7
WAYS OF BEING CASHSLESS / DIGITAL BANKING
After
demonetization, Digitalization is the
most discussed topic. Although this was earlier also in place and people were
using digital ways to transact But due to demonetization and sudden cash crunch
led to immediate rise in digital transactions. Let’s have a brief look on
digital methods to do banking transactions :
Internet
Banking :-
You
can do banking transactions by login into Bank site from anywhere. Internet
Banking is a convenient way to do banking with the comfort of your office, home
or anywhere. You can avoid the queue or delays and also the hassle of visiting
your bank. You can save your valuable time by simply doing your banking
transactions through internet banking.
Feature
of Internet banking :-
a) You
can transfer funds to any account with in your bank or outside to other banks
also.
b) You
can download your bank account statements as and when required.
c) You
can open Fixed or Recurring deposits through internet banking.
d) Pay
your utility bills like telephone bills, mobile bills, electricity bills,
municipal taxes etc. through internet banking.
e) Mobile
recharge , Dish TV recharge , can also be done through internet banking.
f) You
can do transactions through NEFT / RTGS or IMPS also by providing beneficiary
account number and IFSC code.
g) Direct
and Indirect taxes can also be paid through internet banking login.
h) Lot
many other financial and non financial transactions can also be done through
internet banking.
Internet
banking offers you the ease and convenience of transactions in a very
comfortable environment. With internet banking you can pay bills without
waiting in long queues. You can set your bill pay reminders and never forget to
pay on time. Internet banking is safe and secure if you do your login with your
banks trusted portal.
UNIFIED
PAYMENT INTERFACE SYSTEM (UPI) :-
If you wish to send some payment to your friend or
relative then you need to obtain his account number , Bank name , Bank Address
, IFSC Code and approach your bank for sending the payment through NEFT or you
need to login your net banking , register payee and wait for one hour . After
this only you will be able to remit the money through your net banking login.
Another scenario you approached departmental store or any other vendor for
purchase of your needs ; now you will pay either through cash or through swipe
of your debit or credit card. Just imagine that you do not have sufficient cash
in your pocket and the vendor also do not have the swipe machine ? You will
have to rush to ATM for cash withdrawal or sacrifice your shopping….
Gone are these days now….
You just need to have your UNIFIED PAYMENT INTERFACE (UPI) ID . You can
remit payment through your UPI – ID on immediate basis without having any debit
or credit card and no need to login on to internet banking etc. Just required
is that the opposite receiving party should also have UPI – ID. National
Payments Corporation of India (NPCI) has just launched the first of it’s kind
of cashless transaction system. Presently this is being launched for person to
person transactions and shortly this will be launched for merchants also. This
APP can be used for payment of Rs. Fifty to Rs. One lac.
What
is UPI :
UPI is a application which facilitates immediate payment
by just click and without the requirement of any debit or credit card and also
no internet banking etc. is required. What all you need is a Smart Phone and
downloaded and installed UPI app. UPI transfers funds through one virtual UPI –
ID to another virtual ID. You need to generate virtual id through your bank.
You can generate your virtual ID as per your choice also. Sushil Kumar can keep
his virtual ID as sushil.kumar@icici
You need to send money to your wife and suppose her ID is
sushma.rani@axis ; you just fill this virtual ID in APP and
fill the amount to be remitted and click on Pay--- the money will be sent in
the next moment. Presently you can send
from Rs.Fifty to Rs. One lac..
UPI
will change your Financial Payment Life :
No requirement of having
account number or bank details of receiver and the money can be remitted by
just one click with having only one UPI – ID like an email id.
If
the merchant during your shopping is also the user of UPI than in this case you
are not required to use any debit / credit card or net banking and also no need
to pay cash ; just click on UPI – Id of the merchant and remit payment through
one click.
Since
the payment is digital so you need not to carry cash or cards also. This is
more safe than any other mode and also no risk of theft. You also need not
worry about Bank holidays or Sunday. This is on for 24 hours a day and 365 days
a year.
This
will save your time too as sending money through NEFT or net banking is time
consuming and the chances or error are also very less through UPI mode.
List of Banks which
are going live with UPI:
Banks providing UPI enabled mobile app on
Google Play Store: Andhra Bank, Axis
Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank,· Catholic Syrian Bank, DCB
Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce,
Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab
National Bank, South Indian Bank, Vijaya Bank and YES Bank.
BHIM
APP :-
This
is the most discussed APP now a days. This APP has been designed by National
Payment Corporation of India (NPCI). BHIM – Bharat interface for money – after
Babasaheb Dr. Bhimrao Ambedkar. Presently this APP is available only for
Android – SO, ios and windows mobile users can not use it. The BHIM APP is
supposed to support Aadhaar based payments with a finger print impression. This
facility is yet to start.
BHIM
is a digital payments solution app based on unified payments interface (UPI).
If you have already signed up with your bank account for UPI which is linked to
your mobile number, you will be able to use the BHIM APP to carry out
transactions. You can send or receive money through BHIM APP from other UPI
addresses.
BHIM
is not a e-wallet as facility to store money like Paytm is not available in
this APP. You can only send or receive money to another UPI ID. There is a
maximum of Rs.10,000/- per transaction allowed and Rs.20,000/- with in 24
hours. No charges are being levied for transacting through BHIM APP.
E-Wallet
: -
Just
like you keep your money in your wallet, you can also keep your money in mobile
application known as e-wallet. E-wallet may or may not be linked to your bank
account. You can send money and can do various transactions through e-wallet.
This is the easiest way to do transactions now a days.
Type
of transactions which can be done through e-wallet :-
a) Send
or receive money from another person.
b) Mobile
or Dish TV recharge.
c) Payment
or Receive money through UPI.
d) Pay
Utility Bills like Mobile Bills, telephone bills or electricity bills.
e) Shopping
– e commerce.
f) Purchase
movie tickets.
g) Loan
Payments.
Various
offers also float time to time by e-wallet companies like cash back or discount
on movie tickets etc.
Top
five e-wallets are :-
PhonePe
Pay
U Money
Pockets
by ICICI Bank
Paytm
&
Oxigen.
DEBIT
CARD AND CREDIT CARD :-
Debit
card is an instrument which is used to transfer money electronically through
point of sales (POS) machine while carrying out payment for purchase
transaction. It is a plastic card used to withdraw cash from ATM also. Unlike
the Credit card money is directly debited from saving / current account of card
holder where in credit card the money is provided by Bank as credit for a
certain period after which credit card holder need to pay back the same to its
bank.
MOBILE
BANKING :-
Your
Bank provides a mobile application on your mobile phone set which provides quick, simple and convenient way to take command of
your bank account, on your mobile phone. Mobile banking provides you :-
·
Convenient
way to access your account
·
Safe
and Secure Banking
·
Convenient
way to pay bills (Telephone, electricity , mobile & other utilities bills)
·
Get
exciting offers and discounts
·
Banking
services without internet (SMS Banking & NUUP)
SANJAY MITTAL
B.Com,
MBA (Finance)
CAIIB,
PGDCA
PG Wealth Management
Senior Banker and Financial Analyst
Mobile 8146624667
