This Blog provides you UpToDate information on life & General insurance dealing mostly with LIC's New Plan Circulars, MillionDollarRoundTable tips on marketing,Financial analysis and INCOME TAX.
The Art of Asking for Referrals – The Power of Word-of-Mouth Marketing
LIC assures LIAFI to consider their various demands
The LIC management has agreed in principle to several demands of LIAFI in a meeting held in Mumbai on June 17, said Devi Shankar Shukla, president of LIAF, here today.
Mr Shukla told UNI that, ''We had been demanding for a number of issues for the welfare of LIC policyholders which include the hike in existing bonus rate as well as reduction in interest rate onloan against LIC policy.''
He further said that the LIAFI has also demanded to increase the commission of LIC agents as recommended by the regulator Insurance Regulation Development Authority (IRDA).
Mr Shukla said that LIC's executive director Vinay Shah has assured them to look into and implement these decisions soon.
A special meet was called by the Agents Federation at Ahmednagar yesterday to apprise the outcome of meeting with LIC management in Mumbai, in which around 1,000 agents participated, said Federation secretary Sudhir Padhye.
Chandrashekar Gandhi, secretary of Agents Credit Society, said, ''We had passed a number of resolutions in Ahmednagar meet which include education loan for agents' kids, hike in festival advance, computer advance to ZM and DM club members, increase the amount of housing loan, change in Agents Regulation Act and group insurance for Club members among others.''
Apart from Mr Shukla, the working president of LIAFI Avdesh Kumsar, western zone president M L Bafna, organisational secretary Suresh Shelke, Mahesh Gugade addressed the agents meet.UNI SP SS NP2006
-- (UNI) -- C-1-DL0171-795748.Xml
ICC MEETING 17-6-16
Good morning to all.
Information sharing ICC MEETING is over yesterday with management.
Management agreed with following issues:
1. Education loan for agents kids.
2 Festival advance to increase.
3. Computer advance to ZM and Dm Club members.
4. Housing loan may increase and for two Houses.
5. Agents regulation act may be changed shortly.
6. Group Insurance for Club members may increase.
7. Mediclaim may be increase and also add spouse.
8. Lot of changes took place on empower agents module.
9. Some relaxation to club rule.
This is for your kind information.
vinay mohanty
insurance will sale Through Common Service Centres (CSCs) or Jan Seva Kendras
An army of digitally trained individuals are leading a silent entrepreneurship revolution in the heart of Indian villages. Through Common Service Centres (CSCs) or Jan Seva Kendras, many young people (some even teenagers) have enrolled to become Rural Authorized Persons (RAPs) to solicit business.
These individuals need to undergo training and examination as specified by the Insurance Regulatory and Development Authority of India (IrdaI), in the subject of insurance products and other necessary topics.
The online examination for RAPs is conducted by the National Institute of Electronics and Information Technology or any other institute as approved by IrdaI from time to time in their centre spread across India.
Through RAPs, the sale and procurement of general insurance products are extended among the vicinity of the village or town that they reside in.
A CSC is a low cost setup and distribution centre for government institutions to deliver e-governance services to the rural population. The CSC-SPV (special purpose vehicle) has been established by the Indian government under the National e-Governance Plan.
To monitor and supervise the progression of CSC-SPVs, a state designated agency (SDA) acts as a nodal agency, and the service centre agency (CGA) becomes the implementing agency which provides the required investment budget and the functional specification of the CSC as identified by the SDA.
The principal officer, a person employed by the CSC-SPV, should have a clean history without involvement in financial forgery or criminal acts, and should have the requisite qualification and experience.
Insurance companies enter into an agreement with CSC-SPVs for distribution of its products through these centres. The timeline for such an agreement is fixed for three years.
Insurance companies at their end, amalgamate their technology portals with the interface used by CSC-SPVs. A RAP within the contours of the village is authorized to solicit insurance business on completion of the necessary training and examination as specified by the IrdaI. A RAP sells and procures general insurance products. The essential paperwork and identification of the insured are seamlessly carried out at the CSC with the help of technology tools.
The premiums are collected by CSC-SPV centres in cash, which is later remitted to the insurer. The policy contract, too, is submitted to the prospect through the RAPs.
Such personal touch points through RAPs have given those in village access to simple-to-understand products to mitigate the risk to life, motor, agriculture pump sets, personal accident insurance and farmer’s package policies. By limiting the sum insured of these products to Rs 2 lakhs (other than for motor insurance), insurers are able to extend such micro-insurance covers and obviate the risk emerging from such groups.
Further, insurers have consciously decided to keep away complex products which require specialized knowledge on premium computation for RAPs to solicit and service products.
The freshly created category of over-the-counter products is not only easy to understand for village level entrepreneurs but also the right entry level product for the rural population.
Today, Anganwadi workers, young local talent and even specially-abled people have joined the CSC movement, thus improving their skill sets and possibilities of a better livelihood. These entrepreneurs on the ground level have the power to connect with local communities, which no outsider with the strongest branding campaign can create.
By imparting knowledge and training on curbing frauds, companies can embark on such progressive initiatives to arrest future fraudulent activities.
SriVTKalaiselvan now AIADMK TN MLA
Dear Liafians !!
elected as AIADMK MLA in Tamilnadu today.
yours
vinay mohantyIRDA said that customers will be allowed part payment of health insurance premiums
In a move aimed at helping more people avail the benefits of health insurance, the Insurance Regulatory and Development Authority of India (IrdaI) has said that customers will be allowed part payment of health insurance premiums. At present, customers have to make a single annual premium payment for any health insurance scheme unlike life insurance products which allows Equated Monthly Installments (EMIs). However, for health insurance products, customers will only be allowed part payments and not EMIs.
The facility is likely to be extended to customers paying for car insurance premiums as well.
The absence of the part payment option is seen as the main reason for India’s poor medical insurance penetration.
However, the IrdaI has said that insurance companies need to apply for approval of schemes allowing the customers to pay premiums in part.
vkmIRDA in final stages of finalizing rules for Over the Counter (OTC) insurance products
In a bid to increase insurance penetration in the country, the Insurance Regulatory and Development Authority of India (IrdaI) is in the final stages of finalizing rules for Over the Counter (OTC) insurance products. IrdaI is expected to issue guidelines in this respect in few weeks.
Once done, insurance companies will be able to sell simple insurance products without lengthy forms or documentation.
At present, the product is first designed, priced and than sent to the IrdaI for approval. Once satisfied with broad contours, IrdaI approves it.
In the recent past, the IrdaI had said that commercial products in general insurance may be sold under use and file procedures, the term for an insurer being permitted to market a product without its prior noting.
This could soon be extended to life insurers. The segment has started to design products that are simple, so that these can be sold as OTC products. Complex products like Unit-Linked Insurance Plans (ULIPs) might not be allowed to be sold as OTC as they are difficult to understand. Pure term insurance or endowment insurance policies could be sold freely if the regulations permit.
It is expected that a number of smaller touchpoints will be activated like medical stores, grocery stores and petrol pumps from where OTC products can be purchased. This would not require any special training for the staff, except basic training in the concept of insurance.
should you opt for term insurance or whole life insurance ?
Purchasing life insurance is a good protection and could be a sound investment opportunity and especially when you are the sole or one of the earning members of your family and if your death is going to leave somebody in a financial lurch.
Life insurance is of two types – term insurance and whole life insurance. People are often are in a dilemma which one to opt. Here, are some basics of both types of life insurance so that you can make informed decision.
Term insurance
Term insurance purely consists of insurance protection, which pays a predetermined sum if the insured dies during a specified period of time. On the death of the insured, term insurance pays the face value of the policy to the named beneficiary. All premiums are used to cover the cost of insurance protection.
The term or the time period may be one, five, ten, twenty years or longer. But, unless renewed, the insurance coverage ends when the term of the policy expires and becomes worthless. Since this is temporary insurance coverage it is the least expensive to acquire.
Main features of life insurance include temporary insurance protection, low cost, low cash value, usually renewal and sometimes convertible to permanent life insurance.
One of the major advantages of term insurance plans is tax benefits it brings under section 80C and 10(10D).
There are numerous types of term insurance plans available in the market including standard term insurance plans, convertible term life insurance plans and group term life insurance plans.
Whole life insurance
Whole life insurance plan is a product that offers protection over the insured’s entire lifetime. It is aimed to create fund for the heirs of the policyholder as it provides for payment of sum assured plus bonuses on the death of the policyholder. In other words, whole life insurance provides not only protection cover to the policyholder but also an investment opportunity.
It charges fixed periodic premiums computed on the assumption that the policyholder can retain the policy for the life of the insured. The death benefit remains same throughout the lifetime of the contract.
Insurers invented the level premium concept to make the whole life contract affordable for as long as the policyholder decided to keep it. It is one of the reasons that whole life insurance is also called permanent life insurance.
The main features of whole life insurance plans include permanent insurance cover, build cash value, allows for loans to be drawn against the policy, level premiums.
Compare both on the following parameters:-
Longevity: Whole life insurance has a greater lifetime than term life insurance and is not required to be renewed.
Expense: Whole life generally is more expensive than a term insurance.
Dividends: Whole life provides continuous dividends unlike term insurance which can be claimed only once at the time of expiry of the policy. However, dividends of whole life insurance remain constant.
As both have there own benefits, so, depending on the person’s situation one should opt for term insurance or whole life. However, ideally a young person should opt for term insurance as they have little cash with them and it is cheaper. And if you are little older you can opt for whole life insurance, as it provides you the opportunity to invest and protect at the same time and it allows you to protect your beneficiaries by leaving behind a good sum of financial help .....moneycontrol.com
LIC among top lenders with largest bad loan
Newslaundry.com, which claims to have sourced a secret Reserve Bank of India (RBI) list of top corporate loan defaulters, had one interesting statistic (among others) in its report; Life Insurance Corporation of India (LIC) is owed Rs 65,700 crores by these defaulters.
At the end of December 2015, LIC’s gross Non-Performing Assets (NPAs) as a percentage of its debt portfolio stood at 4.23% compared with country’s largest lender State Bank of India’s (SBI) 5.1%.
Now, LIC is not in the business of lending. However, it has a loan portfolio of Rs 1 trillion, and held corporate debentures and bonds worth at least Rs 2.7 trillion at the end of March 2015. Thus, at the end of last financial year, gross bad loans were Rs 12,213 crores and constituted 3.3% of its debt portfolio.
As per estimates, using its NPA ratio of 4.23% and assuming a 10% growth in its debt portfolio since March suggest a gross bad loan number of close to Rs 17,000 crores at the end of December 2015.
While that is nowhere close to SBI’ gross NPAs of Rs 72,791 crores, it is enough to place it in the top lenders with the largest bad loans.
But the problem with LIC is that its debt investments are a black box, apart from the suspicion that successive governments have used its balance sheet to bail out disinvestment programmes and prop up equity markets.
Moreover, it has to deploy 15% of funds raised from traditional plans in infrastructure. Now that is the industry which is responsible for close to 30% of banking NPAs, almost double its share of advances. This scenario can also lead to massive conflict of interests.
There are prudential norms that insurance companies have to follow like how they recognize NPAs, what kind of instruments they can invest in,
Etc. But then, banks too have such norms and still showed a 28% sequential rise in NPAs in December quarter after RBI asset quality review.
Thus, leave alone its investments in shares of public sector banks, which RBI has raised concerns about, LIC’s loans and infrastructure investments merit a closer look because of the systemic implications it has on financial stability.
don't give pan card information to railway reservation
Don't give PAN number for railway Tatkal booking as proof of ID.
.
The Railways display the PAN. name, sex and age of passengers on reservation charts pasted on railway compartments.
This is a boon for benami transactions. It is
mandatory for traders like jewelers to collect tax
(TCS) from customers on purchase of jewelry worth
Rs 5 lakh & bullion worth Rs 2 lakh.
To accommodate high net worth customers, traders
have a easy source of benami PAN numbers, name, sex and age from reserved railway compartments.
A traveller recently noticed a chap copying PAN particulars along with name, age and sex pasted on
reserved compartments, and when confronted with
the help of railway police, he admitted that he
gets Rs 10 per PAN particulars from jewellers.
These persons are copying PAN information of
senior citizens, women etc from sleeper class with
the intention that passengers in sleeper class are
not serious tax payers and generally salaried class..
In that case the department will first initiate action from the tax payer's side asking him to explain the sources of money for the above
transaction done in his name
and also to prove that he has not carried on the above transaction..
You may quote your driving licence #, Voter ID # etc as your ID Proof but definitely not your PAN.
Beware!!!!.
Spread this msg to all ur frndz and relatives.
vinay mohanty
.
The Railways display the PAN. name, sex and age of passengers on reservation charts pasted on railway compartments.
This is a boon for benami transactions. It is
mandatory for traders like jewelers to collect tax
(TCS) from customers on purchase of jewelry worth
Rs 5 lakh & bullion worth Rs 2 lakh.
To accommodate high net worth customers, traders
have a easy source of benami PAN numbers, name, sex and age from reserved railway compartments.
A traveller recently noticed a chap copying PAN particulars along with name, age and sex pasted on
reserved compartments, and when confronted with
the help of railway police, he admitted that he
gets Rs 10 per PAN particulars from jewellers.
These persons are copying PAN information of
senior citizens, women etc from sleeper class with
the intention that passengers in sleeper class are
not serious tax payers and generally salaried class..
In that case the department will first initiate action from the tax payer's side asking him to explain the sources of money for the above
transaction done in his name
and also to prove that he has not carried on the above transaction..
You may quote your driving licence #, Voter ID # etc as your ID Proof but definitely not your PAN.
Beware!!!!.
Spread this msg to all ur frndz and relatives.
vinay mohanty
down-lode your ID cards now from mediassist site
now you can downlode your LIC agents group mediclaime ID cards(only club members) from
www.mediassistindia.com, ....https://ecard.medibuddy.in...... policy No. 120300/34/15/0500000002 valid up to 31-8-2016
vinay mohanty
www.mediassistindia.com, ....https://ecard.medibuddy.in...... policy No. 120300/34/15/0500000002 valid up to 31-8-2016
vinay mohanty
the agent of 100 crore policy
Every time Venkateswara Rao Vakalapudi thought of aninsurance agent, the image that came to his mind was of a pesky person thrusting insurance policies under people’s noses. This was one profession he was certain that he never wanted to pursue. Yet, today he is Life Insurance Corporation of India’s (LIC) record-breaking star insurance agent.
Last year, he earned LIC Rs 51 crore worth of fresh business, an industry record. To put this in perspective, 60 per cent of insurance agents in India do business worth Rs 2 lakh to Rs 3 lakh a year.
Vakalapudi, 42, who grew up in a village in West Godavari in Andhra Pradesh, today drives a Range Rover Sport, has a sea-facing bungalow at Vizag, has high net-worth individuals (HNI), non-resident Indians (NRIs) and corporate houses as his clients and travels around the world for business and to give motivational talks.
This is the busiest time for him. Between January and March, when people rush to buy insurance policies, he works 18 hours a day. Catching him is not easy. It takes a series of interviews over days to get a sense of his life and work.
A farmer’s son, Vakalapudi wanted to become an engineer but flunked all subjects and had to drop out of the engineering college he went to in Hyderabad. His father, disappointed, wanted him back in the village to help in the fields. But Vakalapudi had other plans. He says he could not return to the village a defeated man. So, with the help of a cousin who worked with State Financial Corporation, he got a loan of Rs 50,000 under the unemployed youth scheme and started a notebook manufacturing business. He was 19 then.
By the time he was 23, the business bombed and Vakalapudi had accumulated a loss of Rs 15 lakh. Bankers, financiers and suppliers started hounding him. Now he started a parcel services agency that earned him a monthly commission of Rs 30,000 to Rs 40,000 — not enough to pay back the debt.
In 1997, his father died. Vakalapudi went into depression, moved back to the village and starting helping his brother with the farm. But he soon shifted to Vizag and started a poultry business. He would collect feed from companies like Hindustan Unilever and Godrej and sell it to farmers for a credit. The going was good. He repaid his debts. But three years later, the farming community found itself in stress. Business plunged.
Around his time, some of Vakalapudi’s friends from the engineering college in Hyderabad moved to Vizag. Besides helping them relocate, Vakalapudi introduced them to his insurance agent from whom he had bought a policy for himself and his mother. But the agent was erratic and his friends weren’t satisfied with him.
When he casually mentioned this to his “godfather” and uncle Krishna Babu, an MLA from Rajamundry, over breakfast, Babu turned to him and said: “Why don’t you become an insurance agent and help your friends?”
“I don’t want to be recognised as an insurance agent; people run away from them,” Vakalapudi recalls replying. Babu persisted and, three months later, Vakalapudi took the plunge.
In the first year, he sold 12 insurance policies, six to his friends and the rest to his customers in the poultry business.
The breakthrough came in 2001. LIC’s popular policy, Jeevan Shri, was to be discontinued. His development officer, K Raghu, told him to rush and sell the policy to his friends and family before it was scrapped. In 15 days, Vakalapudi did business worth of Rs 4 crore and earned Rs 4 lakh as commission. (Typically, an insurance agent’s commission ranges from 2 per cent to 30 per cent, depending on the value of the policy.) “He was very clever in how he tapped this opportunity and converted many of his business associates into his clients,” says Raghu, who has trained about 350 insurance agents in the last 25 years.
Vakalapudi was selected as member of Million Dollar Round Table (MDRT), a premier association of financial professionals in the world. The five-day MDRT meet he attended in Las Vegas changed his perception towards the profession. “I realised an insurance agent is like a doctor,” he says, “helping people manage their lives and needs.”
In the second year, he sold an insurance policy worth Rs 1 crore for which he got a commission of Rs 11 lakh. But this was to his uncle, Babu.
The real learning was yet to happen. It happened when he sold a Rs 10-lakh policy to an HNI customer. Two years later, he learnt that the same person had now bought another insurance policy — worth Rs 1 crore — from some other agent.
Instead of coming back to Vakalapudi, the man had gone to another agent. This called for introspection. He decided to rethink the way he engaged with and built his relationship with his clients.
“Vakalapudi’s approach is different from other agents,” says Raghu. “He first sells himself to the prospective customer before he sells the product.” He listens well, tries to closely follow the customer’s needs, inspires confidence in himself and then offers the policy, says the development officer. It is this unique attitude and approach that has made him successful, Raghu adds.
Vakalapudi now has two offices, at Hyderabad and Vizag, and a 15-member team. He has launched a financial consultancy called Anand Jeevan.
For an insurance agent to survive and thrive, networking is critical. Vakalapudi realises this, more so because 90 per cent of his business comes through referrals.
Initially, he tapped his friends and the Telugu diaspora living in the United States. He continues to reach out to them by sponsoring events, organising social activities and helping at temples.
“The logic is simple: I invest a certain percentage of whatever I earn in organising local functions. This helps me network and brings in more customers,” says Vakalapudi, who has around 200 NRI clients. In all, he services about 4,000 customers and aims to take that number up to 1 million by the end of 2020. He also wants to start tapping the retail sector.
As of now, the success rate is 30 per cent to 40 per cent — of every 100 people he approaches with an insurance policy, 30 to 40 translate into business.
“He is a trainer and motivator for many,” says Raghu. “But he also attends as many training sessions as possible to get better at what he does.”
The Rs 51-crore record has only added more steam to his momentum. This is, after all, a figure many LIC branch offices with a strength of 300 agents put together couldn’t achieve.
vinay mohanty
Last year, he earned LIC Rs 51 crore worth of fresh business, an industry record. To put this in perspective, 60 per cent of insurance agents in India do business worth Rs 2 lakh to Rs 3 lakh a year.
Vakalapudi, 42, who grew up in a village in West Godavari in Andhra Pradesh, today drives a Range Rover Sport, has a sea-facing bungalow at Vizag, has high net-worth individuals (HNI), non-resident Indians (NRIs) and corporate houses as his clients and travels around the world for business and to give motivational talks.
This is the busiest time for him. Between January and March, when people rush to buy insurance policies, he works 18 hours a day. Catching him is not easy. It takes a series of interviews over days to get a sense of his life and work.
A farmer’s son, Vakalapudi wanted to become an engineer but flunked all subjects and had to drop out of the engineering college he went to in Hyderabad. His father, disappointed, wanted him back in the village to help in the fields. But Vakalapudi had other plans. He says he could not return to the village a defeated man. So, with the help of a cousin who worked with State Financial Corporation, he got a loan of Rs 50,000 under the unemployed youth scheme and started a notebook manufacturing business. He was 19 then.
By the time he was 23, the business bombed and Vakalapudi had accumulated a loss of Rs 15 lakh. Bankers, financiers and suppliers started hounding him. Now he started a parcel services agency that earned him a monthly commission of Rs 30,000 to Rs 40,000 — not enough to pay back the debt.
In 1997, his father died. Vakalapudi went into depression, moved back to the village and starting helping his brother with the farm. But he soon shifted to Vizag and started a poultry business. He would collect feed from companies like Hindustan Unilever and Godrej and sell it to farmers for a credit. The going was good. He repaid his debts. But three years later, the farming community found itself in stress. Business plunged.
Around his time, some of Vakalapudi’s friends from the engineering college in Hyderabad moved to Vizag. Besides helping them relocate, Vakalapudi introduced them to his insurance agent from whom he had bought a policy for himself and his mother. But the agent was erratic and his friends weren’t satisfied with him.
When he casually mentioned this to his “godfather” and uncle Krishna Babu, an MLA from Rajamundry, over breakfast, Babu turned to him and said: “Why don’t you become an insurance agent and help your friends?”
“I don’t want to be recognised as an insurance agent; people run away from them,” Vakalapudi recalls replying. Babu persisted and, three months later, Vakalapudi took the plunge.
In the first year, he sold 12 insurance policies, six to his friends and the rest to his customers in the poultry business.
The breakthrough came in 2001. LIC’s popular policy, Jeevan Shri, was to be discontinued. His development officer, K Raghu, told him to rush and sell the policy to his friends and family before it was scrapped. In 15 days, Vakalapudi did business worth of Rs 4 crore and earned Rs 4 lakh as commission. (Typically, an insurance agent’s commission ranges from 2 per cent to 30 per cent, depending on the value of the policy.) “He was very clever in how he tapped this opportunity and converted many of his business associates into his clients,” says Raghu, who has trained about 350 insurance agents in the last 25 years.
Vakalapudi was selected as member of Million Dollar Round Table (MDRT), a premier association of financial professionals in the world. The five-day MDRT meet he attended in Las Vegas changed his perception towards the profession. “I realised an insurance agent is like a doctor,” he says, “helping people manage their lives and needs.”
In the second year, he sold an insurance policy worth Rs 1 crore for which he got a commission of Rs 11 lakh. But this was to his uncle, Babu.
The real learning was yet to happen. It happened when he sold a Rs 10-lakh policy to an HNI customer. Two years later, he learnt that the same person had now bought another insurance policy — worth Rs 1 crore — from some other agent.
Instead of coming back to Vakalapudi, the man had gone to another agent. This called for introspection. He decided to rethink the way he engaged with and built his relationship with his clients.
“Vakalapudi’s approach is different from other agents,” says Raghu. “He first sells himself to the prospective customer before he sells the product.” He listens well, tries to closely follow the customer’s needs, inspires confidence in himself and then offers the policy, says the development officer. It is this unique attitude and approach that has made him successful, Raghu adds.
Vakalapudi now has two offices, at Hyderabad and Vizag, and a 15-member team. He has launched a financial consultancy called Anand Jeevan.
For an insurance agent to survive and thrive, networking is critical. Vakalapudi realises this, more so because 90 per cent of his business comes through referrals.
Initially, he tapped his friends and the Telugu diaspora living in the United States. He continues to reach out to them by sponsoring events, organising social activities and helping at temples.
“The logic is simple: I invest a certain percentage of whatever I earn in organising local functions. This helps me network and brings in more customers,” says Vakalapudi, who has around 200 NRI clients. In all, he services about 4,000 customers and aims to take that number up to 1 million by the end of 2020. He also wants to start tapping the retail sector.
As of now, the success rate is 30 per cent to 40 per cent — of every 100 people he approaches with an insurance policy, 30 to 40 translate into business.
“He is a trainer and motivator for many,” says Raghu. “But he also attends as many training sessions as possible to get better at what he does.”
The Rs 51-crore record has only added more steam to his momentum. This is, after all, a figure many LIC branch offices with a strength of 300 agents put together couldn’t achieve.
vinay mohanty
Under direction of RBI that from 1st April 2016 the clearing of cheques would be done on the same day
Under direction of RBI that from 1st April 2016 the clearing of cheques would be done on the same day in house where cheque is deposited i.e. with any Bank whether Nationalised & co - operative etc. and while screening if there is insufficiency of fund the bounced chq cannot be represented again & payee if need be will have to file legal complaint under section 138 System will change
Take care of cheques issued
Take care of cheques issued
1- ECS will be replaced with NACH from 01/04/2016.
2- Kindly ensure that all ECS payment to be made through till 31/03/2016.
3- NACH stands for National Automated Clearing House.
About NACH-
National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House (NACH)” for Banks, Financial Institutions, Corporates and Government a web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.
National Automated Clearing House (NACH) is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonization of standard & practices and removes local barriers/inhibitors. NACH system will provide a national footprint and is expected to cover the entire core banking enabled bank branches spread across the geography of the country irrespective of the location of the bank branch.
With the implementation of NACH system, NPCI intends to provide a single set of rules (operating and business), open standards and best industry practices for electronic transactions which are common across all the Participants, Service Providers and Users etc. NACH system also supports Financial Inclusion measures initiated by Government, Government Agencies and Banks by providing support to Aadhaar based transactions.
The NACH system facilitates the member banks to design their own products and also addresses specific needs of the banks & corporates including a refined Mandate Management System (MMS) and an online Dispute Management System (DMS) coupled with strong information exchange and customised MIS capabilities.
The NACH system provides a robust, secure and scalable platform to the participants with both transaction and file based transaction processing capabilities. It has best in class security features, cost efficiency & payment performance (STP) coupled with multi-level data validation facility accessible to all participants across the country.
NACH’s Aadhaar Payment Bridge (APB) System, developed by NPCI has been helping the Government and Government Agencies in making the Direct Benefit Transfer scheme a success. APB System has been successfully channelizing the Government subsidies and benefits to the intended beneficiaries using the Aadhaar numbers. The APB System links the Government Departments and their sponsor banks on one side and beneficiary banks and beneficiary on the other hand.
2- Kindly ensure that all ECS payment to be made through till 31/03/2016.
3- NACH stands for National Automated Clearing House.
About NACH-
National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House (NACH)” for Banks, Financial Institutions, Corporates and Government a web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.
National Automated Clearing House (NACH) is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonization of standard & practices and removes local barriers/inhibitors. NACH system will provide a national footprint and is expected to cover the entire core banking enabled bank branches spread across the geography of the country irrespective of the location of the bank branch.
With the implementation of NACH system, NPCI intends to provide a single set of rules (operating and business), open standards and best industry practices for electronic transactions which are common across all the Participants, Service Providers and Users etc. NACH system also supports Financial Inclusion measures initiated by Government, Government Agencies and Banks by providing support to Aadhaar based transactions.
The NACH system facilitates the member banks to design their own products and also addresses specific needs of the banks & corporates including a refined Mandate Management System (MMS) and an online Dispute Management System (DMS) coupled with strong information exchange and customised MIS capabilities.
The NACH system provides a robust, secure and scalable platform to the participants with both transaction and file based transaction processing capabilities. It has best in class security features, cost efficiency & payment performance (STP) coupled with multi-level data validation facility accessible to all participants across the country.
NACH’s Aadhaar Payment Bridge (APB) System, developed by NPCI has been helping the Government and Government Agencies in making the Direct Benefit Transfer scheme a success. APB System has been successfully channelizing the Government subsidies and benefits to the intended beneficiaries using the Aadhaar numbers. The APB System links the Government Departments and their sponsor banks on one side and beneficiary banks and beneficiary on the other hand.
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