Answer to Question #265156 in Accounting for Kajal

Question

Assume that you are one of the advisors to customers on Payment options.

a. There are multiple Electronic Payment options available in India. What electronic

payment option will you recommend for the following

1. A Corporate customer (ABC automobiles Limited) wants to pay dividend of varying

amounts to its 10,000 shareholders. ABC Automobiles maintains a current with SBI,

Kolkatta.

2. A Retail Bank customer (Mr Gupta) wants to make monthly repayment (EMI of Rs

15,000 per month) towards Housing Loan taken from Punjab National Bank, Pune

whereas the customer has his Savings Bank account with HSBC Bank, Mumbai

Answer 1

Solution:

1.). The best Electronic Payment option here is Internet banking or e-Banking.

This refers to the process of carrying out banking transactions online. This involves transferring the funds from its SBI, Kolkatta account to the accounts of its 10,000 shareholders. It is an efficient and easy process that will ensure all shareholders receive their funds quickly.

 

2.). The best Electronic Payment option here is Aadhaar Enabled Payment System (AEPS).

By registering your Aadhaar number with your bank account, you can easily connect with Punjab National Bank and the monthly loan repayments can be made easily through AEPS.