News Release Details
IndianOil – Leveraging E-Banking for efficient FUNDS management
New Delhi 17-Aug-2007
When the Internet first emerged as a vital communication channel, it opened up a wide range of possibilities for business to tap its huge potential. The first to grab the opportunity was the email and web news portal who were swiftly followed by online marketing companies selling music, books and gifts. Soon traditional retail channels ahd strong online presence and e-commerce boomed as a full fledged business. The Finance Group in IndianOil has been a pioneer in customer service initiatives in the oil industry. With a vast network of resellers the importance of prompt payment for supplies and efficient refunds will only enhance the overall levels of customer service. In fact, the launch of e-banking in IndianOil in collaboration with the State Bank of India has revolutionized the way we transact. Under this, two IndianOil Officers are nominated to authorize the payment of e-cheques that is credited into the vendors account account instantly. Presently, the facility is limited only to State Bank of India. Presently, payments to all OMCs and major companies/vendors is happening through e-banking system. In fact, the Excise authorities have made it mandatory to make payment of all excise duty and service tax through the Internet and DSO had remitted last excise dues for May & Jun’07 for Panipat Marketing vide e-payment mode .. Of the 10000 odd SBI branches about 3000 have been linked to the e-banking system. As a part of the agreement with SBI, all our State Offices and Regional Offices have been linked under this. In the Internet based e-banking system the responsibility is on the payer even in the remote case of a transaction error. The Bank cannot be held responsible. The second type of e-banking is called Real Time Gross Settlement when a payment instruction is delivered to the Bank with details of the party and the Bank transfers funds based on this. Here the bank is responsible. On an average 700 Nos. vendors as on date are being remitted their payments vide RTGS/EFT/E-Banking mode amounting to Rs. 3,500 crores per month. Mr. Gautam Datta, Executive Director (Finance), IndianOil, Marketing Division says, “The system of e-collection was started in IndianOil way back in 2004 for payments from Dealers, Distributors and Customers. Earlier, such payments were being made through Drafts by the Reseller network the processing charge of which was reimbursed by IndianOil. Through the e-collection this reimbursement is not required leading to substantial savings for IndianOil. During the Jun 2007, approx. about Rs 310 crores worth of collections were received SBI, Citibank, HDFC, ICICI and State Bank of Bikaner and Jaipur, “he added. The subject collections were received from 364 Nos. consumers & resellers of which 44% was contributed by RJSO based retail outlets vide SBBJ Internet Banking, launched exclusively in Mar 2007. The advantages of the e-Banking system is several. Not only is there a greater customer satisfaction in terms of quick, efficient transactions there is also cost efficiencies in the long run. The physical act of making Demand Drafts, paper work can be avoided. There is also a greater control in terms of better MIS. The system provides flexibility to the IOCL customer in terms that payments can be remitted all 7 days all 24 hrs irrespective of the fact whether bank is physically open or closed. For IOCL it leads to savings of atleast 2-3 days interest cost since payments are received in IOCL account at a faster pace in comparison to earlier mode of DD/Pay Order and further chances of dishonour are completely eroded. Another facility is the Instruction card which works very much like a credit card. Two banks, ICICI and UTI are currently empanelled for the facility extension. A dealer is not required to compulsorily maintain an account with the bank. Based on the dealers credentials, the bank offers an overdraft limit fully unsecured. At the supply locations – Terminals/Depots, the card is used by the Dealer wherein the S & D office swipes the card and releases load to retail outlet. Presently, over 66 locations have POS terminals to facilitate this and a transaction of over Rs 435 crores from 553 Nos. Resellers is being undertaken regularly on monthly basis.
New Delhi 17-Aug-2007
When the Internet first emerged as a vital communication channel, it opened up a wide range of possibilities for business to tap its huge potential. The first to grab the opportunity was the email and web news portal who were swiftly followed by online marketing companies selling music, books and gifts. Soon traditional retail channels ahd strong online presence and e-commerce boomed as a full fledged business. The Finance Group in IndianOil has been a pioneer in customer service initiatives in the oil industry. With a vast network of resellers the importance of prompt payment for supplies and efficient refunds will only enhance the overall levels of customer service. In fact, the launch of e-banking in IndianOil in collaboration with the State Bank of India has revolutionized the way we transact. Under this, two IndianOil Officers are nominated to authorize the payment of e-cheques that is credited into the vendors account account instantly. Presently, the facility is limited only to State Bank of India. Presently, payments to all OMCs and major companies/vendors is happening through e-banking system. In fact, the Excise authorities have made it mandatory to make payment of all excise duty and service tax through the Internet and DSO had remitted last excise dues for May & Jun’07 for Panipat Marketing vide e-payment mode .. Of the 10000 odd SBI branches about 3000 have been linked to the e-banking system. As a part of the agreement with SBI, all our State Offices and Regional Offices have been linked under this. In the Internet based e-banking system the responsibility is on the payer even in the remote case of a transaction error. The Bank cannot be held responsible. The second type of e-banking is called Real Time Gross Settlement when a payment instruction is delivered to the Bank with details of the party and the Bank transfers funds based on this. Here the bank is responsible. On an average 700 Nos. vendors as on date are being remitted their payments vide RTGS/EFT/E-Banking mode amounting to Rs. 3,500 crores per month. Mr. Gautam Datta, Executive Director (Finance), IndianOil, Marketing Division says, “The system of e-collection was started in IndianOil way back in 2004 for payments from Dealers, Distributors and Customers. Earlier, such payments were being made through Drafts by the Reseller network the processing charge of which was reimbursed by IndianOil. Through the e-collection this reimbursement is not required leading to substantial savings for IndianOil. During the Jun 2007, approx. about Rs 310 crores worth of collections were received SBI, Citibank, HDFC, ICICI and State Bank of Bikaner and Jaipur, “he added. The subject collections were received from 364 Nos. consumers & resellers of which 44% was contributed by RJSO based retail outlets vide SBBJ Internet Banking, launched exclusively in Mar 2007. The advantages of the e-Banking system is several. Not only is there a greater customer satisfaction in terms of quick, efficient transactions there is also cost efficiencies in the long run. The physical act of making Demand Drafts, paper work can be avoided. There is also a greater control in terms of better MIS. The system provides flexibility to the IOCL customer in terms that payments can be remitted all 7 days all 24 hrs irrespective of the fact whether bank is physically open or closed. For IOCL it leads to savings of atleast 2-3 days interest cost since payments are received in IOCL account at a faster pace in comparison to earlier mode of DD/Pay Order and further chances of dishonour are completely eroded. Another facility is the Instruction card which works very much like a credit card. Two banks, ICICI and UTI are currently empanelled for the facility extension. A dealer is not required to compulsorily maintain an account with the bank. Based on the dealers credentials, the bank offers an overdraft limit fully unsecured. At the supply locations – Terminals/Depots, the card is used by the Dealer wherein the S & D office swipes the card and releases load to retail outlet. Presently, over 66 locations have POS terminals to facilitate this and a transaction of over Rs 435 crores from 553 Nos. Resellers is being undertaken regularly on monthly basis.