Apeejay Stya University Interim Report

8/12/2019 Apeejay Stya University Interim Report

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campus gov Linking eGov Projects to Engineering Campuses

INTERIM REPORT

Programme

BANKING: CENTRAL MISSION MODE PROJECT DELIVERING SERVICES

APEEJAY STYA UNIVERSITY

2013 -14

FOR

BY



2

Apeejay Stya UniversitySohna, Gurgaon

Haryana

Preface

The Government of India is keen to understand the nature and quantum of impact created

by e-Governance projects that have been implemented by state and national agencies

under the National e-Governance Plan (NeGP). The Department of Information

Technology (DIT), Government of India as the nodal coordinating agency for the NeGP

is directed to carry out an impact assessment study of state/ national level projects that

have been implemented or under process in India. The assessment is to focus on the

nature and quantum of impact on citizen and organization of India.

Impact Assessment of the Banking project in Public Sector Banks is taken up in the

current cycle of assessment studies on citizen and service providing agencies of India by

considering key dimensions of impact like economic (direct/indirect), governance in term

of (corruption, accountability, transparency, participation), Quality of service,



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performance on key non-economic objectives, process improvements, quality of

implementation. The Engineering Watch agency was assigned the task of assessing the

impact of the respective project (Banking-MMP) and preparing an individual report for

this project.

The Apeejay Stya University (ASU), served as one of the assessment body based on

technical and non-technical parameters for the proposed project ‘Banking’. A team from

ASU worked closely with selected Public Sector Banks for the assessment study and

provided feedback to the Engineering Watch at key points of assessment. The field

survey of selected five Public Sector Banks (Punjab National Bank, Oriental Bank of

Commerce, Syndicate Bank, Bank of India and Central Bank of India) was further

assessed through services available on respective web portals of the banks and compared

with the survey performed.

Abbreviations and Acronyms

ATM Automated Teller Machine

ASU Apeejay Stya University

ASBA Application Supported by Blocked Amount

BOI Bank of India

CERSAI Central Registry of Securitization Asset Reconstruction and

Security Interest of India

CRM Customer Relationship ManagementDIT Department of Information Technology

DC Data Center

DRS Disaster Recovery Site

ECR Electronic Central Registry

IA Impact Assessment

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ICT Information and Communications Technology

MSME Micro, Small and Medium Enterprises

MMP Mission Mode Projects

NeGP National e-Governance Plan

NEFT National Electronic Funds Transfer System

OBC Oriental Bank of Commerce

PSB Public Sector Banks

PPP Public- Private Partnership

PNB Punjab National Bank

PMEGP Prime Minister's Employment Generation Programme

R&D Research & Development

RRBs Regional Rural Banks

RBI Reserve Bank of India

SARFAESI Securitization and Reconstruction of Financial Assets and

Enforcement of Security Interest

SCBs Scheduled Commercial Banks

SME Small & Medium Enterprises

VSV Verified by Visa

Executive Summary

Assessment of Delivery of Key Services: the Citizen’s and organizational Perspective

The report presents an overall view of the impact of varying degrees of computerization

in the service delivery of banking departments in selected five Public Sector Banks

Punjab National Bank, Oriental Bank of Commerce, Syndicate Bank, Bank of India and

Central Bank of India as part of Mission Mode Projects (MMP) Banking. The Banking

Mission Mode Project under NeGP covers the following services like electronic central

registry under Sarfaesi Act, 2002, one India one account-for Public Sector Banks (PSB)

http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CDQQFjAA&url=http%3A%2F%2Fsearchcio.techtarget.com%2Fdefinition%2FICT-information-and-communications-technology-or-technologies&ei=bJ9LU6K3LomSrgfSkIAI&usg=AFQjCNGB93V6W-ybYuFavbKDtvJSlAXQ2A&sig2=26oomBAJ4x3BwAGdyQSguQ&bvm=bv.64542518,d.bmk

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and electronic mass payment system. This report is based on framework for Impact

Assessment (IA) and baseline study report at the national level. Therefore, the

information and analysis presented in this report is limited by the content of the national

level reports framework for citizens like direct and indirect impact of economy,

governance in term of corruption, accountability, transparency and participation of

citizens, Quality of services in term of decency, fairness and convenience etc. Few

parameters for impact assessments study used here are as follow:

• No. of accounts in same bank and in different bank( duplicity in records)

• Ratio of users who are using computerized and non-computerized services

• Awareness about central registry act.

• Cost of availing service measured directly & indirectly

• Number of trips made for the service

• Average waiting time in each trip

• Total time elapsed in availing service

• Amount paid as bribe to functionaries

• Amount paid to agents to facilitate service if any

• Preference for manual versus computerized systems

• Quality of Service: Interaction with staff, complaint handling, privacy, accuracy

measured

• Satisfaction with the location of the service delivery center/office

• Convenience of working hours of the service delivery center/office

• Overall attitude of the functionaries in terms of courteousness and friendliness

• Timeliness of response to queries by clients

• Satisfaction with the mechanism for complaint handling and problem resolution

• Perception about the confidentiality and security of data

• Satisfaction with the overall quality of service



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• Quality of Governance: Transparency, participation, accountability, corruption

measured

• Level of corruption in the current working system

• Awareness about the citizen charter

• Adherence of the time frame for service delivery (elapsed time)

• Financial loss due to delay in availing the service

• Extent to which government officials can be held accountable for their actions

• Whether the rules and procedures are simple and stated clearly

• Perception about the overall quality of governance

• Other e-Governance scheme run by individual bank

• Unique customer identification maintained by bank

• Mode of electronic mass payment system adopted by banks etc.

Analysis of qualitative feedback from users and bank employees, suggests several areas

of improvements in the current applications such as faster servers, improved design of

online interface, more counters to minimize queues, and better trained staff. Lack of

information regarding various beneficial schemes run by government is also a major

problem. One way in which it can be minimized is to offer end-to-end online services and

awareness of multiple schemes run by government for citizen welfare.

Table of Contents

Preface……………………………………………………………………………………..2

Abbreviations and Acronyms……………………………………………………………..3

Executive Summary ............................................................................................................4



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1.1 Introduction....................................................................................................................7

1.2 Brief Description of the Projects ...................................................................................8

1.2.1 Central Electronic Registry under the Securitization and Reconstruction of

Financial Assets and Enforcement of Security Interest (Sarfaesi) Act

2002…………………………………………………………………………….10

1.2.1.1 Sarfaesi Act 2002 important features…………………………………….11

1.2.1.2 Limitations with the central registry data base…………………………..12

1.2.1.3 Assessment of the electronic central registry……………………………12

1.2.2 One India One Account.......................................................................................13

1.2.2.1 Advantage of one India one account…………………………………….15

1.2.2.2 Assessment of one India one account……………………………………15

1.2.3 Electronic Mass Payment System........................................................................17

1.2.3.1 Main basic features of electronic mass payment system………………...19

1.2.3.2 Assessment of the electronic mass payment system…………………….20

1.3 Research Methodology and Sampling........................................................................24

1.3.1 Design data collection form…………… ...........................................................27

1.3.2 Sampling Plan, Sample Size and Profile ...........................................................27

1.4 Data analysis and comparison of services…...............................................................29

1.4.1 Value Delivered by the Online Applications......................................................29

1.4.2 Comparison of the project across Key Dimensions ………..............................31

1.4.3 Overall Assessment …………………………………………………………..33

1.5 Analysis of Qualitative Feedback and Suggestions ...................................................35

1.6 Conclusion .................................................................................................................36

1.1 Introduction



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Seventh national e-Governance plan has been formulated by the Department of

Information Technology and Department of Administrative Reforms and Public

Grievances. The National e-Governance plan aims at improving delivery of Govt.

services to citizens and businesses with a view to make all govt. services accessible to a

common man in his locality through common man delivery outlets and ensure efficiency

transparency and reliability of such services at affordable cost to realize the basic needs

of the common man. The implementation strategy, approach and methodology adopted

for national e-governance plan contemplated the following elements

• Common Support Infrastructure: National e-governance plan implementation

involves setting up of common and support IT infrastructure.

• Governance: Suitable arrangements for monitoring and coordinating the

implementation of National e-governance plan under the direction of the

competent authorities have also been substantially put in place. The programme

also involves evolving / laying down standards and policy guidelines, providing

technical support, undertaking capacity building, R&D, etc.

• Centralized Initiative, Decentralized Implementation: e-Governance is being

promoted through a centralized initiative to the extent necessary to ensure citizen-centric orientation, to realize the objective of inter-operability of various e-

Governance applications and to ensure optimal utilization of ICT infrastructure

and resources while allowing for a decentralized implementation model.

• Public-Private Partnerships (PPP) model is to be adopted wherever feasible to

enlarge the resource pool without compromising on the security aspects.

• Integrative Elements: Adoption of unique identification codes for citizens,

businesses and property is to be promoted to facilitate integration and avoid

ambiguity.

• Programmed Approach at the National and State levels: For implementation

of the National e-governance plan various Union Ministries/Departments and

State Governments are involved. Considering the multiplicity of agencies

involved and the need for overall aggregation and integration at the national level.



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• Facilitator role of DIT: DIT is the facilitator and catalyst for the implementation

of National e-Governance plan by various Ministries and State Governments and

also provides technical assistance.

Different Mission Mode Projects conceptualized under National e-Governance plan

initially are as under:-

Central Government Category : Nine Mission Mode Projects

State Government Category : Eleven Mission Mode Projects

Integrated Service Category : Seven Mission Mode Projects

To sustain the above projects there is also need to create the right governance and

institutional mechanisms, set up core infrastructure, formulate key policies, standards and

resources. One of the Mission Mode Projects relates to banking. The Banking Mission

Mode Project under NeGP covers the following services:

1. Electronic Central Registry under Sarfaesi Act, 2002

2.

One India One Account-for Public Sector Banks3. Electronic Mass Payment System

In view of the proposed roll out of the ambitious National e-Governance Plan (NeGP),

the Government of India was keen to understand the nature and quantum of impact of

existing e-Government projects implemented by national agencies. For this purpose, the

Apeejay Stya University as the nodal agency decided to undertake an impact assessment

study of the Banking project.

1.2 Brief Description of the Project

The MMP is being implemented by the banking industry which aims at streamlining

various e-services initiatives undertakers by individual banks, e-governance

implementation is done by the banks concerned with the banking Department providing



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a broad framework and guidance to them. Out of three components of the MMP, the

component of Electronic of Mass Payment System may not take up for implementation

because banks are independently taking up their own initiative on this front. The other

two components i.e. Electronic Central Registry and One India one account for Public

Sector banks have been referred to Indian Bank Association. With focus on inclusive

growth, the Indian government has been encouraging opening of bank accounts for the

nation’s huge un-banked population by providing government benefits through such

accounts. ICT solutions have made such initiatives possible at relatively low cost. While

the growth that India has seen during the past decade has been impressive, there are some

concerns about the dimensions related to financial services. Lot of work needs to be

done before the concerns of absolute poverty can be addressed. The low income

households in India have very little awareness of banking, credit and insurance related

services through which they can enhance and protect their financial resources during

times when they are unexpectedly struck by illness, natural disasters or death of the

primary breadwinner.

The optimism about Indian economic growth portends well for Indian banks. There are,

however, challenges in retaining profitability and growth in the next decade. The industry

has to live up to high expectations from several quarters. There are ten major trends that

will shape Indian banking over next decade. It identifies two critical and complex

challenges thrown at the industry for which solution has to be found with urgency. The

report outlines potential solutions and articulates key imperatives for government and

regulation. The ten major trends to watch out for are retail banking will be immensely

benefited from the Indian demographic dividend, mortgages to grow fast, rapid

accumulation of wealth in rich households will drive wealth management to 10X size,

“The Next Billion” consumer segment will emerge as the largest in numbers and will

accentuate the demand for low cost banking solutions, branches and ATMs will need to

grow 2X and 5X respectively to serve the huge addition to bankable population, low cost

branch network with smaller sized branches will be adopted, mobile banking will come

of age with widespread access to internet on mobile, banks will adopt CRM and data



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warehousing in a major way to reduce customer acquisition costs and improve risk

management, margins will see downward pressure both on retail and corporate banking

spurring banks to generate more fees and improve operating efficiency, banks will

discover the importance of the SME segment for profitability and growth and new

models to serve SME segment profitably will be found, investment banking will grow

10X, driven by demand from corporate for transaction support and capital market access,

it will touch the ALM limits of banks and will require a significant upgrade of banks’ risk

management systems etc. After consideration and implementation of above proposed

trends and three main parameters for allotted mission mode project leads to transparency,

efficiency, sustainability and scalability in whole banking process. Detail of three main

parameter is given below and summery of all described in table 1.

1.2.1 Central Electronic Registry under the Securitization and

Reconstruction of Financial Assets and Enforcement of Security

Interest (Sarfaesi) Act 2002

The objective of setting up of Central Registry is to prevent frauds in loan cases

involving multiple lending from different banks on the same immovable property. This

Registry has become operational on March 31, 2011. The Central Registry of

Securitization Asset Reconstruction and Security Interest of India (CERSAI), a

Government Company registered under section 25 of the Companies Act 1956, has been

incorporated for the purpose of operating and maintaining the Central Registry under the

provisions of Securitization and Reconstruction of Financial Assets and Enforcement of

Security Interest Act, 2002 (SARFAESI Act) .

The Central Registry has been established in Indian Banks’ Association, Delhi Local

Chapter C/o Punjab National Bank, Rajendra Bhavan,Rajendra Place, New Delhi 110008

vide notification issued by Govt. of India Ministry of Finance Department of Financial

Services in March,2011 Actually, the Central Registry Rules and establishment of

Central Electronics Registry has been made pursuant to the recommendation made by



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working group set up by the Indian Banks association in Jan,2009. The Central Registry

Rules mandates the compulsory Registration of all particulars pertaining to every

transaction of securitization or reconstruction of financial assets and satisfaction of such

transaction on realization of financial asset or creative modification or satisfaction of any

security interest within a period of 30 days.

The availability of Electronics records maintained by the Central Registry is expected to

prevent, minimize and mitigate unfortunate instances of fraud wherein banks and

financial institutions tend to extend / sanction financial assistance against provisioning

of security of same property as well as fraudulent sale of the same without disclosing the

security interest over such property by unscrupulous borrowers since the same can be

searched by any lender or other person desirous of dealing with the same properties. To

give the much needed teeth to these provisions and implement the same, a Government

company ( The Central Registry of Securitization Interest of India – CERSAI) has been

incorporated under section 25 of the company Act 1956, for the purpose of operating and

maintaining the Central Registry has been setup with an authorized capital of Rs 100

crores and authorized paid up capital of Rs 49 crores with Government’s contribution

of 51% and rest 49% by 11 share holding banks like National Housing Bank , State Bank

of India, Punjab National Bank, Bank of Baroda etc.

1.2.1.1 Sarfaesi Act 2002 important feature

(a) Users registration: Users’ Registration is compulsory with Central Registry .

(b) IT Architecture: The IT infrastructure for Central Registry has since been

commissioned with Data Centre (DC) at Noida and Disaster Recovery Site (DRS)

at Chennai. These centers are manned on 24X7 basis by the IT vendor of the

company.

(c) Institutions: All Commercial Banks, Private Banks, Foreign Banks, Co-Operative

Banks, RRBs, Selected HFCs (22), Financial institutions and Asset

Reconstruction Companies are the institutions which are expected to make use of

Central Registry efforts.



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(d) Public Search: Online search will be on the uploaded Security Interest records

available in the Central Registry’s database. This facility will be helpful to

general public to check the encumbrance status on a given property and common

knowledge of the encumbrance status by all lending institutions will help in

preventing frauds. This facility was scheduled to start functioning from 3rd

week of January 2013.

1.2.1.2 Limitations with the Central Registry data base

• Central Registry addresses the encumbrance status of a property; there is no

mechanism available in the Central Registry system to check the ownership of a

property.

• Non-availability of information like ownership etc. at the time of creation of

security interest does not guarantee whether the borrower is the actual owner of

the property.

Since land assets are being a state subject governed by respective laws of the state(s),

it is essential to have a synergy between the Central Registry system and State

Registries.

• In the absence of information on the genuine title, only encumbrance certificate

will not be sufficient to prevent fraud.

Availability of information on Bank guarantee on a Central Portal for online search

need to be explored. Establishment of State Registries in conformity with the time

schedule set for operation of Central Registry appears to be doubtful. This needs to

be ensured by instituting necessary measures for proper integrated approach at

national level.• Manpower & Technical support: Adequate technical man power, hardware,

software and integration to be established to meet the requirement of user across

the country.

1.2.1.3 Assessment of the Electronic Central Registry



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• Impact: Creation of Electronic Central Registry(ECR) under SARFAESI Act

2002 with an objective to prevent frauds in loan cases / financial assistance by

Banks / Financial Institutions across the country against various assets (

immovable properties ) mortgage has positive impact on the overall working and

decision making process from institutional angle and financial / administrative

approach by the concerned authorities.

• Utility: The concept of ECR is expected to introduce a new working environment

at national level in the process of extending loans / financial assistance by Banks /

Financial institutions against immovable properties with an ultimate aim of

preventing frauds. The environment so generated will have far reaching

advantage / utility in handling loan cases by the authorities concerned.

• Sustainability: The Electronic Central Registry concept has been designed to

have an integrated system at national level to prevent frauds in loan cases against

immovable properties. The entire maintenance and operational arrangements

envisaged for the scheme needs to be placed in position to ensure sustainability

of the scheme as a whole in the form of independent procedures oriented backed

by technical and administrative support in the years to come.• Scalability: Scalability of any procedure, system and organization can be ensured

by means of inducing compatible technical, administrative and manpower support

progressively over a period of time in the process of increasing and expanding

basic needs with the passage of time. Proper maintenance backing, reviewing and

monitoring mechanism is an inescapable requirement to ensure healthy scalability

of the overall system.

• Replicability: The ECR system placed in position at national and state levels may

require replicability in future at more destinations identified with the passage of

time with regard to basic application needs of the system.

1.2.2 One India One Account:



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One India one account for public sector banks is essential to ensure healthy financial

management in the country especially in banking sector. It also ensure that all the

payment and settlement systems operating in the country are safe, secure, sound,

efficient, accessible and authorized and contained both short and medium term plans

along with a slightly longer term perspective to achieve those goals. In India, there

are total of 21 Public Sector Banks, 80 regional rural banks, 19 private sector banks

and 32 foreign operating banks. Where Public Sector Banks (PSBs) are banks where a

majority stake (i.e. more than 50%) is held by a government. The shares of these

banks are listed on stock exchanges.

The Indian government has been encouraging opening of bank accounts for the

nation’s huge un-banked population by providing government benefits through such

accounts. ICT solutions have made such initiatives possible at relatively low cost. The

banking sector has taken a lead role in promoting financial inclusion. There has been

in multi-fold increase in the number of bank branches, especially in rural areas; the

branch network was around 8,000 in 1969 and now it is more than 89,000, spread

across the length and breadth of the country. However, these initiatives for

strengthening financial inclusion are yet to have a substantial impact on the lives of

the excluded population. Over half the Indian population is un-banked. Only about 55

percent of the population in the country has deposit account and around 9 percent

have credit accounts with banks. According to data from Reserve Bank of India

(RBI), India is the home to largest number of un-banked families (more than 145

million). There is only one bank branch per 14,000 people. The total number of

villages in the country is estimated to be around 6 lakhs, but the number of scheduled

commercial banks (SCBs) and Regional Rural Banks (RRBs) stand at only 33,495.

A recent directive from Reserve Bank of India has acknowledged the need of

stepping up opening of branches in rural areas so as to improve banking penetration

and financial inclusion. Banks have been advised as part of risk management to adopt

ICT solutions. The overall strategy of the government of India for having an inclusion

financial sector in the country is primarily based on the following aspects:





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• Quickly accessible

• Developed integrated system

• Standardized, and portability in banking operations will be achieved

• Interoperable

• Developed in terms of infrastructure and integrated payment system

• Efficient and effective enhancement in the sales and purchase systems

1.2.2.2 Assessment of the One India One Account

Impact

• Efficient and Quick Mode of operation: The analogy of mobile number portability

applies to the One India One Account. So the similar impact that mobile industry

have made to the people’s life can be adjudged on the life of banked people, for

example if you decide to change your bank because of factors like nearness to

home, level of comfort etc, your account number will be carried forward and will

remain same. So less hassle for managing closure of one account, opening of

another account, infect same documents used for opening old account can be

carried forward from the bank to bank (electronic version), so even lesser job on

the part of bank customers.

• Transparency in Transaction: With the multiple accounts it is hard to collect

transaction details of a particular bank customer, so with the presence of this

facility it will be easy for the banks as well as for the customers to keep track of

the transactions.

• Fraud Detection will be easier.

Utility

• Facility can be used for quickly gathering transaction data to calculate tax

information with much greater ease then in the case of One India Multiple

accounts.





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The banking industry in India has been enjoying the benefit of Smart Card concept over

the years. Smart Card can be in the form of Credit Cards / Debit Cards, Kissan Credit

Card etc. These devices are used either to take money on loan from the bank or draw

money out of the credit balance available in your bank account. Electronic Mass

Payment concept essentially requires use of Smart Card by each and every citizen in the

country. However, in India the low income households have very little awareness of

banking, credit, debit and other related activities through which they can enhance and

protect their financial resources. In fact, the banking sector has taken a lead role in

promoting financial inclusion. Unfortunately, over half of the population in India is

unbanked. Only about 55% of the population in the country have deposit account and

around 9% have credit accounts with bank. According to data from Reserve Bank of

India (RBI), India is the home to largest number of unbanked families. (more than 145

million). There is only one bank branch per 14000 people. The total number of villages

in the country is estimated to be around 6 lakhs, but the number of scheduled commercial

banks (SCBs) and Regional Rural Bank stands at only 33495. As such, the need of

stepping up opening of banking arrangement in rural areas to ensure Electronic Mass

Payment in the country appears to be an inescapable necessity. To proactively encourage

electronic payment systems for ushering in a less-cash society in India and to ensure

payment and settlement systems in the country are safe, efficient, interoperable,

authorized, accessible, inclusive and compliant with international standards. The Vision

Statement indicates RBI’s renewed commitment towards providing a safe, efficient,

accessible, inclusive, interoperable and authorized payment and settlement systems for

the country. Payment systems will be driven by customer demands of convenience ease

of use and access that will impel the necessary convergence in innovative e-payment

products and capabilities

Even the RBI issued a Vision statement on 1st Oct,2012 regulating Electronic Mass

Payment System for ushering in less-cash society in India and to ensure payment and

settlement system in the country are safe, efficient, inter operable, authorized, accessible,





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Thus, the entire banking sector in India has been directed by RBI to ensure compliance of

the vision statement characteristics to encourage Electronic Payment System in the

country smoothly.

1.2.3.1 Main Basic Features of Electronic Mass Payment System

1. The Electronic Mass Payment System will increase efficiency and effectiveness and

enhancement in payment system: To provide agility and dexterity - the combination

of speed, efficiency, interoperability and standardization in payments systems that

would enable all stakeholders (users and providers) to realize their needs without

compromising the quality of service through a proactive regulatory and policy

framework like:

• Cheque clearing

• National Electronic Funds Transfer System (NEFT)

• National Electronic Clearing Services

• Settlement in central bank money

• Regulatory and policy framework for inducing efficiency

• Rationalize the guidelines for payment systems

2. Standardization, portability and inter operability in the systems: Development of

common standards for payment systems and strive towards interoperability and

portability of payment systems.

• Development of common standards for payment systems and strive towards

interoperability and portability of payment systems.

• Harmonization of routing codes

• Standardization of account numbers

• Standardization of bill payments

3 Development of infrastructure and integrated payment system: The payment system

infrastructure in the country which is well developed and robust in terms of

processing capability, scalability, reliability, resilience and availability to be further



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augmented to ensure safety, security, robustness for providing low cost transaction

processing.

• Capacity building of existing payment infrastructure

• Expansion of payment infrastructure

• Building an integrated payment infrastructure

4 Capacity building in terms of human resources building and integrated

infrastructure

5 Risk Management in payment systems

• The smooth operations of payment systems

• Safety and Security of Electronic transactions

6 Access, Availability and Awareness

• Promote access and inclusion

• Payment system literacy and visibility

7 Move towards a less-cash society

• Innovation & new product developments

• Move towards a less-cash society

8. Monitoring and Review: One of the major focus of the Vision Document is to

popularize adoption of non-cash payments and strive towards a less-cash society.

Policy initiatives and measures would be oriented towards achieving these objectives.

There is, however, a need for periodic review of the progress made.

1.2.3.2 Assessment of the Electronic Mass Payment System

Impact

• Cashless and fast mode of payment

• Easiness in the operation leads to high customer satisfaction

Utility

• Efforts to bring whole nation under the ambit of electronic mass payment system

will be made.



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• Payment system will be driven by customer demands of connivance, ease of use

and access that will impel the necessary conversion to innovative e- payment

products and capabilities.

• Integration of various systems through unified solutions architecture and current

technology would lead to adoption and uses of resilient payment system.

• Regulations will channelize innovation and competition to meet these demands

consistent with international standards and best practices.

• It will provide a base for healthy financial management from banking industry

point of view.

Sustainability

• Provided the entire infrastructure in terms of manpower technical support

,financial support and administrative support along with the healthy in-built

safety and security of the system is directly proportional to the customer

confidence. It is the customer confidence which acts as then key factor to the

sustainability in terms of increased number of customer opting for e-payment

system thus ensures sustainability of the project.

Scalability

• The scalability of the project is related to infrastructure needs with reference to

the expansion of a area ( domain or field ) of the project. As per our assessment

scalability of the project appears to be viable proposition.

Replicability

• Replicability of certain components of the project may be necessary in future in

order accommodate the expanding and increasing areas of operations and

application needs to ensure completeness of the system as a whole.

Table 1: The summery of the three assessment parameter

Electronic Central Registry One India One

Account

Electronic Mass

Payment



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Impact 1.Prevent Frauds in loan

cases

2. Financial Assistance by

Banks

3. Help in decision making

4. Positive Impact on

Overall banking especially

asset’s mortgage.

5. Financial and

Administrative process

becomes more effective

1. Efficient and Quick

Mode of operation

2. Transparency in

Transaction

3. Fraud Detection will

be easier

1. Cashless mode of

payment

2. Fast Transactions

3. Easy to use.

4. Transparency in

system.

Utility 1. Number of loan cases will

grow

2. Financial assistance by

bank will be raised

3. Financial institutions

against immovable

property will achieve

fraud detection and

prevention

4. Utility in handling loan

cases will be very high.

1. Quick access to

transaction details

2. Healthy transaction

management

3. Increased comfort

zone of both parties

1 Efforts to bring all

nation ambit of

electronic mass

payment system

2 Customers driven

payment system

3 Integrated system

4 Innovative and

consistent system

with international

standards and best

practices.

5 Healthy financial

management

Sustainabilit

y

1. Sustainability is

automatically increased

as customer faith is

achieved by fraud

1. Sustainability is

directly proportional

to the customer

1. It is the customer

confidence which

acts as then key

factor to the





26

requirements replicated to state

and private bank for

the true essence of

one India one

account

in order

accommodate the

expanding and

increasing areas of

operations and

application needs

to ensure

completeness of

the system as a

whole.

1.3 Research Methodology and Sampling

For the purpose of the baseline study, the unit of analysis was the entire PSB (Public

Sector Banks) covering a sample of selected 5 public sector banks? The research

methodology used for the study is discussed below in figure 1.

Banking MMP: Assessment

Selection of PSB & student

teams for Survey

Account holders

Design data collection form

Data Analysis & comparison

of services

Overall assessment of

selected PSB

Bank employees Bank web portals



27

Figure 1 Research Methodology

List of selected five PSB for study of Banking: MMP

1) Punjab National Bank

2) Oriental Bank of Commerce

3) Syndicate Bank

4) Central Bank of India

5) Bank of India

Students team structure for survey under guidance of faculty coordinators:

Selected Banks Students Team for Survey

Punjab National 1. Shivani Raghav , [email protected], 09899642286

mailto:[email protected]






28

The study focuses on understanding and analyzing the experiences of end users of the

Public Sector Banks, since one of the primary goals of the NeGP is to emphasize the

citizen-centricity of services provided by government departments. The survey covered

both normal users as well as commercial users with computerized as well as manual

services offered by different Public Sector Banks all over the country as shown in fig.2.

Bank 2. Nidhi Verma, [email protected], 085270447253. Abhinav Chauhan, [email protected], 09650138133

Oriental Bank of

Commerce

1. Aakash Arya, [email protected], 09971525538

2. Surabhi chauhan, [email protected], 08800100119

3. Akshay Singh, [email protected], 09996020169

Syndicate Bank 1. Sonu Raj, [email protected], 099999816692. Siddharth Sudhakar, [email protected], 09867637024

3. Anurag Varshney

4. Alisha Virmani, [email protected], 09711714494

Central Bank of

India

1. kshitij Kumar Singh, [email protected]

2.

Aayush Bhatnagar, [email protected], 082956062183. Ashish Kumar, [email protected], 08295418243

Bank of India 1. Aashima Narang, [email protected], 09671023212

2. Gursimran singh saini, [email protected], 99101025433. Pooja Bajaj, [email protected], 07838189373

4. Mishika Mukherjee, [email protected], 09560941282





























































30

only delivered in the computerized mode, users were asked to recall their experiences

under the manual system and compare it to the current computerized system.

Table 3 (As per different bank under study) provides information on the services that

were analyzed and the counterfactual used in each case. Few services that were most

commonly used and offered in the computerized mode across all banks are come under

category of e-services.

1.3.1 Design data collection form

Data collection form will include the following:

(a) Questionnaires:

• Questionnaires for account holder

• Questionnaires for Bank employees

• Questionnaires for Bank manager

This is being designed to seek relevant information. These questionnaires will

administrated through physical team of students and faculty for each bank

(b) Personal Interviews: This will be in the form of check list to fill the gap of the data

collected through questionnaires .Interview will be arranged at the convenience of Bank

Manager(this will be require authority from Engineering Watch) to have free access to

the Managers and seek inputs.

1.3.2 Sampling Plan, Sample Size and Profile

Sampling Methodology and Sample Size

The sample size was restricted to 20 interviews/questionnaires for Account holders and 5





32

• Quality of Governance: Transparency, participation, accountability, corruption

measured

• Level of corruption in the current working system

• Awareness about the citizen charter

• Adherence of the time frame for service delivery (elapsed time)

• Financial loss due to delay in availing the service

• Extent to which government officials can be held accountable for their actions

• Whether the rules and procedures are simple and stated clearly

• Perception about the overall quality of governance

• Other e-Governance scheme run by individual bank

• Unique customer identification maintained by bank

• Mode of electronic mass payment system adopted by banks etc.

An outline of the survey instrument that incorporated the key dimensions in the

measurement framework was prepared. The instrument was adapted to distinguish

between services that are compulsorily offered only through the computerized mode and

those where users can choose between the manual and computerized mode. In particular,

information was collected on all elements that define the cost (including time cost) of

accessing a popular service such as opening account that can be accessed both via the

online and manual mode to compare the two modes in details. The elements included

man-hours spent in completing forms and preparing supporting documents, data entry,

trips made, service charges and use of intermediaries.

Profile of RespondentsSome attributes indicating the profile of respondents (user as well as banker). The

majority of account holders/ users are of manual type, but with current time e-banking

also increasing exponential as per survey conducted (But no actual ratio is provided by

selected banks).



33

1.4 Data Analysis & comparison of services

Received data from different Banks will be analyzed on common set of standards to

determine number of services and customer satisfaction as per the measurement

parameters taken from standard framework for impact assessment and base line study for

mission mode projects.

1.4.1 Value Delivered by the Online Applications

Every PSB provides various online services like Internet banking, Mobile banking,

ASBA, Share trading, Loan application, E-tax payments, Money transfer, Security alerts,

global credit card, Online loan application & tracking and Bill payments etc. These

services vary bank to bank. Some of the e-services offered by five PSB are compared in

Table 2 to evaluate efficiency of individual bank in different aspects.

Table 2: Comparison of multiple services provided by different banks

Services provided by

banks

OBC PNB Syndicate Central Bank

of India

Bank of

India

Mobile banking Yes Yes Yes Yes Yes

Net Banking Yes Yes Yes Yes Yes

Online Complaint

System

Yes Yes Yes Yes Yes

Marketing/Distributionof Mutual Funds Units/

Insurance etc

Yes Yes Yes Yes Yes

E-tracking PMEGP

application

Yes Yes Yes Yes Yes



34

Utility bill payment Yes Yes Yes Yes Yes

MSME Loan Yes Yes Yes Yes Yes

E-Taxes Yes Yes Yes Yes Yes

E-Shoppe Yes No Yes Yes Yes

Direct/share Trading Yes Yes Yes Yes Yes

Car Loan Yes Yes Yes Yes Yes

Housing Loan Yes Yes Yes Yes Yes

Online S/B accountopening

Yes Yes Yes Yes Yes

Education Loan Yes Yes Yes Yes Yes

ASBA( Application

Supported by Blocked

Amount)

Yes Yes Yes Yes No

VBV Registration Yes No Yes Yes Yes

Online Loan

application & tracking

Yes Yes Yes Yes Yes

Money transfer Yes Yes Yes Yes Yes

Security alerts Yes Yes Yes Yes Yes

Global credit card Yes Yes Yes Yes Yes

Bill Payments Yes Yes Yes Yes Yes

Gift Card Balance

Enquiry

No No No No Yes

Speed Remit Yes Yes No No Yes

Star e remit (transfer

the money in other

countries)

Yes Yes Yes Yes Yes

1.4.2 Comparison of the Project across Key Dimensions



35

Analysis of Survey Data

Submission of report providing an assessment of the citizen impact on the following

dimensions for each of the five Banks for key services offered by them are described in

Table 3 and Table 4..

• One India one account

• Central registry Act

• Electronic mass payment system

• Factors contributing to cost of access (number of trips needed, waiting time, travel

costs, payment of bribes)

• Elapsed time (total time taken for receipt of final document)

• Quality of service assessed along attributes such as responsiveness of staff,

convenience of location of office and work timings, and facilities at the service

center.

• Quality of governance assessed on attributes such as transparency, reduced

corruption, and fairness of treatment, quality of feedback and level of

accountability.

• Overall impact measure (preference between manual and computerized systems)

• Total no. of service branch of all banks.

Respondents were asked to rate the improvements on a common set of twenty attributes

covering cost of access, convenience, quality of delivery, and quality of governance. For

each project the respondents were also asked to select the three most desirable attributes.

Based on the responses on desirability, a weighting scheme was generated for each of the

attributes reflecting the importance of the attribute. Using the weighting scheme and the

responses, a single composite score for improvement was generated.

1. Cost element-wise impact: An aggregate picture of overall impact for a given project

covering all dimensions across nation.

2. Service-wise impact



36

3. Time factor (efficiency)

4. Security/ Fraud detection

5. Other point for assessment like Scalability, Sustainability, impact, utility, Replicability

etc.

Table 3: Assessment Study for selected PSBs

Electronic Central

Registry under

Sarfaesi Act, 2002

One India One

Account

Electronic Mass

Payment System

Punjab National

Bank

Maintained by CIBIL

Report

One India One

Account ismaintained by

Master ID within Bank (But

Multiple

Accounts of thesame customer

are there)

Maintained By

ECS (ElectronicClearance

Services),TDS, PPFs,

PMRG, VISA,

ATM cards etc

Oriental Bank of

Commerce

Updated By Central

Registry Web Portal

Link

One India One

Account is

maintained by

Master ID within Bank (But

MultipleAccounts of the

same customer

are there)

DBT (Direct

Benefit Transfer)

NEFT

Kisan CardRTGS, VISA,

ATM cards etc.

Syndicate Bank Updated By Central

Registry Web Portal

Link

One India One

Account is

maintained byMaster ID with

in Bank (But

MultipleAccounts of the

same customer

are there)

Syndicate Kisan

Credit Card

(SKCC), Syndicate

General Credit

Card (SGCC), ASBA, DBT

(Direct Benefit

Transfer) NEFT,RTGS, VISA,

ATM cards etc

Central Bank of

India

Updated By Central

Registry Web Portal

One India One

Account is

DBT (Direct

Benefit Transfer)

http://syndicatebank.in/downloads/Syndicate_Kisan_Credit_Card.pdf




http://syndicatebank.in/downloads/SGCC.pdf











37

Link maintained byMaster ID with

in Bank (ButMultipleAccounts of the

same customer

are there)

NEFTKisan Card

RTGS, VISA,ATM cards etc.

Bank of India Updated By Central

Registry Web PortalLink

One India One

Account ismaintained by

Master ID with

in Bank (But

Multiple

Accounts of thesame customer

are there)

Star e remit, BOI

speed remit,MSE, SME loan,

star token,

ASBA, DBT

(Direct Benefit

Transfer) NEFT,RTGS, VISA,

ATM cards etc

1.4.3 Overall Assessment

Overall assessment of the Banking MMP are based on Service-wise impact (calculated

based on total service center or branched of respective banks, No. of ATMs etc), Time

factor (efficiency based on total number of customers with respect to service wise

impact), Security/ Fraud detection (Security system used by individual bank, security

alert services, Security guidelines are available online etc.), quality of service time( based

on first two factors) and quality of governance(assessed on attributes such as

transparency, reduced corruption, and fairness of treatment, quality of feedback and level

of accountability). Overall assessments on above parameters are described in table 5.

Table 4: overall assessment for study

Banks/

Services

Total branch/

ATMs

Financial

performance

(2012-13)

Total businessin INR crores

Security

Aspects

Quality of

service Time

(Scale used)

5-execellent4-Good

3-Average

2-Below Avg

1-Poor

Quality of

governance

(Scale used)

5-execellent4-Good

3-Average

2-Below Avg

1-Poor

OBC connectivity formore than

52000(others +

3,06084 Securityguidelines

are available

4 3





39

Debit cards/Shopping

etc.

1.5 Analysis of Qualitative Feedback and Suggestions

There are some suggestions for improving online services, centralized banking, and

electronic mass payment system.

• These suggestions cover improvements in hardware, improved application

software design, better training of staff and process reforms.

• Some suggestions for increasing the uptake of e-services.

• The reasons relate to adequate processing capacity in the department resulting in

long queues.

• More counters, better training, improved technology, increasing productivity

would help in reducing queues.

• Corruption can be minimized by an end-to-end online delivery in which the

unnecessary discretion available to officials is minimized.

• Multiple service centers and ATM services.

• Transparency in transactions( security issues)

• Improved centralized banking

• Easy and simplicity of banking process

• Awareness campaigns on online services for users

• Establishment of common service centres to facilitate e-services to all

• Online processes should be made much more user friendly & simple

1.6 Conclusion

The MMP is being implemented by the banking industry which aims at streamlining

various e-services initiatives undertakers by individual banks, e-governance

implementation is done by the banks concerned with the banking Department providing

a broad framework and guidance to them. Out of three components of the MMP, the



component of Electronic of Mass Payment System may not take up for implementation

because banks are independently taking up their own initiative on this front. The other

two components i.e. Electronic Central Registry and One India one account for Public

Sector banks have been referred to Indian Bank Association. But current scenarios to

streamlining all these three main components are not actual in practice. But with time this

is growing very fast. After fully implementation of the Banking MMP objectives, the

sustainability, scalability, efficiency and transparency in banking system are achieved as

per agenda of e-governance.

The National e-Governance plan aims at improving delivery of government services to

citizens and businesses with a view to make all govt. services accessible to a common

man in his locality through common man delivery outlets and ensure efficiency

transparency and reliability of such services at affordable cost to realize the basic needs

of the common man. Impact assessment of the study leads to prevent frauds in loan cases,

strengthen decision making policy, financial and administrative process becomes more

effective, helps in efficient and quick Mode of operation, and leads to transparency in the

transaction. In the same manner utility, sustainability, scalability and replicability of this

system at national and state level will increase with the increase in number of users due to

positive outcomes of proposed system beside of few limitations.

Documents

Apeejay Stya University Interim Report