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…
- Indian crypto exchanges plan to collect identity details for crypto transfers to private wallets: Report June 3, 2023
- Jugalbandi, A Chatbot for Rural India by Microsoft and EkStep: What to Know and Think About? June 3, 2023
- Hopeful to See Action Against E-Pharmacies Selling Medicines Online Without Licenses: Pharmacy Body Writes to States and UTs June 3, 2023
- Meta to give advertisers more control using AI and content filters June 2, 2023
- Transparency Report: Here’s all Facebook, Instagram, Twitter and Google had to say about user complaints in April June 2, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Is it safe to consider all "publicly available data" as public?
PhonePe launched an e-commerce buyer app for ONDC called Pincode. We, however, believe that it should also launch a seller app.
Amazon announced that it will integrate its logistics network and SmartCommerce services with the Open Network for Digital Commerce (ONDC).
India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?
After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples
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...
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...