Payment Channels Available For E Dirham Service

Published Date: 02 Nov 2017

INTRODUCTION

On February 3, 2001, the UAE government took the first step towards implementing Electronic Government Project with the launch of Ministry of Finance’s (MOF) e-Dirham (electronic smart cards), a payment tool that utilizes advanced technologies to collect government revenues like water and electricity bills, traffic fines, license renewal fees, vehicle dues payments, vehicle registration fees etc. The idea was to provide the government and public with an easy to use but "secure electronic purse" that would do away with conventional methods of collecting revenue like financial stamps and receipts of income. The system which was initially intended for only government revenue collection is now also being utilized by many semi-governmental organizations as well as some from the private sector.

THE OBJECTIVES OF E-DIRHAM SERVICE

To keep pace with the changes and developments in the world after the advent of Information Technology related services.

To eliminate cash transactions associated with the traditional revenue collection methods of governmental stamps or governmental receipts with a highly developed solution.

To integrate the payment collection services for various government departments using a single payment tool.

To cut down overall operating cost of government departments and enhance their productivity and efficiency levels.

To create an electronic database of statistical financial transactions.

To offer a secure nationalized Internet payment gateway that would minimize the risk of financial frauds/forgeries.

To introduce an electronic Financial Monitoring System that would also ensure optimal utilization of government resources.

To have a better coordinated cash management system and facilitate financial clearing processes between government and the private organizations.

IMPLEMENTATION OF E-DIRHAM SERVICE

Following the conceptualization by His Highness, Sheikh Mohammad Bin Rashid Al-Maktoum, the Prime Minister and Vice President of the UAE, and constitutional monarch of Dubai, the e-Dirham service was developed in collaboration with UAE-based company Smart Systems. The service was launched by the UAE government to provide customers of government departments an easier platform to pay government fees without facing the hassle of visiting banks or the concerned government department, thus saving time and effort as well as ensuring competence, security and reliability.

The e-Dirham cards can be obtained from any of the branches of the e-Dirham Member Banks like Abu Dhabi Commercial bank, National Bank of Dubai, Commercial Bank of Dubai, Union National Bank, national Bank of Sharjah, Al-Mashreq Bank, Arab bank for Investment and Foreign Trade. In keeping with the needs and requirement two versions of e-Dirham cards were launched:

The e-Dirham Card (with Fixed Face Value)

The e-Dirham Government Client Card

The e-Dirham Card (with Fixed Face Value)

The e-Dirham cards with fixed value were launched in several denominations (AED 100, 200, 300, 500, 1000, 3000, 5000) and could be acquired at face value from any e-Dirham member banks.

These cards are easily available and suit a wide customer segment, especially individuals and small organizations. The customer can also use them to make payments over the Internet after requesting an Internet PIN from the bank.

However, one drawback of these cards is that they can’t be re-charged. To overcome this hurdle the government allowed the applicant to use upto two cards to settle a government service fee.

The Government Client Card

The Government Client Cards, launched on June 24, 2001, are intended for frequent users of government services and are more suited for high net worth individuals and companies.

They are a step ahead of the fixed value e-dirham card. It comes with a zero balance at the time of issuance and the card holder can get it recharged from the nearest e-Dirham member bank with the required amount of money by depositing cash or using account transfer facility. Another advantage of this card is that it is personalized so that no one else can misuse this card.

The Government Client Card can be acquired free of cost by applying with the requisite documents to the MOF or the e-Dirham member banks. Once the application is approved the card carrying the personal details and photograph of the cardholder is issued along with a PIN (Personal Identification Code). The PIN Code allows the card holder access to different e-Dirham services.

Payment Channels available for E-Dirham Service

The MOF has been trying to incorporate modern payment channels like paymnet via mobile phones or direct debit system. For now, following are payment channels currently available in e-Dirham service:

Points of Sale (EPOS):

The MOF has established a large number of EPOS terminals at various government ministries and departments all over the country. These EPOS terminals are aligned to a central clearing host at the MOF.

The customer wanting to avail any federal service will go to the concerned ministry/department with the application form for the service. After the receipt of application the person in-charge will ask for the customer’s e-Dirham card and debit the exact service fee amount by inserting the card in the EPOS terminal.

Two copies of receipt are then generated-one to be handed over to the customer while the other is attached with the application and filed.

Internet

MOF has developed a highly secure e-Dirham Internet payment gateway so that customers can pay government service fee at the click of a mouse.

The cardholder has to log into the Ministry/Department website and select the service and fill out the details. They can then make the payment using their e-Dirham card.

e-Stamp

As a way of reducing the load on government ministries and departments the MOF has introduced the e-Stamp, which is basically a system of collecting revenue through smart forms.

The applicant goes to the MOF authorized typing office where the typing clerk fills up the smart form in accordance with the service to be availed by the customer. The smart form determines the requested service fee and the clerk can debit the same from the applicant’s e-Dirham card.

Once the payment is made the applicant will get a printout of the smart form with the e-Stamp logo and payment details. The applicant has to now just submit the smart form at the concerned ministry/department.

VALUE-ADDED SERVICES OFFERED BY E-DIRHAM SYSTEM

The e-Dirham service offers several value-added services to its customers, including:

E-Marketing: marketing, sale and delivery of e-Dirham cards through member banks and government post.

E-Services: provision of government fee collection through EPOS.

E-Saraf: automatic vending machines for sale of e-Dirham cards.

E-Direct: a service that links customer’s e-Dirham cards to their bank accounts thus allowing money transfer from member bank accounts without any extra charges.

E-Debit: facilitates a direct payment system from the customer’s bank account to the account of the direct beneficiary.

E-Guarantee: eases out the procedure of bank guarantees for labor using e-Dirham system.

E-Registration: offers an efficient and smoother system for depositing bank guarantees for employment visas.

E-Stamp: a system of collecting federal revenue through smart forms

E-Attestation: an authentication process of electronic certificates by the Ministry of Foreign Affairs

E-IPG: offers an integrated electronic payment via internet using e-Dirham cards or through direct debit facility or credit cards.

Customer Support Services: 24X7 customer support is provided through Internet and a toll-free telephone service.

E-DIRHAM SYSTEM: ACIEVEMENTS AND SHORTCOMINGS

Achievements

The e-Dirham was the first such system to be launched in any of the oil-rich Arab countries thus making it an e-governance best practice case study.

Many government departments including the Ministry of Finance, Economy and Culture, Information and Culture, Health, Labor and Social Affairs, Agriculture and Fisheries, Education and Youth, Public Works and Housing, Communication, Naturalization and Residency, now collect their official revenues and fees using e-Dirham cards.

E-Dirham services like e-Stamp have eliminated the need to distribute stamps and have minimized the risk of forged or falsified stamps.

It is commendable that how a single system-e-Dirham-works successfully for all major ministries thus providing online control of all revenue generated by the Ministry of Finance.

Apart from simplifying revenue collections for various government departments it also saves the time, effort, and energy of all stakeholders involved-government employees, business organizations and individuals.

The system has been able to reduce administrative costs and has lead to smoother financial clearing processes between government bodies and the private sector.

The system has been able to provide a secure Internet payment gateway which has protected the rights of the Government as well as the public from any forgeries.

The government has been largely successful in implementing the e-Dirham cards by making them available in a large number of government agencies and national and commercial banks in the country.

The UAE figures amongst the top 10 nations in the world in United Nations E-Government Survey 2012.

Shortcomings

Though e-Dirham was a very progressive system when launched in 2001, currently there is a need to employ new technological advancements which can facilitate the use of e-transfers, virtual money and mobile payments.

The e-Dirham system does not work for some government bodies of local Emirates like the Ministry of Defense, Emirates Identity Authority, Federal Customs Authority, Insurance Authority, Telecommunications Regulatory Authority, National Media Council, , Dubai Trade Portal, Dubai eGovernment, Abu Dhabi Tourism Authority, Abu Dhabi Department of Economic Development, Higher Corporation for Specialised Economic Zones, Al Ain City Municipality, RAK Chamber of Commerce and Industry, Securities and Commodities Authority, Ministry of Foreign Affairs, and Emirates Authority for Standardisation & Metrology.

The e-Dirham cards were very limited in their usage, for example, one could not recharge or top-up their fixed value card. There was no means of withdrawing cash through the e-Dirham cards. Also they could not be used beyond paying for government services.

Accessibility of the e-Dirham cards has also been a cause of concern as many of the government offices don't have an e-Dirham member bank in the close vicinity of the government office.

THE FUTURE OF E-DIRHAM: E-DIRHAM G2

Recognizing the abovementioned shortcomings of the e-Dirham cards and as a continuous endeavour to remain ahead of the latest technological advancements, the MOF and the National Bank of Abu Dhabi (NBAD) launched the next generation e-Dirham G2 cards on February 27, 2013.

While the first-generation "e-Dirham" prepaid cards could only be put to use to pay for government fee at specific ministries, the e-Dirham G2 is a prepaid Visa card that can be used to pay for not only government services but many other things as well like the Emirates ID cards, renewal of visa, court case fees and even movie tickets.

The e-Dirham G2 card holders can top up or recharge the cards using any NBAD deposit machines and can also withdraw cash through the G2 prepaid card using any Visa-compatible ATMs around the world.

The e-Dirham G2 cards can be purchased from any of the NBAD branches across the UAE and come in three options: Blue Al Haslah, Red Al Haslah, and Gold Al Haslah. The three cards have different registration procedures to suit different customer requirements.

The applicants need not have bank accounts to buy the e-Dirham G2 cards that come equipped with better security features and a smart-chip technology.

The e-Dirham G2 cards encourage the use of new technological advancements like virtual money and e-transfers so as to minimize the security risks relating to carrying cash and timely transaction schedules.

The G2 system has been able to integrate previously excluded ministries and authorities, and governmental and non-governmental organizations like the Ministries of Interior, Justice, Energy, Higher Education and Scientific Research, Economy, Environment and Water, Public Works, Culture Youth and Community Development, in the e-Dirham system.

The MOF is working towards developing a value added e-Dirham service portal that would allow for payments to be made through mobile phones, e-kiosks, e-wallets, e-transfers, or through direct debit from bank accounts.

The e-Dirham G2 service offers all round customer support through toll-free numbers, dedicated website, SMS notification, and NBAD ATMs and cash deposit machines across the UAE.