Learner’s Submission: Payment and Online Money Transfer in India

“Payment processes for most of Online Public Services are through ECS (Electronic Clearing Service), Credit Card, Bank Transfers. We would like to talk about NEFT and RTGS as it is the commonest processes that have been allowed to be used for payments.

NEFT and RTGS are modalities for Electronic Fund Transfer mechanism maintained by RBI (Reserve Bank of India). RBI is India’s Federal Reserve. NEFT (National Electronic Fund Transfer) and RTGS (Real Time Gross Settlement) is a mechanism for processing retail fund transfer instructions. Let’s explore both the mechanisms-

RTGS – Real Time Gross Settlement – Is a mechanism for transfer of minimum of `200,000 to maximum of `500,000 (Retail Bank Accounts) or a maximum of `50,000,000,000 (corporate Bank Accounts). Under RTGS the Beneficiary Bank (Bank receiving the Amount) is expected to remit the received funds, within 2 hours of the transfer being executed. If the beneficiary Bank cannot remit the funds into the Beneficiary Account, Then the funds are to be sent to the remitting Bank within the 2 hours. RTGS is a transfer where the transfer is done on basis of individual transactions without clubbing them with other transactions. All the transactions once executed are directly entered into RBI books immediately.

NEFT – National Electronic Fund Transfer – No prescribed minimum amount but maximum amount is `200,000 for both Retail and Corporate bank Accounts. The transactions, here take place on a scheduled date and time. Multiple transaction instructions are clubbed and the transferred to RBI to process the instructions accordingly. There is limited number of times the NEFT is executed by Banks. After which the RBI would start processing the same. The Beneficiary Account usually receives the amount between 9 AM to 5 PM in case of weekdays and 9 AM to 12 Noon in case of weekends.

As a Citizen I would like to see all of the civil service to be completely automated. Caste Certificates, Income Certificates, Birth Registration, Death Registration, Property Registration, Property Fees and taxes, Property Agreements have to be completely online and through Internet. There should be no need for any contact between citizen and bureaucrat. The Online process may be bolstered through official collection of information from the place of birth and hospital records to confirm and re-confirm the citizens’ income/caste. Rural and Urban Local Bodies are vital for realization of E-Governance in India. The unfortunate fact is lack of expertise, lack of funding and resources and keystone of the problem is the lack of political will and official apathy. Austerities professed by Gandhi and Leaders of Early National freedom Struggle have been conveniently obfuscated to mean regression and darkness in Modern India.

In Bangalore Rural District, which includes Towns and Villages, we find the majority personnel are computer illiterates. Without perspective or basic understanding of English these officials are at the mercy of the cunning politicians who fill them with nonsense and ridiculous ideas about automation and Business process re-engineering. Informatization is carried out more reluctantly and in haphazard manner. Political leadership should be compelled to move forward in direction of Implementation of Decentralization and Devolution mandated by Indian constitution. In turn the strategizing of E-Government planning and implementation would become participatory and accountable. Transparency will be reality rather than pompous declarations. UNPAN provides a network which is accessible to government and Public to refer for policy directions and guidance. The experience shared by case studies will help the government planners and policy science practitioners to genuinely pursue successful projects and ideas.

Strategies of Public-Private partnership, Government-Enterprises partnership, Issuance of Bonds, Outsourcing, Advertising have opened new avenues for unscrupulous in Indian Polity. Strategies for E-Government have made our day-to-day interaction with government easier. Simultaneously the same strategies have provided newer means for money laundering and tax evasion. The gravity of the issue lies in fact that laundered money has been used for financing terrorism, political violence and buy power and patronage. We suggest greater emphasis on decentralized power structure with participatory processes for implementation of E-Government, especially in India.” – Anil Dev Gopalakrishna – Karnataka, India


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