Rfid in Indian MarketEssay Preview: Rfid in Indian MarketReport this essayCase Study:Introduction of RFID in the Indian Retail MarketRFID and the Indian Retail marketIndia represents an economic opportunity on a massive scale, both as a global base and as a domestic market. Retail growth in the coming years is expected to be stronger than GDP growth. This is driven by changing lifestyles and by strong income growth, which in turn will be supported by favorable demographic patterns and the extent to which organized retailers succeed in reaching lower down the income scale. In this light, Radio Frequency Identification (RFID) is fast becoming a hotbed of activity targeting the Indian market in retail, logistics and manufacturing.
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In October 2016, the government of India issued a draft law to regulate the purchase of RFIDs and to extend this law further. Through a new draft law, the RBI could also regulate the purchase of RFID through new types of physical and electronic products and for other purposes such as identification of transactions through the mobile phone (or even through the internet)—allowing the consumer greater control over where the information is issued for purposes of identity verification and other legal issues. The Draft legislation will, as currently practiced, mandate a minimum of four months for online purchases and 10-12 months if any.The draft will also require a minimum of one year of full employment of all employees of a central bank and, under the rule of the RBI, it will ensure that all bank employees who are in financial operations of the RBI are required to earn a salary at least equal to the wage of a full-time employee.Under the draft law, a person with an income of 500,000 rupees or more in cash in any kind, including physical and electronic products, would be exempted from a requirement to obtain financial services from an RBI employee for the first three years of employment. But the individual in this income class would actually have the same amount of income regardless, and the RBI may exempt individuals from this requirement as long as they had not previously been employed in employment in the monetary or monetary-services business of the RBI.The RBI draft law will limit the liability of individuals who fail to fulfill the requirements mentioned in the draft law to five rupees per month and three rupees per month for purchases which are made directly with customers, and three rupees per month for items which are made in the financial services business of the RBI. If in addition to these basic provisions, this will further increase the amount of tax levied on personal income. In addition to the existing law, the bill also mandates that any new form of payment issued by banks, whether or not it is made through a bank account, must be made by the individual without any kind of cardholder.However, the section that states “The transaction must be made through a bank account and the transaction must be in a physical format” will not apply to the purchase of data, even physical ones, or electronic products, the bank’s regulation will instead cover digital purchases. This will allow RBI officials to make such transactions with no financial repercussions and in a way that does not violate any existing rule or authority. In addition, the bill also specifies that payments in digital currencies like Bitcoin or Ethereum and electronic cryptocurrencies will not be permitted.Additionally, the RBI will not be able to force or force any third-party in the Indian financial system to provide authentication or authentication to third-party entities. As such, the draft law takes the form that other RBI entities, such as banks, other financial institutions or individual government departments will have the power to require the issuing of cardiometric security certificates to be issued
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In October 2016, the government of India issued a draft law to regulate the purchase of RFIDs and to extend this law further. Through a new draft law, the RBI could also regulate the purchase of RFID through new types of physical and electronic products and for other purposes such as identification of transactions through the mobile phone (or even through the internet)—allowing the consumer greater control over where the information is issued for purposes of identity verification and other legal issues. The Draft legislation will, as currently practiced, mandate a minimum of four months for online purchases and 10-12 months if any.The draft will also require a minimum of one year of full employment of all employees of a central bank and, under the rule of the RBI, it will ensure that all bank employees who are in financial operations of the RBI are required to earn a salary at least equal to the wage of a full-time employee.Under the draft law, a person with an income of 500,000 rupees or more in cash in any kind, including physical and electronic products, would be exempted from a requirement to obtain financial services from an RBI employee for the first three years of employment. But the individual in this income class would actually have the same amount of income regardless, and the RBI may exempt individuals from this requirement as long as they had not previously been employed in employment in the monetary or monetary-services business of the RBI.The RBI draft law will limit the liability of individuals who fail to fulfill the requirements mentioned in the draft law to five rupees per month and three rupees per month for purchases which are made directly with customers, and three rupees per month for items which are made in the financial services business of the RBI. If in addition to these basic provisions, this will further increase the amount of tax levied on personal income. In addition to the existing law, the bill also mandates that any new form of payment issued by banks, whether or not it is made through a bank account, must be made by the individual without any kind of cardholder.However, the section that states “The transaction must be made through a bank account and the transaction must be in a physical format” will not apply to the purchase of data, even physical ones, or electronic products, the bank’s regulation will instead cover digital purchases. This will allow RBI officials to make such transactions with no financial repercussions and in a way that does not violate any existing rule or authority. In addition, the bill also specifies that payments in digital currencies like Bitcoin or Ethereum and electronic cryptocurrencies will not be permitted.Additionally, the RBI will not be able to force or force any third-party in the Indian financial system to provide authentication or authentication to third-party entities. As such, the draft law takes the form that other RBI entities, such as banks, other financial institutions or individual government departments will have the power to require the issuing of cardiometric security certificates to be issued
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In October 2016, the government of India issued a draft law to regulate the purchase of RFIDs and to extend this law further. Through a new draft law, the RBI could also regulate the purchase of RFID through new types of physical and electronic products and for other purposes such as identification of transactions through the mobile phone (or even through the internet)—allowing the consumer greater control over where the information is issued for purposes of identity verification and other legal issues. The Draft legislation will, as currently practiced, mandate a minimum of four months for online purchases and 10-12 months if any.The draft will also require a minimum of one year of full employment of all employees of a central bank and, under the rule of the RBI, it will ensure that all bank employees who are in financial operations of the RBI are required to earn a salary at least equal to the wage of a full-time employee.Under the draft law, a person with an income of 500,000 rupees or more in cash in any kind, including physical and electronic products, would be exempted from a requirement to obtain financial services from an RBI employee for the first three years of employment. But the individual in this income class would actually have the same amount of income regardless, and the RBI may exempt individuals from this requirement as long as they had not previously been employed in employment in the monetary or monetary-services business of the RBI.The RBI draft law will limit the liability of individuals who fail to fulfill the requirements mentioned in the draft law to five rupees per month and three rupees per month for purchases which are made directly with customers, and three rupees per month for items which are made in the financial services business of the RBI. If in addition to these basic provisions, this will further increase the amount of tax levied on personal income. In addition to the existing law, the bill also mandates that any new form of payment issued by banks, whether or not it is made through a bank account, must be made by the individual without any kind of cardholder.However, the section that states “The transaction must be made through a bank account and the transaction must be in a physical format” will not apply to the purchase of data, even physical ones, or electronic products, the bank’s regulation will instead cover digital purchases. This will allow RBI officials to make such transactions with no financial repercussions and in a way that does not violate any existing rule or authority. In addition, the bill also specifies that payments in digital currencies like Bitcoin or Ethereum and electronic cryptocurrencies will not be permitted.Additionally, the RBI will not be able to force or force any third-party in the Indian financial system to provide authentication or authentication to third-party entities. As such, the draft law takes the form that other RBI entities, such as banks, other financial institutions or individual government departments will have the power to require the issuing of cardiometric security certificates to be issued
A plan to introduce a whole new technology calls for an in-depth analysis of the dynamic economic, social and technological considerations. An attempt for the same has been made through SWOT analysis for introduction of RFID in the Indian retail segment. A phased approach has been suggested for the smooth implementation and adoption of RFID technology in India.
SWOT Analysis:Strengths:Fewer errorsImproved track and trace capabilityGreater efficiencyA better customer interfaceFaster information dissemination to the customerFreeing up of personnel from tracking and ensuring item availability, giving them time to interact with customers. This often takes up to 70 percent of their time.
Using Point-of-Sale (PoS) data, retailers will be able to plan replenishments better and help manufacturers improve demand planningWeakness:Adoption will be slow in India as the retail sector is not organized and RFID requires an organized retail sector to be successfulPrivacy issues – It can constitute a breach of privacy as anyone having a tag reader, authorized or not, can track an object or a person wearing a RFID tag
The high price of RFID tags and readers is a stumbling block.Some RFID readers today cannot read through metal and liquids.The industry needs to freeze on standards which customers can adopt.Infrastructure that is available is not capable of reading tags in transit.Training, education, exposure and research is required within an organization and business process needs to be changedOpportunities:Boom in Indian economy (8% growth) and market liberalization.India has close to 13 million retail outlets — the highest in the world; the retail industry is close to Rs 9 lakh crore, growing at 20 per centOrganized retail sector is expected to rise by 20 to 25% on YOY basisLiberalization of foreign direct investment in retailing is under active consideration. The government has allowed 51% FDI in “single brand” retail.Availability of quality real estate and mall management practices. (For instance, the recent SC ruling which opened up one of the largest real estate lands in Mumbai for a slew of retail activities)
Consumer preference for shopping in new environsIndian companies