Government Schemes (Yojana) in India Part:-19

Government Schemes (Yojana) in India Part:-19

Aadhaar Enabled Payment System (AEPS)

Introduction

Aadhaar Enabled Payment System is a major initiative taken by Gov. of India to initiate a simple and secure user friendly mode of payment solution through Micro-ATM. It also empowers Cashless Economy in the country in future. The basic meaning of AEPS is a customer can pay through Aadhaar Card, i.e. Empowering Cashless transactions in the country. Through Aadhaar Card a customer can access their bank accounts. However, these days Gov.of India is also trying to empower bank customers to use Aadhaar as their main identity to access his/her respective Aadhaar enbled bank account and perform various transactions like balance enquiry, cash deposit/withdrawal, Pay through Aadhaar, etc.

Basic banking transactions through Aadhaar Card

Aadhaar to Aadhaar fund transfer

Cash withdrawal and Deposit

Balance Enquiry

During Any Basic Transactions a customer’s needs:

Aadhaar Card Number – It is a 12 digit unique identification number provided by the Government of India at the time of enrolment.

IIN (Issuer Identification Number) – It is the Identification number to recognise the Bank to which the customer’s banks account is associated.

Finger Print – A customers need their finger print which was captured during their enrolment.

Major Role Played by NPCI in AEPS:

NPCI (National Payment Corporation of India): It was founded in 2008, it’s Headquarter at Mumbai, and it is the umbrella organisation for all retail payment systems in India, which aims to allow all Indian citizens to have unrestricted access to e-payment services.

National Payment Corporation of India conducts all government benefits/subsidies to beneficiary account in a secured and transparent manner.

It also provides a unique platform to use safe and secure payment interface to avail those benefits by using their finger prints.

NPCI is directly in touch with Unique Identification Authority of India to provide Aadhaar Enabled Payment Service to reduce the forgery in Indian Financial System.

Basic Layout/ How it works:

Let us understand by using flow chart.

·         Step 1 – Customer swaps their cards at Mini ATM.

·         Step 2 – Then Mini ATM fetches data from Customers Bank

·         Step 3 – Customer’s bank get confirmation from NPCI.

·         Step 4 – NPCI get confirmations from UIDAI.

·         Step 5 – UIDAI approve confirmed details about customer Account to NPCI.

·         Step 6 – Again after getting confirmation from UIDAI, NPCI again asks Creditors details to their banks.

·         Step 7- Creditors Bank Approve details of creditors to NPCI

·         Step 8- NPCI now confirms to SBI

·         Step 9 – SBI deduct the amount which customers want to pay/credit.

·         Step 10 – Now customers get confirmations bill from Mini ATM.

Benefits of AEPS:

·         Aadhaar enabled Payment platform is a very important tool to rule out all the fake data in the system concerning National Social Assistance Programme (NSAP).

·         The basic theme of Direct Benefit Transfer is to ensure that the beneficiary gets their benefit through Aadhaar Enabled Payment System (AEPS) which is an accountable, cost-effective and transparent.

Key Points Of Project Saksham for CBEC(Central Board of Excise and Customs)

Introduction

The Central government Cabinet Committee on Economic Affairs (CCEA) headed by PM Mr. Narendra Modi approved Project Saksham to ease GST implementation on 28th September 2016. Project Saksham is a back end IT Infrastructure project integrating CBEC and GSTN systems.

Need for Project Saksham

GST was rolled out on April 1, 2017 In order to integrate GSTN with CBEC, IT infrastructure has to be upgraded Project Saksham integrates CBEC and GSTN Systems Project Saksham is developed under Digital India Initiative

Project Cost and Tenure

·         Project Saksham cost is 2256 crores

·         Tenure of the CBEC and GSTN integration project is 7 years

Concerned Authorities

·         Central Board of Excise and Customs (CBEC)

·         Goods and Service Tax Network (GSTN)

Central Board of Excise and Customs (CBEC)

·         CBEC is a part of finance ministry under the department of Revenue

·         It deals with policy formulation pertaining to customs, excise and service tax

·         It administers the prevention of smuggling activities

·         It administers all indirect tax laws

·         Main role is the regulation of import and export trade

·         It frames the EXIM Policy of India

·         It publishes all export and import related procedures and documents

·         It subordinate houses include

a.       Central excise commission rates

b.      Custom houses

c.       Central revenues control

d.      Service tax commissionerates

·         Head quarters located at Ministry of Finance, New Delhi

Goods and Service Tax Network (GSTN)

·         It established under section 8 of new companies act

·         It is aNon-Government entity

·         It is Not for Profit organization

·         It is aPrivate Limited Company

·         Indian government holds an equity of 24.5% and State Finance Ministers empowered committee holds 24.5%

·         Remaining 51% with private financial institutions

·         Set up mainly to provide IT Infrastructure for GST implementation with a corpus of 10 crore

·         Aim is to provide a uniform interface of tax payment system between centre and state

·         Now each state has its own system of collecting indirect taxes

·         Integrating all these systems in a single unified system for the overall implementation of GST is the purpose of GSTN

·         Head quarters located at New Delhi

Stakeholders

·         CBEC

·         GSTN

·         Tax payers (36 lakhs currently)

·         Exporters

·         Importers

·         All Indirect tax payers (65 lakhs after GST)

Software Developers

·         GSTN acts as the front end

·         Infosys develops GSTN software

·         CBEC acts as the back end

·         Wipro develops CBEC software

·         CBEC acts as the front end for investigation, appeal and audit only

Benefits

·         This project will help in effective implementation of GST.

·         Digitalization of customer accounts and scanned documents

·         E-services to speed up indirect tax collection

·         Convenience to tax payers

·         Extension of SWIFT Initiative

·         Integration with e-taal, e-nivesh and e-sign government initiatives

·         In accordance with Ease of Doing Business

·         Subsume local levies

SWIFT code for Banks

·         Standard format of money transfer between banks in India

·         Bank identifier code

·         Banks use the SWIFT code for message exchange between them

·         Swift code has 11 characters or 8 digits

·         8 digits code denotes the primary office

a.       11 characters represent the following

b.      First 4 digit represent bank code and are only letters

c.       Next 2 letters country code

d.      Next 2 characters location code

e.       Last 3 characters branch code

·         Swift network spans across the world with 40000 live codes

·         Registration handled by Society for World wide Inter bank Financial Telecommunication (SWIFT)

·         Head quarters located at La Hulpe, Belgium

·         Project Saksham will serve as an extension of this Swift network

Challenges

·         Integration of existing CBEC system with GSTN is a complex process

·         Handling huge information

·         Hardware and Software requirements including infrastructure etc.

·         Duplication of data

·         Software Implementation issues

·         Training of employees

·         Information security

·         Deadline is Short

·         Customer awareness and education to the new system

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