The Hindu Business Line : ‘Lack of awareness hampers e-payment’

Both the Reserve Bank of India and banks should carry out awareness campaigns through media to promote the products. Banks can also educate customers who approach them for issue of drafts and payments to use the NEFT/RTGS for remittance of payments. Banks should also encourage customers to use debit cards for merchant payments through their branches, ATMs, newspaper advertisements etc.

This was some of the suggestions in the first Review of Payment and Settlement Systems in India 2006 – 2007, released by the RBI last week. The report pointed out that while banks were prompt in recovery of charges for any balance shortfall, delay in payments, and so on, the customers were not being compensated for the same shortfall on the banks’ part, in spite of instructions by the RBI. Customers were compensated only if they made a request to the banks, the report said.

Need for transparency

The report also highlighted the need for transparency in service charges and other charges related to payment systems.

As the surcharge levied on merchants is high, it serves as a disincentive for the promotion of these payments by merchants.

The existing EFT mode of payment should not be discontinued till a significant number of bank branches at the existing EFT centres are covered under NEFT/RTGS network, the report said.

More sops needed

In order to increase the proliferation of credit cards in smaller cities, the report suggested that banks may consider providing incentives for improved acceptance of cards at merchant locations.

More Stories on : E-Commerce & E-Business

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Central bankers are fallible

Average age of house buyers down by 20 yrs: Assocham

Bonds weaken as oil prices inch close to $100

SBI plans more branches in Vizag

Citibank puts up Chennai property for sale

‘Lack of awareness hampers e-payment’

‘Credit card customers must read fine print on rates’