AEPS is the the payment system that will be used to support direct cash transfer for the government's welfare schemes
Mumbai: As the government is all set to roll out direct cash transfer for its welfare schemes, the National Payment Corporation of India (NPCI) has said seven banks have already implemented the Aadhaar-enabled payment system (AEPS) and seven more are in the process of doing so, reports PTI.
"As the government is set to roll out the direct cash transfer in welfare schemes, the NPCI is ready with the infrastructure for facilitating the process. As of now, seven banks have implemented the AEPS, which is the the payment system that will be used to support direct cash transfer, and seven more banks are in the process of doing it," NPCI Managing Director and Chief Executive AP Hota told PTI.
As per the NPCI, there are two forms of payment systems under the AEPS. One will facilitate crediting money into the beneficiary accounts, while the other will enable account-holders to withdraw cash.
Seven commercial banks such as State Bank of India, Syndicate Bank, Union Bank of India, Central Bank of India and ICICI Bank among others have already implemented the first form of AEPS.
Similarly, another seven banks are in the process of adopting it.
Talking about the second form of AEPS, which enabled the withdrawal of money by the beneficiary, Hota said around 11 banks have already implemented it.
The government has already announced that it will operationalise a phased shift from subsidy-based system to direct cash transfers for its various welfare schemes from next January in 51 districts to start with through the Aadhar card developed by the Unique Identification Authority of India (UIDAI).
The cash transfer will be enabled by the AEPS, which is the payment system developed by NPCI.
Last week, the finance ministry had held discussions with bank Chairman, UIDAI officials and NPCI authorities to assess the preparedness of the whole process for this.
"The infrastructure is ready for the whole process and presently pilots are going on in states like Jharkhand, Karnataka and Andhra," Hota said.
United Bank of India plans to raise at least Rs250 crore but not exceeding Rs300 crore, including premium from rights issue
New Delhi: United Bank of India has said its board has given approval to raise up to Rs 300 crore through a rights issue, reports PTI.
The Board meeting has approved to create, issue and allot up to such numbers of shares of Rs10 each at a premium to be decided subsequently on rights basis to the existing shareholders of the bank as on the record date to be fixed subsequently, United Bank of India said in a filing on the BSE.
The state-owned bank proposes to raise at least Rs250 crore but not exceeding Rs300 crore, including premium from rights issue, it said.
Government of India holds 81.56% stake in the Kolkata-based bank. This means that if it decides to raise fund through rights issue then the Government of India being the largest shareholder has to subscribe shares to the extent of its holding in the bank.
Prior board approval has been secured to enable capital infusion by the government in the bank.
Besides, the board of the bank also given approval to raise up to Rs500 crore by allotting perpetual bonds through private placement.
It also approved issue and allotment of perpetual bonds in the nature of promissory notes of Rs10 lakh each for cash at par up to a maximum amount of Rs250 crore with a green shoe option up to a maximum of Rs250 crore through private placement, the filing added.
Earlier, Financial Services Secretary DK Mittal had said the government will finalise Rs15,000-crore capital infusion for public sector banks soon to help them enhance capital base and increase lending capacity.
Rights issue is under consideration for recapitalisation of banks, he had said, adding that if the government opts for rights issue for banks, it will be done for all banks.