Scan & Withdraw: Soon, You May No Longer Need Debit Cards to Draw Cash From ATMs!

Following the historic demonetisation drive in 2016, the pace at which monetary transactions shifted to the digital mode in India was not just swift but also quite astounding!

Today, almost all of us will be quite familiar with the QR (Quick Response) code and have probably used this mode to enable payments at least once.

But did you know that soon, ATMs across the country will no longer be dependent only on debit cards and that you can withdraw money from them through the QR codes generated by your bank?

Yes, you read that right! Just the way you have probably made instant payments using QR codes through payment interfaces, and gateways like UPI, Paytm and Tez, ATMs will also have the same process incorporated in its money withdrawal mechanism soon enough.

At this point, the app will generate the QR code that will be scanned by the teller machine and, lo and behold, you will have your money in hand.

The best part about this new facility is that people can choose the currency notes that they would prefer to withdraw amongst the denominations of ₹100, ₹500 or ₹2,000 as well! Additionally, they can also avail demand drafts from ATMs instead of banks through this facility.

Alongside, upping the digital transaction game is India Post Payments Bank (IPPB), whose new mode of retail banking is not only hassle-free but also quite innovative. By launching ‘QR cards’ that work on the same scan-and-pay mechanism, IPPB intends to do away with the requirement of both ATM and debit cards and PIN-based system for cash and digital transactions.

For security reasons, this system would require either a biometric authentication or fingerprint scan from the customers. Interestingly, this provision also frees people from searching for ATMs.

Instead, all they need to do is reach out to their post office, postman or Gramin Dak Sevak (GDS), who will then send their functionaries to the desired location and give the customer the required amount at the cost of ₹25 per transaction. As for digital transactions, a nominal fee of ₹15 would be charged, 

Even here, the system is same. The QR card will be scanned by the postman or GDS, either at your home, post office or any other IPPB access point using a smartphone app or a QR code scanning machine. This way the risk that comes with forgetting the PIN or misuse of ATM cards can be easily ruled out, as all the postman will only need from you is your fingerprint!

Interestingly, IPPB is also planning bring the unorganised retail sector on board. This means, you would soon be able to purchase groceries at any local kirana shop using a QR card.

Driving licences to be uniform across India

From next July, new driving licences (DLs) and (RCs) issued by all states and union territories will be uniform in look, colour, design and will have the same security features.

The 'smart' DLs and RCs embedded with microchips will have QR codes. They will also be enabled with the near-field communication (NFC) feature, just like that of Metro and ATM cards, so that traffic enforcers with hand-held devices can easily access details stored in the cards.

The new DL will have details of a driver's declaration to donate organs and mention if he/she is driving a specially designed vehicle meant for the physically challenged.

SBI's Basic Savings Bank Deposit Account

State Bank of India (SBI) offers certain accounts where average monthly balance (AMB) rule is not applicable. SBI's basic savings bank deposit (BSBD) account is a type of zero balance savings accounts and does not require customers to maintain any particular minimum average balance. 

This account can be opened by any individual provided he/she has valid KYC (Know Your Customer) documents. SBI's BSBD account is primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees, said SBI.

Here are 5 things to know about SBI's basic savings bank deposit (BSBD) account:

1) SBI's basic savings bank deposit (BSBD) account offers the same rate of interest as applicable to savings bank account, according to SBI's website - sbi.co.in. SBI currently offers a rate of interest of 3.5 per cent per annum on deposits up to Rs 1 crore in savings bank accounts.

2) SBI's BSBD account can be opened singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility.

3) The customer cannot have any other savings bank account, if he/she has a basic savings bank deposit account, said SBI.  If the customer already has a savings bank account, the same will have to be closed within 30 days of opening a basic savings bank deposit account.

4) SBI's basic savings bank deposit (BSBD) account comes with a Basic RuPay ATM-cum-debit card, issued free of cost. The account holder can use this card at ATMs or use the withdrawal forms at branches to withdraw cash, as mentioned on SBI's portal.

5) Maximum of 4 withdrawals in a month is allowed in a BSBD account, which includes ATM withdrawals at own and other bank's ATMs and transactions through other mode including RTGS/NEFT/clearing/branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc. 

Your Debit/Credit Card Won’t Work After December 31

RBI’s Notification On Existing Debit/Credit Cards

In 2015, RBI had issued a notification under 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), which covered all existing debit and credit card holders. As per the notification, RBI has stated that all debit and credit cards have to be chip based, which are called EMV Debit/Credit Card. Also known as ‘Chip n Pin’ cards.

Which Debit Cards/Credit Cards Needs To Be Changed?

Majority of debit and credit cards being used today are magnetic stripe only cards, which process greater security risks.

In case your existing debit and credit cards are magnetic stripe only cards, then they will be useless after December 31st.

Every magnetic stripe only credit/debit cards need to be changed to EMV Chip based cards before December 31st, 2018.

Has Banks Started Informing Users?

Yes. Since last few days, bank customers must have received SMS from their respective banks, suggesting them to replace their existing magnetic stripe only cards with EMV based cards.

Most of them must have deleted the SMS, assuming it to be spam. But this time, it’s not.

How Much Charge For Replacing The Cards?

Several banks have announced that they will replace the magnetic stripe cards with EMV based cards for free.

All you need to do is, visit your nearest bank branch, and request for the replacement.

What Is So Special About EMV Cards?

EMV or Europay-Mastercard-Visa cards are globally accepted as a standard for authenticating transactions using a chip, which holds the vital information related to your account.

In the current magnetic stripe based cards, the vital information is stored in the single magnetic stripe, which makes its cloning easier. Fraudsters can easily close the magnetic stripe, as the information is static.

However, EMV based cards are not only secured by chip which is dynamic information, but also a password which needs to be entered everytime for authenticating a transaction.

These two major features make EMV based based more secured, and this is the reason RBI wants every card to be EMV.

Earlier, September 1, 2015 was the deadline, which has been extended gradually to December 31, 2018 now.

Does baba Ramdev planning to enter in politics

Does baba Ramdev planning to enter in politics!? It is a big question which only time can give proper answer. 

However recently he told a leading new Chanel that "if geovernment lets me, and gives some relief in tax, I can give petrol diesel to India at Rs 35-40 per litre. Fuel needs to brought under GST and not the 28 per cent rate."

Rising prices of things can cost the Modi government very dearly. He will have to act.

Frustration is a huge problem for the youth. They think they have no opportunities. That's not true. I did not have any godfathers and yet I set this huge enterprise (Patanjali).

I don't run after money. Money runs after me.

People who criticise PM Modi - it is their fundamental right. But he has done good work. Launched the Clean India mission, not allowed any major scam. Yes, some political questions are being raised about the Rafale deal.

I have withdrawn myself politically. I am with all parties and I am with no parties.

I am a scientific sanyasi. We have more than 300 scientists at Patanjali. Put a very high premium on quality of our products.

People who are making the cow a religious animal are wrong. Cow has no religion.

I not saying at all that LGBTQ people should be beaten up with sticks but it is against the order of nature.

My mantra is don't fall sick. If you fall sick, your entire family suffers. Yoga helps your body's structure and character. A person who does yoga stays fit.

Passenger car boom in Indian market.

Cars in India are no longer a luxury as they were almost 10 years ago. A 22 years old person fresh into his/her first job can easily own a car.

He/she might not have the money to buy it outright but he/she has no dearth of financing options at his/her disposal. Therefore, it is no wonder that the Indian passenger vehicle market grew the most in 2017 as compared to any other country in the world.

While the USA market actually shrunk by 11%, Indian market registered a growth of 9.15% as it expanded to 2.98 million units in 2017-18 from 2.73 million units in 2016-17. With the four-wheeler market enjoying this boom, it is no wonder that there are so many car loan options for the customer today.

The processing time and loan disbursal time for these car loans have come down significantly in the recent years. Most of the banks in India take just about 24 to 48 hours to disburse the desired car loan amount. The quality of service has increased significantly too. These banks have also made it easy for customers to access loan information easily through the Internet.

*RULE 72*

*What is Rule 72?*

In personal finance, if you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money..
Eg: if the rate of interest is 9%, simply divide the number 72 by 9% and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of interest.

*INTEREST:* We can use this rule in reverse to know the rate of interest needed to double your money to achieve your set goal.
Eg: If you have 250k today and you need 500k in 5 years. Just divide the number 72 by 5, the answer is 14.41%. Thus you need a type of investment avenue, where you earn at least 14.41% p.a. as rate of interest/returns to double your investment amount in 5 years.

*INFLATION:*
This 'Rule 72' helps you to understand about inflation also. It helps you to calculate the amount of time it will take for inflation to make the real value of money half. Let's say present inflation is 5.5%. When you divide 72 by 5.5% the answer is 13.09 years.  That is to say, if you have 100k in your kitty today, it would take around 13.09 years for the value of the money to be halved..

Hope it helps you in your day to day investments and other finance related activities.