Oops e-Payments delayed failed

 Oops e-Payments delayed failed

It is really bad to think even, that banking systems may also face software and internet connectivity issues. In December 2021, around the world, the banks became unable to send and receive payments. When banking customers raised the issues with the bankers, they gave assurance that they are trying to resolve the problem.

 The banking transfer system may stop working

Nobody expects that the full proof considered systems of banking may stop anytime. Isn't it?

Near the festival of Christmas, when around the world people were ready to celebrate it, suddenly in December 2021, the inbound and outbound transfer of banking money nationwide stopped. As per the news, hundreds of complaints and reports are lodged by the customers to resolve the issue at the earliest.

Customer Service of Banks

The customer service team of banks is not provided full access to the banking network. In case of any failure of the system or delay in the service by the system, the customer service team is helpless. The team if asked, in how much time any technical issue is expected to be resolved? The response is most of the time, it is not possible for them to fix a time limit regarding resolving any technical issue.

The banks with good to excellent customer service should be preferred to open an account instead of a bank with higher returns on deposit. 

What happened with Nationwide Banking in December 2021

The banks became unable to accept the payments in the bank accounts from the outside of nationwide. Even the bank transfers sent by the customers were also delayed.

The people withdrawing paper money in large quantities instead of doing electronic transfers may face problems in the days of festivals due to the lack of paper currencies available with the banks, but the electronic transactions failure or unnecessary delay can never be expected by the customers.

What can happen if you are asked to send or receive cash later?

The banks are always trustworthy and that is why people try to put their money in banking accounts than to keep it at home or in domestic lockers. 

In the case of electronic transactions, if a payment is delayed or takes more time to process, the customer face problems in life. Suppose, you sent an amount to someone using an electronic transaction thereafter, you wait for the message to be received that the money has been transferred. Usually, it is a real-time transaction but in case it is delayed, the system will show it that the transaction is under process and you have to wait.

Nationwide Banking System

The nationwide open banking systems are really a blessing for the people sending and receiving payment from one nation to another. Obviously, the accounts of all banks are connected with the system so that anyone can send or receive payments nationwide through an open banking system.

People can use banking cards to process the desired transactions in case the electronic transactions are delayed but it is expected that the electronic transactions are safer.

Banking apps are great

Every customer using banking apps shared good experiences of saving time in getting the transactions done. Most of the banks charge a nominal fees for enabling smooth e-banking exposure to the customers. The standing orders and direct debits are processed generally without charging any fee. 

*Copyright © 2021 Dr. Lalit Kumar. A few rights reserved. Use this information in the public interest.

This content is written by Dr. Lalit Kumar Setia; a renowned author and trainer. He completed his Doctorate in Commerce from Kurukshetra University Kurukshetra and MBA in Information Technology from GJU, Hisar. He also wrote two books, 15 research papers, and organized more than 200 Training Courses during his working period since 2006 in Haryana Institute of Public Administration, Gurugram. The article was published on 22nd December 2021 and last updated on 22nd December 2021. The writer can be contacted on lalitkumarsetia@gmail.com 

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How does Unique Code of Payee work?

 How does Unique Code of Payee work?

-Dr. Lalit Kumar

In Government, it is expected that the payments are made directly in the bank account of the beneficiaries/payees. This is implemented in Government to contain corruption. However, there are transactions where the instructions for making direct payment to the account of beneficiaries/payees are not being compliant. For example, a few departments are maintaining bank accounts with the title of ‘Designation’ of Head of Department or Head of Office and use these bank accounts to transfer money to the beneficiaries/payees. Firstly, the funds/money are drawn from treasuries and deposited in such bank accounts and thereafter, it is transferred to the accounts of beneficiaries/payees with the help of Demand Draft or Cheque or EFT.

Why it is wrong to maintain Bank Account by Government Offices?

Let us understand it with the help of an example. Suppose it is required to make payment to Mr. A by the Government from time to time. The right way is to transfer the amount directly from the treasury to the account of Mr. A whenever there is a need to make the payment. But the Head of Office started a bank account and draws the money from the treasury and keeps it in the bank account. Whenever it is required to pay an amount to Mr. A, then it is paid directly with the help of a cheque/demand draft/EFT from the bank account. Why it is wrong? The Financial Rules of Government restrict for parking of funds in a bank account even for a small-time duration i.e. the duration from the day the amount is drawn from the treasury to the day it is paid to the beneficiary/payee. The accurate method is to form a Unique Code of Payee (UCP) of the beneficiary/payee which will be used to identify the correct account to transfer the amount directly from treasury after processing of payment from DDO to Treasury Officer and from Treasury Officer to Treasury Bank.

Exceptions, where it is required to maintain Bank Account by Head of Office

The Government through Finance Department may consider the exceptional circumstances where it is required to open and operate a bank account in the name/designation of an Officer for certain specific transactions. The detailed proposal may be sent by the office where it is required to open and operate a bank account with details of circumstances. In Haryana State, such instructions were issued on 2^nd December 2011 for the closing of bank accounts that are opened without seeking permission of the Finance Department Haryana.

Electronic Payment System (EPS)

For implementing Electronic Payment System (EPS), it is required that all the beneficiaries/payees have their bank accounts and the details are communicated to the treasuries so that a Unique Code of Payee (UCP) is issued to the payee. It is most important to ensure that accurate PAN number and banking details are entered in each UCP, to safeguard the system from frauds on part of concealment of income from the income tax department, a UCP without PAN number may be allotted only in cases where the annual income of the payee is not made him liable to pay any income tax and provisions of TDS are also not attracted in payments to the payee. Such declaration should be done by the Drawing and Disbursing Officer (DDO) before allocating the UCP without mentioning the PAN number.

Unique Code of Payee (UCP) for containing Corruption

In January 2012, the Haryana Government ensured proper implementation of the Electronic Payment System (EPS) and directions issued to the treasury officers to pass the bills to the extent possible with using EPS instead of the issue of cheques. However, where the EPS is not possible due to any fault in the system or other reason, the cheques may be issued.

For containing corruption, the payees are asked to open a bank account and provide the details to the Drawing and Disbursing Officer (DDO). The DDO provides the banking details of the payees for allotment of UCP in the system. It is the responsibility of the DDO to ensure that correct details of PAN, PRAN, and GPF numbers are provided by the payee. In October 2011, the Haryana Government beautifully implemented the UCP in most of its treasuries and sub treasuries.

Payment of NPS Contribution through EPS

In July 2012, the Haryana Government decided to transfer the NPS contribution through EPS instead of the cheque to the trustee bank of NPS. The NPS ‘Subscriber Contribution Form’ is attached with the NPS bill and a token of the bill is given in Form Code 14 in Pension Module. The unique code of the trustee bank is CN0L1O generated in DDO code 0765. After the transfer of the NPS amount, the treasury officer follow-up the status of the file on the site of NSDL.

*Copyright © 2021 Dr. Lalit Kumar. All rights reserved. 

This article is written by Dr. Lalit Kumar Setia; a renowned author and trainer. He completed his Doctorate in Commerce from Kurukshetra University Kurukshetra and MBA in Information Technology from GJU, Hisar. He also wrote two books, 15 research papers, and organized more than 200 Training Courses during his working period since 2006 in Haryana Institute of Public Administration, Gurugram. The article was published on 24th September 2021 and last updated on 24th September 2021. The writer can be contacted on lalitkumarsetia@gmail.com 

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Example of Banking Frauds in Routine Life

Examples of Banking Frauds in Routine Life

By Dr. Lalit Kumar Setia |  @drlalitsetia  |  drlalitsetia@gmail.com  

In the era of technology, frauds have also been transformed and common-men face cyber crimes. The cultural values are changing and no-one can be trusted easily like in earlier times. On 31^st August, 2018; two persons arrived in a bank and asked to change the registered mobile number of an account. One of them claimed that the account is related to him but he was liar. After getting the new mobile number registered, they started to carry out online transfer of money with receiving the One-Time Passwords (OTPs) on the new registered mobile number. An amount of Rs. 11.5 lac withdrawn and transferred to six different accounts and from the accounts, the amount is withdrawn using cheques and ATMs. The gang of people was from Jharkhand and the accounts used for this purpose were of Syndicate Bank and Bank of Baroda. Definitely, the banking employees may also be involved to perform such frauds. However, the gang was caught by New Delhi District Police but such frauds affects the life of people very adversely.

Experiencing banking fraud:

Let me share another experience in the form of a story regarding a banking fraud. 

Yesterday evening, I received a call from a girl. 

(कल शाम को एक काल आयी, कोई लड़की थी।)

She asked: "Dear Sir, I tried to get registered for a job. But wrongly, by mistake, I entered your mobile number because there is lot of similarity between your and my number. Sir, you will receive an OTP on your number; please share with me as it is very important for my career."

(बोली," सर, मैं जॉब के लिए रेजिस्ट्रेशन कर रही थी। गलती से आपका नम्बर डाल दिया है, क्योकि मेरे और आपके मोबाइल नंबर में काफी समानता है। आपके पास थोड़ी देर में एक ओटीपी आएगी, प्लीज बता दो सर, ज़िन्दगी का सवाल है।")

Her statements looked genuine and when I checked my inbox what I found that there were two messages,  one for OTP and second from a mobile number stating that "Sir, the OTP you have received, please send on this number. Thanks in advance."

(बात बिल्कुल जेनुइन लग रही थी, मैनें इनबॉक्स चेक किया, दो मैसेज आये थे। एक पर ओटीपी था, दूसरा एक मोबाइल से आया मैसेज। लिखा था, dear सर, आपके पास जो ओटीपी आयी है, प्लीज इस नंबर पर भेज दीजिये।thanks in advance.)

While reading the message, I again received a call from the same girl. But number was different from earlier. She said, "Sir, you have seen the OTP, please either tell me or send ot to me. Please."

(मैसेज देख ही रहा था कि फोन दोबारा आया .... मैनें ओके क्लिक किया। वही सुमधुर आवाज। बस नंबर दूसरा था।

" सर, आपने देखा होगा अब तक ओटीपी आ गयी होगी। या तो बता दो या फारवर्ड कर दो उस नंबर पर...प्लीज...")

I asked her,  "I will tell you the OTP but before that I would request you".

She asked, "Tell me, Sir?"

("बता दूंगा, पर आप पहले एक काम करो.."

"हा सर.. बोलिये..")

I asked her, "You have entered my mobile number in registration form and my number is similar to your number that is why this mistake has happened."

"Please call me from that similar number so that I can be sure that you are telling me true event. "

("जो नंबर आपनें डाला है रेजिस्ट्रेसन में, वो मेरा नम्बर है और उसी से मिलता जुलता नम्बर आपके पास भी है, तभी आपसे ये गलती हुई , है न?"

"हां सर.."

"ओके, उसी नम्बर से मुझे आप कॉल करो, ताकि मैं वेरीफाई कर सकूं की आप सही हो..")

She replied, "Sir... actually.. that number has no balance. Sir.. can't you trust upon a girl?"

("वो क्या है सर, उस नम्बर में बैलेंस नही है।सर.. एक लड़की की बात पर आपको भरोसा नही..")

I asked, "I would just like to verify your authenticity before trusting you?"

("बात लड़की, लड़के और भरोसे की नही है। मैं आपको नही जानता, तो बिना जांचे परखे कैसे भरोसा कर लूं..)

She became rude and replied, "If you cannot trust then please avoid it but I am telling you due to people like you, noone trusts upon humanity."

(" तो रहने दीजिए आप..आप जैसे दुस्ट लोगों की वजह से आज मानवता से लोगों का भरोसा उठ गया है। ")

She became angry and start fighting upon call and then cut the call.

(दो चार गालियों के साथ उस सुमधुर कर्कशा ने फोन काट दिया।)

I became sentimental and thought that I have become more technical and a person who never trust upon others... 

(मन भारी हो गया था। शायद मैं ज्यादा अविश्वासी और टेक्निकल होता जा रहा हूँ।)

I picked my mobile so that I can dial the number and tell her the received OTP. 

But suddenly I received an email from the bank. I read the email - "Dear Sir/Madam; if you are facing problems in changing your internet banking password, then please click the link below.."

(दोबारा से उस नम्बर को डायल करके ओटीपी बताने के लिए फ़ोन उठाया। तभी बैंक का ईमेल का नोटिफिकेशन स्क्रीन पर फ़्लैश हुआ।बैंक का नोटिफिकेशन था, देखना जरूरी था।

लिखा था, "अगर आप इंटरनेट बैंकिग का पासवर्ड नहीं बदल पा रहे तो नीचे दिए लिंक पर क्लिक करें.... ")

I astonished to know the fraud by demanding favor in humanity. So much fraud...

(मैं सन्न रह गया। मानवता के नाम पर भी इतनी ठगबाज़ी.. धोखेबाज़ी..)

I became angry and tried to call her with anger. But I received a reply after dialing her number : "The number you are trying to reach is out of coverage area."

(मन गुस्से से भर उठा, रीडायल किया, लड़ाई के मूड में..

उधर से जवाब आ रहा था, "आप जिस नंबर पर बात करना चाहते हैं वो पहुँच से बाहर हैं ।")

*Copyright © 2017 Dr. Lalit Kumar. All rights reserved. 

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