TCI has partnered with DBS Bank India to employ the DBS RAPID (Real-time APIs by DBS) solution, a platform that has been the first-of-its-kind in the transportation and logistics industry in India, to facilitate instant payment.
TCI makes advance payments to its truck drivers across the nation to fund fuelling and petty expenses, which in turn puts a strain on its treasury operations. The dependence is heavily on cash and requires the truck drivers to physically travel to TCI’s local centres to collect cash. This further leads to delay in mobilization of a truck, often between half a day to one day. Add to it, when during current times, social distancing and sanitization is a strict norm by the local and state government. Thus, TCI needed a quick contactless solution.
As a result, TCI ‘s ERP system was integrated with the DBS RAPID solution. Owing to the fact that most of the operators are not technologically savvy and do not have access to internet banking, DBS set up a solution where payments get settled in the drivers’ accounts through Unified Payment Interface (UPI) in real-time which is available 24x7x365 days, to bring operational efficiency into the system given the large volume of transactions and round-the-clock nature of operations. Leveraging APIs, the technology stands to disrupt the payments landscape in the industry by substituting cash for digital payments.
With this fully digital solution, truck drivers need not physically travel to a local centre to collect advance payments for mobilization. Instead they get instant credit into their bank account, which they can then swipe at terminals or withdraw cash using ATMs. This enables the operator to mobilize a truck directly from the pick-up point.
Quicker mobilization of the trucks translates to improved delivery time of goods to end customers, resulting in more business and enhanced experiences. Additionally, lower digital transaction costs have ensured higher acceptability of the TCIL-DBS solution among truck operators.
Moreover, this innovative solution is aligned with the Digital India initiative by the Government of India, wherein the Government is encouraging digital payments and create an inclusive economy for the key sectors in India.
Mr. Ashish Tiwari, Group CFO, TCI said the solution highlighted the company’s commitment to state-of-the-art technology. “The DBS RAPID solution has strengthened internal controls, reduced our cost, and increased our pace of business,” he said. “We are proud to have partnered with DBS Bank, which has enabled to contribute to digital India in a meaningful way and drive India towards a digital economy.”
Recently, the solution was one of the CT (Corporate Treasurer) Award winners in this year’s Best Treasury & Finance Strategies in the Asia-Pacific region.
“This solution is using smartphones to get cash advances to truck drivers without them needing to go to the haulage contractors’ offices,” CT’s panel of judges commented. They further added, “It makes a big difference in the move to a cashless society, in a country where many people are on the edge financially.”