Digital India Payment
- In digital India payment, people can have money online on their phones and they can pay it by transferring that amount to the other user.
- For making a successful transaction, both parties should have the online medium to accept the payment.
- After lockdown, the world has shifted more towards digital-based technology rather than doing it offline.
- People have now understood that without understanding digital payment, it would be hard for them to survive during the pandemic because at this time there's no work getting done through offline mode and every other person is doing the chores in an online way.
- In the digital payment method, the parties don't need the requirement of coming face to face for getting or giving the money. It can be done virtually which removes the hindrance of distance and also saves up the time of the individual because now they can pay just by sitting in their houses rather than going to the shops.
- Digital payments are also known for their paperless features. This helps to conserve the environment because the papers get saved up.
- People slowly began to accept digital payments after demonetization, and even small-time traders and shop holders began to approve digital incomes.
Features and benefits regarding Digital Payment Methods
- In the offline mode, the banks are restricted to work under the given timetable and it also gets shut on the bank holidays. But the online method works all day without taking any breaks even on the holidays.
- The digital method is removing the problem of black money as more people are getting the idea of digital payment's convenience. The number of accounts being opened has increased due to the online method.
- The digital payment often gives discount coupons to its user such as gift cards, cashback percentages, etc.
- It promotes technology and makes the purple friendly with it.
- The working of banks has become efficient and effective after the commencement of digital apps and portals.
- The public finds the online method more convenient than standing in the long lines before the banks.
- Many of the virtual platforms don't even charge the fee for rendering their services from the user such as Paytm and Unified Payments Interface.
- The records of all the transactions are now systematically organized on the apps and portals and the banks plus users can assess the information by just pressing a few options. Earlier the paperwork used to be a hectic task for both the organization and the people.
- More than civilization, the bank organization found the online platforms convenient too and they encourage the people to get registered virtually.
The Different Categories of Digital Payment Methods
There are various platforms through which an individual can pay according to their convenience and suitability. The varieties of the platform are as follows: -
The first type is the baking card, this is the most popular and it has maintained its position for a very long time. Banking card was launched in the year 1981, they are famous for their cybersecurity as well as portability. This is one of the only digital instruments through which the individual can use the card in offline stores and online outlets. Debit, credit, and prepaid cards fall into the banking card category.
- The second type is USSD which's full form is Unstructured Supplementary Service Data, this service is made for those civilizations who are from distressed families or who don't have access to the internet and directly connect with their banks. Under USSD, they just need to dial a number and they don't need to have the mobile data.
- The number is *99#, after calling this number the individual would get connected with a speaker who would be responsible to provide them with all the information the person wants to know. The individual can make fund transfers over the phone, get knowledge about their account balance and raise any further queries.
- The service is available in twelve different languages meaning that the speaker can talk to the individual as per their known language.
- One thing which the person should keep in mind before making the call is that the ring from the registered number which is enrolled with their bank account. Then only they can access the information.
- AEPS stands for Aadhaar Enabled Payment System, under this system the individual needs to connect their bank account with their Aadhar card to avail the benefits. If the person wants to transfer money into another account, then they need to make sure that the other person's account is also affiliated with the Aadhar card for the successful transmission of money.
- AEPS works digitally meaning that the user doesn't need to visit the bank in an offline manner.
- AEPS provides functions such as fund transfer, fund withdrawal, a deposit of cash, etc.
- For cash withdrawals, the Aadhaar Enabled Payment System fees amount up to rupees fifteen only.
- Unified Payments Interface stands for UPI.
- This system unifies all the banks on a single platform which is its app.
- The app is available for all citizens and can be easily downloaded from the play store or app store.
- The function which distinguishes this system from others is that when the user transfers funds using it, he/she doesn't need to fill in the bank account number or other details, meaning the user just needs to mention a few details such as the opponent's expenditure address. This makes the process easy.
- The system also defers its function at any hour of the day, the UPI system works the whole year without skipping a single day.
- A mobile wallet is like an online wallet where the person can store the money just like they would do in their actual wallet.
- To access its features, the person can download the mobile wallet app and use it.
- On downloading it, the app would ask to register the individual's mobile number, send the one-time verification code, and would ask to provide some personal details.
- After setting up the account, the person can store their money in it and exchange it by giving or receiving money from other people as well.
- The banks these days have launched their wallet system so that people can access their bank account more simply.
- Many private businesses have launched mobile wallet apps that can be used individually or they can also get linked with the bank account. Example:- Paytm, Google pay, Amazon pay, etc.
Prepaid cards of Bank
The prepaid card follows almost all the functions which the debit card follows but the only difference between the two is that the debit card is affiliated with the bank account while the prepaid card is not linked with the bank account of the individual.
- The function of a prepaid card is that the individual can stack money in the card and then they can make purchases in any store. If the amount gets finished up then the card can again get stacked up with the money.
- Usually, prepaid cards are used for gifting purposes.
- The person can get the card issues by either visiting the bank or by checking out their authorized portal.
- Point of sale is the meaning if we elaborate the "POS" term.
- POS works in their way; the first way is the physical point of sale. In this type, there's a device which is installed at the cash counters of the malls or shops. This device reads the debit and credit card code and helps to make cashless payments.
- Further time, the POS expanded its reach by bringing the complete online transaction process into its system, often regarded as faceless transactions.
- The second type is the mobile point of sale, in this case, the individual doesn't have to install the devices and it particularly works best for small business owners. They can access the payment process through their mobile phones or tablets.
- The third type is the virtual point of sale, in this type the individual can access the system's features on the chrome web-based plea. The system reads up the number and codes there.
Banking through internet
- As the technology is becoming more user-friendly, the banks have gone online meaning that their functions can be availed in both ways. I.e offline and online.
- Now the user can visit the authorized website of the bank and log into the portal by entering their bank account number and other important details.
- Banks provide their users all the functions possible which it provides to them in the offline way, such as transferring funds, recruitment of amount, closure of an account, the opening of an account, charging taxes, giving interests, etc.
- The term for online banking is called electronic banking.
- Its functions can be accessed at any hour of the day and any day of the year meaning that the services are provided without taking a holiday to the citizens. By the use of mobile phones, tablets, computers, and laptops, the person can log into their online accounts.
Banking through mobile
- The mobile banking system and internet banking system follow almost all the guidelines in the same aspect which is providing the fund's transmission, recruitment of amount, closure of an account, the opening of an account, charging taxes, giving interests, etc.
- The only difference between the two is that the internet banking system is accessed on its google portal meanwhile the mobile banking system defers its service on the app.
- The app can be downloaded from the play store or app store, then the person can log into their account through the app by providing certain details.
- Almost all the banks have launched their apps so that the process becomes easy and efficient. Now the people don't have to wait in the long lines before banks, they can just enjoy the features while sitting at their homes because of technological advancement.
Any Time Money with a small footprint
- Micro Any time money is a method used by Business Columnists to provide clients with basic banking assistance. These Correspondents, who may also be a regional business holder, would operate as a "micro any time machine," authorizing for timely money transactions.
- They will use a computer that will allow you to move money from their Aadhaar-linked bank account using only their fingerprint.
- The owners would have to install a device to perform all the functions, the basic requirement for an ATM is that the bank account of both payer and payee should be linked with their Aadhar card.
- This system lets the user make multiple transactions at once and as well it performs other banking services too.
These were some of the types of digital payment methods, all of these are convenient and user-friendly.
Cybercrime against Digital India Payment
One of the drawbacks of online money transfers is the frauds and cybercrimes against them. Many measures have been taken by the government and consumers both to ensure a safe environment for digital payments.
- The government and banks have conducted many seminars about cybercrime to educate the population.
- The user should not share their bank account number and the one-time code which gets sent to them on their mobile phone with anyone.
- The banks often take fingerprints at the time of issuing the cards because the hacker cannot access the fingerprints.
- The bank app provides the facility of double verification which the user should turn on to eliminate the chances of facing fraud.
- Often the money transaction is end-to-end encrypted ensuring safety.
- The fireballs system is also launched to detect the antivirus.
Many other measures have taken place, India is still facing and is coping up with cybercrime and it is expected to soon eliminate the frauds to a hundred percent.
Q 1) In which year did the digital payment system get inaugurated in the country India?
A 1) On November 22nd, 2010 the digital payment system was inaugurated in the country India.
Q 2) State some basic features of digital payments?
A 2) Digital payments are known for the cashless transactions, it is also done virtually meaning faceless. The process is known for its convenient functioning and it saves up the user's time.
Q 3) State an introduction on Unified Payments Interface (UPI)?
A 3) Introduction on Unified Payments Interface (UPI) is that in this system it is mandatory to link the user’s Aadhar card with their bank accounts. The procedure is done entirely digitally, it assembles up all the banks on a single platform.
Q 4) State two measures that the client should take care of to ensure safety against cybercrimes?
A 4) The client should not share their bank account number and one-time code with anyone. Secondly, they should apply for two-factor authentication and also swipe their cards at recognized devices only to ensure safety against cybercrimes.