For the RuPay launch, the National Payments Corporation of India is waiting for PoS clearance to kick off the service which is set replace the processing systems of global majors like VISA and MasterCard
After much deliberations and hype over the RuPay card, the unique domestic card in India which is set to replace global real-time payment processing firms like VISA and MasterCard, the service will be commercially launched with full functionality by March 2012 by the National Payments Corporation of India (NPCI).
AP Hota, chief executive officer and managing director, NPCI, told Moneylife, “Currently RuPay cards are being issued with limited functions, they are usable only in ATMs and micro-ATMs (used by bank business correspondents). Once we get the clearance for PoS (point-of-sale) usage, which is expected to come about in March 2012, the card will be launched with full functionality.”
The RuPay initiative entails the setting up of a network switch, which acts as a payment gateway that connects all ATMs and PoS terminals.
An NCPI spokesperson said, “Once PoS acceptance and e-commerce infrastructure is ready, NPCI will go ahead for final approval for rolling out RuPay cards that would be accepted on all channels.”
Since June 2011, RuPay cards have been issued with limited functions, and only used as ATM and micro ATM cards. These cards are not used for other commercial purposes such as usage in departmental stores and shopping centres. Four banks have issued this card. “The RuPay cards issued by four banks are widely used in around 85,000 ATMs across the country. Co-operative banks such Gopinath Patil Parsik Janata Sahakari Bank, NKGSB Cooperative Bank and Kashi Gomti Samyut Gramin Bank (which is a regional rural bank or RRB), have issued RuPay for ATM usage, while Bank of India has issued (RuPay) for micro-ATMs for the purpose of the business correspondents of the bank,” added Mr Hota.
Currently, domestic banks have no option but to tie up with VISA or MasterCard for connectivity between cardholders, merchants and issuing banks, not just within the country, but across the globe in the absence of a domestic Indian payment processing system.
Every transaction done in India using a debit or credit card issued by a domestic bank is routed through network switches owned by VISA or MasterCard, and both entities are based outside the country. But now RuPay would eliminate the need for this connectivity outside India for domestic transactions.
NCPI plans to focus on urban co-operative banks and RRBs. “We plan to enter a market mainly consisting of urban co-operatives and RRBs since they don’t issue any cards at the moment, and there is no other player in that area,” said Mr Hota.
In 2009, the RBI (Reserve Bank of India) had asked the Indian Banks’ Association (IBA) to launch a not-for-profit company and design a rival card—then tentatively called ‘India Card’, which was to meet the requirements of domestic banks.
And finally, the RBI’s plan is materialising and RuPay will act like Union Pay of China, which is the domestic real-time payment processing system for Chinese banks.
Edelweiss Financial reported second-quarter consolidated net profit of Rs26.32 crore, 60% lower than the Rs66.10 crore in the same quarter of last year
Mumbai-based Edelweiss Financial Services Ltd has reported a lower consolidated net profit for the quarter ended 30 September 2011, due to significant slowdown in the capital markets and investments made in new businesses.
The company reported second-quarter consolidated net profit of Rs26.32 crore, 60% lower than the Rs66.10 crore in the same quarter of last year. During the same period, the company's total revenue, including other operating income, rose by 2% to Rs385.32 crore from Rs376.14 crore.
During the quarter, revenue from ‘Fee and Commission’ declined by 27% to Rs104.76 crore from Rs143.70 crore for Q2FY11, while revenue from 'Interest and Treasury' rose by 19% to Rs276.28 crore from Rs231.29 crore.
In the late afternoon, Edelweiss Financial was trading at around Rs24 per share on the Bombay Stock Exchange, 1.01% down from the previous close.
Admitting that with better understanding, the gaps could have been addressed earlier, MSI managing executive officer (administration) SY Siddiqui said: “Perhaps, going forward... the emphasis will be on more education of workers. It is a question of how you create an environment and how you adapt to it. It is a two-way process”
New Delhi: Maruti Suzuki India (MSI) today admitted that the company needs to learn how to deal with a young workforce as it grapples with frequent labour issues at its Manesar plant, reports PTI.
The company, which has witnessed three prolonged labour issues at the plant this year, including the ongoing strike, also blamed inexperienced workers for the trouble, saying they need to “have some respect for law”.
“When you look at this entire situation, then we admit (there is a need) for us to bring in adaptability in a young population that is very, very young,” MSI managing executive officer (administration) SY Siddiqui told reporters on the sidelines of a CII HR Summit here.
He said the average age of the Manesar plant workers is roughly about 24-25 years.
“I think somewhere some learning for us also (is required) on how to deal with the young people... In that sense, maybe some more education should have been there from our side,” Mr Siddiqui added.
Admitting that with better understanding, the gaps could have been addressed earlier, he said: “Perhaps, going forward... (the emphasis will be) on more education of workers. It is a question of how you create an environment and how you adapt to it. It is a two-way process.”
He, however, said the young workers are also equally responsible for the ongoing problems.
Mr Siddiqui said out of a total employee population of 9,100 people in MSI, “We have a specific problem with 1,500 people.”
“I think definitely, it must be somewhere more from the side of the young inexperienced workers and I think it is typically a question of capability to adjust and adapt and have some respect for law,” he said.
The first labour strike at MSI’s Manesar plant in June this year lasted for 13 days. This was followed by a 33-day-long standoff from 29th August to 1st October. The latest strike broke out on 7th October.
The workers have demanded recognition of their union—the Maruti Suzuki Employees Union—which was rejected by the management. They are also demanding the reinstatement of 1,200 casual workers and all permanent workers dismissed or suspended during the different stirs.
Claiming that MSI has one of the best HR management models in the industry, Mr Siddiqui said: “There is a very healthy situation. We have always had good responses from the campuses. The attrition in the company is 5.5%, compared to 13%-14% in the industry.”
There is a tremendous amount of employee orientation in Maruti, he said, adding that the company, which started as a public sector enterprise in 1983, still had some of the positives as a legacy.
“We have a dipstick survey, once in two years right up to the lowest employee, and that helps us define the future roadmap for HR. It is on how the employees rate the company, (working) environment and the leadership,” he said.