...AGRICULTURAL FINANCE STAGE II Submission In the partial fulfillment of AF Project to Prof. Vaibhav Bhamoriya Future of Payment Services in Rural Areas Submitted By Group 5 Amrita Dokania, Anjali Neha Lakra, Ashish Negi, Bhawna Nirmal, Veeru Kumar Prajapati INDIAN INSTITUTE OF MANAGEMENT, AHMEDABAD Introduction Payments are indispensable parts of our daily transactions, be it B2B, B2C or C2C, and be it rural areas or urban areas. Payment system of a country should be “safe, secure, efficient and accessible” owing to its vital role in raising the GDP of a nation. Payments being one of the most important parts of the financial system, different channels that accelerate the process efficiently constitute the focus of the system. Banking industry has witnessed a tremendous growth in the last few decades in terms of volume and the complexities in the banking system. Even if banks have made significant improvements in the recent years for achieving financial viability and profitability there have been concerns regarding reach and serving a huge population of interior areas. There has been a skewed distribution of population i.e. 6000 per bank branch in urban and 24000 in the rural areas. India has approximately 6.4 lakh villages out of which 5 lakh villages are still unbanked because of the operational and structural issues for example viability, long distance, costs etc. Although rural India comprises of 68% of population, it constitutes only 9% of total...
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...Main system I would consider to adding a central server at the headquarters of RFC. Especially since they are considering to expand in the next three years. Using a central server gives the branches the opportunity to be up-to-date in real-time. To accomplish this, all branches need an Internet connection with a VPN connection to the headquarters central server. Every branch has its own ERP branch software that is connected to the headquarters ERP system and therefore also with the central server. When using a process like this it is important that the ERP systems know when someone is watching a certain profile or editing it as it will prevent errors and or double entries. The vouchers and bank receipts will not be used anymore and will be replaced by the ERP system. Customers have to sign a form whether they pay at a branch or at the HQ. If a branch deposited the money, an e-mail will be sent to the branch and HQ to inform the employees. The bank will send data to the main server that updates the main ERP system and thereby also the ERP branch software. Customers It is a must for customers to be able to use a web application that gives them the opportunity to pay online and have an overview of their profile. Each customer has its own account that can be used to log on the website. An online chat gives them a fast helpdesk service for any quick questions. Furthermore, Internet banking is also possible if they enter the right reference number that has been given in the...
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...Peer-to-Peer Payment Applications History Payment systems have existed throughout time. From the ancient days where merchants exchanged goods for other goods in a barter system, to the days when the concept of currency was developed, to the modern day checkbook and wire transfer of funds, there has always been a way for one person to give money to another. However, all of these methods are cumbersome, and require either a physical activity (writing a check or completing a wire transfer), or exchanging physical currency. This complicates the process, requiring two people to meet in person, one to have physical currency (or to have and write a check), and then the eventual deposit of the recipient’s funds into a bank account. However, with the rise of the internet and the proliferation of smartphones, a major innovation has been made in the way that people exchange money. To clarify, this is not talking about a person paying an established business, but rather paying someone for babysitting, mowing a lawn, splitting the cost of gas, or paying back a friend for a meal. This innovation is Image from WashingtonPost.com Image from WashingtonPost.com known as peer-to-peer payment systems. The need for a quick, easy way to pay someone, split a bill, share utilities payments, or contribute to a fundraiser became apparent in a society that carries less and less cash. Most millenialls do not even carry cash on their person anymore, and thus, if they needed to pay a friend...
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...Question 2 The company RFC encounters some difficulties in its payment processing system. Re-engineering might solve some of the issues faced by its managers. First of all, a full understanding of the five different problems RFC listed in this case study is necessary. Althought each one of these problem is unique, affects different part of the organisation and have their own consequences, they all come from the same origin: Complexity of information management and communication Process too slow Here are some possible changes that would improve the payment processing. Eliminate the possibility for the customer to pay in the Home Office directly. Indeed, the Home Office have huge difficulties to find informations about the payment, leading therefore to lots of errors of payments (Problem #1). This action will simplifies the payment processing and reduce factors of errors and clerical work (Problem #3). Beside, it will also reduce the time needed to make necessary file updating. There is a delay between the moment a payment is made, and the moment when this fact is taken into account in the business process database. Alas, no matter the changes in the processes, there will always be a little delay. In this case, batch payment processing is run every evening to update all data centrally, so the delay is at least 1 day long. An action would be to urge managers of the branchs to hurry to update particuliary important file each time they have to make a modification...
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...ERP-systems (1729) Case: Re-engineering the Payment Process System at RFC Question 1: Draw a current process model for the payment processing system at RFC. Question 2: What changes in business processes and information do you feel will improve the payment processing system at RFC? Main system I would consider to adding a central server at the headquarters of RFC. Especially since they are considering to expand in the next three years. Using a central server gives the branches the opportunity to be up-to-date in real-time. To accomplish this, all branches need an Internet connection with a VPN connection to the headquarters central server. Every branch has its own ERP branch software that is connected to the headquarters ERP system and therefore also with the central server. When using a process like this it is important that the ERP systems know when someone is watching a certain profile or editing it as it will prevent errors and or double entries. The vouchers and bank receipts will not be used anymore and will be replaced by the ERP system. Customers have to sign a form whether they pay at a branch or at the HQ. If a branch deposited the money, an e-mail will be sent to the branch and HQ to inform the employees. The bank will send data to the main server that updates the main ERP system and thereby also the ERP branch software. Customers It is a must for customers to be able to use a web application that gives them the opportunity to pay online and...
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...When it comes to prospective payment systems in the medical field, on acronym we see is HHRG. HHRG stands for home health resource group. A temporary home health payment systems for Medicare was implemented in 1999 with the final PPS taking place in the fall of 2000. Home health care agencies provide patients who are homebound with services such as physical/occupational/speech therapy, social work, or skilled nursing care in the comfort of their home. Under this PPS, Medicare would reimburse home health agencies a predetermined flat rate. This rate does have a few things that are considered when determining what the base amount will be. When determining the level of care that is needed health condition and care needed for the patient or beneficiary and geographical factors such as wage are all considered. This list of considerations is called a case-mix adjustment. Case-mix adjustment is one of the 6 main features of the home health prospective payment system. Another major point of the home health PPS with Medicare is the 60 day episode rule. The agency receives half of the cost at the start of the 60 days when the initial claim is filed. When the 60 days comes to a close and the final claim is sent in they will receive the remainder of the payment for services. In the case that a patient needs care past the 60 days, a new 60 day episode claim must be started. There are a few incidences that can call for adjustments in the reimbursement amount. First is a patient who needs...
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...Payment Systems Have you been to the grocery store lately? If so, then I’m sure you are aware of all the choices that we have in today’s technological age. It can be a dizzying experience, just trying to decide which kind of cereal you want. There are literally hundreds of different options of the one type of product alone (i.e. Walmart, HEB, etc.) in most major U.S. cities. Luckily, there aren’t that many payment systems but there are several and we will be discussing those during this paper. I will briefly discuss each of the options, along with my recommendation for which ones will serve RetailCo well in the future. I will also attempt to calm any possible fears about these various options as they pertain to your company. Online Payment System Integration Plan The first payment system that we will discuss is cash since it is still the most accepted form of payment on the planet and it has also been around for thousands of years, in one form or another. The obvious problem with cash – in regards to e-commerce, at least – is that it requires physical interaction between the buyer and seller (e.g. close proximity). This, of course, is counter-intuitive to the basic concept of global e-commerce transactions. As a result, it will not be a feasible payment solution for the e-commerce aspects of RetailCo’s business strategy. The next payment option that we will discuss is PayPal, which I believe could be an option for RetailCo as long as you understand the pros and cons...
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...PAYMENT SYSTEMS AND WORKING HOURS In order to attract workers and to retain the best performers, employers need to have a compensation system that will achieve these objectives. Furthermore, employers need to comply, with the relevant law which relate to payment systems and hours of work. Payment systems and quantum of payment play a significant role not only for individual employers, but also at the level of society. WAGE AND PAYMENT SYSTEMS In return of their work, the employees of TNB are paid agreed amounts of remuneration. Typically, employers also provide some payments to motivate workers to maximize their output. Thus, a remuneration or compensation package consists of several elements, usually a combination of basic pay, incentives and benefits. REMUNERATION PACKAGE There are three (3) remuneration package consist of wages, benefits, incentives. I. Wages -Attractive salary scheme -TNB gives their wages depends on different positions and tasks. II. Benefits -Medical coverage and insurance benefits 24 hours by EWRM -Holiday accommodation -Promotion -Loan benefit : electronics, house, car, motor, computer/ laptop III. Incentives -Reimbursement and allowance -Annual increment and bonuses TNB practices online payment system. They distribute payment by Employee Self Service (ESS). Besides that, TNB also use other method of payment such as ERMS / EHRMS. There are two major system of payment : 1. Time-related systems 2. Piece-rated...
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...automate the functions of payment system through the clearing houses under the control of Bangladesh Bank, a program was launched in the name of Bangladesh Automated Clearing House (BACH) with two components- one is Bangladesh Automated Cheque Processing System (BACPS) and Bangladesh Electronic Funds Transfer Network (BEFTN). BACHS stands for Bangladesh Automated Clearing House System which is the nationwide electronic payment network that allows the actual clearing of electronic payments and payment-related information between financial institutions. It is an electronic network for financial transaction. The main benefits of making and receiving BACH payments are cost savings and convenience. BACH processes large volume of debit and credit transactions which are originated in batches. It has two components – 1. The Automated Cheque Processing System and 2. The Electronic Funds Transfer. The Bangladesh Electronic Funds Transfer Network (BEFTN) operates as a processing and delivery centre providing for the distribution and settlement of electronic credit and debit instruments among all participating banks. BEFTN is the central clearing facility, operated by Bangladesh Banks that receives entries from originating banks, distributes the entries to appropriate receiving banks and facilitate the settlement functions for the participating banking institutions. BEFTN is a highly reliable and efficient nationwide batch-oriented funds transfer system which provides for the...
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...Whether or Not Public Sector Enterprises Accept Electronic Payments Gregory L. Jackson University of Maryland University College AMBA 600 - 9046 May 6th, 2014 Professor Susan Malone The Impact of Convenience Fees 2 Executive Summary This research study examines the use of convenience fees and how they have impacted whether or not public sector enterprises accept electronic payments. As budgets continue to shrink for U.S. government agencies, many local, state, and federal officials are struggling to provide services their citizens have grown accustom to in business environments. Convenience fee based electronic payment programs provided by many governments enable citizens to pay for obligations such as taxes, utility bills, and court costs through secure websites, interactive voice response (IVR), and even mobile payment capabilities. Fortunately, there is a solution for public sector enterprises to offer valuable services to their citizens without...
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...cash, a way to implement anonymous electronic payments in an environment of mutual mistrust between the bank and the system users. The present day payment systems fall into two large categories: account-based systems and token-based systems. Token-based systems such as paper cash, pre-paid phone cards or mail stamps, do not identify its users. A pre-paid phone card, for example, does not distinguish one caller from the other. Account-based systems such as checks, credit cards or bank accounts need, by design, to identify the system users and their transactions. People like to use paper cash because it is easy to carry around, they can make a payment with the received cash and they don’t need to ask a third party like a bank to perform their payments. Paper cash can, however, be stolen or lost and no one compensates for the lost or stolen money. Credit cards reduces risk of lost cash for people, but by using electronic money people are in the risk of losing their privacy. Annually, credit card companies and banks lose large sums of money since they are required to compensate for lost cards and the costs associated with fraud and human error. In light of the explosive increase of electronic services such as Internet, the need for more efficient electronic payments has become an essential fact. Since anonymity of payments is usually associated with anonymity of paper cash, an anonymous token-based electronic payment system is referred to as digital cash (also known...
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...article examines the cash management and payments developments in India, in terms of bank offerings and new corporate best practice. Traditionally having a paper-based clearing system involving not only high processing cost but security risk, cash management in India has certainly undergone a paradigm change. From a product-centric approach, the focus for almost all banks today has shifted emphatically to the customer. And success is all about bringing the maximum possible delivery channels to the prospect's doorstep. In the rapidly transforming world of business, banking faces its biggest challenge yet - constant change. With every bank seeming to offer service possible, efficiency coupled with innovative value added solutions have emerged as the key business differentiators that affect a bank's bottom line. Confronted with shrinking deposits/margins, rising customer expectations and intensifying competition, banks must at all times strive to be a step ahead of industry standards. At the same time, they cannot lose sight of credit risk, a natural byproduct of the increasingly complex relationships in today's dynamic markets. For some time now, technology has been the key driving force behind every successful bank. In such an environment, the ability to recognise and capture market share depends entirely on the bank's competence to evolve technically and offer the customer a seamless process flow. The objective of a cash management system is to improve revenue, maximise profits...
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...MasterCard Incorporated Company Profile Publication Date: 17 Jun 2011 www.datamonitor.com Europe, Middle East & Africa 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7551 9090 e: euroinfo@datamonitor.com Americas 245 5th Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Asia Pacific Level 46 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8088 7405 e: apinfo@datamonitor.com MasterCard Incorporated ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities...
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... | 5 | Old payment and settlement system | 7 | Clearing activities in old system | 7 | Difficulties in old system | 9 | New payment and settlement system | 10 | About MICR cheques, its processing ,benefits and strength | 11-14 | About automated clearing house | 14 | Overall contribution over our economy | 16 | Chapter3 - Criticism | 19 | Chapter4 - Conclusion | 20 | Chapter5 - References | 21 | 1. Introduction 2. About Bangladesh banking and the new era 3. Old payment and settlement system 4. Difficulties of old system 5. New payment system Executive Summary This Term Paper is about the “contribution of MICR cheques & Automated Clearing House over our economy”. It is great pleasure for us that banking industry of Bangladesh is growing and modernizing its activities to a great extent. So in my term paper I have tried to demonstrate our new payment and settlement system, which recently adopt new methods and systems. As we know Bangladesh bank launched new MICR cheques as the initiative of automation system to all over banks in our country. So considering the importance of having a modern state-of-the-art payment and settlement system, Bangladesh Bank has actively worked...
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...Chapter 11 E-Commerce Payment Systems Learning Objectives Upon completion of this chapter, you will be able to: 1. Understand the shifts that are occurring with regard to online payments. 2. Discuss the players and processes involved in using credit cards online. 3. Discuss the different categories and potential uses of smart cards. 4. Discuss various online alternatives to credit card payments and identify under what circumstances they are best used. 5. Describe the processes and parties involved in e-checking. 6. Describe payment methods in B2B EC, including payments for global trade. Content Opening Case: Pay-per-View Pages: The Next iTunes 11.1 The Payment Revolution 11.2 Using Payment Cards Online 11.3 Smart Cards 11.4 Stored-Value Cards 11.5 E-Micropayments 11.6 E-Checking 11.7 B2B Electronic Payments Managerial Issues Closing Case: The Check Is in the Network Answers to Pause/Break Section Review Questions Section 11.1 Review Questions 1. Describe the trends that are occurring in cash and non-cash payments in the United States. Today, we are in the midst of a payment revolution, with cards and electronic payments taking the place of cash and checks. In 2003, the combined use of credit and debit cards for in-store payments for the first time exceeded the combined use of cash and checks (Federal Reserve System 2004). 2. What types of e-payments should B2C merchants support? For online B2C merchants, the implications...
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