Page 119 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes
The Faster Payments Service platform has multicurrency capability and while this
has not been enabled there are likely to be benefits for customers
There is a strong potential for the Faster Payments Service to play a pivotal role in
cheque replacement. In particular, mobile Faster Payments could provide a suitable
offering for person-to-person payments and person-to-business payments.
Developments are likely to occur over the next few years.

The further identification of retail and corporate customers paying behaviour can
provide additional benefits in the delivery of customer centric value propositions,
with the payment method at the core of each real-time transaction.
Operation and Risk Management
As with any project of this magnitude there was always the possibility of teething problems.
During the first few months of launch, fraudulent attacks were a concern, as online banking
controls were probed by fraudsters as is usual with new products/services. However,
processes and controls were introduced to mitigate these risks, and these have been refined
when needed to deal with changes in fraudulent activity. HSBC has had very few complaints
about the Faster Payments Service, and of these, most complaints were raised when a
customer found that the Faster Payments Service could not reach a particular destination.
As the service achieves near universality, these concerns are reducing fast.
The Outcome
Whilst the implementation of the Faster Payments Service has been embraced extremely
positively, there is still further work for the industry. HSBC has embraced the service
since launch and is adopting a strategic approach which delivers a compelling roadmap to
drive customer value propositions. This creates a competitive advantage by improving
retail customer service and driving revenue from a receptive corporate and institutional
community. HSBC has capitalised on the opportunity presented by the Faster Payments
Service and recognises that payback will be achieved in a reasonable time.

Source: http://www.pwc.com/en_GX/gx/banking-capital-markets/transaction-banking-compass/pdf/
tomorrow-happened-yesterday.pdf

5.10 Summary

Payments can be made in India in the form of cash, cheque, demand drafts, credit cards,
debit cards and also by means of giving electronic instructions to the banker who will
make such a payment on behalf of his customers.

In the four metros and a few other major cities, the Reserve Bank of India is looking after
the operations of the clearing house. Each clearing house has uniform regulations and
rules for the conduct of its operations as prescribed by RBI.

In case, a wrong bill is issued and the customer protests, they should provide an explanation
and, if necessary, documentary evidence to the customer within a maximum period of
sixty days.
Credit/Debit cards are being widely used in the country as they provide a convenient
form of making payments for goods and services without the use of cheques and cash
In the last three or four years there has been a phenomenal growth in use of payment cards
(debit and credit cards) as a payment medium in the country. As at the end of December
2004, there were 4.33 crore payment cards in the country.

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