricting mechanism whereby lender would give the borrower money to repay the interest component of the loan. It is an ingenious tool recently brought out by RBI in order to tackle the growing NPA burden in India. … Read more
National Common Mobility Card (NCMC Rupay Card)
National Common Mobility Card (NCMC), is an inter-operable transport card conceived by the Ministry of Housing and Urban Affairs of the Government of India. It was launched on 4 March 2019. The transport card enables the user to pay for travel, toll duties (toll tax) , retail shopping, and withdraw money. It is enabled through the RuPay card mechanism. The NCMC card … Read more
Harmonisation of Turn Around Time (TAT) and customer compensation
The Reserve Bank has directed various authorised payment systems to put in place appropriate customer grievance redressal mechanism. Further, for some payment systems the Reserve Bank has issued guidelines prescribing compensation to be paid to customers for delay in resolving failed transactions. It is, however, observed that the time taken for resolving customer complaint varies … Read more
‘Positive Pay’ Mechanism for Cheques introduced by RBI
The Cheque Truncation System (CTS) for clearing cheques is operational pan-India and presently covers 2 per cent and 15 per cent of total retail payments in terms of volume and value respectively; the average value of a cheque cleared in CTS presently is ₹82,000. The CTS-2010 standard specifying minimum-security features on cheque leaves acts as … Read more
Scheme of Offline Retail Payments Using Cards and Mobile Devices
There has been considerable growth in digital payments using mobile phones, cards, wallets, etc. Lack of internet connectivity or low speed of internet, especially in remote areas, is a major impediment in adoption of digital payments. Against this backdrop, providing an option of off-line payments through cards, wallets and mobile devices is expected to further … Read more
Online Dispute Resolution (ODR) System for Digital Payments
As the number of digital transactions rise significantly, there is a concomitant increase in the number of disputes and grievances. Recourse to technology-driven redressal mechanisms that are rule-based, transparent and involve minimum (or no) manual intervention is necessary to deal with them in a timely and effective manner. Accordingly, the Reserve Bank shall require Payment … Read more
5 ways you can protect yourself from UPI Fraud
Did you know? Fraudsters are getting ingenious by the day. UPI, the quick and easy way to transfer funds from different bank accounts, can also be misused to scam you. Here are 5 ways you should learn to protect yourself from such fraud: 1. Don’t engage with fraudsters If you are unfamiliar with a number … Read more