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Towards a Cashless India - Digital Payments Framework

Explore the advantages, methods, and dimensions of transitioning to a cashless economy in India. Learn about digital payment options like bank cards, USSD, Aadhar enabled payments, and e-wallets, enabling secure and convenient transactions.

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Towards a Cashless India - Digital Payments Framework

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  1. Towards a Cashless India DIGITAL PAYMENTS FRAMEWORK NIC Malda

  2. Towards a Cashless India • Why CASH? • HABIT – Being used from days of grand-parents and earlier • EASE OF USE – Need not be emphasized • NO EXTRA COSTS – like cost of POS equipment, service tax on digital transactions (15%) etc. • INSECURITY - ABOUT SECURITY OF ON-LINE PAYMENTS • TAX EVASION - in Cash based Transactions NIC Malda

  3. Towards a Cashless India DIMENSIONS OF THE OPPORTUNITY NIC Malda

  4. Towards a Cashless India • DIMENSIONS (2) • BANK BRANCHES (PER 100,000 PERSONS) – 11.17 • ATMs (PER 100,000 PERSONS) - 16.75 • MOBILE PHONES (PER 100,000 PERSONS) – 77,360 • INTERNET USERS (PER 100,000 PERSONS) – 38,163 • RURAL INDIA • BANK BRANCHES (PER 100,000 PERSONS) – 5.70 • INTERNET USERS (PER 100,000 PERSONS) – 13,087 NIC Malda

  5. Towards a Cashless India Methods of Digital Payment BANK CARDS USSD – ‘MOBILE’ BASED BANKING (*99# banking) AADHAR Enabled Payments [NOT AVAILABLE IN ASSAM] E-Wallets Unified Payment Interface (UPI) NIC Malda

  6. Towards a Cashless India NIC Malda

  7. Towards a Cashless India • BANK CARDS • Cards issued by Banks may be of following types: NIC Malda

  8. Towards a Cashless India BANK CARDS NIC Malda

  9. Towards a Cashless India • BANK CARDS • Simple to use at POS - as shown below: NIC Malda

  10. Towards a Cashless India • BANK CARDS • Actually – the steps are more (but need not concern the user) Signing is not compulsory NIC Malda

  11. Towards a Cashless India BANK CARDS NIC Malda

  12. Towards a Cashless India NIC Malda

  13. Towards a Cashless India • Unstructured Supplementary Service Data • Unstructured Supplementary Service Data (USSD) aims to take banking services to the common man or woman • USSD enables a person to access banking services with a single number • It is offered through a National Unified USSD Platform (NUUP) on a short code *99#. • Can be used for payments up to Rs. 5000 per day per customer. NIC Malda

  14. Towards a Cashless India • Unstructured Supplementary Service Data • Needed: • Bank Account • Mobile Phone on GSM Network • Registering mobile phone number against account with the Bank • How to get it • Visit Bank Branch to link Mobile Number with Bank Account – can be done on-line • Get MPIN (Mobile PIN) & MMID (Mobile Money Identifier) • Remember the above … MPIN & MMID NIC Malda

  15. Towards a Cashless India • Unstructured Supplementary Service Data • How to Use: EXAMPLE FOR MONEY TRANSFER NIC Malda

  16. Towards a Cashless India • Unstructured Supplementary Service Data • How to Use: (Continued) NIC Malda

  17. Towards a Cashless India • Unstructured Supplementary Service Data • How to Use: (Continued) • FUND can be transferred by: • Inputting MMID and Mobile Number of Beneficiary (Option 3) • Inputting IFSC and Account Number of Beneficiary (Option 4) NIC Malda

  18. Towards a Cashless India • Unstructured Supplementary Service Data • OTHER SERVICES • BALANCE ENQUIRY of Bank Account linked with Mobile Number • MINI STATEMENT of above Account • KNOW MMID – User can know the Mobile Money Identifier (MMID) allotted by Bank to Account during the mobile banking registration • GENERATE / CHANGE MPIN NIC Malda

  19. Towards a Cashless India NIC Malda

  20. Towards a Cashless India • AADHAR Enabled Payment System • AADHAR Enabled Payment System is a payment service empowering a bank customer to use AADHAR as his/her identity to access his/ her respective AADHAR enabled bank account and perform basic banking transactions. • It allows bank-to-bank transaction at PoS (MicroATM) with the help of Banking Correspondent (BC)/VLE. • The user has to seed his/her account with their AADHAR number at bank or with the help of BC/VLE. • User can do as many transactions at any AEPS point without any PIN or password. NIC Malda

  21. Towards a Cashless India • AADHAR Enabled Payment System • Needed: • IIN (Identifying the Bank to which the customer is associated) • AADHAAR Number • Fingerprint captured during their enrolment • Services: • Balance Enquiry • Cash Withdrawal or Deposit • Purchase at Fair Price Shop • Transfer of Funds to/ from another AADHAR Account NIC Malda

  22. Towards a Cashless India NIC Malda

  23. Towards a Cashless India NIC Malda

  24. Towards a Cashless India NIC Malda

  25. Towards a Cashless India • E-WALLET • E-wallet stands for electronic wallet. It is a type of electronic card which is used for transactions made online through a computer or a smart-phone. • The utility of e-wallet is same as a credit or debit card. • An e-wallet needs to be linked with the individual's bank account to make payments. • The main objective of e-Wallet is to make paperless money transaction easier. NIC Malda

  26. Towards a Cashless India E-WALLET FEATURES OF E-WALLET: CLICK ON PAYTM WALLET ICON NIC Malda

  27. Towards a Cashless India • E-WALLET • Needed: • BANK ACCOUNT • SMART PHONE • 2G / 3G / 4G CONNECTION • E-WALLET APP • ALSO: • Need to register Mobile No. with Bank for SMS on transactions • Never share PIN • Use at trusted Merchants only NIC Malda

  28. Towards a Cashless India • USING E-WALLET • CONSUMER: • DOWNLOAD THE APP • SIGN-UP & RECEIVE PASSWORD • LOAD MONEY USING DEBIT /CREDIT CARD OR NET-BANKING • AFTER ON-LINE SHOPPING; USER INFORMATION IS AUTOMATICALLY FILLED UP ON PAYMENT FORM • AFTER ON-LINE PAYMENT IS MADE, NO NEED TO FILL UP ANY OTHER FORM – AS INFORMATION IS ON DATABASE AND GETS UPDATED AUTOMATICALLY NIC Malda

  29. Towards a Cashless India • USING E-WALLET • MERCHANT: • MERCHANT DOWNLOADS THE APP • SIGN-UP & RECEIVE PASSWORD • DECLARE AS MERCHANT • START ACCEPTING PAYMENTS NIC Malda

  30. Towards a Cashless India E-WALLET NIC Malda

  31. Towards a Cashless India E-WALLET Example: CLICK ON PAYTM WALLET ICON NIC Malda

  32. Towards a Cashless India E-WALLET CLICK ON ‘ADD MONEY’ BUTTON NIC Malda

  33. Towards a Cashless India E-WALLET CLICK ON ‘ADD MONEY’ BUTTON NIC Malda

  34. Towards a Cashless India E-WALLET NIC Malda

  35. Towards a Cashless India NIC Malda

  36. Towards a Cashless India • UNIFIED PAYMENTS INTERFACE (UPI) • UPI is a system for instant, electronic payments through user’s smart phone. • It is an advanced version of Immediate Payment Service (IMPS) which was used to transfer money between bank accounts. Like IMPS, UPI will facilitate round-the-clock funds transfer service. • It authenticates the identity of the user like a debit card does using the phone as a tool instead of a separate card. • It works 24x7, 365 days. NIC Malda

  37. Towards a Cashless India • UNIFIED PAYMENTS INTERFACE (UPI) • Needed: • SMART PHONE WITH INTERNET FACILITY • BANK ACCOUNT DETAILS (ONLY FOR REGISTRATION) • UPI APP • AVAILABLE UPI APPS • 28 BANK APPS (SBI, PNB, UNION BANK, CANARA BANK, AXIS BANK, ICICI BANK, UCO BANK etc.) NIC Malda

  38. Towards a Cashless India NIC Malda

  39. Towards a Cashless India NIC Malda

  40. Towards a Cashless India NIC Malda

  41. Towards a Cashless India • UNIFIED PAYMENTS INTERFACE (UPI) • UPI eliminates the need to share User’s name, bank account number, IFSC code, or bank branch. • UPI also eliminates the use of physical tools like debit cards. • No need to use multi-step processes like net-banking, which are prone to phishing due to insecure frameworks. • Very simple application and can be used by anyone. • Instant and secure authentication and can be initiated anywhere. • Opens up the pathway for a completely cashless digital society. • Can be used to send a request for money, like an invoice. • Customers can also use UPI to make online payments of utility bills and school fees. NIC Malda

  42. Towards a Cashless India TO SUM UP NIC Malda

  43. Towards a Cashless India NIC Malda

  44. Towards a Cashless India NIC Malda

  45. Towards a Cashless India BENEFITS SHORT TERM & LONG TERM NIC Malda

  46. Towards a Cashless India • BENEFITS – SHORT & MEDIUM TERM • For the CITIZEN: adds the existing liquidity though easy processes • No need for SMART Phones in USSD (*99# BANKING) • Supplements the Bank Branch & ATM – especially in Rural India through AADHAR EPS • 24x7 services – every day of the year and less risk of cash losses • Government has announced incentives for digital transactions • For BANKS: adds to their offerings and reduces pressure on manpower and space • For the GOVERNMENT: Improved compliance with tax structures • For IT INDUSTRY: Added services leading to revenues and innovation • For MOBILE SERVICE PROVIDERS: Data usage increases leading to revenues NIC Malda

  47. Towards a Cashless India • BENEFITS – LONG TERM • India utilizes her IT and Mobile infrastructure to provide modern services to the citizens – especially in rural areas and less banked locations – which can be an example to the 3rd World nations • Citizens need not spend time to go to bank branches for each and every matter • Less usage of cash – leading to savings in printing and replacement of worn-out notes • Optimal usage of bank resources to provide value added services to the citizens • Better tax compliance leading to improved revenues for Government – which can help in improving the conditions of India’s poor citizens NIC Malda

  48. Towards a Cashless India THANK YOU NIC Malda

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