People who have not linked their Aadhaar with their financial accounts can now relax for a bit. The Government on 21st February 2018 has extended the deadline for linking a bank account with Aadhaar card. 

The Ministry of Finance tweeted, “It has been decided by the Government to notify 31st March, 2018 or six months from the date of commencement of bank account based relationship by the client, whichever is later, as the date of submission of Aadhaar number & PAN or Form 60 by the clients to the reporting entity”.

The Government has instructed all the banks, financial institutions, and intermediaries to make the Aadhaar-bank account linking process mandatory. They have taken this measure to prevent Money Laundering issues.


  1. Existing accounts: For individuals whose bank accounts are more than 6 months old, the deadline is 31st March 2018.
  2. New accounts: For individuals who have opened their bank accounts recently, the deadline is within 6 months from the date of opening.

Before the new instruction, the confirmed date for linking Aadhaar with bank accounts was 31st December 2017. However, the Department of Revenue in the finance ministry had issued a notification to prevent this from happening soon.

People have to link their Aadhaar to bank accounts to avoid the inoperability of their accounts. If you are a new account holder, you have got some more time to relax and finish the process accordingly.

(The above content is made by the author solely on the basis of sources which he/she deems to be true. Paymatrix: www.paymatrix.in  is not responsible for any errors in the above information provided.)



Budget 2017 has brought in certain amendments to the applicability of TDS on Rent and the rates at which TDS on Rent is to be deducted. Prior to this amendment, TDS was required to be deducted by only a specified category of businesses and professionals. However, now even specified categories of salaried employees are required to deduct TDS on Rent.

The following is a brief overview of the TDS on Rent which is required to be deducted by various categories of Taxpayers:

Category A: Professionals and Business falling under scope of Section 44AB

TDS @ 10% is required to be deducted in case the Rent paid/ payable during the Financial Year is more than Rs. 1.8 Lakhs. TDS on Rent in this case is required to be deducted under Section 194I @ 10% of the total amount paid or payable during the year. Moreover, only those categories of businesses /professionals are required to deduct TDS who are required to get their tax audit conducted by a Chartered Accountant under Section 44AB.

Note :

  • The limit of Rs. 1,80,000 p.a. is per taxpayer. So in case, there are 2 co-owners of an asset, this limit would apply for each co-owner i.e. TDS on Rent is liable to be deducted if payment to each co-owner exceeds Rs. 1,80,000 p.a
  • Differential TDS have been prescribed for different types of Assets under Section 194I of the Income Tax Act

TDS for Rent

Category B: Other type of Tenants i.e. Salaried and those not falling in above category

If you are not falling in Category A, then you were earlier exempted from deduction of any TDS on Rent. However, with effect from 1st June 2017 – other tenants (i.e. salaried taxpayers, business and professional not under category A) are also required to deduct TDS if the Rent paid is more than Rs. 50,000 per month. TDS in this case is required to be deducted under Section 194IB @ 5% of the total rent paid or payable.

Note :

  • In order to reduce the burden of compliance, this TDS is not required to be deducted every month and is required to be deducted only once in a financial year
  • The total TDS required to be deducted for the whole financial year is required to be deducted in the last month of the financial year only
  • In case the tenant vacates the property during the year itself – then in such cases TDS @ 5% is required to be deducted in the last month of tenancy
  • Moreover, in order to simplify the process and to reduce the burden of compliance, the tenant shall not be required to obtain TAN No.

TDS on Rent


TDS exclusive of Service Tax

Service tax (ST) @ 15% is liable to be paid if the total amount received by your landlord from 1 or more sources during the year exceeds Rs. 10 Lakh (irrespective of whether received as Rent or for providing any other service).

Earlier there was a confusion regarding whether the Tax to be deducted should be computed on Actual Rent or on Total amount of rent including ST. To remove any such confusion – CBDT vide Circular No. 4/2008, dated 28/04/2008 and Circular No. 1/2014 dated 13th Jan 2014 has clarified  that Rent is to be deducted on the amount paid exclusive of Service Tax. Therefore in the above scenario, the Tax on Rent would only be on the Actual Rent paid.

Availability of Tax Credit to the receiver of Rent

The TDS deducted on Rent can be claimed by receiver as credit at the time of filing of income tax return and the receiver would only be required to pay the difference in the tax that was actually payable (computed as per the Income Tax Slab Rates) and the TDS on Rent that has been deducted.

However, if the income tax computed as per the slab rates is less than the TDS deducted, the receiver of rent can request for TDS Refund for the excess TDS deducted.

Form 15G for request for Nil/Lower Deduction of TDS on Rent

Although the threshold for deduction of TDS on Rent has been kept at a higher limit as compared to other limits, there would still be cases wherein Nil Tax is applicable on the person receiving the Rent.

In order to reduce the compliance burden, the Budget 2016 has introduced an amendment stating that if Nil Tax is applicable on the Income of the person receiving the Rent (incl Rental Income), the recipient of such payment can file Form 15G/Form 15H for Non-Deduction of TDS.

TDS on advance rent

In cases where Advance Rent is being paid by the tenant to the landlord, TDS on Advance Rent is also liable to be deducted. However, the income tax department vie Circular No. 5/2001 dated 02-03-2001 has notified that in cases where:

  1. The advance rent is spread over more than 1 financial year, credit of TDS on Rent shall be allowed in the same proportion in which such income is offered for tax based on the single tax credit certificate issued (i.e. Form 16A) for the entire advance rent, or
  2. The asset is sold / transferred by one person to another, credit for the TDS on rent which has not been availed till the date of sale/transfer shall be allowed to the new owner.

Moreover, in some cases advance rent is paid and TDS on Rent is also deducted but later the rent agreement gets cancelled resulting in refund of balance amount to the tenant. In such cases, it has been clarified by the CBDT that the landlord in such cases shall state in his ITR Form that TDS has not been claimed because of cancellation of rent agreement.

Other important points regarding TDS on Rent

  • The Receiver of Rent shall intimate his PAN Card No. to the Party from whom he is receiving the Payment. If the PAN has not been intimated, TDS on Rent shall be liable to be deducted @ 20% under Section 206AA
  • Surcharge is not applicable on TDS on Rent except where payment is made to a foreign company and the amount exceeds Rs. 1 Crore, the Surcharge levied thereon as per the rates in force.
  • No Education Cess or Secondary and Higher Education Cess is to be additionally charged on TDS on Rent.
  • If a non-refundable security deposit is being made by the tenant, TDS would also be liable to be deducted on such non-refundable deposit because such deposit represents the consideration for the use of the asset. However, if the deposit is refundable, no TDS would be deducted on such deposit.
  • If the municipal taxes, ground rent etc are borne by the tenant, no tax would be deducted on such amount.
  • Where payments are made for hotel accommodation taken on regular basis, TDS on Rent payment shall be deducted.
  • The Rent received would be taxed under head House Property and various deductions would also be allowed from the rental income earned.

About Author

Vikas Jain – Chartered Accountant

Vikas Jain is a CA from ICAI, and has experience of over 15+ years with well-known brands in India cutting across different industry segments such as Manufacturing, Service, Pharmaceutical, Power, Infrastructure and Transport.  He commands expertise in Project Financing, Taxation Corporate Accounting, Taxation and  Insurance. He has also served various early stage start-up entrepreneurs with his professional expertise in Company / LLP formation, accounting and compliance management and audits.

To know more you can email him at [email protected]


What is RERA

Real Estate sector has been growing over the past few years, but has been unregulated from the perspective of consumer’s protection. This sector has acquired certain disrepute, adversely impacting investment climate and hurting the interests of lakhs of home buyers every year. This Act was passed in the lower and upper houses of the  parliament in 2016, and shall come into force on May 1, 2017 to verify and formulate rules for the functioning of the regulator. According to RERA, each state/UT has its own regulations framed and including the National Capital. This Act enhances the overall transparency, accountability and efficiency in the construction industry. The Central/ State Governments enforced  section 2, sections 20 to 39, sections 41 to 58, sections 71 to 78, and sections 71 to 82 of the RERA Act in May 2016. Certain sections of the Act were not notified then, as the institutional structure weren’t established then, namely the Regulatory Authority and the Appellate Tribunal. The remaining sections of the act came to effect in May 2017. According to the Regulatory Authority and Appellate Tribunal, projects can be sold only after they are registered with the Authority.

Salient Features

Until now home buyers have been facing problems regarding cost escalations, delays in projects, one-side contract terms, arbitrary changes to plan etc. With the execution of this Act:

  • Developers have to register all new projects with “Real Estate Regulatory Authority” before booking, selling or offering new projects.
  • Ongoing projects have to receive completion certificates within a period of three months of commencement of the Act.
  • Developers have to disclose all details about the project on Regulator’s website including:
  • Details of the promoter such as registered address, type of enterprise.
  • Details of the project launched by the promoter whether completed or ongoing in the past five years including current cases, delay in projects, pending payments and details of land type.
  • Proposed facilities and location details are to be provided along with the sanctioned plan, layout plan, specifications of the project and plan of development works.
  • Project status has to be updated at every three month interval.
  • Developers have to deposit 70% of funds received from the buyers in a separate bank account and entitled to withdraw the amount to cover the cost of the project.
  • Developers are subjected to penalty for delay in projects.
  • Developer should sell the projects only based on carpet area where buyers can use. This implies the area covering external walls, service shafts, balcony and open terrace are excluded, but area covered by internal walls are included.

Impact of RERA

RERA has it impact on two key stakeholders i.e. builders and buyers. The act brings in more transparency between the builder and the customer, and ensuring the flow of institutional funds. Moreover, the home buyers are shielded from potentially unscrupulous activities of the builders.

With developers improving the delivery of quality product, contactors have to focus on quality of service, cost and time. The cost of capital for developers is bound to go up as the builders cannot sell the homes before the project approval is complete and that the 70% of the money from the buyers has to be deposited in an escrow account, hence debt is the only way of financing the projects.

New sectors are emerging as major drivers such as e-commerce, logistics and start-ups along with IT and ITES companies in the commercial real estate sector. Investments in infrastructure has also increased in cities such as Hyderabad and Pune with good demand in both MNC’s and start-ups.

RERA will help in boosting the buyers sentiment and the confidence and hence can actually lead to purchase of homes. Hence the act actually brings in regulation but not strangulation. This Act also improved the lending options from lenders and availing finance became easier with reducing litigations.

To sum up with, RERA is a growth oriented act to balance the key priorities of buyer’s interest, investors’ confidence, good governance and to build truest between two major real estate stakeholders: builders and buyers.

Road Ahead

As per CBRE (Commercial Real Estate Services) report Real Estate Sector in India is about to hit $100 billion investments by 2020 from witnessing a $7 billion investment in 2017. As a result of improved investor confidence and better policy reforms, India is one of the fastest growing G-20 economy in the world.

The supply under residential market has jumped by 70% in January – March period with biggest jump in Bangalore, Hyderabad, Pune and Kolkata. Housing sales have risen by 70% with the biggest sales in Hyderabad, Bangalore, Pune and Chennai.

World Development Report of UN states that India stands fourth in developing Asia for FDI inflows and real estate sector in India so far attracted $32 billion private equity.

The GST and Benami Property Act will also have major impact on the real estate business. With the Government moves like demonetization and digital economy, the unorganized and less organized segments of the real estate sector will have to move towards the organised segment or will have the suffer the natural death from the sector.

Indian Real Estate Sector is going to witness a healthy growth and demand in 2017 with credible, reputed and organized players. RERA is going to help builders reorient their methodology and helps real estate sector overcome hurdles it faces and contributes to growth of Indian economy.

Telangana state formation day award 2017

Telangana, the 29th and the newly formed state of India is celebrating its 3rd state formation on 2nd June 2017. A precursor to this celebration is the Telangana government’s tradition of releasing the Annual Report of Information Technology Electronic & Communication (ITE&C) Department lead by the Honourable IT Minister of Telangana Sri K. Taraka Rama Rao ( lovingly called KTR ).  The event also saw the inauguration of T-wallet, the official e-Wallet of Telangana, to encourage digital financial transaction in line with the Government of India in making our country a less cash economy.

The event also saw the recognition of exemplary work done by companies in the field of Information technology and IT enabled services by the Department of ITE&C through the ‘Telangana State Formation Day Award 2017’.  Awards were categorized by the way of contribution in different segments – employment, revenue and exports growth, special services, tier-2 promotions, startups and outstanding achievement award.

Paymatrix was one of the proud awardees of ‘Telangana State Formation Day Award 2017‘ under ‘Best – Women Led Startup’ from the hands of Honourable IT Minister of Telangana Sri K. Taraka Rama Rao in the presence of Honorable IT Secretary Mr. Jayesh Ranjan. This award is a recognition that women can come into the world of startups and lead a change. In this context, we have been also recognized for our efforts in enabling property rental transactions go completely digital and thus enabling the collective vision of achieving a less cash economy. This, we believe also is a recognition of the belief and hard work put by our entire team in realizing this vision.

Telangana state formation day award 2017

The recognition also reaffirms the position of Paymatrix as a leading property rental management platform ,wherein we have registered our highest ever user transaction and user growth over the past quarter. With offerings ranging from credit facilitation for rentals and rent deposits to Renters’ Insurance and Tenant Screening services, we are well poised to assist tenants, landlords and property managers to better manage their property rentals in a convenient and cost effective manner

team Paymatrix Paymatrix Team








In this juncture, we also want to mention the IT growth story of Telangana as quoted by Honourable IT Minister of Telangana Sri K. Taraka Rama Rao – The IT exports in 2014 was Rs. 57,000 crores  and the target was to set to double the IT export. The Telangana government is on the track to achieve this target with the registered IT export of  Rs. 85,470 crores with an impressive growth rate of 13.75% in 2016-2017 which is 4% higher than the national growth rate. In fact this once again re-establishes Telangana as the fastest growing state in terms of IT exports.

paymatrix team

NASSCOM Product Conclave (NPC) conducted the fourth edition of #npchyd on 26th May 2017 at the HICC, Hyderabad. The event saw the participation from product start-ups including Paymatrix, small to mid-size companies, VCs/Angels, Leaders and Mentors. It was a blend of keynotes to share knowledge from experts, panel discussions to deliberate the concerns of the industry and workshops to build capacity of the emerging talent.

Team Paymatrix, exhibited their product to various dignitaries who had visited the stall, explaining how Paymatrix is helping the tenants, landlords and property managers in streamlining their rental payments and collections, and how facilitating credit for the rental deposits and rent has helped on time payments of the rents. Audiences were introduced to the new services such as the rental agreement, tenant screening, renter’s insurance, workspace and PG management. The ideas of how we started and how Paymatrix adds value to the tenants and the landlords in the post-discovery phase of the property rentals were much appreciated. More inquisitive questions were asked on the business model, go-to-market strategies, technology, current traction and the future growth trajectory by the NPC Judges.


paymatrix team

After much deliberations 5 startups were selected including Paymatrix amongst more than 30 participants for Product Pitch before the VCs/Angels and the Industry Leaders.

paymatrix pitch

Mukesh Chandra Anchuri, Founder and CMO and Anusha Kurupathi Parambil, Co-founder and CEO of Paymatrix represented the Team at the event. Product Pitch of Paymatrix was well received by the audience and the industry with the startup forming some key partnerships at the event.


Get in the Ring‘ (GITR) Competition is conducted by Netherlands based ‘Get in the Ring Foundation’ which was established in 2012 to reduce the failure of startups globally by connecting startups to hidden opportunities that are usually missed by entrepreneurs.

The third edition of ‘Get in the Ring‘ happened in Hyderabad which witnessed entrepreneurs battling with their competitors while investors and start-up leaders acted as jury members.A total of 24 start-ups participated in the day-long competition held on 6th April at T-HUB, Hyderabad of which six reached the semifinals for a face-off. The top six were Paymatrix, Authbase, Gayam Motor Works, SpotDraft, ATL, NicheAI.


Telangana Today - 07 April 2017 - page 12


For further information about the Paymatrix and GITR can be explored by visiting www.paymatrix.in and https://getinthering.co/

The author of the content is a technology and startup enthusiast. For feedback on the content, please write back to us at [email protected]



Hyderabad, the city of pearls is in news for various good reasons off-late. For the third year in the row, Hyderabad not only emerged as the best city in terms of living standards among Indian cities globally (Mercer’s Quality of Living rankings 2017) but also is on the way to a make a bigger news. Over the past few years, the city emerged to be one of the hottest innovation hubs, fueling startups through one of its kind initiatives. Driven by a government with progressive outlook and a thriving talent base, the city has set its eyes to be one of the world’s top 10 startup ecosystems in the world. While several stakeholders stand as drivers for this growth , there is one such player that stands out; T-Hub.

T-Hub , a unique public/private partnership between the government of Telangana and 3 of India’s premier academic institutes (IIIT-H, ISB & NALSAR) spearheads the innovation in the startup ecosystem in Hyderabad.The integrated incubator cum world class co-working space stands to be a nodal point attracting the best of the startups, mentors and investors.
One such startup that was nurtured out of this ecosystem to emerge as a one-of-its kind player is Paymatrix. The startup, that sprung out of a personal pain-point of the founding team comprising of graduates from IITs, IIMs, SPJain and BIT, Mesra ( Anusha Kurupathi Parambil,Mukesh chandra Anchuri, Muralidhar Nayak Guguloth). Paymatrix acts as an interface between tenants ,landlords and property managers and streamlines the rental payments and collections by facilitating credit from banks and NBFCs through smart analysis of payment behavior. This startup, often considered to be the first and largest in this Property rent management space, has a plethora of offerings including Renter’s insurance, Tenant Screening services and Digital Rent documentation , all of which makes the interaction between tenant and a landlord hassle-free and transparent.


While this startup , incubated by T-Hub and NASSCOM 10000 is considered one among the fastest growing in the ecosystem, it added another feather today at HYSEA Design Summit and Awards 2017.
Paymatrix is not only rated among the 10 hottest startups in the Hyderabad ecosystem but also was awarded as winner of the Early stage Consumer startup at the Summit held today at Cybercity Conventions, Hyderabad. The event, attended by the best of the corporate and startup ecosystems in India is has key themes for 2017 to be Imagining Technologies, Digital Economy at X-roads, Designing the future and Weaving innovation into the mainstream.
About HYSEA:
HYSEA ,considered among a key industry body, serves as a platform for its member IT majors and companies to interact with the government as well as compete in the global market. HYSEA also helps the government in formulating industry-friendly policies by providing incentives, concessions and support for foreign investors and entrepreneurs. Finally, it seeks to promote and encourage its member companies by instituting awards for various categories.
Further information about the Paymatrix and HYSEA can be explored by visiting www.paymatrix.in and www.hysea.in
The author of the content is a technology and startup enthusiast. For feedback on the content, please write back to us at [email protected]

If you happen to find yourself in Hyderabad heading to the HYSEA (Hyderabad Software Enterprises Association ) Design Summit and Awards 2017 on 23rd March (09:00 am – 08:00 pm) at Cybercity Conventions,Hyderabad, here are 5 reasons why you should stop and say hi to some of the Paymatrix team! 

Reason #1: Experience hassle-free rent collection by accepting rent payments with multitude of payment options

Reason#2 : Learn about our proprietary tenant screening algorithm and help you select the prospective tenants

Reason#3: Get a chance to avail exclusive offers and rewards of worth Rs.1000 * on your rental payments

Reason#4: Ask us how to automate your monthly rent payments through our recurring payment solution

Reason#5: Know more about our short term credit facility for your rental/security deposits


Meet our Awesome team and get to know more about our services at Paymatrix.

Click here to learn about the Annual HYSEA Product Awards and Showcase 2017.


Demons of Demonetization?

From the eventful evening of November 8th, 2016, the term of Demonetization has crept into our lives. Its implementation has been glorified to have created a huge inconvenience for people from all walks of life.

The regular citizen of the country struggled to get cash. Most of our precious time was spent in the queues outside Banks and ATMs. Many of the small and medium scaled establishments struggled to achieve their daily break even with their business models under question , especially those operating on wafer-thin margins.

If there is any chance to avoid cash transaction, people were ready to take it, even if it burned a hole in their pocket. More than money, Currency for once becomes sacred. People opted to buy groceries online or in large department stores that have POS machines so that they could avoid spending cash in their neighbourhood’s grocery store. With these changes in purchasing perspective, not only did the small and medium scaled businesses witnessed an unprecedented change but also are the invincible real estate players.

Real-Estate and the Parallel economy

One of the major sectors that have taken a hit is Real Estate and Construction. It is an industry where cash has been ingrained into the entire value chain from that of purchases to settlements to daily labor. Demonetization, while did hit out at the builders also have alarmed the workers, whose daily wages are usually paid by the contractor in cash. With demonetization, these payments have got indefinitely disrupted and in several cases these workers have become the subject of cash hoarding by the money launderers.


With this revolutionary change in the landscape, many mid-tier projects are either put on temporary hold or being delayed in progress to accommodate the subsequent developments. Despite the market predictions of downward trend in property prices, most of the sellers stay put, while there was a dearth of property buyers. While it may turn out to be too premature to comment on the prospects of the industry on account of this measure, one thing that is for sure is that it is going to rein in transparency into the industry gradually. Realtors after weighing in the potential risks of the circumvention and after lending an ear to the uncompromising stance of our Prime minister in chasing down the parallel economy,are having their fingers crossed. Most of them do wonder if the next googly from the government is indeed a mad chase after Benami properties.However, in such a case, we can definitely expect to see the market buckling to the imminent change.

Real Estate and construction sectors have a reputation of being a big bad world of black money, power and corruption. The sector is known not only to be volatile, but also unpredictable. It is also known to be an industry that always finds out its way despite any regulation for that it can game the system on account of its sheer market size and the interests of key stakeholders involved.However, despite all these, it shall be too premature to infer the effectiveness and influence of the act without us getting a peek into the numbers that shall start to roll out from government only by January end.

Real estate has been a corner stone for black economy for it a majority of the transactions were made in cash and thus stay unaccounted for taxation purposes.Demonetization has posed a challenge to this parallel economy with a majority of this unaccounted cash turning into worthless paper. Developers and resellers that otherwise insist homebuyers on having hard cash as a component of payments toward property purchases have turned wary and are now accepting a major chunk of payments through recognized channels. While demonetization did affect the real-estate sector in short term bringing in stagnancy with no buyers and takers, it does have some long term benefits for the industry as such.As the non-cash component size increases for the property purchases, size of home loan book can turn bigger with Banks and NBFCs. Further, banks being flush with cash, one can expect an imminent downward pressure in interest rates. This would not only allow access to affordable housing but also shall bring in transparency into the system. Builders and Realtors can eventually turn to be more responsible for the delivery of the projects for that majority of their cash flows from the lending institutions shall largely depend on the progress of construction. Further, with the buyer friendly provisions of the Real estate Regulatory Act, buyers shall be protected from delays in construction and handover.

Primary market, which involves the construction and sale of new projects, is well positioned to accommodate these regulations than the secondary market.The reason being a huge disparity between the registered prices and market prices that can dent the returns of the secondary seller of the property as he not only ends up paying higher registration fees but also have to account the gains for taxation. Developers of fresh real estate, on the other hand have a leeway to optimize their cost structures and thus better deal with taxation.

Demonetization and Rental market

There is one aspect of Secondary Markets of the Real Estate, where the brokers can find a little solace in these tough times – Rentals. Irrespective of the fluctuations in the market, people do need a safe place to stay .A majority of population still dwell in rented and leased spaces in urban areas giving way to a huge property rental market in these areas.

With demonetization, the rental market is also gradually expected to undergo a change. Earlier the deposit for renting a house, apartment or an office would require a payment of cash in advance. Similarly, most of the rent was transacted in cash. With demonetization, the mode of transfer for rent and rent deposits got altered significantly. Both the landlords and the tenants now prefer to opt for electronic modes for that at least it would ensure timely payments and collection. While one argument may sound that only the dearth of cash is propelling them to adopt electronic modes of payment for rentals and this shall turn back to normal once the regulatory uncertainties fade away. The counter argument on the other hand is that this act has atleast propelled the stakeholders to transact rent electronically, and made them well aware the benefits of cashless transfer and perils of cash handling. The cashless transfer would further assure the authenticity of transaction for both the landlords and the tenants.

Paymatrix is one such platform that reins in transparency of transactions between tenants and landlords, while offering much value and convenience to tenants and landlords. The platform facilitates timely payments and collections of rent and rent deposits while enabling one to pay rent and rent deposits on credit. Not only that, tenants by paying rent responsibly online on credit can build their credit histories. On the top of it, one gets to earn discounts and rewards on every payment. Landlords on the other hand can be assured of receiving rent on time and can effectively manage collections from multiple properties and issue rent receipts online. These kinds of platforms are bringing in much-needed transparency in the otherwise cash-dominated rental market.

Further information about the platform can be explored by visiting www.paymatrix.in

For feedback on the content, please write back to us at [email protected]

” The views expressed by the author on this website do not necessarily reflect the views of the website as such. Further Paymatrix doesn’t take any responsibility for accuracy, completeness, veracity, honesty, exactitude, factuality and politeness of comments or the content. Views expressed on the blog are entirely of the author and Paymatrix shall not take any responsibility, blame or any legal proceeding or litigation that may result from something written in or as a direct result of something written in a comment. The author of the content may or may not be appropriately compensated as the case may be for publishing their views on the website. Content presented in the articles are solely meant for education and information purposes and shall not be copied or re-represented anywhere without prior consent from the owner of the article.”

A New Beginning

Switch to any TV News channel, either in the economic or political spheres, one can find several commentaries concerned with the effects and impact of Demonetisation. It seems to be still the hot topic in 2017.  By the looks of it, it might still be in the coming weeks.

While there have been several arguments about the adverse effects of Demonetisation, there is definitely a silver lining around the surrounding developments, which we tend to overlook.

Demonetisation eventually stood as a propellant catalysing the digital awareness and subsequent empowerment of a large number of people throughout the country. With the onset of demonetisation of the old 500 and 1000 Rupee notes, a majority have been made to atleast embrace electronic modes of payment and cashless transactions; Merchants who otherwise were reluctant to adopt electronic modes now atleast have a POS to enable cashless transactions.

Earlier, in the last financial quarter, it was noted that the debit cards were majorly used in ATMs for Point-of-Sale-Device cash withdrawals say around 95% of the time. Now, with the limit on cash withdrawals and the shortage of currency, Point-of-Sale-Devicethese debit cards started to witness extensive usage in Point of Sale terminals. However, it is also to be noted that about 40-50% of the 750 million debit card users in the country are first time users on POS. More than 350 million of them are RuPay card holders, who are onto using their debit cards for first time to access their Jan Dhan accounts. Usage rate of Credit cards have increased manifold with them now being used for transaction tickets as low as 100 rupees. Similarly, requests for collection infrastructure, particularly POS Machines have registered an all-time hike. Most of the small and medium scaled establishments, which otherwise remained averse to adopt digital transactions, have now atleast evaluated the channel or are trying to adapt to the change as fast as they possibly can.

Not just with the cashless transactions, the topic of discussion has now extended to leading a paperless lifestyle. The earlier practice of presenting proofs for validation through hard copies of our identity documents has changed to that of a soft copy and paperless trail. Utility bills, Insurance Renewals, Tax Payments, even School and College Fee are now being paid online and soft copies of documents are being accepted as and where required for proof of identities. With technology creeping into our lives, how safe and private will the personal data be? That definitely is going to remain a concern!

The rise of a new Digital ecosystem

A few months ago, the Government of India introduced an initiative of Digital India. The agenda was to limit the paper trail, deal with corruption and to plug-in the loopholes in the system by ensuring transparency and faster decision making.

There are few digital vaults, especially sponsored by banks and depository participants, which are available over the internet and allow the users to store soft copies of various important documents such as certificates, documents and passports. Yes, one can be definitely sceptical about the security of any of the saved documents unless maintained by a reputed institution with impeccable cyber security architecture.

Paper or a physical hard copy is prone to different damages. With all the communication getting digital, it is best advised to improve our avenues for sharing, storage and access. For instance, Property Agreements often turn to be difficult to read and comprehend. That happens sometimes due to the age of the original document or any other damage due to its environment. Digitisation can be a solution in this regard making the documents accessible anytime and anywhere.

Further, digitization of documents can potentially bring with them much required transparency in property leasing and buying by creating an electronic trail and storage of requisite documentation to be eventually scrutinised anytime. Don’t believe me? Read ahead.

Few of the popular payment portals and e-vaults available, are Government initiatives and others are privately run. E-Stamp is one such Government funded Computer Application for paying  non-judicial Stamp Duty. The conventional system is eventually to be replaced by E-stamping in most of the states. Conventional modes of agreements and documentation usually involve procuring stamp papers from registrars or authorized vendors and eventually get the agreement documented and registered. This process was not only time consuming but was plagued with inefficiencies on account of significant human dependency. Stock Holding Corporation of India Limited, a government controlled custodian and depository participant overlooks the above mentioned procedure. It is the only Central Record Keeping Agency (CRA) established by the Government of India in this regard. This division is in charge of User Registration, Balance Administration, and the operations and maintenance of the application.

The e-stamp certification is an alternate to the lengthy and tiring stamping procedure. E-stamp Certificate, generated instantly from the application is tamper-proof and can be validated and tracked back.

Another key offering that emerged from the digital initiatives of the government is DigiLocker. It was launched in February 2015 to provide some virtual personal space for the storage of documents like a vault or a locker. This service is available to Indian residents and would require a user’s Aadhar or Unique Identification Number. The locker can store up to 1 GB of documents, certificates and identification proofs. The major idea behind this application in to reduce the use of physical documentation, related administrative expenses and to ensure safety and authenticity.

While the issues pertaining to sharing copies of agreements and related documentation are being addressed, E-signature and E-KYC are other areas of action. E-sign, as the name suggests, is an online signature service available in India. The user’s identity is authenticated by his/her Aadhar Card and eKYC (electronic Know Your Customer). All the user has to do is to link the above specified identifications to his/her mobile number. These documents would be used as per the user’s discretion without the need of the physical presence of the individual.

All these simple but ground-breaking ideas have seen the light of the day due to contributions of various federal and non-governmental think tanks such as CDSL and iSpirit. A new entire ecosystem has born involving a collection of APIs, usually referred to as IndiaStack.

Significant possibilities exist for the above technologies to address some of our basic problems including that of property leasing and renting. Often viewed as a herculean task, it is often viewed as painful for property owners to find the right tenant, validate his credentials and subsequently complete the documentation. Wouldn’t it be great if technology is leveraged to make this process a seamless and a convenient one ?

Paymatrix is one of the start-up working in this realms working towards building trust between tenants and landlords. Paymatrix is an online rent management application. It is a platform for both landlords and the tenants (prospective) to interact, share information and come to terms with each other’s requirements and specifications. With Paymatrix, users get to negotiate and make proper agreements online. Every activity and communication between the two parties is stored and each of them have a chance of maintaining the copies of agreements, rent receipts and any details regarding the house/apartment’s maintenance and safety deposit. Not only that, the platform also facilitates payment of huge rent deposits and rent on credit card and thus enables one to create a reliable tenant history. The platform already has thousands of tenants and landlords signed up from 6+ cities across India, with rent and rental deposits in millions of rupees transacted on the platform every month.

One can explore more about the platform by visiting www.paymatrix.in

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