United Bank of India has blocked Aadhaar Enabled Payment System (AEPS) transactions for its users on micro ATMs installed by private banks since April for alleged round tripping by Business Correspondents of private lenders. Consequently, these private banks wrote to the National Payments Corporation of India (NPCI) in protest to the move taken by United Bank and the NCPI, in turn, has forwarded the letter to Reserve Bank of India seeking the regulator's intervention, the report said. The development was reported by the Economic Times. United Bank triggered the move as they had to pay ‘huge sums’ of money as interchange fees because business correspondents of private banks were round tripping funds through the micro ATMS and in turn, earning commission for each transaction, the ET report said quoting a senior public sector banker. Some banks have had to pay around Rs 1 crore in interchange fee in the quarter ending March (FY18), while they were earning close to a mere Rs 4000 from other banks for the same, the officials told ET. The banker went on allege that in some cases about 20 accounts, credit and debit simultaneously in a single day, which suggested unusual customer behavior. the ET reported. He explained the modus operandi of these business correspondents - “These BCs do Rs 3000 credit and debit since that is the optimum amount that helps the interchange to reach Rs 15 per transaction and they get the maximum allowed commission,” the public sector banker told ET. Round Tripping…
- “Foreign state actor” may be responsible for the ransomware attack on AIIMS-Delhi: Report December 3, 2022
- Agenda: Reworking The Data Protection Bill, Delhi, 8th Dec #Ad December 3, 2022
- Why has the deadline to comply with UPI market share cap been extended by the NPCI? December 3, 2022
- India’s IT Minister on DPDP Bill: Law should be kept ‘simple’, subordinate rules won’t exceed Act December 3, 2022
- MIB approves ninth self regulatory body, PADMA, under the IT Rules, 2021 December 3, 2022
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
The Structure and Style of a Dogma Community: Conspiracy theories and organized Twitter engagement on Sushant Singh Rajput
Studying the 'community' supporting the late Sushant Singh Rajput (SSR) shows how Twitter was gamed through organized engagement
Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create a repository of non-personal data?
A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'
India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...
Why ‘group privacy’ should be recognised, and how ‘non-personal’ data becomes a regulatory blindspot
There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...