Reliance Money Ltd, the retail financial services subsidiary of Reliance Capital, has placed an order for one million security tokens with Belgian company Vasco Securities Systems PLC. The number is an indicator of the clients Reliance Money is targeting for its retail financial services business.
Reliance Money has launched its retail network for financial services through online and offline channels. It plans to make its presence felt in 5,000 tehsil towns within a year. It is already operating in 700 locations with 2500 points of contacts.
The security token, a handheld thumb-sized device, is the first in India's financial sector. It generates numbers from a particular mathematical series that is unique to every customer. Every time the switch is pressed a new number from the particular series is displayed.
A customer wanting to trade or transact through Reliance Money needs to key in the number or tell the number to the company executive at the time of the transaction. It is a security feature in addition to the username and password.
The order has been placed at around Rs 220 per token. Sudip Bandyopadhyay, Director and Chief Executive Officer of Reliance Money said, "All customers and traders as well as franchisees are being given the token. This is our commitment to the security of clients' money."
Reliance Money has come up with innovative tariff models for equity trading. The company is charging Rs 500 for a yearly scheme where the client pays nothing more for trades upto Rs 5 lakh in one year. There are similar schemes for higher and lower denominations as well as time periods.
Bandyopadhyay says, "This is a period of market creation and we are not even thinking about competition. We are expanding the market for the financial services and electronic trading."
The company is also using Citibank's cash management service to bypass the need for the client to have a bank account with an electronically wired bank. "The client will be able to trade even if he deposits a cheque from a lesser known cooperative bank, and Citibank will manage the cash," Bandyopadhyay added.