TRAI slashes USSD transaction charge to 50 paisa per session

The reduction in cost is expected to bring about financial inclusion in rural areas

taru

Taru Bhatia | November 22, 2016


#TRAI   #RS Sharma   #USSD   #Financial Inclusion  

In order to promote digital transactions through the USSD channel, the telecom regulatory authority of India (TRAI) has waived off the transaction cost from Rs 1.50 to Rs 0.5 paisa per session.

The new rates will be effective from January 1. 

Currently, per session on USSD channel includes five stages of transactions. As per the revised guidelines by TRAI, number of stages per session has increased to eight.

The reduction in cost will bring about financial inclusion in rural areas and will make cashless transactions a desirable option for feature phone-users, said RS Sharma, chairman, TRAI on Tuesday.

According to TRAI, India has more that 65 percent of feature phone in India. In October, volume of transactions via USSD channel was Rs 84 lakh.

The volume is very low for such a large number of people using feature phones, Sharma said.

The authority is expecting the volume to increase 10 times after reduction in transaction charge.

Sharma also mentioned that new rates are applied on both retail transactions as well as banking services like checking balance, withdrawal, deposits and peer-to-peer transfer.

Moreover, the chairman noted that failed transaction is also one of the key reasons that discourage poor citizens to use this channel, as they get charged for each failed transactions.

Therefore, TRAI has consulted National Payments Corporation of India to look into the causes behind the failed transactions.

NPCI has agreed to create a task force to look into the cause and see whether optimisation can be done to improve users' experience and convenience, Sharma said, adding that 54 percent of transactions are failing on this channel.

TRAI is also consulting RBI on whether software design of USSD can be simplified for merchants for receiving payment via this medium.
One of the optimisation that can be done, the chairman suggested, is by allowing feature phone users to save the account details like IFSC code and account number to transfer money, like in net banking user can save the payee's details.

Presently, user transferring money through USSD channel has to re-enter payee's details every time while making a transaction.
Digital payment and financial inclusion through USSD can be achieved by gaining the confidence of users, making it user friendly and by reducing the cost, Sharma added.

 

Comments

 

Other News

Battle over cattle, Delhi govt schools lead the way and, why we must return to Gandhi & Tagore

On May 23 this year, the ministry of environment issued ‘Rules on prevention of cruelty to animals (regulation of livestock market)’ with the purported aim of regulating animal markets. When one reads the rules – notwithstanding the lame efforts from union ministers to issue clarificati

BEML unveils 9 MW capacity windmill park

  BEML, a mini ratna category-1 enterprise of the defence ministry, has set a target of using 100 percent renewable energy for its own consumption.   In this connection, BEML’s 9 MW Windmill Park installed at Bagalkot District in Karnataka was recently

BHEL registers increase in intellectual capital

  Bharat Heavy Electricals Limited (BHEL), a Maharatna enterprise, has recorded nearly 14 percent growth in its intellectual capital in 2016-17 fiscal. During the year, a record 508 patents and copyrights were filed by the company, translating into filing of nearly two patents/copyrights

NALCO partners with CII, Odisha for outreach programmes on GST

  National Aluminium Company Limited (NALCO) has joined hands with the Confederation of Indian Industries (CII), Odisha, to organise outreach programmes for industries and other stakeholders on GST implementation.   Series of interactive programmes are being

EPFO inks MoU with HUDCO for Housing for All by 2022

  Taking prime minister Narendra Modi’s vision of ‘Housing for all by 2022’ forward, Employees` Provident Fund Organisation (EPFO) has amended the EPF Scheme, 1952 to provide assistance in acquiring affordable houses to the EPF members by allowing withdrawal from PF to

IndianOil LPG import terminal to reduce refill backlog in Kerala

IndianOil is currently transporting bulk LPG from Mangalore to various LPG bottling plants in north Kerala through about 100 bullet trucks every day, which ply on narrow highways. A pipeline connecting the proposed LPG import terminal to Kochi Refineries Limited and the LPG bottling plants at Udayamperoo



Video

पाकिस्तानी सेना कैमरे में कैद करना चाहती थी ये हमला

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter