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LOTZA by Federal Bank is one of the few UPI PSP App approved by
National Payments Corp. of India Ltd (NPCI). Using Lotza one can
Send money to any Bank Account using only Virtual Payment
Address (VPA)
Send money using Account No/IFSC or Mobile Number/MMID Its more secured: No need to
Request money from any one of any Bank using the sender's pass on your account details for
funding your account. Virtual
Virtual Payment Address (VPA)/nickname
Payment Address (VPA) is a
Get account balance of registered account even of other unique ID similar to an email ID
Banks in UPI platform which will be issued by the Bank
Scan N Pay (QR based payment solution) to receive and send to the user. VPA will be mapped
money to user's Bank Account and
Get an OTP from the customer's bank (in the case of non helps the user to keep
Federal Bank customers) to complete IMPS transactions confidentiality of his Account
details. VPA will be a
Register for Mobile Banking Services
combination of username + "@"
Change MPIN of Mobile Banking + Bank Handle. (XYZ@ Federal)
National Payments Corporation of India
NPCI is the umbrella organisation for all Retail Payments system in India. It was
set up with the guidance and support of the Reserve Bank of India (RBI) and
Indian Banks Association (IBA). The core objective is to consolidate and
integrate the multiple systems with varying service levels into nation-wide
uniform and standard business process for all retail payment systems. The other
objective is to facilitate an affordable payment mechanism to benefit the
common man across the country and help financial inclusion. It has successfully
played pioneering role in the development of a domestic card payment network
called RuPay, reducing the dependency on international card schemes like Visa
and Mastercard. Currently Mr. A. P. Hota is the Managing Director & CEO, NPCI
NPCI has ten promoter banks-, State Bank of India, Punjab National
Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of
India, ICICI Bank, HDFC Bank, Citibank and HSBC. During the last five
years, the organization has grown from 2 million transactions a day
to 20 million transactions today. Their services consisting of
switching of inter-bank ATM transactions, Cheque Clearing,
Immediate Payments Service, Automated Clearing House, Electronic
Benefit Transfer and domestic card payment network RuPay
Recently, many IT companies like Microsoft and Google enabled their hardware to perform 3d
scanning, a great example is Microsofts Kinect. This is a clear sign that future hand-held devices
like smartphones will have integrated 3d scanners. Digitizing real objects into 3d models will
become as easy as taking a picture. This technique was invented in 1986 by Charles Hull, who
also at the time founded the company, 3D Systems.
The 250-square-metre space (2,700 square foot) is what Dubai's Museum of the Future project
is calling the world's first 3D-printed office building. China unveiled the world's first 3D printed
office building and mansion in early 2015.
3D printing is already having an effect on the way that products are manufactured the nature
of the technology permits new ways of thinking in terms of the social, economic, environmental
and security implications of the manufacturing process with universally favourable results. One
example of the positive effect is lowered manufacturing cost through recycled and other local
materials, but the loss of construction and manufacturing jobs could hit many developing
countries severely, which would take time to overcome.
Bitcoin
Bitcoin is a digital asset and a payment system invented by
Satoshi Nakamoto. The system is peer-to-peer and users can
transact directly without an intermediary. Transactions are
verified by network nodes and recorded in a public distributed
ledger called the block chain. The ledger uses bitcoin as its unit
of account. Bitcoin is called the first cryptocurrency.
Bitcoins are created as a reward for payment processing work. Users offer their computing
power to verify and record payments into a public ledger. This activity is called mining and
miners are rewarded with transaction fees and newly created bitcoins.
Bitcoins can be exchanged for other currencies, products, and services. Users can send and
receive bitcoins for an optional transaction fee.
Bitcoin is accepted as a payment for products and services. Merchants accept bitcoins because
fees is lower than that of credit card processors.
Financial regulators, legislative bodies, law enforcement, and media are concerned about the
use of bitcons by criminals.
Goods and Services Tax (GST)
The Government has set up GST Council under Article
The GST is a single indirect tax, which will 279-A of the Constitution of India for the purpose of
subsume most of the central and state taxes such implementing GST. GST council has agreed on rate
as VAT, Excise Duty, Service Tax and Central Sales structure as 0%, 5%, 12%, 18% and 28%. Having a
Tax. The new tax regime will do away with the slab rate structure in GST is a departure from popular
indirect taxes. It will usher in one tax for the international practice of having one rate of tax for all
entire country. Under GST regime, goods and services. Council has not announced
comprehensive and continuous chain of set-off schedule of goods and services under each slab rate.
benefits are available from the producers and FM has mentioned that highest tax slab rate will be
service providers point up to the retailers level. applicable to items currently taxed at 30% to 31%
Tax is levied only on value addition at each stage (excise duty plus VAT) where the effective rate under
and a supplier at each stage is permitted to set- the current regime is lesser than 28%. Some of the
goods taxed at 28% will be charged with an additional
off through a tax credit mechanism. The
cess for five years. For goods that are classified
consumer will thus bear only the GST charged by
under 5%, 12% and 18% slab rates, effective tax cost
the last dealer in the supply chain, with set of might be lesser as compared to current tax
benefits at the previous stages. The Government regime. In case of services It is likely that all services
is planning to roll out GST from 1st April 2017. will be taxed at standard rate of 18%. Most of the
Though GST is a tax reform, it is going to impact services are likely to be costlier due to increase in tax
every sphere of business activity, be it rate. However, impact may not be as high as 3%x
procurement, supply chain, IT, logistics, pricing, (from current service tax of 15%) if service providers
margins, working capital, etc. as a number of pass on savings due to higher tax credits.
business decisions taken based on the current tax
structure may no longer be relevant in the new
GST regime.
(For more details refer http://finmin.nic.in/reports/modelgstlaw_draft.pdf).
http://economictimes.indiatimes.com/wealth/tax/how-pocket-friendly-will-gst-be-for-you/articleshow/55239812.cms
Insolvency and Bankruptcy Code 2016
The Insolvency and Bankruptcy Code 2016 received the Implementing Insolvency and Bankruptcy
assent of the President on 28th May, 2016. The term Code 2016 is urgently needed in India as
the NPA of Indian banks are alarmingly
Insolvency is used for both individuals and organizations. For moving up and it is around 4 lakh crores
individuals it is known as Bankruptcy and for corporate it is at present. Corporate bad loans
constitute 56% of the total bad loans of
called Corporate Insolvency. It is a situation when an
state-run banks. At present, there are
individual or a company is unable to pay the debt in present about 70,000 liquidation cases pending
or near future and the value of assets held by them are less for resolution . It takes almost 4 years at
present to wind up an ailing company in
than liability. The new bankruptcy law will ensure time- India. The Code seeks to reduce this time
bound settlement of insolvency. The new Code will replace to less than a year. At present there are
about 12 laws, some of which are more
existing bankruptcy laws and cover individuals, companies,
than 100 years old, to tackle insolvency.
limited liability partnerships and partnership firms. It will Currently, there is no single law dealing
amend laws including the Companies Act to deal with with insolvency and bankruptcy in India.
Trade receivables are bills for which the cash realisation comes at a future date. Even as
financing against these are possible by specialised institutions, called factoring firms, the
process is cumbersome and not all can approach factoring companies. As a result, small
companies almost always suffer from liquidity constraints given that they dont get cash
for their sales immediately. Under the electronic bill factoring exchanges facility, bills
against large companies can be electronically accepted and auctioned so that the vendors
can be paid promptly.
Three entities Axis Bank, Gurgaon-based Mynd Solutions and a joint bid by NSE
Strategic Investment Corporation and Small Industries Development Bank of India have
been granted in-principle approval for setting up the Trade Receivables Discounting
System (TReDS).
Peer to Peer Lending
Peer-to-peer lending, sometimes abbreviated P2P lending, is the practice
of lending money to individuals or businesses through online services that
In India, peer-to-peer lending is
match lenders directly with borrowers. Since the peer-to-peer lending currently unregulated. Reserve
companies offering these services operate entirely online, they can run Bank of India,, has placed a
consultation paper to regulate
with lower overhead and provide the service more cheaply than traditional P2P lending and the final
financial institutions. As a result, lenders often earn higher returns guidelines are expected soon.
compared to savings and investment products offered by banks, while There are over 30 peer-to-peer-
borrowers can borrow money at lower interest rates, even after the P2P lending platform operating in
India as of 2016. Even with first-
lending company has taken a fee for providing the match-making platform mover advantage many sites were
and credit checking the borrower. not able to capture market and
grow their user base. Peer-to-
peer lending platforms in India
Also known as crowd lending, many peer-to-peer loans are helping a huge section of
borrowers who were previously
are unsecured personal loans, though some of the largest amounts are lent rejected or unqualified for a loan
to businesses. Secured loans are sometimes offered by using luxury assets from banks.
such as jewellery, watches, vintage cars, fine art, buildings, aircraft and
other business assets as collateral. They are made to an individual,
company or charity. Other forms of peer-to-peer lending include student
loans, commercial and real estate loans, payday loans, as well as secured
business loans, leasing, and factoring.
Phishing
Phishing is the attempt to obtain sensitive information such as usernames,
passwords, and credit card details (and sometimes, indirectly, money),
often for malicious reasons, by masquerading as a trustworthy entity in an
electronic communication..
In October 2016 Banks in India will either replace or ask users to change the security codes of as
many as 3.2 million debit cards in what's emerging as one of the biggest ever breaches of financial
data in India. Several victims have reported unauthorised usage from locations in China.
Of the cards, 2.6 million are said to be on the Visa and Master-Card platform and 600,000 on the
RuPay platform. The worst-hit of the card-issuing banks are State Bank of India, HDFC Bank, ICICI
Bank, YES Bank and Axis Bank. The breach is said to have originated in malware introduced in
systems of Hitachi Payment Services, enabling fraudsters to steal information allowing them to
steal funds. Hitachi, which provides ATM, point of sale (PoS) and other services
Digital Locker
As part of Digital India initiative Union Government has launched the digital locker facility that will help
citizens digitally store their important documents, such as PAN card, passport, mark sheets and degree
certificates. DIGITAL LOCKER will provide secure access to government-issued documents. It uses
authenticity services provided by Aadhaar and is aimed at eliminating the use of physical documents and
enables sharing of verified electronic documents across government agencies. It is expected to reduce the
administrative overheads of government departments and agencies created due to paper work. It will also
make it easy for Indian citizens to receive services by saving time and effort as their documents will now be
available anytime, anywhere and can be shared electronically.
Pension contributions are invested in the pension fund schemes and the employee will be able to know the
value of the investment on day to day basis.
Open to every Indian citizen. One can choose the amount to set aside and save every year(minimum annual
contribution is Rs 6000). Two types: Tier I and II Tier-I account is where you contribute your savings for
retirement into a non withdrawable account till you reach 60 years and draw pension for the rest of your
life. The Tier-II would enable the existing Permanent Retirement Account (PRA) holders to build savings
through investments over and above those in the Tier I pension account. An active Tier I account will be a
pre-requisite for opening of a Tier II account.
Each subscriber has a separate Permanent Retirement Account (PRAN) which is portable i.e., will remain the
same even if an employee gets transferred to any other office.
Bank designated branches i.e. Point of Presence-Service Provider (POP-SP) accept the application form and
get the subscribers registered with Central Record keeping Agency (CRA) for generation of PRAN.
Tax benefits - Contribution towards NPS is exempted under Section 80CCD up to 2Lakhs.
http://10.250.4.54:8030/vault/Fee%20Income_Important%20Circulars_NPS%20Final%20Circular%20July%2015%205132.pdf
PMJDY Pradhan Mantri Jan Dhan Yojana
PMJDY is National Mission on Financial Inclusion encompassing an
integrated approach to bring about comprehensive financial
inclusion of all the households in the country. The plan envisages
universal access to banking facilities with at least one basic banking
account for every household, financial literacy, access to credit,
insurance and pension facility.
CARD TO CARD (C2C) is transfer of funds from a debit card to another debit card across the country
irrespective of bank &account number through ATM. Sender needs to know only the debit card number of the
beneficiary. This is introduced by NPCI (National Payment Corporation of India). It is simple, secure &
convenient. Can use any NFS member bank ATM who have enrolled for the service. Single transaction limit of
Rs.5000/- & monthly Rs.25,000/-.
With a view to inter-connect the ATMs in the country and facilitate easy banking for the common man, the
Institute of Development and Research in Banking Technology (IDRBT), Hyderabad conceptualized, developed
and implemented the National Financial Switch. The National Financial Switch facilitates routing of ATM
transactions through inter-connectivity between the Banks Switches, thereby enabling the citizens of the
country to utilize any ATM of a connected bank.
2FA Authentication
TWO-FACTOR AUTHENTICATION (also known as 2FA) is a technology patented in 1984 that provides
identification of users by means of the combination of two different components. It is a type of multi-factor
authentication. These components may be something that the user knows and something that the user
possesses (what you know and what you have). A good example from everyday life is the withdrawing of
money from ATM. Only the correct combination of a bank card (something that the user possesses) and a PIN
(personal identification number, i.e. something that the user knows) allows the transaction to be carried out.
2FA is ineffective against modern threats, like ATM skimming, phishing, and malware etc. Federal Bank has
implemented Two Factor Authentication (2FA) in FedNet as per regulatory requirements.
A Shell Company is an entity that has no active business and usually exists only in name as a
vehicle (and often listed on a stock exchange) for another companys business operations. In
other words, Shell Companies are corporations that exist mainly on paper, have no physical
presence, employ no one and produce nothing. They are frequently used to shield identities
and/or to hide money. Also, these Companies exist merely as a front for a person or
organisation that wishes to hide its identity. Although, they are legal entities that do not have a
legitimate function in business operations, Shell Companies are also utilised by criminals to
facilitate fraudulent activities.
D-SIBs
Our Bank is opening its first IFSC Banking Unit (IBU) in GIFT City on 09th November 2015. (Ref: IBUs in next
page) Types of business that IBU would be primarily focusing immediately will be;
1. Disbursing Buyers credit: At present, Buyers Credits are availed of by our customers from overseas Banks
based on the letter of comfort issued by us. Now, we will be able to extend Buyers Credit from our IBU at
GIFT City.
2. Extending External Commercial Borrowing:
3. Accepting deposits and providing credit facilities to Wholly Owned Subsidiaries (WOS))/Joint Ventures (JV)
of Indian companies registered abroad.
4. Inter Bank money market operations in foreign currency