Advisory Services
The Indian economy and the financial sector is at the cusp of a transformation catalysed by major changes initiated in the banking industry and the payments domain. A number of factors, policy-level, and government decisions have worked together, persuading citizens and an economy for long at ease with cash-based transactions, to adopt digital payments.
The ensuing regulatory compliance requirements, low-entry barriers for new entrants ─ including some non-banking entities ─ adept at managing dynamic, flexible processes supported by latest technologies, have put pressure on traditional banks. Their payment processing and monitoring systems face a barrage of requirements and challenges, which many banks find difficult to manage or overcome. The bigger, public and private sector banks invest resources and capital to upgrade infrastructure and systems, while smaller banks find it difficult to catch up.
- Are there many issues that prevent your bank from adopting solutions and best-practises best-suited to your needs and capacity?
- Is your bank exposed to greater risks because of a patch-work of reconciliation systems that cannot handle high volumes of complex transaction and a horde of data formats and sources across the bank?
- Do the limitations of your fraud-monitoring and prevention systems make you lose sleep?
- Is your bank exposed to greater risks because of a patch-work of reconciliation systems that cannot handle high volumes of complex transaction and a horde of data formats and sources across the bank?
- Does all this affect compliance and regulatory reporting, hiding the risks and costs of deficient reconciliation and fraud-prevention systems and controls?
1) Then, get in touch with EPS. Find out more about our Advisory Services and how we can help you create a reliable, efficient and secure payment processing infrastructure that complies with requisite regulatory and security requirements.
2) Develop a homogenous payment infrastructure bolstered by a fraud management solution and a comprehensive reconciliation and settlement system that works reliably with your CBS and other systems, enabling secure, straight-through processing for any complex transaction.
3) Benefit from our Advisory Services teams that do a realistic assessment of your current processes and operations and offer practical solutions that work for you.
The National Payments Corporation of India developed the Unified Payments Interface (UPI), a digital payment system to facilitate instant, real-time inter-bank transactions between two parties. The messaging and availability of funds to the receiving party happens in real-time or near-real-time, but the actual settlement between banks takes a day.
This exposes the acquiring bank to a certain amount of risks, because the funds are available to the recipient much before the settlement takes place between banks. Inter-bank settlement for most types of transactions happens in a batch mode, the frequency of which varies with the mode of payment.
While UPI mandates the completion of 23 different settlement cycles in one day, IMPS has four different settlement batches. Leaving aside RTGS, where inter-bank settlement happens in real-time or near-real-time, banks must complete multiple settlement cycles each day, for each mode of payment.
This increases the complexity of transaction processing and any error in reconciliation and settlement or fraud exposes banks to tremendous risks. Frauds are more likely when safety measures and controls are insufficient, or when they are not rigorously followed, leaving systems vulnerable to attacks and subterfuge.