Indiapost Started Internet Banking.

India Post started Internet Banking in selected locations in continuation of migration to the CBS FINACLE, Core Banking Solution from Infosys.  In Tamil Nadu Circle Greams Road Post Office of Chennai City Central Division has been rolled out for CBS on 16.12.2013 for the first time and all other identified offices in pilot Circles will be migrated in coming days. The India Post Internet banking site can be accessed through URL   https://ebanking.indiapost.gov.in/ Following facilities are available for DOP e banking portal user: My Profile:          1. Change 'Sign-on' and Transaction Password.          2. Set Preferences.          3. Update channel id.          4. View personnel details. Accounts:          1. Accounts Summary.          2. Savings accounts details.          3. RD account details.          4. PPF accounts details.          5. TD accounts details.          6. NSC Account details.          7. Loan on RD details.          8. Loan on PPF details.          9. Tax deducted at source details. Transactions:          1. Manage Payee.          2. Manage Billers.          3. Initiate funds Transfer with in DOP.          4. Funds transfer outside DOP.          5. PPF account withdrawal.          6. View scheduled transactions.          7. Pay PPF Account/Repay Loan on PPF.          8. View recurring instructions.          9. Pay RD account.          10. View All Transactions.          11. Repay Loan on RD. General Services:          1. Mails.          2. Inquiry Facility.          3. Service Requests.

Terms and Conditions 1. Definitions:

In these Terms of Service (Terms & Conditions), unless the context indicates otherwise, the following words and phrases shall have the meanings indicated against them:

♦    The Department of Posts comes under the Ministry of Communications and Information Technology. The Postal Service Board, the apex management body of the Department, comprises the Chairman and six Members. The six members of the Board hold portfolios of Personnel, Operations, Technology, Postal Life Insurance, Human Resources Development, Planning respectively. The Joint Secretary and Financial Advisor to the Department is a permanent invitee to the Board. The Board is assisted by a senior staff officer of the Directorate as Secretary to the Board. Deputy Directors General, Directors and Assistant Directors General provide the necessary functional support for the Board at the Headquarters.

♦    DoP refers to Department of Posts.

♦    The Site means   https://ebanking.indiapost.gov.in/

♦    Internet Banking Services are one of the services offered by Department of Posts which provide access to account information, products and other services (including Transaction of financial and non-financial in nature) as advised by the Department from time to time to the customers through the internet banking website.

♦    User refers to a customer of Department of Posts who is authorized to use Internet Banking Services.

♦    Confidential Information refers to the information obtained by the customer through the Department of Posts for availing various services through e-Banking.

♦    Personal Information refers to the information about the User obtained by the Department of Posts in connection with the Internet Banking Service.

♦    Account refers to the User's Savings and/or RD and/or or any other type of account so designated by the Department of Posts to be eligible account(s) for the operations through the use of Internet Banking.

♦    In the event of new accounts opened by the User under the same CIF in future, then the Terms of Service (Terms & Conditions) shall automatically apply to such further use of the Internet Banking by the User.

♦    In case of accounts opened for and on behalf of minors, the Internet Banking facility shall not be made available to the minor. The natural guardian of the minor shall be permitted to use Internet banking with only 'Limited Transaction'rights. The natural guardian shall undertake to give all instructions relating to the operation of the account and further undertake not to reveal the User ID and Password to the minor, which if done so, will be at the risk and consequences of the guardian and Department of Posts shall not be liable for any loss on that account in case the account is operated by the minor. In such an event the transaction will be deemed to have been undertaken by the guardian.

♦    Third party product refers to any product and/or service of third party which is offered by or through the intermediary of Department of Posts.

♦    Customer refers to Customer named in the Application Form and shall, where the context requires, include any authorized representative of the Customer.

♦    Internet Banking Services refers to a service offered by Department of Posts through which a registered Customer may conduct enquiries or perform transactions on the Internet banking website   https://ebanking.indiapost.gov.in/

♦    SMS Password refers to one time 8 digit pass code that would be sent to a customer's mobile number registered on the record of Department of Posts.

♦    Instruction means any request or instruction that is received from the customer by the Department of Posts through Internet Banking services.

2. Applicability of Terms & Conditions:

These Terms mentioned herein form the contract between the User using the Internet Banking services and Department of Posts. By applying for Internet Banking Services and accessing the service, the User acknowledges and accepts these Terms of Service (Terms & Conditions). Any conditions relating to the accounts of customer other than these Terms will continue to apply except that in the event of any conflict between these Terms and the account conditions, these Terms will continue to prevail. The agreement shall remain valid until it is replaced by another agreement or terminated by either party or account is closed, whichever is earlier.

3. Application of Internet Banking Services:

Department of Posts may offer Internet Banking services to selected customers at its discretion and has the right to accept or reject such application as may be submitted by the users. The Customer acknowledges that he/she possesses knowledge of the Internet usage and will have legal access to the Internet. Customers willing to utilize the e-Banking services may approach the Post Office, where their account is maintained or willing to open their account, in person for registering themselves. Department of Posts will advise from time to time regarding the Internet software such as Browsers, which are required for using Internet Banking services. There will be no obligation on the part of the DoP to support all the versions of this Internet software.

4. Internet Banking:

The information provided to the user through the Internet Banking is not updated continuously but at regular intervals. Consequently, any information supplied to the user through Internet Banking will pertain to the date and time when it was last updated and not as the date and time when it is supplied to the user. Department of Posts shall not be liable for any loss that the user may suffer by relying on or acting on such information. Department of Posts may keep its records of the transactions in any form it wishes. In the event of any dispute, the DoP records shall be binding as the conclusive evidence of the transactions carried out through Internet Banking in the absence of clear proof that the DoP's records are erroneous or incomplete. Any request for any service, which is offered as a part of Internet Banking, shall be binding on the user as and when the DoP receives such a request. If any request for a service is such that it cannot be given effect to unless it is followed up by requisite documentation on part of the user, the Department of Posts shall not be required to act on the request until it receives such documentation from the user. The USER understands that the DoP shall be bound by any circulars and directives issued by the Ministry of Finance/Reserve Bank of India with regard to the maintenance and operation of deposit accounts from time to time. The USER acknowledges and undertakes to be equally bound to comply therewith. The USER also hereby absolves and holds blameless the Department of Posts from any claim or damages in respect of any delay on the part of the DoP in carrying out any instructions given by the USER over the internet, where such delay is on account of technological failure, or other reasons beyond the control of the Department of Posts. In cases of technological failure, DoP shall endeavour to keep the downtime to the minimum.

5. Un-authorized Access:

The user shall take all necessary precautions to prevent unauthorized and illegal use of Internet Banking and unauthorized access to the Accounts provided by Department of Posts e-Banking services. DoP shall take all commercially reasonable care to, ensure the security of and to prevent unauthorised access to the Internet Banking using commercially reasonable technology available in India to the Department of Posts. The USER shall also be responsible for maintenance of the secrecy of the personal details of the ACCOUNTS at all times. If the USER fails to keep secret such personal details of the ACCOUNT, then, the Department of Posts shall stand absolved of all obligations under this AGREEMENT. The user shall ensure that e-Banking service offered by DoP or any related service is not used for any purpose which is illegal, improper or which is not authorised under these Terms. If any USER has any reason to believe that there is any unauthorized access of his or her ACCOUNT, the USER shall immediately intimate the DoP at the Post Office branch. The USER understands and recognizes that in matters of unauthorized access, time is of the essence, for speedy detection and prevention. Therefore, any failure on the part of the USER to speedily notify DoP, shall absolve the DoP of any further responsibility with respect to such unauthorized access.

6. Internet Banking access and Passwords:

The user would be allotted an Internet Banking user-id and user password & transaction password by Department of Posts in the first instance. The user will be required to change the password assigned on accessing Internet Banking for the first time. As a safety measure, the user shall change the password as frequently thereafter. In addition to user-id and password DoP may, the user may setup PAM (Personal Access Message) during the first time login. This message will be displayed during the user password entry screen to show the authenticity of the Internet banking site.

7. Joint Accounts:

The user desirous of using the POSB account should be either the account holder Or sole signatory or authorized to act independently in case of a joint account. For such joint account, one user-ID and password will be issued to each of the joint account holders when requested. The other joint account holders shall expressly agree with the arrangement and give their consent on the application form for use of the account. In case of joint accounts operated by more than one user, Department of Posts shall act on the instruction received first and any subsequent instruction shall be neglected. All correspondence will be addressed to the first named person only. All transactions arising from the use of the Internet Banking services in the joint account shall be binding on all the joint account holders, jointly and severally.

8. Service Charges:

Department of Posts reserves the right to charge and recover from the user service charges for providing the e-Banking services. Services charges may be changed periodically by the department. The user hereby authorizes Department of Posts to recover the service charges by debiting one of the Savings accounts of the user or by sending a bill to the user who will be liable to make the payment within the specified period. Failure to do so shall result in recovery of the service charges by department in a manner as the DoP may deem fit along with such interest, if any, and/or suspension of the facility of e-Banking services without any liability to the department.

9. Minimum Balance maintenance and Charges:

The USER shall maintain, at all times such minimum balance in account(s) as the Department of Posts may stipulate from time to time. DoP may, at its discretion, levy penal charges for non-maintenance of the minimum balance. In addition to the minimum balance stipulation, DoP may levy service charges for use of Internet Banking, which will be advised to the USER at the time of opening the account. Any further change in the fees shall be notified on the DoP Web site. The USER authorises DoP to recover all charges related to Internet Banking as determined by DOp from time to time by debiting one of the USER's accounts. However at present there are no charges levied. DoP may withdraw the Internet banking facility, if at any time the amount of deposit falls short of the required minimum as aforesaid and/or if the service charges remain unpaid, without giving any further notice to the USER and/or without incurring any liability or responsibility whatsoever by reason of such withdrawal. DoP shall not be obligated to intimate the withdrawal of such facility over the internet.

10. Transfer of Funds through DoP Internet Banking:

The User accepts that he will be responsible for keying in the correct account number for the fund transfer request. In no case, DoP will be held liable for any erroneous transactions incurred arising out of or relating to the customer entering wrong account numbers. The User shall not attempt to transfer funds without sufficient funds in the related Account. In case of insufficient funds, DoP is not responsible for non-execution /non-payment/breakage of Time deposit accounts of the Accounts linked to the subject Account or of any consequences thereof. DoP shall not be liable for any omission to make all or any of the payments or for late payments due to circumstances beyond its reasonable control. If the funds transfer is made available to the User, it may be used for transfer of funds from the subject Account to other accounts belonging to third parties maintained at DoP and/or at any other Bank which falls under the network of the Reserve Bank of India's Electronic Funds Transfer System. However RTGS/NEFT and other bank payments are not available with DoP Internet banking as of now and it will be established in the near future.

11. Personal Information disclosure:

The USER agrees that the Department of Posts or its vendors may hold and process his PERSONAL INFORMATION on system or otherwise in connection with Internet Banking services as well as for statistical analysis and credit scoring. The USER also agrees that DoP may disclose, in strict confidence, to other institutions, such "PERSONAL INFORMATION" as may be reasonably necessary for reasons inclusive of, but not limited to, the following:

♦    Participation in any telecommunication or electronic clearing network.

 Source: India Post website

India Post's e-Banking Web-portal Launched on 22.12.2013

For Personal Banking : Click Here

For Postal Agent Login : Click Here

India Post plans national ATM network

India Post plans to launch 1,000 ATMs in next six months, to bring all branches on single technology platform

The state-run postal service is among the 25 applicants that have sought a banking licence from the Reserve Bank of India. Photo: Madhu Kapparath/Mint

Mumbai: India Post is going ahead with the rollout of a nationwide network of automated teller machines (ATMs) and bringing all its branches on a single technology platform, notwithstanding the reservations of the finance ministry and the Planning Commission over its proposal to venture into commercial banking.

The state-run postal service is among the 25 applicants that have sought a banking licence from the Reserve Bank of India (RBI). A four-member panel, headed by former RBI governorBimal Jalan, will scrutinize the applications to pave the way for the entry of a third set of private banks into India’s Rs.81 trillion banking sector in two decades.

India Post will use Infosys Ltd’s Finacle software to cover all post offices under the so-called core banking solution (CBS) over the next 14-18 months. It also plans to launch 1,000 ATMs nationwide in the next six months in the first phase, according to a senior official at the postal department who requested anonymity because he is not authorized to talk to the media.

The CBS process, which would allow India Post customers to access their accounts and perform transactions from any branch of the postal network, has already begun with the Greams Road Post Office in Chennai on a pilot basis. “The idea is to cover all offices as soon as possible,” said the official.

India Post has also begun work to set up 5,000 ATMs in select post offices across the country in two phases. The first two ATMs will come up in T Nagar in Chennai and Gole Dak Khana in Delhi by March, the official said.

As of 31 March, commercial banks in India had an ATM network of 114,014 machines, led by State Bank of India (SBI) with 27,175 ATMs, followed by Axis Bank Ltd (11,245), HDFC Bank Ltd (10,743), ICICI Bank Ltd (10,481) and Punjab National Bank (6,312).

The plan is to issue ATM cards to all savings deposit holders at India Post. As on 31 March, the department was managing Rs.6.05 trillion of deposits, nearly half the deposit base of government-owned SBI, the country’s largest commercial bank, and double that of the largest private sector lender ICICI Bank. Of this, about Rs.2 trillion is under the savings scheme in 280 million accounts.

Out of the total 155,000 post offices, 139,040 are in rural areas. About 6,000 people are covered on average by a post office in rural areas and about 24,000 in urban areas, according to a 2011 estimate by the postal department. Once the ATMs are in place, the post office savings bank account customers will be able to access their deposits through ATMs.

“Like every other aspirant for the banking licence, India Post is building up their capacity for banking services," said Abizer Diwanji, a partner and head of financial services at the consulting firm EY, formerly known as Ernst and Young.

“Building a unified nationwide network for financial services makes sense for the department to develop their financial service offerings, even if they do not get the banking licence,” Diwanji said.

India Post’s plan to venture into commercial banking has been opposed by both the finance ministry and the Planning Commission, which have reservations about the postal service’s ability to take up the role of a bank. The proposal is yet to get funding clearances from the Expenditure Finance Committee. The finance ministry has been opposing the plan arguing that the postal service doesn’t have the expertise needed in relevant areas, such as handling credit.

The Expenditure Finance Committee’s approval is required for proposals involving spending of more than Rs.300 crore and the setting up of new autonomous organizations, regardless of the amount. A new bank needs to have equity of at least Rs.500 crore.

The Planning Commission, too, has reservations on the banking plan, though the panel hasn’t overtly and officially spelled out its stand.

According to people familiar with the development, Montek Singh Ahluwalia, deputy chairman of the Planning Commissions, said in an internal note recently that arguments raised against India Post’s banking plan were strong and the proposal could be a bad idea.

An email sent to Ahluwalia on 3 December did not receive any response.

“There is a strong feeling in RBI that India Post doesn’t have the expertise to manage a bank,” said a financial services expert with a consultancy firm, requesting anonymity.

“While technology and reach are positives for the postal department, their lack of experience in dealing with credit is a big negative,” the expert said.

India Post is keen to set up a commercial bank under the name Post Bank of India, arguing that it can significantly boost financial inclusion in Asia’s third largest economy through its nationwide network of post offices. This will also enable India Post, which posted a loss of Rs.6,346 crore in fiscal year 2012, to make up for business lost over the years to private couriers and email services.

Losses have significantly increased in recent years on account of higher expenses.

While India Post’s banking plan is nearly two-decades-old, the department stepped up efforts towards it in 2006, conducting internal viability studies and seeking the opinion of consultancy firms. The move gathered momentum when RBI unveiled its final licensing norms for new banks in February.

The postal department, which had appointed EY to advise it on the plan, wants to open 300-400 branches after starting the proposed bank, with each branch managing a specific number of postal outlets.

Source : http://www.livemint.com

Types of Cheque :

Types of Cheque :

1. Blank Cheque: A cheque on which the drawer puts his signature and leaves all other columns blank is called a blank cheque.

2. Order Cheque: A cheque which is payable to a particular person or his order is called an order cheque.

3. Bearer Cheque: A cheque which is payable to a person whosoever bears, is called bearer cheque.

4. Stale Cheque: The cheque which is more than six months old is a stale cheque.

5. Multilated Cheque: If a cheque is torn into two or more pieces, it is termed as mutilated cheque.

6. Open Cheque: A cheque which has not been crossed is called an open cheque. Even if a cheque is crossed and subsequently the drawer has cancelled the crossing at the request of the payee and affixes his full signature with the words “crossing cancelled pay cash”, then it becomes an open cheque.

7. Post Dated Cheque: If a cheque bears a date later than the date of issue, it is termed as post dated cheque.

8. Gift Cheques: Gift cheques are used for offering presentations on occasions like birthday, weddings and such other situations. It is available in various denominations.

9. Crossed Cheque: A cheque which carries too parallel transverse lines across the face of the cheque with or without the words “I and co”, is said to be crossed.

10. Traveller’s Cheques: It is an instrument issued by a bank for remittance of money from one place to another.

When you should not use your Credit card!

Credit card is one of the most important financial inventions in modern times. However, this much-sought after boon can be a real bane to your finances if not used with care. Here are a few instances when you should restrict the use of credit cards in order to keep your finances in order.

Using credit cards for everyday expenses: This is one of the most common instances when people use credit cards - to buy their day to day items. While using credit cards to purchase groceries and household items is not always bad, using it regularly may result in your overspending and crossing your monthly budget. Always draw up your budget for such purchases and use your credit cards within this limit. Beyond this, it is better to use cash or debit cards. 

Using credit cards for cash advances: Drawing money from an ATM through your credit card to meet emergencies is an easy way to combat cash shortage; but have you realised the impact it will cause on your finances? Not only is the interest rate charged on the advanced amount exorbitant at 2.5%-3.5% per month, but this also gets charged from day one itself. Besides you will also have to pay a flat transaction charge as well. 

During the months you have restricted cash inflows: Credit cards come with a free credit period of 20-50 days. If you do not pay your bills within the due date, you will be charged a hefty late payment fee, high interest of 2.5%-3.5% per month and also taxes on these charges. Hence if you think you will not be able to generate cash flows to make payment on your credit card within the due date, it is best to refrain from using it. 

Using credit cards when you travel abroad: When you use your credit card for transactions in a foreign country, you are usually required to pay a charge on foreign currency transactions. Also, do not forget the exchange rate fluctuations, which determine the amount you will have to pay. If you instead opt for a prepaid currency card, it will help you better. 

Using credit cards only to accumulate reward points: In order to attract customers, credit card companies offer various offers and high reward points on purchases made. While accumulating reward points is good, spending on your card only for this reason is not very healthy. You will soon realise that even though you have high reward points on your card, you will have to pay hefty bills, sometimes even on unnecessary purchases made without forethought. 

When you shop at unsecure websites: Online shopping has off late become very popular. While it is a convenient way of shopping, you must refrain from using your credit card and sharing confidential information on websites which are not secure. Always check for security levels before making credit card payments in such cases

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Aadhaar, fingerprint scan enough to open bank account

MUMBAI: A few weeks after RBI Governor Raghuram Rajan stressed on building credit histories of individuals based on the Aadhaar number, one bank has introduced unique identity-based eKYC for opening loan and savings accounts.

Axis Bank, which is using payment company Visa's network to access Aadhaar database , will introduce the eKYC facility in around 25 branches next week. The branches will open loan and deposit accounts based on the Aadhaar number and fingerprints instead of proof of address and proof of identity.

RBI had notified eKYC as an 'officially valid document' under anti-money laundering laws on September 2. The facility would enable an Aadhaarregistered individual from anywhere in the country to walk up to a branch and open an account by merely providing his UID and scanning his fingerprints . Not only will the Aadhaar database provide documents relating to the proof of identity, address and photograph , it will also populate the bank's database with the applicant's contact details. "The information needed to be provided in the application form for a savings account will be minimal ," said Jairam Sridharan, president, Axis Bank. However, in the case of loan products the bank would call for additional information, he said.

"For the middle-class customers , eKYC is a convenience but for the lower end of society, this will provide access like never before," said Sridharan. For migrant workers in metros such as Mumbai, a key challenge in opening accounts is meeting the bank's KYC requirements in terms of proof of address and proof of identity . Although RBI norms allow individuals to open a 'small account' in a bank on production of a self-attested photograph and affixation of signature or thumb print, banks are reluctant to push this account as KYC documents have to be obtained at the end of one or at most two years.

Sridharan said that it was expected that the Unique Identification Authority of India would update its database as and when the individual moved houses. This would facilitate periodic checks as required by the central bank. He said that even if the account were to be opened using the eKYC procedure, contact details could be updated subsequently using accepted KYC documents.

Upon taking charge on September 4, the RBI governor had said, "On the retail side, I particularly want to emphasize the use of the unique ID, Aadhaar , in building individual credit histories. This will be the foundation of a revolution in retail credit."

Source : http://timesofindia.indiatimes.com

POST BANK OF INDIA SANS POSTAL EMPLOYEES

POST BANK OF INDIA SANS POSTAL EMPLOYEES
It seems that the Post Bank of India (PBI) may become a reality in the near future. For the last more than fifteen years we have been told about the Post Bank and even the Parliamentary standing committee on Communications & IT has repeatedly demanded the Government for commencing Post bank. Several attempts have been made, but the Finance Ministry always took a negative stand, for one reason or the other. Majority of the bank managements including nationalized banks have been opposing the entry of the Postal department into commercial banking. The reason is obvious. They foresee a potential threat to their existence once Post Bank enters into their field and during the course of time the Post Bank may become one of the biggest Bank.

Post Bank of India will be an independent entity, separate from the current operations of small savings schemes being carried out by the Department of Posts on behalf of Ministry of Finance. Department has accordingly submitted an application to the Reserve Bank of India (RBI) on 28.06.2013 seeking banking license subject to necessary cabinet approval. RBI has said that new banks will have to set up at least three branches in villages with a population of less than 10000, for each branch they establish in other areas. Although Post Bank does not intend to open a bank in every Post office, the plan is to meet the financial inclusion goal through these Post offices. India Post had 1,54,822 Post offices across the country as on 31.03.2013, the largest for any department in the world, and close to 90% of them – 1,39,086 – are in rural India. This is more than four times the number of rural branches run by India’s Banks put together. According to plan prepared by Ernst & Young, India Post will become Post Bank of India’s banking correspondent. PBI will use Post office infrastructure but very frugally. Carefully done PBI can be a game – changer in rural areas.

India post is among 26 applicants that sought banking licenses from RBI. India Post has to develop the standards to meet RBI guidelines. In its guidelines for new banking licenses announced on 22nd February 2013, RBI required applicants to prove their eligibility on several fronts – from promoter holding to past experience to business plans. The minimum capital required by the applicants for license is Rs. 500 crores and foreign share holding in the new banks is capped at 49% for the first five years. The new banks have to be set up under a non-operative Financial Holding company (NOFHC). They also have to maintain minimum capital adequacy ratio – the ratio of risk weighed assets, a measure of financial strength of the bank – of 19 % for the first three years. New banks also need to list their shares within three years of starting operations.

The main argument put forward by those opposing the Post Bank is that Postal department has no experience when it comes to giving credit (loans). Department has only been taking deposits till now. Sanctioning and disbursing of credit needs an entirely different aptitude. India Post has no specialized experience in the business. It is reported that unlike many believe, the Post Bank of India will be a completely new entity with no legacies of a government department and very little to do with its parent department, except using some of its network. It will have an independent Board. Separate recruitment has been planned to have specialised banking staff. Of course, the Post Bank will be a subsidiary organisation of India Post, which need to be registered as a public sector Bank and Government equity in this new entity could be diluted. Whatever reforms and regulations Government implements in Nationalised Banking sector will be fully applicable to Post Bank of India also.

There are many talented and qualified Postal employees who want to switch over to the Post bank and to work as employees under the Post Bank. The reports that separate recruitment will be made for the Post Bank has cast shadow upon their hope to work in the Post Bank. NFPE demands that the existing Postal employees who want to switch over to the Post Bank shall be given chance to exercise option and if need be a trade test to assess their capability can also be conducted before selection. Selected officials can be imparted with intensive training in commercial banking business. In any case 100% open market direct recruitment is an injustice to those talented Postal employees who may not be able to apply for open recruitment due to age factor etc. we urge upon the Postal Board and Finance Ministry to give due consideration to this aspect, before the new Bank is rolled out.

Source : http://nfpe.blogspot.com/