PayTM: Convenience over Security or myth-buster?

What made PayTM grow so fast in Indian economy?

You may have different answers according to your political bias.  But to me its pure luck.

Indeed, the demonetization of large value currencies boosted the growth; but there are some interesting facts in this move/growth.  PayTM founder received the license “in-principle” as payment banker on August 19^th 2015, along with other 7; which included Reliance, India POST, Airtel and Vodafone...

Payment banking have limited set of operations when compared to the normal banks. But Mr Vijay Shekhar Sharma had a clear plan on how to use the facility which he executed well.  Parent company one97 incubated PayTM way back in 2010. They would have been another start-up which tried something and just rolling; but in 2016 demonetization changed the complete game for them.

It’s the cancellation of 500-1000 currencies along with introduction of 2000, which made difference.  People use PayTM for smaller payments; most of the high volume transactions are still done via Banks.  When we got 2000-rupee currency, the next smaller one was 100. So getting change/balance for 2000 rupee was difficult.  Signing up and performing transactions are pretty simple in PayTM, so there is no wonder in the spike seen on the subscription and rolling amount via PayTM in recent financial turmoil.

Now let’s see some facts –

Modus operandi of PayTM:  Compared to the solutions available on market, its unique. But nothing so new about the technology used; it’s a mix of available, convenient methods

Why Banks didn’t try such solution, which is relatively easy to rollout for them:  most probability due to the fact that, bank-to-bank transactions should get enroute RBI. In this case of PayTM, the database is same.  i.e similar to SBI to SBI payment.  When we see more competition for PayTM, mostly it may come from Reliance, it will be the same scenario. PayTM’s goal will be to gain as many customer base as possible before another player walks in to the blue ocean.  For the same reason Mr Mukesh Ambani rolling out the services within no time.  They all are quick decision makers and that’s the secret of their success.

Security of PayTM transactions:  I am not sure about the security of the transport tunnel, so am not commenting on that.  But the interfacing mode is either highly risky or myth-buster; anybody who have access to your mobile can make transactions from your wallet.

Do you remember the message that appears in online banking portals to close the browser after logging off from the banking website?  It is advised to avoid hack into the session of user. That why the banking sessions are timed out if idle for some X minutes.  Well, this can be tricky as well; banks do not want users to consume server resources for longer time.

But let’s assume the statement – live, longer, bank sessions are prune to cyber-attacks, is true, then, on an immature mobile platform, fintech solutions like PayTM will burn your fingers. It’s just a matter of time.   Other the other hand, if it was myth, then it’s better to have more competition in fintech, for better and convenient solutions to the public where “service to general public” is considered as burden than liability.

PS:

The statement – do not trust immature, evolving security technologies, to me, personally sounds like words of wisdom.

I have no intention to defame PayTM or to create panic among its users. I as a user, I am just sharing my thoughts.  

Underground bus bay- Answer to “Traffic woes in Bangalore “

Traffic problems in Bangalore need no introduction. I am not going to brag about it here. Instead, I am sharing my observation on the cause for the chaotic condition and some suggestions which I could think of.

Traffic police department in Bangalore is actually doing a good job but they alone can’t manage the city especially when they are less in number. They need to have proper backup from BBMP and BMTC.  Lack of infrastructure and insufficient public transport results in exponential growth in number of private vehicles plying on the road (especially single passenger cars).

As a regular traveler thru the notorious junctions like Tin Factory, K R Puram, Mahadevpura, Marathahalli and Kadubheesanahalli, I have some observations.

• I am not bored If am waiting in a signal for 5 min (especially if there is timer) but I am tired and angry in snail paced traffic.

• Most of the congestion is caused by (driving) cultureless drivers. They don’t follow lane traffic and they don’t wait for anyone. In short they don’t think.

•  In Bangalore we have lot of “X” junctions where we don’t have signal.  X junction is the place where one traveling in left lane want to move to right and the guy on right lane want to come to left.  Tin Factory is the best example for it. Its replicated in all small service road to main road junctions.

• To make the situation worse, we will have a BMTC bus stop where a ~13-meter long bus will be on halt. Ideally 3-4 such buses will be there. They will block the vehicle movement in junctions.

If we can remove the bus stops from running lane, and install traffic signals at deserving areas, traffic congestion can be avoided to a great extent. But in a city like Bangalore, we don’t have space left near main roads to have separate bus bay. So the only option left out is to go vertically!

Yea, build either flyovers or underpasses.  In most of the area we have flyovers. So building another one may not be feasible.

So what can’t we go with underground bus bay?!

Here let’s see the example of Marathahalli junction, direction towards silk board.

At this junction we have the typical ‘X’ road, and a bus stop. This junction in ORR is super busy all the time as it has 3-4 tech parks and lot of commercial establishments.

Proposal:

Let’s build an underpass bus bay (in every congested place like this).  The X junction can be placed on top of the bus bay. And instead of a 90-degree angle connecting road (from service road to ORR), let’s build it at 120-130 degree, this ensures smooth migration of vehicles.

The vehicles coming from service road will continue left lane where buses will take right lane into the underground bus bay. Similarly, the buses in ORR will take left lane to enter the underground bus bay.

Other vehicles can use other lanes on right side. Vehicles from service road will enter ORR over bus-bay, so we won’t lose any space due to bus stops and other vehicles won’t be blocked due to improper parking of buses.

Please share your thoughts on the same. I am not sure whether the concerned department will take this seriously. but in case if they are considering it, I am confident that it can bring in some positive change.

Please pass this blog, if you like the concept so that it may reach the apt people or departments.

Thank you!

Infrastructure development bypassing the corrupt politicians and bureaucrats

Infrastructure development is a key sector in which we have to have tremendous growth in upcoming years. Directly and indirectly it creates lot of opportunities. When the total wealth is considered, India is 7^th richest country on earth but we don’t have the infrastructure facilities that can be compared with other 9 countries in top 10. Even after 69 years of independence and being rich, we could not make any advancement in this sector. What could be the reason?

To me, it’s a 2 simple things

1. No visionaries, lack of commitment towards people and development of country, among political parties
2. Corrupt or hijacked bureaucrats

A development model which bypasses these 2 clusters can lead country. But from where can we adopt one?

Well, I believe that we have solutions for our problems around us, we just need to have open eyes and ears to identify and tailor them for our needs.

You witnessed how Flipkart transformed eCommerce sector in India. Now we have bigger players like Amazon in market. The tight competition among these companies provides better deals to the customers.

But how did they cut the cost? (let’s forget the promotional offers they have)

They simply eliminated the middle men.

Why can’t we follow that model in infrastructure development activities?

Who are the middlemen in our case? The corrupt politicians and Government officials.

  

Let’s consider this by an example – a particular city/village need more public transport. It can be trains or more buses. Let’s go with simple solution - bus.  Say they need 10 buses for their area. At present, the department accountable for the same may not have enough budget or it may be under the control of the negative elements I mentioned earlier.  In any case, the request won’t be addressed.

Now let’s look at the bigger picture. In India, there may be hundreds of thousands of villages or cities.  So we have a centralized agency, which can order 5000 buses, which they can get at very discounted price, can solve the problem.

Govt office hierarchy that is designed to load balance and distribute the work, does not seems to be effective. We need an alternate bottom-up approach to have faster resolutions for our problems.  

Bottom-up approach:

The requests from people has to reach the Govt directly via online portal and mobile applications (central or state) first. This way, Govt will have a clear picture of the overall needs in short time. Govt can handover the tasks directly to the companies with whom they have agreement.  There we need an agency to follow-up the tasks and complete them on time.

In this approach the control and monitoring is done from top level.  The offices in the hierarchy has to support the tasks when it comes to them.  The bureaucrats are answerable for the delay and rejection of the task which is controlled by upper management. (similar to the pvt company work)

This parallel organization approach will increase the competition and helps us to filter out the weeds from Govt services.  

  

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KA HC quashes unconstitutional road tax law: what next?

Finally ….

Finally court agreed “in-principle” that it makes some sense to pay only for the Masala Dosa we “ate” (read that story here).

But are we done? Not yet; IMO.

In fact we are an inch close to our target.

Well, what’s your target?!

Oh yea, for the new readers, it’s “ONE INDIA ONE TAX”

Sounds great; can you explain it in a sentence?

Sure. In our country, one should have freedom to drive their vehicle in any state for any duration by paying life time tax (15 years) only once.

Hmm, it make sense. But I was told that the 1988 Motor vehicle act is somewhat similar to what you say. 

Similar? May be, but not same. That’s the problem.

According to 1988 act, one can ply vehicle in any state for 11 months after which they have to re-register the vehicle in new state where it’s used.  Here the catch is, rule is instructing the owner ONLY to re-register and not asking to pay the lump sum; but at the same time it says the re-registration in new state is subjected the rules of the state.  So in the rule book of states, they clearly mentioned, one has to pay the LTT again to register the vehicle in their state and the owner can ask for refund from previous state.

Well, we all know how Govt offices work in our country and how easy it is to get refund.

So, what’s your stand on this?

1988 act, a 28 year old law, has its own disadvantages and it’s time to reread them. According to current trend, migration to a new state is very swift and our law should be able to handle it.

Can you brief the changes you envision?

It should happen someway like the following:

When a citizen buy a vehicle from State ‘A’ ,  let the state Govt collect tax for 15 years (as it is now) as per their tax slab. When the citizen moves from state ‘A’ to ‘B’, the individual will update the same in central Govt’s portal.  Say this is happening after 2 years, state ‘A’ should calculate the tax amount they actually deserve for 2 years and transfer the rest of the amount to state ‘B’. Repeat the same when citizen moves from ‘B’ to ‘C’. When the tax amount becomes 0, say in 13 years due to the difference in tax % charges by different states, we will have an option to top-up the tax for next 2 years. With this method, respective states will have the tax amount they deserve.

Why a central Govt portal is required for this? Can’t we simply change the address in RC book as per the law available now?

No. we need central Govt portal because:

• Greedy state Govt’s may not exchange the actual data
• Existing law demands, address proof in new place when we switch. It is conveniently forgetting the fact that, one can use any vehicle which may be in their parent/sibling/friend’s name, just like mobile phone. So citizens will be FORCED to create fake proofs. Let’s be realistic.
• In addition, to change address, we need NOC from financier, which most of the banks won’t give, even though the person who took loan is still staying in same place.
• Cash exchange between states can happen under the supervision of central Govt with deadlines.

Alright; to avoid the topup complexity why can’t we have flat % for all states?

It will be an injustice to most of the states; compare states Rajasthan and Madhya Pradesh to Goa or Pondicherry; how can we ask them to pay same amount of tax to drive within their state?

OK, before we conclude this conversation, you repeated the word “WE” in many places, who all are the “WE” here?

We means all Indian citizen who is affected.

 [this write up is a proposal by the author and not official decision by Drivewithoutborder group]

Group in FB: https://www.facebook.com/groups/drivewithoutborders/ 

What is Life Time Tax [LTT] issue?

It’s simple as buying special masala dosa!

Confused? 

Let me explain. 

Assume you are walk-in to a nearby breakfast counter and ordering a masala dosa (hotel menu reads it cost 45 INR for one special masala dosa including tax). So you decided to have one and ordered it. Now the cashier is giving you a bill of 243000 INR!!! 

WTF!!! 

Yes, that’s what most us think. Now the shop owner is with me to explain. According to him, as mentioned in menu a masala dosa cost 45 rupees only including tax. But …. 

“There are 30 days in a month and such 12 months are there in a year. “Life-time” is considered as 15 years in our system, so the amount 2, 43,000/- is the cost of spl masala dosa for 15 years. “ 

I can read your mind; let me guess it. 

“What on earth made you to think that I will daily have masala dosa and that too from this shop? 
What is the guarantee that I will be around this place for next 15 years? 
What is the guarantee that the shop will be there for 15 years or me living for next 15 years? 
Why can’t you just charge for what I eat, every time?"

Yes. That’s exactly what we are asking for. 

We already paid the so-called life time tax in one state of INDIA. Ideally we should be able to drive anywhere in India without issues. We are ready to inform authorities about the vehicle transfer (if at all it happens from one state to another). It is the responsibility of states to transfer the tax money collected to respective state. Their incapability is turned out as burden on common-people. 

What exactly is this “BURDEN”? to understand this, will go back to the masala dosa. 

Somehow you agreed (or forced) to pay 243000 to him and next morning you went to another shop which serves English breakfast. An English breakfast cost a bit more than masala dosa and menu reads 80 INR. You are at the cash counter and took a 100 rupees note & the cashier gave you a bill of 432000/- 

“Are you mad?” 

Yes, the new shop owner ALSO had the same story (30x12x15) to tell. 

“But I just paid 243000 yesterday” 

“hmmm.., may be true, we did not get it. You do one thing, pay me 432000 now and get a refund from that guy as you are not eating from there” 


Just think: two breakfast in different hotel costing me around 6.75 LAKH INR!!! 


An interstate transfer, if not within days, is no different from breakfast from two different hotels, as mentioned above.


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