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Electronic Payment system (E-Payment) is a new concept in payment systems. It combines computerized convenience with security and privacy that improve on paper cash and paper instruments like cheques.
The objective of E-Payment System is to provide an alternative method of effecting bulk payment transactions which would obviate the need for issuing and handling paper instruments and thereby facilitate improved customer service in effecting the payments and also to facilitate an efficient, secure, economical, reliable and expeditious fund transfer.
In order to avail the benefits of E-Payment System, Electronic based facilities like the Electronic Clearing Scheme(ECS), Electronic Funds Transfer (EFT), Touch Screen and Web based supplier bill query system have been introduced in the Stores Accounts Office, Ayanavaram, Perambur during the year 03-04.
The ECS deals with payment of salary and other monetary disbursements to employees. This system dispenses with the issue of cheques to individual employees and ensures timely crediting their accounts. Presently 7500 employees have been covered and in future it is proposed to cover more number of employees.
The EFT deals with payment to supplier bills. This system dispenses with issue of cheques individually to suppliers and supplier account is credited directly through Reserve Bank of India, Chennai and avoids postal delay. Presently more than 750 suppliers have been covered and in future it is proposed to cover more number of suppliers.
The Online Supplier Bill Status on Touch Screen is provided in the Stores Accounts Office/PER. The Supplier or his Agent can come and use the Touch Screen and find out the status of their Bill.Web enabling of Suppliers' Bills Status on Internet enables the suppliers to know the latest status of their bills online. Presently this facility is available to Suppliers' who have opted for Electronic Funds Transfer mode of payment.
Coverage of EFT Facility :
The EFT system presently covers all the branches of the 27 public sector banks and 8 sheduled commercial banks at the four metropolitan centres (viz., Calcutta, Chennai, Mumbai and New Delhi) and also at the following cities Banglore, Ahmedabad, Nagpur, Hyderabad, Patna, Jaipur, Trivandrum, Kanpur, Bhubaneshwar, Chandigarh,and Guwahati. Funds transfer is possible from any branch to other branch - both inter-city and intra-city. Although the system is designed primarily for inter-bank funds transfer, intra-bank funds transfer (money transfer between the branches of the same bank) is also possible.
EFT Advantages to the suppliers :
Reduces the amount of paper work in office.
There is no extra service charges for availing EFT facility. lEliminates the risk of paper cheques being lost or stolen in the mail or a delay in delivery.
Saves time and hassle of going to the bank to deposit cheques.
Speeds funds to suppliers bank account -- paper cheques can take as long as one week to process.
Transit/postal delay in receipt of cheques is totally avoided.
Undue transit time from Chennai to other cities is avoided.
EFT payment advice in the form of letter / E-Mail containing the details of short payment / recovery made, if any, amount payable, bank name, account number, MICR No. etc are sent to individual suppliers to enable them to know about their bills payment details and also to reconcile with their bank statements.
Features of RBI-EFT System :
a)RBI EFT is a new Scheme recently introduced by Reserve Bank of India (RBI) to help banks offering their customers money transfer service from account to account of any bank branch to any other bank branch.
b)If the remitting bank (RBI Chennai) transmits the funds transfer message to RBI (NCC) by 3.30 p.m. (prescribed cut-off time) on Day-1, the receiving bank's account is credited by RBI (NCC) at the destination centre on Day-2 morning. The receiving bank in turn credits the beneficiary's account on the same day ( i.e. by 12.00 Noon of Day-2).
c)Maximum amount permitted for fund transfer per transaction is Rs. 2 Crores.
d)Supplier can join the EFT scheme by submitting a willingness letter along with a cancelled Blank cheque.
e)By submitting fresh requisition letter, the supplier is free to operate Bank Account of his choice.
f)The receiving branch acknowledges every transaction it receives after crediting the beneficiary's account. The acknowledgment particulars reach the remitting bank as an inward message on Day-3 of the EFT processing cycle. The remitting branch will, therefore, have precise information as to when the beneficiary's account was credited
Statistics :
| Sl.No. |
Description |
Number |
| 1. |
Total No. of Suppliers |
3000 (app) |
2. |
No. of Suppliers Covered under EFT |
750 |
3. |
Average Monthly issue of cheques Before introduction of EFT. |
1450 |
4. |
Average Monthly issue of cheques after introduction of EFT. (EFT citites covered by RBI) |
22 |
5. |
Monthly issue of cheques after introduction of EFT (Non-eft areas + EFT areas) |
700 |
Limitations :
Out of total number of around 3000 suppliers to whom payments are made through Stores Accounts, Perambur Unit, around 750 regular suppliers have already switched over to EFT mode of payment.
The remaining suppliers could not be covered through EFT mode of payment due to the following one or more of the the reasons given below:
Suppliers having account with non-computerised branches of Banks.
At present RBI covers only the four metros, Ahemadabad, Nagpur, Hydrabad, Bangalore, Patna, Jaipur, Trivandrum, Kanpur, Bhuvaneshwar, Chandigarh and Gowgathi and other locations are not covered by RBI EFTs.
Suppliers not having frequent transactions with
Southern Railway. These firms are yet to respond to the letters sent to them by FA&CAO/WST office/ Perambur to enroll themselves for EFT mode of payment.
Steps taken to over come the above hurdles
1)Suppliers are advised to switch over to the computerised bank branches to take full advantages of EFT.
2)Wide publicity have been given to suppliers to switch over to the recently introduced Special Electronic Funds Transfer System to arrange payment to suppliers who are situated in Non-EFT Cities.
Efforts are on to widen the scope of EFT and to achieve 100% EFT, so that all suppliers who are having accounts in banks can receive their payment in electronic form within a matter of hours.
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