Mobile money transactions will take 4 years to on: KPMG

"Consumer convenience and perception of security will be the key for adoption of mobile payments in India," KPMG Advisory Services director Kunal Pande said

Mumbai: Mobile money transactions will require four years to become widely accepted by consumers globally, reports PTI quoting a KPMG report.

KPMG conducted a survey of nearly 1,000 executives from the financial services, technology, telecommunications and retail sector and found that 83% expected mobile payments to be mainstream within four years.

However, KPMG itself is of the opinion that the mobile money transactions will grow at a faster pace than what the respondents anticipate.

"We believe that exploding smart phone growth and myriad opportunities will grow mobile payments at a much faster rate than our respondents anticipate," KPMG Global Chair of the Technology, Communication and Entertainment, Gary Matuszak said.

"A wide variety of payments is ready for adoption, as several key players already provide or are rolling out mobile payments, and interest among consumers in utilising mobile payments is growing in line with the industry's readiness to deploy them," he added.

The mobile money transactions are estimated to reach $350 billion by 2015, and the number of mobile users in the country is expected to touch 900 million from the current 500 million. Industry experts believe that there would be 150 million smart phone users by 2015.

Nearly 72% of the executives said mobile payments will be reasonably important in the future, while 58% said they have a mobile payments strategy in place.

"There is a consensus on the significant value of this opportunity among executives across geographies and industries, but the type and size of opportunity varies between the developed and developing countries, depending on the depth and reach of the financial infrastructure in place," Mr Matuszak said.

"We believe that firms willing to engage in cross-industry partnerships, are more likely to succeed and dominate the market due to the complex set of business relationships, required to deliver mobile payments to a mass market," he added.

The survey noted that 81% found that convenience or accessibility was the most important factor in mobile payment, while 73% said the technology should be simple and easy to use.

About 57% of respondents said the transactions should be secure and 43% said it should be low cost.

"Consumer convenience and perception of security will be the key for adoption of mobile payments in India," KPMG Advisory Services director Kunal Pande said.

Banks, credit card companies, telecom operators and online service providers are expected to benefit from the mobile payment transaction.

Telecom operators favour the M-Wallet services and nearly one-third of the telecom providers said they were likely to gain traction in their region.

"Our view is that M-Wallet is one of the most exciting and promising payment opportunities. M-Wallet provides the momentum to move beyond payments to participate in the entire chain of mobile commerce, from consideration and brand awareness to purchase after-sales loyalty and care," KPMG Europe technology sector head Tudor Aw said.

The National Payments Corporation of India provides mobile payment option to customers in a tie-up with more than 20 banks. Telecom operators like Airtel, Vodafone, Idea and handset maker Nokia have partnership with banks for M-wallet services.


Only 21 RIL blocks may get unconditional nod for stake sale

Sources said the two blocks on which CCEA may give some kind of a conditional approval, are inconsequential in the whole transaction as there has not been any hydrocarbon discovery so far

New Delhi: More than four months after UK's BP agreed to buy stake in 23 oil and gas blocks of Reliance Industries (RIL) for $7.2 billion, the government may give unconditional approval for stake sale in only 21 blocks, reports PTI.

Approval for sale of 30% interest in deepwater block NEC-DWN-2002/1 in Bay of Bengal and Assam onland block AS-ONN-2000/1 may be conditional as oil regulator Directorate General of Hydrocarbons (DGH) has not agreed on the status of exploration in two acreages, sources privy to the development said.

BP had in February announced buying 30% stake in 23 blocks of RIL, including prolific KG Basin block D6 and gas discovery block NEC-25. While RIL made an application for transfer of interest on 25th February, the oil ministry earlier this month sent the proposal to the Cabinet Committee on Economic Affairs (CCEA) for approval.

Sources said law ministry in its comments on the Cabinet note raised the issue of the two blocks, where DGH and RIL are in disagreement over exploration status.

In NEC-DWN-2002/1, RIL had taken an extension of Phase-I of its exploration campaign. In the meanwhile, the government recently announced rig moratorium, allowing firms more time to fulfil their drilling commitments which they had previously not met due to global shortage of drilling rigs.

Since NEC-DWN-2002/1 was covered by rig moratorium, Reliance sought to withdraw the exploration extension it had availed as per the exploration extension policy of the government but DGH and oil ministry said no to it, sources said adding it is not clear if the block in now under Phase-1 or Phase-II of the exploration phase.

In Assam block AS-ONN-2000/1, there is disagreement if RIL had completed its Phase-I work programme and entered Phase-II.

While Reliance had drilled a well on NEC-DWN-2002/1, it was planning to do so on Assam block shortly. The well on NEC-DWN-2002/1 was dry i.e. did not lead to any oil or gas find.

Sources said finance ministry has opined that approval to the Reliance-BP deal may be given unconditionally while the comments of the home ministry are awaited.

If home ministry responds by Monday, the oil ministry will the following day send a detailed cabinet note complying view of ministries of finance, law and home. The deal may then come up for deliberation of the CCEA on 21st July, they said.

The home ministry had previously given a security clearance to the $7.2 billion deal.

Sources said the two blocks on which CCEA may give some kind of a conditional approval, are inconsequential in the whole transaction as there has not been any hydrocarbon discovery so far.

Although the oil ministry has the authority to decide on Reliance selling 30% interest to BP in 23 exploration blocks, including the prize eastern offshore KG-D6 gas fields, the ministry earlier this month decided to refer the deal to the CCEA, sources said.

The decision to refer the deal to CCEA came more than a month after the ministry of home affairs gave security clearance to the BP stake acquisition. The $7.2 billion deal is the single largest foreign direct investment in the country.

At present, 100% foreign direct investment (FDI) is permitted in the oil and gas exploration and production (E&P) sector under the automatic route (without going through the Foreign Investment Promotion Board or CCEA).

RIL wants to leverage the worldwide experience of BP to resolve sub-surface technical issues at its KG-D6 gas fields, where production has fallen from 61.5 million metric standard cubic metres per day (mmscmd) to about 48 mmscmd, instead of rising to the planned 69 mmscmd.

The Mukesh Ambani-led firm hopes BP will be able to fix reservoir issues at the Dhirubhai-1 and 3 gas fields in the KG-D6 block to rapidly raise output to the planned peak of 80 mmscmd and also to help formulate viable plans to bring other finds in the block and in other areas on to production.

BP will pay $7.2 billion for a 30% stake in 23 exploration blocks held by RIL and a performance payment of up to $1.8 billion if the tie-up leads to the development of commercial discoveries.

RIL and BP will also form an equal joint venture for the import, marketing and transportation of natural gas.

Sources said after the CCEA nod, amendments to the Production Sharing Contracts (PSCs) of the 23 blocks would be effected to induct BP as a partner. Reliance will retain operatorship of all 23 blocks.


Mera Bharat Mahaan: If we want to stop corruption, we will have to begin with ourselves

We, the aam aadmi, are involved in corruption or contribute to furthering corrupt practices. And what should each one of us must do to end this malaise?

Due to the on-going movement against corruption, the government and government employees (about 40 lakh-45 lakh across country) are now perceived to be the only corrupt citizens in the country. But this is not true. It would imply that the rest of the 120 crore Indians, are honest and above board, which is absolutely not true. No country can become corruption-free if the citizens themselves indulge in corrupt practices in day-to-day affairs, hurting their own fellow countrymen. There has not been any appeal by any civil society leader/opposition leader to the general public to shun corrupt practices (and perhaps never will be). Government employees and citizens together, can very effectively contribute to the movement by following certain parameters.

1. Traffic policemen: The next time when traffic police detain someone for violating traffic rules and he wants bribe the police, rather than pay the fine, the policeman should make him shout in public, "I support Anna's movement, but I am a hypocrite". That way the public will know the originator of corruption.

2. Wholesalers/retailers/hoarders of essential commodities: Even when a farmer gets Rs10/15 a kg for his onion/dal/other produce, crores of fellow Indians may end up paying Rs70 to Rs100, due to rigging by these middlemen (our fellow citizens). Hundreds of crores of profit thus get converted into black money. Is it corruption or is it fleecing of fellow countrymen, or both? The government should fix the ratio (say 100%) of wholesale/retail prices to 'farmers' price of sensitive commodities (vegetables, grains, fruits, pulses, etc). The moment that 'cut-off' price is breached, the income-tax (IT) department should simply start raiding them. They will earn blessings of crores of fellow Indians.

3. Adulterators: Water/chemicals in milk, kerosene in petrol, stones in grains, hooch in liquor, duplicate products, are all common corrupt practices  committed purely  by the aam aadmi which may  result in the death of fellow citizens. A government official, Mr Sonawane, was burned in public in Maharashtra recently. His fault, he  was trying to catch a kerosene adulterator. The sale of PDS items-meant for the poor-in the open market; sub-standard roads, flyovers, bridges; meter tinkering/overcharging by autos/taxis, etc, is quite common-all this again by the common citizens.

4. Builder/estate agents: Another very well-known segment where the aam aadmi generates and uses the cash in a very big way is property dealings. Scan as many deals as possible; use Stamp Duty data to identify the receiver/payer of cash. Use agents/dummy customers/actual user/bank network.

5. Jewellers: Individual purchases of Rs5 lakh/Rs10 lakh/Rs20 lakh of gold/diamond/jewellery in cash is quite common; obviously from money got through corruption by the aam aadmi. Go wholeheartedly after this segment. Put the informers; send dummy customers; track  crores of cash being deposited in banks, confront such customers in showrooms, use camera recordings, etc. If there is any resistance, call Anna's local soldiers/recognised civil society leaders.

6. Manufacturers/traders/importers/contractors:
Inflated project costs/over invoicing/under invoicing of receipts and payments/cash purchases and sales/ fake bills, by these 'common people' are very normal practices across segments. Use their lenders/bankers/CAs /employee network to expose the evasion.

7. Doctors/lawyers/tutors/stock brokers: Again, it a known fact that these 'common people' hardly provide receipts for services rendered, and consequently they pay a fraction of the taxes that are due. Make it compulsory to issue proper receipts for every transaction; ensure that stickers/labels are put up in their offices announcing the practice of providing stamped receipts. The differential charging by doctors and hospitals for insured/non-insured treatment is again quite a common practice. Is this just exploitation, or corruption?

8. CAs/consultants: When IT/customs/excise/sales tax/revenue/other officials come to negotiate genuine dues, they must be reminded that the eradication of corruption requires 'compliance' and not 'evasion' and that they should honestly pay what is due. They would certainly appreciate your anti-corruption spirit. Use them to catch evaders.

9. Civil society leaders/supporters of the anti-corruption movement: The public has a right to assure itself that leaders and participants in the anti-corruption movement themselves do not indulge in corrupt practices. The rules of transparency and accountability apply equally to them. Conduct a compulsory financial audit of all those who are in the forefront. Use the TV/press/Internet to identify such persons and share the findings with the public. Ask for voluntary disclosures.

10. Housewives: Very happy with buying gold/diamonds/jewellery valued at lakhs of rupees, all in cash, without batting an eyelid or inquiring from the husband about the source of such large amounts of cash. The husband may participate in a hunger protest and the kids in a candle-light march against corruption, simultaneously. There would be enough leads through access to cameras in jewellers/high-end product showrooms.

11. Students/youth: This is a very vocal and active segment in the movement against corruption. Capitation fees of Rs15 lakh/Rs20 lakh for seats in medical/engineering/MBA courses, even nursery, and all paid in cash, at the cost of deserving poor students, without any qualms. No issues with paying bribes for various certificates. Not disturbed at family members evading taxes. Youth must stop the malpractices within their own families/offices. This might take care of much of the corruption issues and would be their real contribution to the cause.

12. Salaried: Just leave them alone. By and large, they can't contribute much to the corruption pool. They constitute the largest chunk of the three crore tax-payers in the country of 120 crore people. But they are the most-affected lot due to the cancer of corruption practiced by the fellow aam aadmi-whether it is adulteration of milk, grains or fuel; rigging by of prices by middlemen; or being fleeced by lawyers/agents/builders/doctors/contractors/auto or taxi drivers, and so on. They voice their frustration by criticising the government/government employees/the system, without realising that day-to-day life has been made difficult because of the malpractices by fellow 'common people'. And with no support from civil leaders, they will be left to fight this battle on their own.

In conclusion, even the most ideal Lokpal Bill is unlikely to address these issues, on a day-to-day level. Government employees, along with genuine anti-corruption crusaders, should go all out to give invaluable impetus to the anti-corruption movement to rid the country of this evil. The icing on the cake: the incremental revenues would turn out to be beyond anybody's wildest dreams-the various scams may pale in comparison.

Jai Bharat!




5 years ago

All segments r covered.Law enforcement agencies have more role to play.For gud postings, promotions n comforts they compromise integrity.They do whatever politicians want them 2 do.Of course we as Indians lack in Character.we r selfish lot.Excellent article

Ashok Patil

5 years ago

" Be the change you want to be " seems the core theme of Mr. Chaudhry's refreshingly different article. But knowing the Hypocracy in our society none of the segments mentioned will volunteer to change its corrupt practices. Govt. will have to come down heavily on them to make a normal citizen's life better.

Ulhas Phadnis

5 years ago

Excellent article. Author has brought out a totally new approach to the Corruption menace. We, the public, never want to see in mirror ; it could be frightening. So we attack politicians for every malice. Lok Pal has been projected as panacea for the Corruption evil. The author is correct that its notat all going to change all those practices mentioned by different segments; unless Common Man improves himself.
Ulhas Phadnis


5 years ago

The article looks too much biased and trying to protect BIG FISH by allegating on every segment of society without pin pointing the core of the issue.the author has forgot to find the origin of the corruption which starts st peaks and then spreads to all sections of society,
the author has not pointed about law enforcing agencies which are responsible to punish the culprits,and the core of corruption is that no one fears law and law breakers very well know they will get away un-punished in india,
just see any country where laws are tough and punishements are severe,the corruption levels are very low(LOG DANDE SE HI DARTE HAI,KAYDE KANUNO KI BATOE SA NAHI),it is evident from cases of singapore,china.korea etc,because culprits are punished severely.
so the whole article has not touched the core of the issue but just looks very shallow approach to divert people's attention from BIG FISHES.

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