Page 36 - Banking Finance August 2017
P. 36

ARTICLE

         *99# service has been launched to take the banking services  New Delhi on 01.07.2009. Subsequently RBI entrusted CTS
         to every common man across the country. Banking custom-  operations to NPCI since 10.12.2013. Now Grid-based CTS
         ers can avail this service by dialing *99#, a "Common num-  in New Delhi, Mumbai & Chennai grids are managed by
         ber across all Telecom Service Providers (TSPs)" on their  NPCI, which takes care of the processing of cheques among
         mobile phone and transact through an interactive menu  different banks.
         displayed on the mobile screen. Key services offered under
         *99# service include, interbank account to account fund  National Automated Clearing House
         transfer, balance enquiry, mini statement besides host of
         other services.                                      (NACH):
                                                              National Automated Clearing House (NACH) is a centralised
         *99# service is currently offered by 43 leading banks & all                         system, launched with
         GSM service providers and can be accessed in 12 different                           an aim to consolidate
         languages including Hindi & English. *99# service is a unique                       multiple ECS systems
         interoperable direct to consumer service that brings to-                            running across the
         gether the diverse ecosystem partners such as Banks & TSPs.  country and provides a framework for the harmonization of
                                                              standard & practices and removes local barriers/inhibitors.
         Features of *99# Service:                            NACH system provides a national footprint covers the en-
                                                              tire core banking enabled bank branches spread across the
         Y   Works without Internet - Uses voice connectivity
                                                              geography of the country irrespective of the location of the
         Y   Round the clock availability (works even on holidays)  bank branch.
         Y   Accessible through a common code *99# across all TSPs
                                                              NPCI has implemented "National Automated Clearing House
         Y   Works across all GSM service providers and mobile hand-
                                                              (NACH)" for Banks, Financial Institutions, Corporates and
             sets
                                                              Government a web based solution to facilitate interbank,
         Y   Additional channel for banking and key catalyst for fi-  high volume, electronic transactions which are repetitive
             nancial inclusion                                and periodic in nature. NACH System can be used for mak-

         Y   Service also offered through BC Micro ATMs to serve  ing bulk transactions towards distribution of subsidies, divi-
             the rural populace                               dends, interest, salary, pension etc. and also for bulk trans-
                                                              actions towards collection of payments pertaining to tele-
         *99*99# is a USSD based value added service from NPCI that  phone, electricity, water, loans, investments in mutual funds,
         facilitates the customers to check the status of his/her Aadhaar  insurance premium etc.
         number seeding/linking in the bank account. The service works
                                                              With the implementation of NACH system, NPCI intends to
         across all GSM service providers and brings together the diverse
         ecosystem partners such as Banks & TSPs.             provide a single set of rules (operating and business), open
                                                              standards and best industry practices for electronic trans-
                                                              actions which are common across all the Participants, Ser-
         Considering that various subsides and benefits of the State
         and Central Government schemes under the Direct Benefit  vice Providers and Users etc. NACH system also supports
                                                              Financial Inclusion measures initiated by Government, Gov-
         Transfer (DBT) programme are being doled out on the basis
                                                              ernment Agencies and Banks by providing support to
         of Aadhaar number of the beneficiary this service has proved
                                                              Aadhaar based transactions.
         to be a convenient mechanism for the users to ascertain his/
         her Aadhaar seeding/linking status in the bank account.
                                                              The NACH system facilitates the member banks to design
                                                              their own products and also addresses specific needs of the
         Cheque Truncation System (CTS):                      banks & corporates including a refined Mandate Manage-
         CTS Clearing was imple-                              ment System (MMS) and an online Dispute Management
         mented by RBI in the Na-                             System (DMS) coupled with strong information exchange and
         tional Capital Region (NCR),                         customised MIS capabilities.

            36 | 2017 | AUGUST                                                             | BANKING FINANCE








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