Digital Banking

IIBF & NISM Adda
Certificate Examination in
Digital Banking
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Srinivas Mr.Aravind
Aravind Sankar
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About Certificate Examination

Examination in Digital banking
IIBF Certificate Examination
OBJECTIVE:
EXAMINATION OBJECTIVE:
The course on ‘Digital Banking’ is intended to provide practicing bankers a sound foundation in the digital
bankin
ban king
g product
products
s suc
such
h as Cards,
Cards, ATMs, Mobile
Mobile and Internet
Internet Bankin
Bankingg and PoS. This will make
make the
themm
familiar with relevant aspects such that they could help in rendering improved customer service and also
will help them in properly guiding the customers as and when needed.
ELIGIBILITY:
1. Members and Non-Members
Non-Members of the Institute
2. Candidates must have passed the 12th standard examination
examination in any discipline or its equiva
equivalent
lent
SUBJECT OF EXAMINATION: Digital Banking

PASSING CRITERIA: Minimum marks for pass in the subject is 50 out of 100
EXAMINATION For Members For Non-
F EES : Members
Particulars
First attempt Rs.1,000/- * Rs.1,500/- *
Subseq
Sub sequen
uentt each
each Rs.1,000/- * Rs.1,500/- *
attempt
MEDIUM OF EXAMINATION :
Examination will be conducted in English only.
PATTERN OF EXAMINATION:
(i) Question Paper will contain
contain 120 objective
objective type multiple choice questions for 100 marks.
(ii) The examination will be held in Online Mode only
(iii) There will NOT be negative

negative marking for wrong answers.
answers.
DURATION OF EXAMINATION:
The duration
PERIODICITY
PERIODIC ofAND
ITY the examination
EXAMINATION
EXAMINATION will be of 2 hours.
CENTRES:
CENTRES :
a) Examination will be conducted on pre-announced dates published on IIBF Web Site. Institute conducts
cookies to enable
examin
exa essential
minatio
ationn on site
half
half yea
yearly
rly bas
basis,
is, howeve
howeverr period
periodicit
icity
y of the exa
examina
mination
tion may be change
changed
d dep
depend
ending
ing
functionality, as well
upon the as marketing,of banking industry.
requirement
may change b)your settings
List of at any time
Examination centers will be available on the website. (Institute will conduct examination in those
or accept the default
centers
center settings.
s where there are 20 or more candidates.)
candidates.)
PROCEDURE
PROCEDU RE FOR APPLYI
APPLYING
NG FOR EXAMINATION
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Application for examination should be registered online from the Institute’s website www.iibf.org.in. The
schedule
sched ule of examination
examination and dates for regist
registration
ration will be published
published on IIBF website.
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1 PROOF OF IDENTITY:
Non-members applying for Institute’s examinations/courses are required to attach / submit a copy of any
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one of the follow
following
ing documen
documents ts contai
containing
ning Name, Photo
Photo and Signature
Signature at the time of reg
regist
istrati
ration
on of
Examination
Examina
Analytics tion Application.
Application. Application without the same shall be liable to be rejected.

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Aravind Sankar
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1) Photo I / Card issued by Employer or 2) PAN Card or 3) Driving Licencse or 4) Election Voter’s I / Card
or 5) Passport 6) Aadhaar Card
STUDY MATERIAL / COURSEWA
COURSEWARE
RE
The Institute has developed a courseware to cover the syllabus. The courseware (book) for the subject/s
will be available at outlets of publisher/s.
publisher/s. Please visit IIBF website www.iibf.org.in
www.iibf.org.in under
under the menu “Exam
Related” for details of book/s and address of publisher/s outlets. Candidates are advised to make full use
of the courseware. However, as banking and finance fields are dynamic, rules and regulations witness
rapid changes. Therefore, the courseware should not be considered as the only source of information
while preparing for the examinations. Candidates are advised to go through the updates put on the IIBF
we
webs
bsite
ite fro
from
m ti
time
me to ti time
me and
and go th thro
rough
ugh Mast
Master
er Circu
Circula
lars
rs / MaMast
ster
er Direc
Directio
tions
ns is
issu
sued
ed by RBRBII and
and
publi
publica
cati
tion
onss of IIIIBF
BF lilike
ke II
IIBF
BF Vi
Visi
sion
on,, Ba
Bank
nk Quest,
Quest, et
etc.
c. AlAlll thes
thesee so
sour
urce
cess ar
are
e im
impo
porta
rtant
nt fro
from
m the
the
examination point of view. Candidates are also to visit the websites of organizations like RBI, SEBI, BIS,
IRDAI
IRDAI,, FEDA
FEDAII etc.
etc. besi
beside des
s going
going ththro
roug
ugh
h ot
other
her books
books & publ
publicicat
ation
ions
s co
cove
verin
ring
g the
the su
subje
bject
ct / exam
exam
concerned etc. Questions based on current developments relating to the subject / exam may also be
asked.
Cut-off Date of Guidelines
Guidelines / Importa
Important
nt Developments
Developments for Examinations
The Institute has a practice of asking questions in each exam about the recent developments / guidelines
issued
issued by the regregula
ulator(
tor(s)
s) in order
order to test
test if the candidate
candidates
s kee
keep p the
themsel
mselves
ves abreas
abreastt of the curren
currentt
develo
dev elopmen
pments.
ts. Howeve
However,r, there
there could
could be change
changes s in the develo
developmen
pments ts / gui
guideli
delines
nes from the dat
datee the
question
questi on papers are prepared
prepared and the dates of the actual examinations.
examinations.
In order to address these
these issues effectively
effectively,, it has been decided that:
(i) In respec
respectt of the exa
examin
minatio
ations
ns to be conducte
conducted d by the Institute
Institute for the peri
period
od Feb
Februar
ruaryy to Jul
July
y of a
calendar year, instructions / guidelines issued by the regulator(s) and important developments in banking
and finance
finance up to 31st Decemb
Decemberer will only
only be considere
considered
d for the purpose
purpose of inclus
inclusion
ion in the quest
question
ion
papers".
(ii) In respect of the examinations to be conducted by the Institute for the period August to January of a
calendar year, instructions / guidelines issued by the regulator(s) and important developments in banking
and finance up to 30th June will only be considered for the purpose of inclusion in the question papers.
The table given below Cut-off Date of Guidelines

Guidelines
further clarifies the situation. / Important
Particulars
Developments for Developments for
Examination/s Examination/s
For the examin
examinations
ations to be 31st December 2017
conducted by
the Institute for the period Februa
February
ry 2018
to July 2018
For the examin
conductedexaminations
by ations to be 30th June 2018
the Institute for the
period August 2018 to
functionality,January
as well as marketing,
2019
or accept the default settings.
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Aravind Sankar
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Syllabus
MODULE - A
DIGITAL BANKING PRODUCTS
Introduction
Need for Digital Banking Products
Customer Education for Digital Banking Products
CARDS
Overview and brief history
Overview
Various
Various types of cards
Product features
EMV technology
New Technologies – Tap and Go, NFC, etc
Approval Processes for Cards
Profitability
Profitability of Cards
Back End operations
Recovery and Follow up
ATMs
Overview and Brief History
Overview
Product Features
Instant Money Transfer Systems
Various Value-Added Services (eg., bill payments, donations, etc)
Proprietary,
Proprie tary, Brown Label and White Label ATMs
ATM Network
Security
Securit Planningce
y and Surveillance
Surveillan – Onsite
of ATM/ Sites
Offsite
Profitability
Profitability of ATMs
Risk Management and Frauds
Back End Operations and Technology
CASH DEPOSIT MACHINE

MACHINES
S
Overview
Product Features
CDM Network Planning – Onsite / Offsite
Profitability
Profitability of CDMs
CASH RE-CYCLERS
Overview
Product Features
This website stores
Back Enddata such as and Technology
Operations
cookies to enable
MOBILE essential
BANKING site
Overview
Overvi ewas andmarketing,
Brief History
personalization, andFeatures
Product analytics.and
YouDiversity
may change your
IMPS settings at any time
Profitability
Profita settings.
bility of Mobile Banking
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INTERNET BANKING
Overview
Overvi ew and Brief History
Marketing
Product Features
Corporate and Individual Internet Banking Integration with e-Commerce Merchant sites
Personalization
Profitability of Internet Banking
Analytics

Srinivas
Srinivas Mr.Aravind
Aravind Sankar
Page 4

POS TERMINALS
Overview
Product Features
Approval processes for POS Terminals
Profitability
Profitability of POS business Risk Management and Frauds
MODULE - B
BRANCHLESS BANKING
Objectives
Introduction
Financial Inclusion – Logic and logistics
Vehicles for Financial Inclusion

Business Correspondents / Business facilitators
Digital Banking Products for Financial Inclusion
MODULE - C
MARKETING
MARKETIN G OF DIGITAL BANKING PRODUCTS
Objectives
Introduction
Product Planning
Structure
Structure for Marketing Digital Bankin
Banking
g Products
Products
Sales delivery to customers
Concept of e-Galleries
After sales service to custom
customers
ers
Marketing for Financial Inclusion
Dangers of Mis-selling
Use of analy
analytics
tics in marketin
marketing
g Digital Banking Products
MODULE - D
PAYMENT SYSTEMS
Overview of global payment systems
Overview of domestic payment systems
RuPay and RuPay Secure
Immediate Payment Service (IMPS)
National
National Unified
Unified USSD Platform (NUUP)
National Automated Clearing House (NACH)
Aadhaar Enabled Payment System (AEPS) e-KYC
Cheque truncation System (CTS)
National Financial Switch (NFS)
RTGS
NEFT
Forex settlements
Securities Settlement
Innovative Banking & Payment Systems
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Mr.Aravind
Aravind Sankar
Page 5

INDEX
S.No Contents Page No
01 Introduction 005
02 Short Notes on Anti Money Laundering 008
03 FATF 012
04 FIU-IND 019
05 Short Notes on KYC 020
06 Recollected Question’s 037
07 MCQs 039
08 Test 2 064
09 Important Points 067
10 Case Study 069
11 Additional Information 071
12 RBI Annex I 116
13 RBI Annex II 119
14 RBI Annex III 127
15 Glossary 131

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Digital Banking
1. Digital banking is the move to online banking where banking services are delive red over the internet.
The advantages for banks and customers are providing more convenient and faster banking services.
The shift from traditional to digital banking has been gradual and should be rather described in degrees of
service
service dig
digitiz
itizatio
ation
n tha
thann through
through a catego
categoriza
rization
tion into yes and no. It involv
involves
es hig
high
h levels
levels of pro
proces
cess s
autom
automatatio
ion
n andand weweb-b
b-base
asedd se
serv
rvic
ices
es and
and may in incl
clude
ude APIs
APIs enabl
enabling
ing cros
cross-
s-in
inst
stitu
itutio
tiona
nall se
serv
rvic
ice
e
composi
comp osition
tion to del
delive
iverr bankin
bankingg produc
productsts and provid
providee transac
transactio
tions.
ns. It provid
provides
es the ability
ability for users
users to
access financial data through desktop, mobile and ATM services
2. Digital India
Digital India is a campaign launched by the Government of India to ensure that Government services are
made
mad e ava
availab
ilable
le to citize
citizens
ns electro
electronic
nically
ally by improv
improveded online
online infr
infrast
astruct
ructure
ure and by increa
increasin
sing
g Interne
Internett
connectivity
connec tivity or by making the country digitally empowered
empowered in the field of techn
technology.
ology.
It was launched on 1 July 2015 by Prime Minister Narendra Modi. The initiative includes plans to connect
rural areas with high-speed internet networks. Digital India consists of three core components. These
include:
The creation of digital infrastructure
Delivery of services digitally
Digital literacy
Advantages
Major Advantage s of Digital India:
i. Creati
Creationon of Digital Infrastructure
Infrastructure and Electro
Electronic
nic Manufacturing
Manufacturing in Native India.
ii. Digital Empowe
Empowerment
rment of Native Indian People.
iii. Delivery of all Government Services electronically (E-Governance).
iv. A Digital Identification
Identification which will verify the end user.
v. A Mobile for worldwide access to all services.
vi. A Bank account
account for Immediate Benefit Transfers of subsidies and payments.
vii. The program also aims to eliminaeliminate
te all electro
electronics
nics imports from foreign countries by
2020 and make India a electro electronics
nics manufacturing
manufacturing super power.
Other Advantages:
This website stores
It willdata
helpsuch as
in decreasing crime if applied on whole.
cookies to enable It will help insite
essential getting things done easily
easily..
It will help in decreasing
functionality, as well as marketing, documentation.
personalization,Some of the servic
and analytics. services
You es which will be provided through this desire effort are Digital
may change your settings at any e-health,
Locker, e-education, time e-sign and nationwide scholarship portal.
It will settings.
or accept the default ostensibly create a lot of jobs.
jobs.
It will be a boost to industry; both large and small enterprises.
3. A
3. A digital bank represents a virtual process that includes online banking and beyond. As an end-to-end
Privacy Policy
platform, digital banking must encompass the front end that consumers see, the back end that bankers
see through
through their
their servers
servers and admin control
control panels and the middleware
middleware that con
connec
nects
ts the
these
se nod
nodes.
es.
Marketing
Ultimately, a digital bank should facilitate all functional levels of banking on all service delivery platforms.
In other words, it should have all the same functions as a head office, branch office, online service, bank
Personalization
cards, ATM and point of sale machines.
machines.
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The reason digital banking is more than just a mobile or online platform is that it includes middleware
solutions. Middleware is software that bridges operating systems or databases with other applications.
Financial industry departments such as risk management, product development and marketing must also
be in
inclu
clude
dedd in the
the midd
middle
le and
and back
back end
end to tru
truly
ly be co
cons
nsid
idere
ered
d a compl
complet
ete
e digit
digital
al bank.
bank. Fina
Financi
ncial
al
institu
institution
tions
s must
must be at the forefron
forefrontt of the latest
latest technol
technology
ogy to ens
ensure
ure sec
securit
urity
y and compli
compliance
ance with
government regulations
4. The earliest forms of digital banking trace back to the advent of ATM machines and cards launched in
the 1960s.
retaile
retailers As the
rs with internet
suppli
suppliers emerged
ers and in the to
consumers
consumers 1980s with
develop early
develop needs
needsbroadband,
early digital
for early onl inenetworks
online catalog began
catalogues
ues andtoinvent
connect
inventory
ory
software systems.
By the 1990s the Internet emerged and online banking started becoming the norm. The improvement
of bro
broadb
adband
and and ecommer
ecommerce ce sy
system
stems s in the early 2000s led to wha
whatt res
resembl
embled
ed the modern digital
digital
bankin
ban king
g world
world tod
today.
ay. The proliferati
proliferation
on of smartph
smartphone
oness through
through the next
next dec
decade
ade ope
opened
ned the door
door for
transactions on the go beyond ATM machines. Over 60% of consumers now use their smartphones as
the preferred method for digital
digital banking.
banking.
The challenge for banks is now to facilitate demands that connect vendors with money through channels
determi
determined
ned by the consume
consumer.
r. This
This dynamic
dynamic shapes
shapes the basis
basis of cus
custome
tomerr sat
satisfa
isfactio
ction,
n, whi
which
ch can be
nurtured with Customer Relationship Management (CRM) software. Therefore, CRM must be integrated
into a digital
digital banki
banking
ng system,
system, since it provid
provides
es means
means for banks
banks to direct
directly
ly comm
communiunicat
cate
e with their
customers.
There
There is a demand
demand for end-to-
end-to-end
end consis
consisten
tency
cy and for serv
service
ices,
s, opt
optimiz
imized
ed on conven
convenien
ience
ce and use
user
r
experienc
experience.
e. The market
market proprovid
vides
es cross
cross platform
platform front
front ends,
ends, ena
enabli
bling
ng pur
purcha
chase
se dec
decisi
isions
ons bas
based
ed on
available technology such as mobile devices, with a desktop or Smart TV at home. In order for banks to
meet
me et cons
consum
umerer de
dema
mand nds,
s, th
they
ey need
need to keep
keep fofocu
cusi
sing
ng on impr
improv
ovin
ing
g digi
digita
tall tech
techno
nolo
logy
gy that
that
provides agility, scalability and efficiency.
5. A stu
study
dy co
condnduct
ucted
ed in 202015
15 rereve
veal
aled
ed th
that
at 47
47%% of ba
banke
nkers
rs se
seee po
poten
tentia
tiall to im
impro
prove
ve cu
cust
stome
omer
r
relationship
relations hip thr ough digital
digital banking,
banking, 44% see
44% see it as a means to generate competitive advantage, 32% as a
channell for new custome
channe customerr acquis
acquisition.
ition. Only 16% emphasized
emphasized the potential for cost saving.
Major benefits of digital benefits are:
 Business efficiency - Not only do digital platforms improve interaction with customers with customers and and deliver
deliver
their nee
their needsds more qui quickl
ckly,y, the
they
y alsalso
o pro
provid
vide
e meth
methods
ods for maki
making
ng int
interna
ernall func
functio tions
ns more efficient
efficient..
While banks have been at the forefront of digital technology at the consumer end for decades, they
have not completely
not completely embraced all the benefits of benefits of middleware to accelerate productivity.
 Cost saving
savings s - One of the keys for banks to cut costs is automated applications that replace
redund
red undant
ant manmanualual lab labor.
or. Tra
Tradit
dition
ional
al ban
bank k proc
process
essing
ing is cos
costly
tly,, slo
slow
w and pro prone ne to huma
human n erro
error,
r,
according to McKinsey & Company. Relying on people and paper also takes up office space, which
cookies to enable runsessential
up energy site and storage costs. Digital platforms can future reduce costs through the synergies of
functionality, as more
well as marketing,
qualitativ
qualitative e data and faster responseresponse to market changes.
market changes.
personalization, andIncreased

analytics. You
accuracy - Traditional banks that rely mainly on paper processing can have an error
Increased accuracy
may change your ratesettings
of up toat 40%,
any
4 0%,time which requires reworking.
which reworking. Coupled
Coupled with lack of IT integration between branch and
back
bac settings.
k offi
office
ce pers
personn
onnel, el, this pro
probleblem
m redreduce
ucess bus
busine
iness
ss effi
efficie
ciency
ncy.. By simp
simplify
lifying
ing the ververific
ificati
ation
on
proces
pro cess,
s, it'
it's
s eas
easier
ier to impl implemen
ementt IT sol solutio
utions
ns with bus
busines
inesss soft
softwar
ware,
e, lea
leading
ding to more accurate accurate
accounting. Financial accuracy is crucial for banks to comply with government regulations.
Privacy Policy Improved compet
 competitivenes
itiveness s - Digi
Digital
tal sol
solutio
utions
ns hel
helpp man
manageage marketing
marketing lislists,
ts, all
allowi
owing
ng banbanks ks to
reach broader markets and build closer relationships with tech savvy consumers. CRM platforms can
Marketing track customer history and provide quick access to email and other forms of online communication.
It's effective for execut
executing ing customer rewards programs that can improve loyalty and satisfa satisfaction.
ction.
Personalization
 Greater agility - - The use of automation can speed up both external and internal processes, both
Analytics
of
inc which
increa sedcan
reased improve
emphasi
emph asis customer
s was placed saton
satisfactio
isfaction.
k n.
risk
ris Followin
Followi
manageme
mana ngnt.
gement.theIns
collapse
tead of ofban
Instead fina
financial
ksncial markets
banks markets
hiring
hir ing in 2008,
and training
trainin an
g ris
risk
k
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Aravind Sankar
Page 8

manage
man agemen
mentt pro
profess
fession
ionals,
als, it'
it's
s pos
possib
sible
le for risk man
manage
agement
ment soft
softwar
ware
e to det
detect
ect and resp
respond
ond to
market changes more quickly than even seasoned professionals.
 Enhanced security -
- All businesses big or small face a growing number of cyber threats that can
damage reputations. In February 2016 the Internal Revenue Service announced it had been hacked
the previous year, as did several big tech companies. Banks can benefit from extra layers of security
to protect data.
In a contemporary Banking era, Digital is a buzzword and Banks have to stay in race for new-gen needs
of digital banking Digital Banking is not only front end concepts such as Internet Banking, Mobile Banking,
Direct Banking, Various Banking apps, use of Social Media in Banking, Artificial Intelligence, Robotics,
Chat-bots, Cognitive computing, Block-chain, Big Data, voice biometrics etc ; however it also includes
various
various bac
back-e
k-end
nd mode
moderniz
rnizatio
ationn pro
progra
grams
ms are don
donee to ena
enable
ble ove
overal
ralll goa
goals
ls of dig
digital
ital Ban
Bankin
king
g whic
which
h
includ
includes
es leg
legacy
acy mod
modern
erniza
ization
tion,, Inte
Integrat
gration
ion,, CRM
CRM,, Doc
Docume
ument
nt Imag
Imaging
ing / OCR etc etc.. Trai
Training
ning cou
course
rse on
Digital Banking
Banking at Udemy called "Story of Digital Banki
Banking"
ng" has video lectu
lectures
res on this.
Banks are going through tremendous challenges of competition from non-banking companies and smaller
Fintech
Fintech companies.
companies. Therefore
Therefore,, in ord
order
er to fig
fight
ht com
compet
petitio
ition
n and sta
stay
y ahe
ahead
ad of com
compet
petitio
ition
n in Digi
Digital
tal
Banking era, it is important for banks to work on not only good web site, social media connect and mobile
banking etc; but they also need to innovate with new technology disruptions where AI, ML, Block-chain,
Analyics, cloud become buzzwords.
6. A key in which digital banks can gain a significant competitive edge is developing a more robust IT
architecture. By replacing manual back-office procedures with automated software solutions, banks can
reduce employee errors and speed up processes. This paradigm shift can lead to smaller operational
units and allow manag
managers
ers to concen
concentrate
trate on improvi
improving
ng tasks that require human interv
intervention.
ention.
Automation reduces the need for paper, which inevitably ends up taking up space that can be occupied
with technology. By using software that accelerates productivity up to 50%, banks can improve customer
service since they will be able to resolve issues at a faster pace. One way a bank can improve its back
end business efficiency
efficiency is to divide hundreds
hundreds of processes into three categor
categories:
ies:
 full automat
automated
ed
 partially automated
 manual tasks
It stil
stilll isn
isn't't pra
practic
ctical
al to aut
automat
omate
e all ope
operati
rations
ons for man
manyy fin
financ
ancial
ial firms
firms,, esp
especi
ecially
ally tho
those
se tha
thatt con
conduc
ductt
financial reviews or provide investment advice. But the more a bank can replace cumbersome redundant
manual tasks with automation, the more it can focus on issues that involve direct communication with
cust
cu stome
omers. rs. Th Thee ob
obsta
stacl
cles
es cu
curre
rrent
ntly
ly pr
prev
even
entin
ting
g ba
bank
nks
s fro
fromm in
inve
vesti
sting
ng in a mor
more e di
digit
gital
al ba
back
ck en
end
d
environment are:

 banks have traditio
traditionally
nally prioritiz
prioritized
ed launching
launching newnew products
products that
that are
are still
still difficult
difficult to automat
automate
e
 mergers and acquisi
acquisitions,
tions, new
new products
products andand government
government regulatio
regulations
ns have
have already
already establish
established
ed
complex
comple x IT archit
architecture
ecture difficult to revise
 IT teams do not alway
always s grasp busine
business
ss prioriti
priorities
es
many
 banks lack the in-hou
settings. in-housese IT expert
expertise
ise beyond
beyond traditi
traditional
onal mainframe
mainframe enviro
environments
nments
7. Digital cash eliminates many problems associated with physical cash, such as misplacement or the
Privacy Policy
potential for money to be stolen or damaged. Additionally, digital cash can be traced and accounted for
more
mor e ac
accu
cura
rate
tely
ly in ca case
ses
s of di disp
spute
utes.
s. As cocons
nsume
umersrs fin
find
d an inincre
creas
asing
ing nu
numbe
mberr of pu
purch
rchas
asing
ing
Marketing
opportunities
opportu nities at their fingert
fingertips,
ips, there is less need to carry physical
physical cash in their wallets.
Personalization
Otherr ind
Othe indica
ication
tionss tha
thatt dem
demand
and for dig
digital
ital cash is gro
growing
wing are hig
highli
hlighte
ghted
d by the use of pee
peer-to
r-to-pe
-peer
er
payment systems such as PayPal and the rise of untraceable cryptocurrencies such as bitcoin. Almost
Analytics
anything imaginable that can be paid with physical cash can theoretically be paid with the swipe of a bank
Save Accept All
Mr.Aravind
Aravind Sankar
Page 9

card, including parking meters. The problem is this technology is still not omnipresent. Cash circulation
grew in the United States by 42% between 2007 and 2012, with an average annual growth rate of 7%,
according
accord ing to the BBC.
The concept of an all digital cash economy is no longer just a futu
fut uristic dream
dream but it's still unlikely
unlikely to
outdate physical cash in the near future. All digital banks are possible as a consumer option, but people
may still have a need for physical cash in certain situations. ATMs help banks cut overhead, especially if
they are available at various strategic locations beyond branch offices
8. Securit
Security y is a cornerstone
cornerstone of digital banking.
banking. Information
Information security is a set of strategies for managing the
processes, tools and policies necessary to prevent, detect, document and counter threats to digital and
non-di
non -digita
gitall info
informat
rmation
ion.. Informat
Information
ion securi
security
ty respon
responsibi
sibiliti
lities
es includ
include
e estab
stablilish
shin
ing
g a set
set of busi
busine
ness
ss
processes that will protect information assets regardless of how the infor mationmation is formatted or whether it
is in transit,
transit, is being processed
processed or is at rest in storage.
Information
Info rmation sec
secuuri
ritty pr ogra
o grams
ms are built
built arou
around th
the
e core obj
objec
ecti
tive
ves
s of the
the CIA tri
triad
ad:: mai
maint
ntai
ainin
ning
g
the confidentiality, integrity and availability of IT systems and business data. These objectives ensure that
sensit
sensitive
ive info
informat
rmation
ion is only
only disclos
disclosed
ed to authori
authorized
zed parties
parties (co
(confid
nfident
entiali
iality),
ty), pre
preven
ventt una
unauth
uthoriz
orized
ed
modific
modificati
ation
on of data
data (integri
(integrity)
ty) and guarant
guarantee
ee the data
data can be acc
access
essed
ed by aut
authori
horized
zed par
parties
ties when
requested (availability).
Many large enterprises employ a dedicated security group to

group to implement and maintain the organization's
informat
information
ion security
security progra
program.
m. Typica
Typically
lly,, this
this group
group is led by a chi
chief
ef info
informat
rmation
ion security
security office
officer.
r. The
securi
security
ty group
group is general
generally
ly respons
responsible
ible for conduc
conductin
ting
g risk
risk manage
managemen
ment,
t, a proc
process
ess thro
through
ugh whic
which
h
vulnerabilities
vulnerabilities and threats to information
information assets are continuously
continuously assessed,
assessed, and the appro
appropriate
priate protective
controls are decided on and applied. The value of an organization lies within its information -- its security
is critical for busines

businesss operations, as well as retaining credibility
credibility and earnin
earning
g the trust of clients
clients..
Thr eats to sensitive and private inf

information c om e in many different forms, s uc h
This websiteasstores
malwa data
malwarea such
reand asishi
nd phis
ph hing
ng at
atta
tacks
cks,, id
iden
entit
tity
y th
theft
eft and
and ra
rans
nsom
omwa
ware.
re. To dete
deterr attackers and miti
mitigate
gate
vulnerabilities
functionality, at various points, multiple security controls are implemented and coordinated as part of a
personalization, anddefense
layered analytics.
in You
depth strategy. This should
should minimize the impact of an attack. To be prepared for a
security
or accept the defaultbreach, security groups should have an incident response plan (IRP) in place. This should allow
settings.
them to contain and limit the damage
damage,, remove the cause and apply updated
updated defense controls.
Privacy Policy
PILLERS OF INFORMATION SECURITY
Marketing
Personalization
Security is a constant worry when it comes to information technology. Data theft, hacking, malware and a
host of other threats are enough to keep any IT professional up at night.
Analytics
Info
Information
rmation security follows three overarching principles:
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Mr.Aravind
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Page 10

 Confidentialit
Confidentiality:
y: This means that information
information is only being seen
seen or used by people who are authorized
authorized
to access
a ccess it.
 Integrity: This means t
Integrity: means that
hat any changes
changes to the
to the information by an unauthorized user
u ser are impossible
(or at least detected),
detected), and changes
changes by authorized
authorized users are tracked.
tracked.
 Availability: This means that th
thee information is acces
accessible
sible when authorized users need it.
9. The Payment and Settlement Systems Act 2007, set up by the RBI
RBI,, provides for the r egulation and
supervision of payment systems in India and designates the apex institution (RBI) as the authority for that
purpose and all related matters. To exercise its powers and perform its functions and discharge its duties,
the RBI is authorized under the Act to constitute a committee of its central board, which is known as the
Board
Board for Re
Regul
gulati
ation
on an
and
d Su
Supe
pervi
rvisi
sion
on of Pa
Payme
yment
nt an
and
d Se
Settl
ttleme
ement
nt Sy
Syste
stems
ms (B
(BPS
PSS).
S). Th
The
e Ac
Actt al
also
so
provides
provides the legal basis for ‘nettin
‘netting’
g’ and ‘settlement
‘settlement finalit
finality’.
y’.
The PSS Act, 2007 received the assent of the President on 20th December 2007 and came into force
with effect from 12th August 2008
10. The PSS

designates theAct, 2007 provides
Reserve for the
Bank of India regulation
(Reserve andassupervision
Bank) the authorityof for
payment systems
that purpose and in all
India and
related
matters. The Reserve Bank is authorized under the Act to constitute a Committee of its Central Board
known
kno wn as the Board for Regulation
Regulation and Superv
Supervisi
ision
on of Payment
Payment and Set Settlem
tlement
ent Systems
Systems (BP(BPSS),
SS), to
exercise its powers and perform its functions and discharge its duties under this statute. The Act also
provides the legal basis for “netting” and “settlement finality”. This is of great importance, as in India, other
than
than the
the Re
Real
al Ti
Time
me Gross
Gross Se Settl
ttleme
ement
nt (RTGS
(RTGS)) syste
system
m all
all othe
otherr payme
payment nt sy
syste
stems
ms func
functi
tion
on on a net net
settlement basis.
11. Under the PSS Act, 2007, two Regulations have been made by the Reserve Bank of India, namely,
the Board for Regulation and Supervision of Payment and Settlement Systems Regulations, 2008 and the
Payment and Settlement Systems Regulations, 2008. Both these Regulations came into force along with
the PSS Act, 2007 on 12th August 2008
12. The Board for Regulation and Supervision of Payment and Settlement Systems Regulation, 2008
deals
dea ls wit
withh the constituti
constitution
on of the Board
Board for Regula
Regulation
tion and Supervi
Supervisio
sionn of Pay
Payment
ment and Sett
Settleme
lement
nt
Systems (BPSS), a Committee of the Central Board of Directors of the Reserve Bank of India. It also
This website stores
deals data
with thesuch as
composition of the BPSS, its powers and functions, exercising of powers on behalf of
cookies to enable
BPSS, essential
meetingssiteof the BPSS and quorum, the constitution of Sub-Committees/Advisory Committees by
functionality, as
BPSS
BP well
SS, as. marketing,
, etc.
etc The
The BPBPSSSS exer
exerci
cise
ses
s ththe
e power
powerss on beha
behalf
lf of the
the Re
Reseserv
rve
e Bank
Bank,, for regu
regula
lati
tion
on and
and
personalization,
superv and
supervision analytics.
ision You t and settlement
of the payment
paymen settlement systems under the PSS Act, 2007.
or accept the
The default
Pay settings.
Payment
ment and Settlement
Settlement Systems
Systems Regula
Regulation
tions,
s, 2008
2008 cov
covers
ers matters
matters like form of app
applic
licati
ation
on for
authori
aut horizat
zation
ion for comm
commencencing
ing// carryi
carrying
ng on a payment
payment system
system and gra grant
nt of aut
authori
horizat
zation,
ion, pay
payment
ment
instructions and determination of standards of payment systems, furnishing of returns/documents/other
Privacy Policy
information,
informat ion, furnishing of accounts
accounts and balance
balance sheets by system provide
pro viderr etc
Marketing
13. India
India has mult
multiple
iple payments and settlement systems, both gross and net settlement systems. For
gross settlement India has a Real Time Gross Settlement (RTGS) system called by the same name and
Personalization
net settlement systems include Electronic Clearing Services (ECS Credit), Electronic Clearing Services
Analytics
(E
(ECS
CS Debitebit),
), credit
redit cacard
rds,
s, debit
debit ca
card
rds,
s, th
the
e Na
Nati
tion
onal
al El
Elect
ectron
ronic
ic Fund
Fund Tra
Trans
nsfer
fer (NE
(NEFT)
FT) sy
syste
stemm
and Immediate Payment Service.
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Mr.Aravind
Aravind Sankar
Page 11

14. Electro
Electronic
nic Payment and
Payment and Settlement
Settlement Systems in India
The Reserve Bank of India is doing its best to encourage alternative methods of payments which will
bring security and efficiency
efficiency to the payments system and make the whole process easier for banks.
The Indian banking sector has been growing successfully, innovating and trying to adopt and implement
electronic payments to enhance the banking system. Though the Indian payment systems have always
been dominated by paper-based transactions, e-payments are not far behind. Ever since the introduction
of e-payments in India, the bankin
banking
g sector has witness
witnessed
ed growth like never before.
According to a survey by celent, the ratio of e-payments to paper based transactions has considerably
increa
increased
sed between
between 200
20044 and 2008. This has happened
happened as a resu resultlt of adv
advanc
ances
es in tech
technol
nology
ogy and
increasing
increasing consumer awareness of the ease and efficie
efficiency
ncy of interne
internett and mobile transactions.
transactions.[2]
In the case of India, the RBI has played a pivotal role in facilitating e-payments by making it compulsory
for ban
banksks to rou
route
te hig
high
h val
value
ue tran
transac
sactio
tions
ns thro
through
ugh Real Tim
Timee Gros
Gross
s Set
Settlem
tlement
ent (RTGS) and also by
introducing NEFT
introducing NEFT (National
(National Electronic Funds Transfe
Transfer)
r) and NECS (Nation
(National
al Electro
Electronic
nic Clearing Services)
which
whic h has enc
encoura
ouraged
ged individua
individuals
ls and businesse
businesses s to swit
switch
ch ia is cle
clearly
arly one of the fasfastes
testt gro
growing
wing
countries for payment cards in the Asia-Pacific region. Behavioral patterns of Indian customers are also
likely to be influenced by their internet accessibility and usage, which currently is about 32 million PC
users, 68% of whom have access to the net. However these statistical indications are far from the reality
where customers still prefer to pay "in line" rather than online, with 63% payments still being made in cash.
E-payments have to be continuously promoted showing consumers the various routes through which they
can make these payments like ATM’s, the interneinternet,
t, mobile phones and drop boxes.
Due to the efforts of the RBI and the (BPSS) now over 75% of all transaction volume are in the electronic
mode, including both large-value and retail payments. Out of this 75%, 98% come from the RTGS (large-
value payments) whereas a meager 2% come from retail payments. This means consumers have not not yet
yet
accept
accepted
ed this as a reg regular
ular means of pay
paying
ing the
their
ir bil
bills
ls and sti
stillll pre
prefer
fer con
conven
vention
tional
al meth
methods
ods.. Ret
Retail
ail
payments if made via electronic modes are done by ECS (debit and credit), EFT and card payments.[2]
15.Electronic Clearing Service (ECS Credit)

Known as "Credit-push" facility or one-to-many facility this method is used mainly for large-value or bulk
payment
payments s whe
where
re the rec
receiv
eiver’s
er’s account
account is cre
credit
dited
ed wit
with
h the pay
payment
ment from the ins
institu
titution
tion making the
payment. Such payments are made on a timely-basis like a year, half a year, etc. and used to pay
salaries, dividends or commissions. Over time it has become one of the most convenient methods of
making large payments.
16. Electronic
Electronic Clearing
Clearing Services (ECS Debit)
Knownessential
cookies to enable as many-to-one
site or "debit-pull" facility this method
me thod is used mainly for small value payments from
consumers/ individuals
functionality, as well as marketing, to big organizations or companies. It eliminates the need for paper and instead
makes
make
personalization, s the
and payment
pay ment
analytics. Youthr
throug
oughh ban
banks/c
ks/corp
orpora
orates
tes or gov
govern
ernment
ment depdepartm
artment
ents.
s. It fac
facilit
ilitate
ates
s individual
payments like telephone
may change your settings at any time bills, electricity bills, online and card payments and insurance payments. Though
easy
or accept the this method
default settings.lacks popularity
popularity because of lack of consuconsumer
mer awareness.
17.Credit
17.Credit cards and Debit cards
Privacy Policy
As mentioned above India is one of the fastest growing countries in the plastic money segment. Already
there are 130 million cards in circulation, which is likely to increase at a very fast pace due to rampant
Marketing
consumerism. India’s card market has been recording a growth rate of 30% in the last 5 years. Card
payments form an integral part of e-payments in India because customers make many payments on their
Personalization
card-paying their bills, transferring funds and shopping.
Analytics
Ever since
since Debit
of nearly Debit
3/4th cards
cards entered
of the entered
total number India, in 1998
of cards they have been growing in number and today they consist
in circulation.
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Aravind Sankar
Page 12

Credit cards have shown a relatively slower growth even though they entered the market one decade
before debit cards. Only in the last 5 years has there been an impressive growth in the number of credit
cards- by 74.3% between 2004 and 2008. It is expected to grow at a rate of about 60% considering levels
of emp
employ
loyment
ment and disdisposa
posable
ble inc
income.
ome. Majority
Majority of cre
credit
dit car
card
d pur
purcha
chases
ses come from expenses
expenses on
jewellery, dining and shopping.
Another recent innovation in the field of plastic money is co branded credit cards, which combine many
service
services
s int
into
o one card
card-wh
-where
ere ban
banks
ks and oth
other
er reta
retailil stor
stores,
es, air
airline
lines,
s, tele
telecom
com com
compan
panies
ies ent
enter
er into
business partnerships. This increases the utility of these cards and hence they are used not only in ATM’s
but also at Point
at Point of sale (POS)
sale (POS) terminals and while making payments on the net.
18.Real-time gross settlement

The acronym 'RTGS' stands for real time gross settlement. The Reserve Bank of India (India's Central
Bank) maintains this payme
payment nt netwo
network.
rk. Real
Real Time Gross Settlement is
Settlement is a funds transfer mechanism where
transfer of money takes place
place from one
one bank to another on a 'real time' and on 'gross' basis. This is the
fastest
fastest pos
possib
sible
le mon
money
ey tra
transfe
nsferr sys
system
tem thro
through
ugh the ban
bankin
kingg cha
channe
nnel.
l. Sett
Settleme
lement
nt in 'rea
'reall time
time'' mea
means
ns
payment transaction is not subjected to any waiting period. The transactions are settled as soon as they
are processed. 'Gross settlement' means the transaction is settled on one to one basis without bunching
with any other transaction. Considering that money
mon ey transfer takes place
place in the books of the Reserve Bank
of India, the paymen
paymentt is taken as final and irrevo
irrevocable.
cable.
Fees for RTGS vary from bank to bank. RBI has prescribed upper limit for the fees which can be charged
by all banks both for NEFT and RTGS. Both the remitting and receiving must have
have core banking in
banking in place
to enter
enter
ial into
Financial
Financ RTGS
System transac
tran
Code sactio
tions.
Code (IFSC)
(IFSC) ns. Core Banking
for RTGS Banki ng ena
and NEFTenable
bled
d ban
banks
purposes. ks and
This branch
branches
is an es digit
eleven are ass
assign
igned
ed an Indian
alphanumeric code
and unique to each branch of bank. The first four letters indicate the identity of the bank and remaining
seven numerals indicate a single branch. This code is provided on the cheque books, which are required
for transactions along with recipient's account number.
RTGS is a lar large
ge val
value
ue (min
(minimum
imum value of tran
transac
saction
tion should
should be ₹2,
₹2,00,0
00,000)
00) fun
funds
ds tran
transfer
sfer system
system
whereby financial intermediaries can settle interbank transfers for their own account as well as for their
customers. The system effects final settlement of interbank funds transfers on a continuous, transaction-
by-transaction basis throughout the processing day. Customers can access the RTGS facility between 9
am to 4:30 pm (Interbank up to 6:30 pm) on weekdays and 9 am to 2:00 pm (Interbank up to 3:00 p m) on
Saturdays. However, the timings that the banks follow may vary depending on the th e bank branch.
branch. Time
Varying Charges has been introduced w.e.f. 1 October 2011 by RBI. The basic purpose of RTGS is to
facilitate
facilitate the transa
transactions
ctions which need immedia
immediate
te access for the completion of the transaction.
transaction.
Banks could use balances maintained under the cash reserve ratio (CRR)
ratio (CRR) and the intra-day liquidity (IDL)
to be su
supp
pplilied
ed by ththe
e ce
cent
ntra
rall ba
bank,
nk, for mee
meetiting
ng an
any
y ev
even
entua
tualit
lity
y ar
aris
isin
ing
g ou
outt of th
the
e rea
reall ti
time
me gr
gros
oss
s
settlement
This website (RTGS).
stores data such asThe RBI fixed the IDL limit for banks to three times their net owned fund (NOF).
cookies to enable
The IDLessential
will be site
charged at ₹25 per transaction entered into by the bank on the RTGS platform. The
functionality, as wellble
marketable
marketa as securi
marketing,
securities
ties and
and treasury
treasury bills will
bills will have to be placed as collateral with a margin of five per cent.
personalization, and analytics.
However, the apex You
bank will also impose
impos e severe penalties if the IDL is
IDL is not paid back at the end of the day.
The RTGS service window for customer's transactions is available from 8:00 hours to 19:00 hours on
week days and from 8:00 hours to 13:00 hours on Saturdays.
No Transaction
Transaction on weekly
weekly holidays and public holidays.
Privacy Policy
Service
Servic e Charge
Charge for RTGS
Marketing
a) Inward transaction– no charge to be levied.
b) Outward transactions –
Personalization
- For transactions of ₹2 lakhs to ₹5 lakhs -up to ₹25 per transaction plus applicable Time Varying
Analytics
Charges
Charge s (₹1/- to ₹5/-); total not exceeding ₹30 per transa
transaction,
ction, (+ GST).
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Mr.Aravind
Aravind Sankar
Page 13

- Above ₹5 lakhs - ₹50 per transaction plus applicable Time Varying Charges (₹1/- to ₹5/-); total charges
not exceeding
exceeding ₹55 per transaction,
transaction, (+ GST).
No time varying charges
charges are applica
applicable
ble for RTGS transactions
transactions settled up to 1300 hrs.
19.National Electronic Funds Transfer (NEFT)

article: National Electronic Fund Transfer
Main article: National
[1]
Started in individuals,
facilitates Nov.-2005,
Nov.-20 05, firms
the National Electronic
and corporates Fund Transfertransfer
to electronically (NEFT)funds
system is aany
from nationwide
nationw
bankide system
syste
branch m any
to that
individual, firm or corporate having an account with any other bank branch in the country.It is done via
electronic messages. Even though it is not on real time basis like RTGS (Real Time Gross Settlement),
hourly batches
batches are run in order to speed up the transa
transactions.
ctions.
For being part of the NEFT funds transfer network, a bank branch has to be NEFT-enabled. NEFT has
gained popularity
popularity due
due to
to it saving
savi ng on time and the ease with which the transactions can be concluded. As
at end-January 2011, 74,680 branches / offices of 101 banks in the country (out of around 82,400 bank
branches) are NEFT-enabled. Steps are being taken to further widen the coverage both in terms of banks
and branches offices. As on 30.12.2017 total no of NEFT enabled branches are increas ed to 139682
to 139682 of
188 Banks. (https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=112
(https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=112 )
20.Indo-Nepal Remittance Facility Scheme

to Nepal,,
Indo-Nepal Remittance Facility is a cross-border remittance scheme to transfer funds from India to Nepal
enabled under
to migrant
migran t Nepthe
NepalesNEFT
alese Scheme.
e wor
workers The
kers in Ind ia scheme
India to remit was launched
money back to
to provide
their
the a safe
ir fami
families and
lies cost-efficient
in Nep
Nepal.
al. A remi avenue
remitter
tter can
transfer funds up to ₹50,000 (maximum permissible amount) from any of the NEFT-enabled branches in
India.The beneficiary would receive funds in Nepalese Rupees.
Nepalese Rupees.
21.Immediate Payment Service (IMPS)

Immediate Payment Service (IMPS) is an initiative of National
National Payments Corporation of India (NPCI).
(NPCI). It is
a service through which money can be transferred immediately from one account to the other account,
within the same bank or accounts across other banks. Upon registration, both the individuals are issued
an MMID(Mobile Money Identifier) Code from their respective banks. This is a 7 digit numeric code. To
initiate the transaction, the sender in his mobile banking application need to enter the registered mobile
number of the receiver, MMID of the receiver and amount to be transferred. Upon successful transaction,
the money gets credited in the account of the receiver instantly. This facility is available 24X7 and can be
used through mobile banking application. Some banks have also started providing this service through
internett bank
interne banking
ing profile of their customers. Though most banks offer this
th is facility free of cost to encourage
This websitepaperless
paperl ess
stores payment
data such as system, ICICI bank and Axis bank charge for it as per their respective NEFT
respective NEFT charges.
charges.
Nowada
Now
cookies to enable adays,
ys, mon
money
essential ey thro
site through
ugh this service
service can be tran
transfer
sferred
red dire
directly
ctly als
also
o by usi
using
ng the rece
receive
iver's
r's ban
bank k
account
functionality, as wellnumber and IFS code.
and IFS
as marketing, code. In such case, neither the receiver of the money need to be registered for
mob
mo bile
ile bank
ba nkin
ing
g serv
se
personalization, and analytics. You rvic
ice
e of hi
his
s ba
bank
nk,, nor do
does
es he nee eedd MM
MMIDID co
code
de.. IM
IMPS
PS fafaci
cili
lity
ty dififfe
fers
rs
from NEFT
NEFT and
and RTGS as
RTGS as there is no time limit to carry out the transaction. This facility can be availed
24X7 and on all public and bank holidays
holidays including RBI holida
holidays.
ys.
22.Bharat Bill Payment System
Privacy Policy
Bharat Bill Payment System(BBPS) is an integrated bill payment system in India offering interoperable
and accessible bill payment service to customers through a network of agents, enabling multiple payment
Marketing
modes, and providing
and providing instant confirmation of paymentThis
paymentThis is still in implementation stage. Guidelines for
implementation
implemen tation of this syste
system
m were issued on November 28, 2014.
Personalization
Analytics
23.Channels of e-payment
Save Accept All
Mr.Aravind
Aravind Sankar
Page 14

In their effort to enable customers to make payments the electronic way banks have developed many
channels
channe ls of payments viz. the internet, mobiles, ATM
mobiles, ATM’s
’s (Automated Teller Machines) and drop boxes.
The internet as a channel of payment is one of the most popular especially among the youth. Debit and
credit payments are made by customers on various bank’s websites for small purchases,(retail payments)
and retail transfers(
transfers( ATM
ATM transfers
transfers).
).
ATM’s serve many other purposes, apart from functioning as terminals for withdrawals and balance
inquiries, such as payment of bills through ATM’s, applications for cheques books and loans can also be
made via ATM’s.
Banks also provide telephone and mobile banking facilities. Through call agents payments can be made
and as the number
number of telephone
telephone and mob
mobile
ile subscribe
subscribers
rs are expected
expected to rise
rise,, so is thi
this
s cha
channe
nnell of
payment expected to gain popularity.
Drop boxes provide
boxes provide a solution to those who have no access
access to the
the internet or to a telephone or mobile.
These drop-boxes are kept in the premises of banks and the customers can drop their bills along with the
bill payment slips in these boxes to be collected by third party agents [
24.Role
24.Role of the RBI in encouragin
encouraging
g e-payments
As the apex financial and regulatory institution in the country it is compulsory for the RBI to ensure that
the payments system in the country is as technologically advanced as possible and in view of this aim,
the RBI has taken several initiatives to strengthen the e-payments system in India and encourage people
to adopt it.
Raghuram Rajan, Ex-Governor, RBI, and Nandan Nilekani, Ex-Chairman, UIDAI and Advisor, NPCI, and
at the launch of Unified Payments Interface (UPI) in Mumbai
Mumbai..
Imagine paying for everyday purchases directly from your bank, without the need for carrying cash. The
RBI's new interface helps you do just that. Reserve Bank of India Governor Raghuram Rajan launched
the Unified Payments Interface (UPI) system, as its latest offering in boosting digital money transfers.
The interface
interface has been dev develo
eloped
ped by Nat
Nation
ional
al Pay
Payment
ments
s Corp
Corpora
oration
tion of Ind
India
ia (NPC
(NPCI),
I), the umbrella
umbrella
organisation for all retail payments in the country. The UPI seeks to make money transfers easy, quick
and hassle free.
 The Payment
Payment and Settlemen
Settlementt Systems
Systems Act, Act, 2007
2007 was a major step
step in this direction
direction.. It enables
enables the the
RBI to "regulate, supervise and lay down policies involving payment and settlement space in India."
Apart from some basic instructions to banks as to the personal and confidential nature of customer
payments, supervising the timely payment and settlement of all transactions, the RBI has actively
encouraged all banks and consumers to embrace e-payments.
In
This website stores
 datapusuch
pursu
rsuit
it as
of the
the above-
above-ment
mentionioned ed goal
goal the
the RBI hashas grant
granted
ed NBFC’s
NBFC’s (Non-B
(Non-Banking
anking Financ
Financial ial
Companies)
cookies to enable essential site the permission to issue co branded credit cards forming partnerships with commercial
functionality, as banks.
well as marketing,
personalization, andThe
 The Kisan
Kisan Credit
analytics. You Card Scheme was launched by NABARD in NABARD in order to meet the credit needs of
may change your farmers,
settingssoatthat
anythey
timecan be free of paper money hassles and use only plastic money.
A settings.
 domestic card
domestic card scheme
scheme known
known as RuPay RuPay has recently
recently been
been started
started by by the Nationa
Nationall Payments
Payments
Corpo
Co rporat
ration
ion of In Indi
dia
a (NP
(NPCI)
CI),p
,prom
romot oted
ed by RB RBII an
andd In
Indi
dian
an Ba
Banknkss AsAsso
soci
ciat
ation
ion (IB
(IBA)
A),, ininsp
spire
ired d
by Unionpay in Ch Chinina,
a, wh
which
ich wiwillll be pro
promot
motin
ing
g th
the
e us
usee of ca
cards
rds ieie.. "p
"pla
lasti
stic
c mo
moneney"y".. In
Initi
itial
ally
ly
Privacy Policy functioning as an NPO, Rupay will focus on potential customers from rural and semi-urban areas of
India. Rupay will have a much wider coverage than Visa, MasterCard or American Express cards
Marketing which have always been used for card-based settlements.
 TheThe NREGA
NREGA (National
(National Rural Employment Guarantee Scheme) introduced by the Government will
Personalization
ensure rural employment in turn ensuring that the employees get wages. Each employee will have a
smart card functioning as his personal identification card, driver’s license, credit card which will also
Analytics [2]
function
functio n as an electr
electronic
onic pass book, thus familiarising
familiarising the rural popula
populations
tions with e-pay
e-payments
ments
Save Accept All
Aravind Sankar
Page 15

However, the Indian banking system suffers from some defects due to certain socio-cultural factors which
hampers the spread of the e-payments culture even though there are many effective electronic payment
channels and systems in place. Despite the infrastructure being there nearly 63% of all payments are still
made in cash. A relatively small percentage of the population pays their bills electronically and most of
that population is from urban India-the metropolitans. Also in some cases the transaction is done partially
online and partially "offline". The main reason for this apathy to switch to e-payments comes from lack of
awareness
awaren ess of the customer despite various efforts by the Government.
25. Block Chain Technology : ICICI Bank is the first bank in the country and among the first few globally
to exchange and
authenticate remittance transaction messages as well as original international trade documents related to
purchase order, invoice,
shipping
shippi ng & insurance,
insurance, among others, electronic
electronically
ally on block chain in real time.
The usage of block chain technology simplifies the process and makes it almost instant—to only a few
minutes. Typically, this
process takes a few days. The block chain application co-created by ICICI Bank replicates the paper-
intensive international trade
finance process as an electronic de centralised ledger, that gives all the participating entities including
banks the ability to access a
single source of information.
CODE
ODE NAME DIG IGIITS
IFSC - Indian Financial System Code 11
MICR -Magnetic Ink Character Recognition 09
SWIFT-Society
PAN- Permanent forAccount
worldwide
Accoun t no.interbank
10 Financial Telecommunication ) 11
UID /UAN – unique Identification
Identification Number 12
PIN – Postal Index Number 6
CIN-Cheque Identification Number 7
BIC ( BANK IDENTIFICATION NUMBER) 8
26. PREPAID PAYMENT INSTRUMENT INSTRUMENTS S : Eligibility : Banks who comply with the eligibility criteria would
be permitted to issue all categories of pre-paid payment instruments. Non-Banking Financial Companies
(NBFCs) and other persons would be permitted to issue only semi-closed system payment instruments.
Capital
Cap ital require
requiremen
ments ts : Ban
Banks
ks and Non-Ban
Non-Bankingking Financi
Financial al Com
Compan
panies
ies whi
which
ch comp
comply ly with the Cap
Capital
ital
Adequacy requirements prescribed by Reserve Bank of India from time-to-time, shall be permitted to
issue pre-paid payment instruments. All other persons shall have a minimum paid-up capital of Rs 100
lakh and positive net owned funds. Safeguards against money laundering (KYC/AML/CFT) provisions -
The maximum value of any pre-paid payment instruments (where specific limits have not been prescribed
This website including
includ
storesingdata
the amount
such as transferred)
transferred) shall not exceed Rs 100,000/-.
100,000/-.
Deployment
cookies to enable of Money
essential site collected: Non-bank persons issuing payment instruments are required to maintain
their
the ir outsta
out standi
nding
ng
functionality, as well as marketing, bal
balanc
ancee in an esc
escrow
row accoun
accountt wit with
h any scheduled
scheduled commer
commercia
ciall ban
bank k sub
subjec
jectt to the
follo
followin
wingg cocond
nditi
ition
ons:
s:-- Th
Thee am
amou
ount
nt so maint
maintai aine
nedd shshal
alll be used
used only
only for mak
makining
g payme
paymentnts
s to the
the
participating merchant establishments. No interest is payable by the bank on such balances.
Validity: All pre-paid payment instruments issued in the country shall have a minimum validity period of six
or accept the defaultfrom
months settings.
the date of activation/issuance to the holder. The outstanding balance against any payment
instrument shall not be forfeited unless the holder is cautioned at least 15 days in advance as regards the
expiry of the validity
validity of the payment instrument.
instrument.
Privacy Policy
27.Money
27.Mone y Transfer Service Scheme (MTSS) : The Reserve Bank has issued Master Directions relating
Marketing
to Money Transfer Service Scheme (MTSS), which is a quick and easy way of transfe transferring
rring personal
remittances from abroad to beneficiaries in India.
Personalization
MTSS can be use used d for inward person
personal
al remitta
remittance
nces s into India,
India, such
such as, remittan
remittances
ces toward
towards s fami
family
ly
maintenance and remittances favouring foreign tourists visiting India and not for outward remittance from
Analytics
India.
Save Accept All
Aravind Sankar
Page 16

The system envisages a tie-up between reputed money transfer companies abroad known as Overseas
Principals and agents in India known as Indian Agents who would disburse funds to beneficiaries in India
at ong
ongoin
oing
g exchan
exchange
ge rat
rates.
es. The Indian
Indian Agents can in turn also app
appoint
oint sub-a
sub-agen
gents
ts to exp
expand
and their
their
network. The Indian Agent is not allowed to remit any amount to the Overseas Principal. Under MTSS,
the remitters and the beneficiaries are individuals only.
The Reserve Bank of India may accord necessary permission (authorisation) to any person to act as an
Indian Agent under the Money Transfer Service Scheme. No person can handle the business of cross-
border money transfer to India in any capacity unless specifically permitted to do so by the RBI. To
become MTSS agent, min net owned funds Rs.50 lac. MTSS cap USD 2500 for individual remittance.
Max remittances 30 received by an individual in India in a calendar year. Min NW of overseas principal
USD 01 million,
million, as per latest balance
balance sheet.
28. IMPS
IMPS offer
offer an instant
instant,24*
,24*7
7 interba
interbank
nk electro
electronic
nic fund transfer
transfer ser
servic
vicee cap
capabl
able
e of pro
proces
cessin
sing
g pers
person
on to
person, person to account and person to merchant remittances via mobile, internet and atms. It is a
multichannel and multidimensional platform that make the payments possible within fraction of seconds
with all the standards
standards and integrity maintained for security required for even high worth transaction
transactions.
s.
MMID - Mobile Money Identifier

Each MMID is a 7 digit code linked to a unique Mobile Number. Different MMIDs can be linked to same
Mobile Number.
Both Sender & Receiver have to register for Mobile Banking & get a unique ID called "MMID"
• Gene
Genera
rati
tion
on of MMID
MMID is a One-
One-ti
time
me pr
proc
oces
ess.
s.
• Re
Remit
mitter
ter (Se
(Sende
nder)
r) tran
transf
sfer
er fund
fundss to bene
benefic
ficia
iary
ry (Re
(Rece
ceiv
iver
er)) us
usin
ing
g Mo
Mobil
bile
e no
no.. & 7d
7dig
igit
it MM
MMID
ID of
of
beneficiary.
IFS Code
11 digit alphanumeric number, available
available in the users Cheque book.
IMPS Fund transfer/Remittance options:
 Using Mobile
Mobile numb
number er & MMID (P2P)
(P2P)
 Using Account
Account number
number & IFS Code (P2A)
(P2A)
 Using Aadhaar number (ABRS)
 Using Mobile
Mobile numb
number er & MMID (P2P)
(P2P)
 Customer
This website stores data such Initiated
Initiate
as d - P2M(Push)
P2M(Push)
 Merchant
Mercha nt
cookies to enable essential site Initiated
Initia ted - P2M(Pull)
P2M(Pull)
Using
personalization, Mobile
and number
analytics. You & MMID (P2P)
may change your settings
Presently, IMPS at any time
Person-to-Person (P2P) funds transfer requires the Remitter customer to make funds
transfer
tran settings.
sfer using Beneficia
Beneficiary ry Mobi
Mobile
le Number
Number and MMID. Both Remitter
Remitter as wel
welll as Ben
Benefi
eficia
ciary
ry nee
needs
ds to
register their mobile number with their respective bank account and get MMID, in order to send or receive
funds using IMPS.
Privacy Policy
Marketing
Personalization
Using Account number & IFS Code (P2A)
Analytics
Save Accept All

Mr.Aravind
Aravind Sankar
Page 17

There may be cases where Remitter is enabled on Mobile Banking, but Beneficiary mobile number is not
regis
register
tered
ed with
with any
any bank
bank acco
accoununt.
t. In su
such
ch ca
case
ses,
s, Re
Remit
mitte
terr sh
shal
alll not
not be able
able to se
send
nd mo
mone
ney
y to the
the
Beneficiary
Benefic iary using Mobile Number & MMID.
Hence on the merit of the feedback received from the banking community as well as to cater the above
mentioned need, the IMPS funds transfer has been made possible using Beneficiary account number and
IFS code as well, in addition to Beneficiary mobile number and MMID.
Customerr Initiated
Custome Initiated - P2M(Push)
P2M(Push)
IMPS Merchant Payments (P2M - Person-to-merchant) service allows customers to make instant, 24*7,
interbank payments to merchants or enterprises via mobile phone. IMPS enables mobile banking users a
facility
facility to make payment to merchants
merchants and enterprises,
enterprises, through various access channels such as Interne
Internet,
t,
mobile Internet,
Internet, IVR, SMS, USSD.
Senderr enter details of merchant's
Sende merchant's (Customer initiated - Push)
• Me
Merc
rcha
hant
nt Mobi
Mobile
le Numb
Numbe er & MMID
MMID
• Amo
mouunt to be tr
tra
ansfe
ferr
rre
ed
• Pay
Payme
ment
nt refe
refere
rennce (o
(op
pti
tio
ona
nal)
l)
• Sender's M-PIN
Merchant
Merchant Initiate
Initiated
d - P2M(Pull)
P2M(Pull)
IMPS Merchant Payments (P2M - Person-to-Merchant) service allows customers to make instant, 24*7,
interba
interbank
nk payment
payments s to merchan
merchantsts or enterpr
enterprise
ises
s via Mobile
Mobile & Interne
Internet.
t. IMPS enable
enables
s mob
mobile
ile ban
bankin
king
g
users a facility to make payment to merchants and enterprises, through various access channels such as
Internet,
Interne t, mobile Internet, IVR, SMS, USSD.
Customerr enter own details (Merchan
Custome (Merchantt Initiated
Initiated - Pull)
• Cu
Cust
sto
omer
mer own
own Mobi
Mobilele Numb
Numbe er
• Customer own MMID
• OTP
OTP (gen
(gener
erat
ated
ed fr
from
om th
the
e Is
Issu
suer
er Ba
Banknk))
29.Aadhaar Based Remittance Service (ABRS)In ABRS, a remitter can initiate IMPS transaction using
the beneficiary's AADHAAR number, which acts as a financial address & which will be linked to the
beneficiaries account number. ABRS facilitates in simplifying the IMPS payment initiation process as in
this service the customer will have to input only AADHAAR number of the beneficiary for initiating an
This website stores
IMPS dataction.
transa such
transactio n. as
Ano
Another
ther import
important
ant utility
utility of this service
service will be in disburs
disbursal
al of sub
subsid
sidy
y pay
payment
ment i.e.
Electronic Benefit Transfer (EBT)/ Direct Benefit transfer (DBT) by the Government. ABRS will act as a
functionality, as wellinasexpanding
catalyst marketing,financial Inclusion reach.
Query Service on Aadhaar Mapper (QSAM).

Privacy Policy
To facilitate the effective implementation of ABRS, a new feature is being added to the existing NUUP
Marketing
(USSD based platform on *99#) service. Under this new service, known as "Query Service on Aadhaar
Personalization
Mapper" the customer will be able to know : -
Analytics
• Whe
Whethe
therr his/her
his/her AADHAA
AADHAAR R number
number is seeded
seeded/lin
/linked
ked to any ban
bank
k acc
accoun
ountt number
number or not
not?
?
Save Accept All
Srinivas Kante Email: srinivaskante4u@gmail.com Special Thanks to Mr.Mr.Aravind
Aravind Sankar
Page 18

• If yes,
yes, th
then
en with
with wh
which
ich bank
bank and
and wh
when
en wa
was
s it last
last upda
update
ted?
d?
30.Various channels
IMPS transactions
transactions can be initiated from Mobile,
Mobile, ATMs and Internet banking
banking chann
channels.
els.
Appropriate existing two-factor authentication method would be used for all the channels. The limit as
prescribed by the bank for these channels would apply while transferring money using either of these
channels.
While initiating an IMPS transaction using either ATM or Internet channel, mobile banking registration for
a remit
remittin
ting
g cucust
stome
omerr is not
not manda
mandator
tory.
y. Si
Simil
milarl
arly,
y, for cust
custome
omers
rs rec
recei
eivi
ving
ng mon
money
ey usin
using
g acco
accoununtt
number/IFSC,
number/I FSC, or using AADHAAR number, mobile banking registration is not mandatory
mandatory..
Mobile Channel
For transactions initiated using Mobile, transactions will be authenticated using mobile number & MPIN.
Mobile number + MPIN
ATM channel
Authentication will be done for
f or remitting customers while using the ATM channel as follows:
Card + ATM PIN
Internet banking channel

Authentication will be done for
f or remitting customers while using the Internet banking channel as follows:
User ID + Internet Banking Password/Transaction Password
31.NUUP (*99# Service on USSD platform)
One of the
One the in
inno
nova
vativ
tive
e payme
payment
nt se
serv
rvic
ice
e la
laun
unch
ched
ed by NPCI
NPCI inclu
include
des
s *99#
*99# se
serv
rvic
ice,
e, wh
which
ich works
works on
Unstructured Supplementary Service Data (USSD) channel. This service was launched envisioning the
potential of Mobile Banking and the need for immediate low value remittances which will help in financial
deepening and inclusion of underbanked society in the mainstream banking services. *99# service was
dedicated to the nation by the Honourable Prime Minister of India Shri Narendra Modi on 28th August
2014 as part of Pradhan Mantri Jan Dhan Yojana (PMJDY).
This website stores

*99# data has
service suchbeen
as launched to take the banking services to every common man across the country.
cookies to enable
Banking essential site can avail this service by dialing *99#, a “Common number across all Telecom Service
customers
functionality,
Proasviders
Providewellrsas(TS
marketing,
(TSPs)”
Ps)” on their
their mobile
mobile phone
phone and transact
transact throug
throughh an intera
interactiv
ctive
e men
menuu displa
displayed
yed on the
personalization,
mobile
mob and analytics.
ile screen. You
screen. Key servic
services
es offered
offered under
under *99#
*99# servic
service
e includ
include,
e, interb
interbank
ank acc
accoun
ountt to acc
accoun
ountt fund
transfer, balance enquiry, mini statement besides host of other services. *99# service is currently offered
or accept the
by default
43 leadingsettings.
banks & all GSM service providers and can be accessed in 12 different languages including
Hindi & English. *99# service is a unique interoperable direct to consumer service that brings together the
diverse ecosystem partners such as Banks & TSPs (Telecom Service Providers).
Privacy Policy
It is a common technology platform developed by NPCI which allows the Banks and TSPs to seamlessly
Marketing
integrate with each other to provide banking services to the customers at large over the mobile phones
Personalization
(basic as well as smartphone).
smartphone).
Analytics
The maximum limit of fund transfer per customer on NUUP is ₹5,000 per day.
Save Accept All
Mr.Aravind
Aravind Sankar
Page 19

Convenience of *99*99# Service
It is a value added service from NPCI that facilitates the customers to check the status of his/her Aadhaar
number seeding/linking in the bank account. The service works across all GSM service providers and
brings together the diverse ecosystem partners such as Banks & TSPs (Telecom Service Providers).
Providers).
Considering that various subsides and benefits of the State and Central Government schemes under the
Dire
Direct
ct Bene
Benefit
fit Tr
Tran
ansfe
sferr (D
(DBT)
BT) pr
prog
ogra
ramme
mme are bein
being
g doled
doled out
out basi
basis
s the
the Aadh
Aadhaa
aarr numbe
numberr of the
the
benefic
ben eficiar
iary;
y; this servi
service
ce has proved
proved to be a conven
convenien
ientt mechani
mechanism
sm for the users to asc
ascerta
ertain
in his/her
his/her
Aadhaar seeding/ linking status in the bank account.
Currently, following Financial, Non-financial and Value Added Services (VAS) are offered through
*99# service:
A. Send Money
B. Request Money
C. Check Balance
D. My Profile
E. Pending request
F. Transactions
G. UPI PIN
Financial Services
A. Send Money
Money : Users can
can send money to the benefici
beneficiary
ary using on
one
e of the followin
following
g
This website stores data such as 1. Mobile Number ,

2. Aadhar
Aadhar Number
Number ,
cookies to enable essential site 3. Payment address,
functionality, as well as marketing, 4. saved beneficiary,
5. IFSC code and Account
Account Number
B. Request Money : Users can request money from another account holder using beneficiary’s
1. Registered mobile number or
Privacy Policy 2. Virtual Payment address.
Marketing
C. Check Balance: View available
available balanc
balance
e of
of tthe
he bank accoun
accountt lin
linked
ked to user’s mobile numbe
number.
r.
Personalization
D. My Profile : User can mange the following
following settings in his profile
Analytics
Save Accept All

Mr.Aravind
Aravind Sankar
Page 20

1. Change Bank Account

2. Change Language
3. My details
4. Payment Address
5. Manage Beneficiary
6. Merchant
7. De register
E. Pending request : pending

pending requests
requests for payments
payments can be seen
F. Transactions : Previous Transactions can be checked
G. UPI PIN : UPIN can be set or changed

changed
32.Value Added Services:

It is a va
valu
lue
e adde
added
d se
serv
rvic
ice
e fro
from
m NPCI
NPCI th
that
at fa
faci
cilit
litate
ates
s the
the cu
custo
stomer
mers
s to ch
chec
eck
k the
the sta
statu
tus
s of his/
his/he
her
r
Aadhaar number seeding/linking in the bank account.
Main Features of *99# Service
 Works without
without Internet – Uses voic voicee connectivity
connectivity
 Round the clock
clo ck availability
availability (works even
ev en on holidays)
holidays)
 Accessible
Accessible through
through a common code *99# across across all TSPs
 Works across
across all GSM service providers
providers and mobmobile
ile handsets
handsets
 Additional
Additional channel for banking
banking and key catalyst for financial
financial inclusion
 Service also
also offered throu
throughgh BC Micro ATMs to serve the rural rural populace
 No additional
additional charges while
while roaming for using
using the service
 Round the clock availabilit
availability
y to customers
customers (works even on holidays)
holidays)
 No need to install any applicatio
applicationn on mobile handset
handset to use the service
cookies to enable essential
What kind site are faced by the customer in using *99# service?
of issues
While as marketing,
doing transactions on *99#, customers may face following issues:
personalization, and handsets: You
analytics.
Mobile handsets *99#
*99# service
service is availa
available
ble only on GSM
GSM hand
handse ts.Handse
sets Handsett Compatibility Issue:
Compatibility
Though USSD based transactions works across all GSM handsets; however, owning to various reasons,
sometimes few handsets do not support USSD service. Though, the numbers of such handset models is
few; still users are requested to check if there handset supports the USSD service (in case they are
facing problems while performing transaction).
Privacy Policy
Technical Error or Declined Request : Transaction not getting completed due to
Network / connectivity
Marketing connectivity issues at TSPs or Banks end.
Wrong User Inputs: Transaction will get declined if the user enters wrong information like IFS Code,
Personalization
Account number, UPIN etc.
Analytics
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Aravind Sankar
Page 21

32.Unified Payments Interface ("UPI")

Unified Payments
Payments Interface (UPI) is a payment system launched by
National Payments Corporation of India and regulated
National regulated by Reserve
Reserve Bank of India.
UPI is a payment system that allows money transfer between any two bank accounts by using a
smartphone.
UPI allows a customer to pay directly from a bank account to different merchants, both online and
offline,, without the hassle of typing credit card details, IFSC code, or net banking/wa
offline banking/wallet
llet passwords
One needs to download the app from Play Store and install in phone; Set app login; Create virtual
address;; Add bank account;
address account; Set M-Pin; and Start transacting
transacting using UPI
It is safe as the customers
customers only share a virtual address and provide
provide no other sensitiv
sensitivee informat
information.
ion.
All merchant
m erchant payments, rremittances,
emittances, bill payments among others can be done thr through
ough UPI.
The per transaction limit is Rs.1 lakh.
A user can make an in-app
in- app payment for goods or services purchased onl online.
ine.
For instance a site allows purchase of a movie-on-dema
movie-on-demand. nd.
User clicks buy, the site/app triggers the UPI payment link and is taken to the pay screen of the UPI
app, where the transaction information is verified and a click followed by entry of a secure PIN completes
the purchase.
26 major banks in India offer this facility to their customers.
The launch of the Unified Payments Interface ("UPI") by National Payments Corporation of India ("NPCI"),
has provided an impetus to India's move to incentivize digital payments with the vision to transform India
into a digitally empowered economy and reduce dependence on cash transactions. NPCI is the umbrella
body for all payment systems in India, which makes digital transactions as effortless as sending a text
message.
UPI makes cutting-edge changes by supporting real time transfer of money between accounts across
banks using smartphones by use of just one single interface besides creating interoperability and superior
customer experience. Embracing the smartphone boom in India and the inclination of customers to move
to digital mobile-based solutions, UPI addresses the challenges and limitations of the existing payment
systems, wherein customers are required to disclose sensitive financial details like bank account details,
IFSC code, credit/debit card details and sensitive PIN numbers while initiating transactions and juggle
between
betwee n differen
differentt mobile banking applications
applications with their different user IDs and passwords.
cookies to enableiedessential
Unified
Unif Paymen
Payments site
ts Interfa
Interface
ce (UPI)
(UPI) is an instan
instantt payment
payment system
system dev
develo
eloped
ped by the Nat
Nation
ional
al Pay
Payment
ments
s
Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS infrastructure and allows
you to instan
instantly
tly transfer money between any two parties'
parties' bank accou
accounts.
nts.
UPI-PIN
UPI-PIN (UPI Personal Identification Number) is a 4-6 digit pass code you create/set during first time
Privacy Policy registration with this App .You have to enter this UPI-PIN to authorize all bank transactions. If you
have already set up an UPI-PIN with other UPI Apps you can use the same on BHIM. (Note: Banks
Marketingissued MPIN is different from the UPI UPI-PIN, please generate a new UPI-PIN in the BHIM app)
Note: Please do not share your UPI-PIN with anyone. BHIM does not store or read your UPI-PIN
Personalization
details and your bank's customer support will never ask for it.
Analytics
Payment Address
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Mr.Aravind
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Page 22

Payment Address is an Address which uniquely identifies a person's bank a/c. For instance, the
Payment Address for BHIM customers is in the format xyz@upi. You can just share your Payment
Address with anyone to receive payments (no need for bank account number/ IFSC code, etc.). You
ca
can
n also
also se
send
nd mone
moneyy to anyo
anyone
ne by usin
using
g th
their
eir Payme
Payment
nt Addre
Address
ss.. No
Note
te:: Do not
not sh
share
are your
confidential
confidential UPI PIN with anyone.
anyone.
Virtual Payment address eliminates the need to provide sensitive information like a bank account
details, debit/credit card details and CVV numbers. Also, unlike a mobile wallet, a customer is not
required
requ ired to set aside funds upfront
upfront in the mobile wallet
wallet setup
setup wit
with
h the servi
service
ce pro
provid
vider
er and all
transfers under the UPI are made from the bank account linked with your virtual payment address. A
virtual payment address is an identifier that will be mapped to a customers bank account, enabling
the bank providing the UPI services to process transactions through the bank account linked with the
respective virtual payment address.
Data Security
In terms of data security, UPI provides for a single click two-factor authorization, which implies that
with one click, the transaction is authenticated at 2 levels, compliant with the existing regulatory
guidelin
guid elines
es issued
issued by the Reserv
Reserve
e Bank
Bank of India
India ("RBI")
("RBI"),, wit
withou
houtt disclo
disclosing
sing ban
bankin
king
g or pers
persona
onall
information. As UPI primarily works based on an individual's 'virtual payment address', one can send
and
and rece
receiv
ive
e payme
payment
nts
s so
sole
lely
ly base
basedd on ththei
eirr 'v
'virt
irtua
uall payme
paymentnt addre
address
ss'' witho
without
ut pro
provi
vidi
ding
ng any
any
additional details. For example if you need to make a payment to a merchant for purchases made at
a store, you will need to provide him only your 'virtual payment address', the merchant will then enter
your 'virtual payment address' into his UPI app, the UPI app will send an authentication messages to
the 'virtual payment address' linked to your mobile device, once your receive and acknowledge the
message by entering your password will the transaction be completed and the amount payable to
the merchant will be debited
debited from your bank account.
Aggregator
Aggregator of all accounts
UPI acts as an aggregator of all accounts held by a customer enabling such customers to make
transac
tran saction
tions
s from
from multiple
multiple accounts
accounts owned
owned by them,
them, from one single
single mob
mobile
ile app
appliclicatio
ation
n or web
interfac
inte rfacee and a custome
customerr is free to choose
choose to use any ban
bank's
k's UPI applica
application
tion.. Con
Conseq
sequen
uently
tly,, a
customer can own multiple virtual payment addresses wherein each virtual payment address can be
linked to a specific account and organise payments or collections, the way it suits them. Moreover,
special instructions like setting an upper limit for payments on certain handles, and restriction of
This website stores
merc data
merchanhantssuch
ts or asoutlets
outlets at which
which a certai
certain
n handle
handle can be use
used,
d, and stand
standing
ing pay
payment
ment instruc
instruction
tionss
make the whole process
process very useful to customers.
The banks offering UPI services are required to be authorised by the RBI to provide mobile banking
services. It is significant to note that even though the RBI has not issued any specific guidelines on
the provision of UPI services, the transactions undertaken through use of UPI are required to be
complia
comp liant
nt wit
with h the guideli
guidelines
nes issued
issued by RBI includ
including
ing but not limi
limited
ted to, cus
custome
tomerr reg
regist
istrati
rationon
process and KYC guidelines.
Privacy Policy
Marketing
How UPI / BHIM at POS works?
Personalization
Analytics This innovative

innovative dynamic QR-code
QR-code based solution uses the store's existing credi
credit/debit
t/debit card POS
terminal to enable UPI-based cashless payments.
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Mr.Aravind
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Page 23

 When a custome
customerr reques
requests
ts UPI Payment
Payment mode, the cashie
cashierr simp
simply
ly needs to sel
select
ect the 'UP
'UPII
Payment't' option on his existing card POS termina
Paymen terminall and inputs the relevant bill payment amount.
 This triggers
triggers the generation of a dynamic QR-code
QR-code on the POS terminal screen itself
itself which can
be scanned into any mobile-based
mobile-based UPI-apps like BHIM used by the custo
customer.
mer.
 When scanned,
scanned, the QR code automatically transfers
transfers relevant transaction
transaction details and displa
displays
ys it
on the customer's
customer's payment app for authorizing payment transfer.
 Once the payment

payment transfer
transfer from custome
customer's
r's UPI-link
UPI-linked
ed bank
bank acc
accoun
ountt to sto
store's
re's UPI-li
UPI-linked
nked
account is completed, the payment solution triggers a settlement confirmation to the initiating in-
store POS terminal for printin
printing
g out a transaction
transaction completion
completion charge slip.
Benefits:
By enabling such a UPI payment confirmation on the merchant POS terminal itself, the new in-store UPI
interface addresses a long standing implementation hurdle holding back faster spread of UPI-acceptance
in large multi-lane
multi-lane retail stores.
stores.
With multiple checkout points, the cashiers in these stores have no direct means of payment receipt prior
to releasing the purchased goods to the customer. This is unlike a small single cashier store where such
a confirmation could be received via a simple text message to the single cashier's
cashier's own mobile phone.
The new solsolutio

utionn enable
enabless the crucial
crucial payment
payment confirma
confirmatio
tion
n to be rece
receive
ived
d on cas
cashie
hier-in
r-indep
depend
endent
ent
infrastructure like the store POS terminal - a necessity for multi-cashier stores with high cashier churn.
Us
Usag
agee of a Dy
Dynam
namic
ic QR with
with th
the
e merch
merchan
antt VPA
VPA (Vi(Virtu
rtual
al Pri
Priva
vate
te Addre
Address
ss)) or UP
UPII ID and
and amo
amoun
untt
embedded in it eliminates the need for typing in of the customer or merchant credentials in the POS.
This website stores

This data such
process offersasconvenience besides eliminating the cumbersome and error-prone process of typing
out credentials.
may change Key points
your about
settings UPItime
at any
1. How is UPI differen

differentt from IMPS?
Privacy Policy  UPI is providing
providing additional
additional benefits to IMPS in the following
following ways:
ways:
 Provides
Provides for a P2P Pull
Pull functionality
functionality
Marketing
 Simplifies Merchant Payments
Personalization
 Single APP
APP for money
money transfer
transfer
 Single click two factor authentication
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Aravind Sankar
Page 24

2. Does a custome
customerr need to register
register before remitting
remitting funds using UPI?
Yes, a customer needs to register with his/her PSP before remitting funds using UPI and link his
accounts
3. Does the customer

customer need to register
register a beneficiary
beneficiary before transferr
transferring
ing funds
funds through UPI? Wh
What
at
details of beneficiary
beneficiary will be required?
No, registration of Beneficiary is not required for transferring funds through UPI as the fund would
be transferred on the basis of Virtual ID/ Account+IFSC / Mobile No+MMID / Aadhaar Number.
(Please check with your PSP and Issuing bank with regard to the services enabled on the App).
4. Can I link more than one bank

bank accoun
accountt to the same
same virtual
virtual addres
address?s?
Ye
Yes,
s, se
seve
vera
rall bank
bank acco
accoun
unts
ts ca
can
n be linked
linked to the
the sasame
me virtu
virtual
al addre
address
ss depe
depend
ndin
ing
g on the
the
functionalities being made available by the respective PSPs. If the selected Bank name to link
with UPI does not find your bank a/c, please
please ensure that
that the mobile number linked to your bank
bank
account is same as the one verified in BHIM App. If it is not the same, your bank accounts will not
be fetched by the UPI platform. Only Savings and Current
Current bank accoun
accounts
ts are support
supported
ed by BHIM.
5. What are the

the different
different channels
channels for
for transferrin
transferring
g funds
funds using UPI?
 The different
different channels
channels for transferring
transferring funds using UPI are:
 Transfer
Transfer through
through Virtual
Virtual ID
 Account
Account Number
Number + IFSC
 Mobile Number + MMID
MMID
 Aadhaar Number
 Collect
Collect / Pull money
money basis Virtual
Virtual ID
6. What is the limit of fund transfer

transfer using UPI?
At present, the upper limit per UPI transaction is Rs. 1 Lakh.
33.
functionality, asBharat
well asInterface
marketing,for Money (BHIM)
personalization,Theand Bharat Interface
analytics. You for Money (BHIM) was rolled out by Prime Minister Narendra Modi on 30th
December 2016, in
may change your settings at any timean initiative to enable fast, secure and reliable cashless payments through mobile
phones.
BHIM is inter-operable with other Unified Payment Interface (UPI) applications and bank accounts,
and has been develo
developed
ped by the National Payments Corporation
Corporation of India (NPCI).
The Android app is already available on the Google Play Store. As it is Aadhaarenabled, the app
Privacy Policy
puts an end to the fuss around other e-wallets. Moreover, an iOS version will be launched soon. One
must get their bank accounts registered along with a UPI Pin for their account.
Marketing
On the BHIM app, it would be <mobile number@upi> or <preferred user id@upi>. This user id would
be your primary address, which can be used to send or request money through other ids linked to it.
Personalization
The BHIM App suppor
supportsts about 35 banks.
Analytics
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Aravind Sankar
Page 25

Bh
Bhar
arat
at Inte
Interf
rfac
ace
e for
for Mone
Money y (B
(BHI
HIM)
M) is an app
app th
that
at lelets
ts yo
you
u make
make simp
simple
le,, easy
easy and
and quic
quick
k paym
paymen
entt
transactions. BHIM is a digital payments solution app based on the Unified Payments Interface (UPI) from
the Nat
Natio
ional
nal Paymen
Payments
ts Corpor
Corporati
ation
on of India
India (NPCI)
(NPCI),, the umb
umbrel
rella
la org
organ
anisa
isatio
tion
n for all ret
retail
ail pay
paymen
ments
ts
systems in India. You can easily make direct bank to bank payments instantly and collect money using just
Mobile number or Payment address.
BHIM being UPI-based, is linked directly to a bank account. All the payee needs is a bank account. If this
account is UPI activated, you can just ask for the payee’s Virtual Payment Address (VPA), and make the
payment to that account.Otherwise, there’s the option of IFSC or MMID for sending or receiving money. The
advantage is there’s no need to remember an account number, or to share it with anyone. The VPA is all
that is needed.
If you have signed up for UPI-based payments on your bank account, which is also linked to your mobile
phone number, you’ll be able to use the BHIM app to carry out digital transactions. Services available are as
follows:
The following are the features of BHIM:
1. Sen
Send
d Mo
Money
ney:: Use
Userr can send
send money
money usin
using
g a Virtua
Virtuall Payme
Payment
nt Addres
Address
s (V
(VPA),
PA), Accoun
Accountt Nu
Number
mber &
IFSC, Aadhaar Number or QR code.
2. Req
Request
uest M
Mone
oney:
y: Us
User
er can
can collec
collectt mon
money
ey by
by enterin
entering
g Virtua
Virtuall Payment
Payment A
Addr
ddress
ess (VPA
(VPA).
). Additi
Additiona
onally
lly
through BHIM App, one can also transfer money using Mobile No. (Mobile No should be registered
with BHIM or *99# and account should be linked)
3. Scan
Scan & Pay:
Pay: User
User ca
can n pay
pay by scan
scanni
ning
ng the
the QR code
code throu
through
gh Scan
Scan & Pa
Pay
y & gen
genera
erate
te your
your QR
QR
option is also present.
4. Tra
Transa
nsacti
ctions:
ons: UUser
ser can
can check
check transa
transacti
ction
on history
history and
and also
also pe
pendin
ndingg UPI colle
collect
ct req
reques
uests
ts (if a
any)
ny)
and approve or reject. User can also raise complaint for the declined transactions by clicking on
Report issue in transactions.
5. Pro
Profile
file:: User
User can view
view the static
static QR code
code an
and
d Payme
Payment
nt addres
addresses
ses cre
create
ated
d or a
also
lso s
shar
hare
e the QR
code through various messenger applications like WhatsApp, Email etc. available on phone and
This website storesdownload
data suchtheasQR code.
6.as well
functionality, Ban
Bank
askmarketing,
Ac
Accou
count:
nt: User
User ca
cann see
see tthe
he bank
bank accoun
accountt lilinked
nked wit with
h his/h
his/her
er B
BHIM
HIM App
App a
and
nd set/
set/cha
change
nge the
UPI
UP
personalization, and I PIN.
PIN. Us
User
analytics. er ca
You can
n al
also
so ch
chan
angege th
the
e bank
bank acco
accoun untt lilinke
nkedd with
with BH
BHIM
IM App
App by clic
clickin
king
g Ch
Chan
ange
ge
accountatprovided
any timein Menu and can also check Balance of his/her linked Bank Account by clicking
or accept the default settings. BALANCE”
“REQUEST
7. Lang
Languag
uage:
e: Up to 8 re regi
gion
onal
al langua
language
ges
s (Tamil
(Tamil,, Telu
Telugu
gu,, Beng
Bengal
ali,
i, Mala
Malaya
yalam
lam,, Oriya
Oriya,, Guja
Gujarat
rati,
i,
Privacy Policy Kannada
Kannada ,Hindi) available
available on BHIM to improve user experience.
experience.
Marketing
8. Blo
Block
ck User
User:: Block/
Block/Spa
Spamm users
users who
who are
are sendi
sending
ng you
you colle
collect
ct re
reque
quests
sts from illi
illicit
cit sou
source
rces.
s.
Personalization
9. Pri
Privac
vacy:
y: Allow
Allow a u
user
ser to
to disabl
disable
e an
and
d enable
enable mobi
mobilen
lenumbe
umber@u
r@upi pi in the
the pr
profil
ofile
e if a seco
seconda
ndary
ry VP
VPA
A is
Analytics
created (QR for the disabled VPA is also disabled).
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Mr.Aravind
Aravind Sankar
Page 26

Unique features of BHIM:
 QR code
code based
based scan & pay option option availab
available
le,, Gener
Generate
ate you
yourr ow
own
n QR code optio
option
n is also
available
 Option to save
save your be
beneficiarie
neficiaries
s for future references
 Access transaction
transaction history
history and Request Balance
Balance anytime
anytime
 Create, reset or change
change UPI PIN
 Report Issue and
and call Bank facilities
facilities are given
given to lodge complaints
complaints
 FAQ section is created in the app to answer all the queries reg. BHIM
 Available in 2 languages
languages English and Hindi
Benefits of BHIM:
 Single App for sending

sending and receiving
receiving money and
and making merchant
merchant payments
 Go cashless anywhere anytime
 Added security
security of Single
Single click 2 factor authentication
authentication
 Seamless money
money collection
collection through single
single identifiers,
identifiers, reduced risks, real time
 Mobile no. or Name used
used to create VIRTUAL PAYMENT
PAYMENT ADDRESS (VPA)
 Best answer
answer to Cash on on Delivery
Delivery hassle
hassle
 Send and collect using
using VIRTUAL PAYMENT ADDRESS ADDRESS (VPA) or A/c no & IFSC. IFSC.
 Payments through
through sing
single
le app in your
your favourite
favourite language.
language.
 24X7, 365 days instantaneo
instantaneousus money transfer
Transfer Limits:
 Maximum limit per transaction

transaction is Rs. 10,000 per
per transaction
transaction
 Maximum limit per day is Rs. 20,000
20,000
 There is limit of 20 transactions
transactions per
per account per
per bank.
functionality, as well as
Charges formarketing,
using BHIM:
may change For Smart
your Phones
settings with
at any timeInternet option BHIM can be executed via the app (available in Play store and
coming
or accept the soon
default for iPhone app store), whereas for feature phones, BHIM can be executed via phone dialler
settings.
using *99# option.
The charges for BHIM is one time hard binding SMS charges depending on the mobile operator (Standard
Privacy Policy
SMS charges of your operator).For *99# the charges are Rs.0.50/- for one transaction.
Marketing
HOW TO USE BHIM APP:
Personalization
Analytics
First Time User:
Step 1: Downlo
Download
ad and Install BHIM app from Google Play store/Apple
store/Apple App Store.
Save Accept All
Mr.Aravind
Aravind Sankar
Page 27

Step 2: Select your preferred language.

Step 3: Select SIM card which has the mobile number registered with your respective
respective bank.
Step 4: Set the applic
application
ation passcode
passcode required to enter the app.
Step 5: Link your bank accounts using bank account option.
Step 6: Set your UPI PIN by providing last 6 digits of debit card and expiry date of debit card.
Step 7 (Option
(Optional):
al): Create
Create anothe
anotherr virtual
virtual payment
payment addres
address
s (VP
(VPA)
A) in the profile
profile sectio
section.
n. Auto
Automati
maticall
cally
y
mobilenumber@u
mobilen umber@upipi will be your default virtual payment
payment address (VPA) (eg. 98765
9876543210@
43210@upi)
upi)
Note: 2 virtual payment
payment address (VPA)s are allowed
allowed per user 1. mobilenumber@upi
mobilenumber@upi and 2. name@upi)
Step 8: Set one virtual payment address (VPA) as a primary (default) virtual payment address (VPA) (Eg.
name@upi
name@u pi can be primary virtual payment address (VPA) making it easy to share with others).
Step 9: Click
Click on send
send and enter the virtual
virtual payment
payment address
address (VPA)/A
(VPA)/Acco
ccount
unt number+
number+ IFS
IFSC/Aa
C/Aadha
dhaar
ar
number and Scan or Pay option of the person to whom you want to send money.
Step 10: Enter the UPI Pin you set earlier to authenticate the transaction.
Step 11: Check transaction history to see the status of the transaction.
transaction.
Customerr Referral Scheme –

Custome
The scheme is intended to incentivize an existing user of BHIM to bring new users on the BHIM platform
and encourage the new user to do transaction using BHIM with other users or by referring new users on
BHIM. Hence, the bonus will be paid to both the referrer and the new user of BHIM (referee) and the
referral will be considered successful only after 3 successful financial transactions (to any valid UPI user –
“valid receiver”)
receiver”) performe
performed d by the referee.
The Scheme
Scheme construct
construct as -
1. An exexist
isting
ing BHIM
BHIM user
user (Referre
(Referrer)
r) to re
refer
fer BHIM
BHIM applic
applicati
ation
on to n
new
ew us
user
er (Re
(Refere
feree)
e)
2. New BHBHIM
IM user
user (Referee)
(Referee) initi
initiate
ates
s access
access to BHIM
BHIM app or by
by dial
dialing
ing **99#
99# fro
from
m his/
his/her
her mo
mobile
bile
number
numb er register
registered
ed wit
with
h bank
bank and complet
complete
e on-boa
on-boardin
rding
g pro
proces
cess
s on BHIM i.e. dowdownloa
nloading
ding,,
registering and fetching the bank account
This website stores

3. dataNew such as user (Refere
user BHBHIM
IM (Referee)
e) complet
completeses his/her
his/her first
first eligib
eligible
le fina
financi
ncial
al transac
transaction
tion with
with any unique
unique
To establish
personalization, the referral
and analytics. You relationship
relationship between referrer and referee –
1.
or accept the default Refe
Refereeree ne
settings. needs
eds to enter
enter the
the referra
referrall code
code (mobile
(mobile number
number)) of the re
referr
ferrer
er at th
the
e time doin
doing
g the
first financial
financial transaction with any uniqu
uniquee user (to any valid UPI user including BHIM)
Privacy Policy 2. The rrefer

eferral
ral code
code field
field (as an
an option)
option) will
will appea
appearr on the tran
transac
saction
tion page
page a
and
nd wil
willl be vis
visibl
ible
e only
to the new BHIM user (referee) at the time of their first financial transaction process
Marketing
3. In cas
Personalization casee of *9
*99#,
9#, the
the referee
referee will
will choose
choose the
the option
option of enteri
entering
ng the referra
referrall cod
code
e (as an o
optio
ption)
n) at
the time of on-boarding
on-boarding
Analytics
4. Sys
System
tem sh
shall
all v
valid
alidate
ate that
that if the
the referrer
referrer mobi
mobile
le nu
numbe
mberr is va
valid
lid BHIM
BHIM re
regis
gister
tered
ed
Save Accept All
Mr.Aravind
Aravind Sankar
Page 28

5. On co
comple
mpletio
tion
n of minimum
minimum 3 unique
unique succe
successfu
ssfull transac
transaction
tions
s tota
totaling
ling to Rs.
Rs. 50 to an
any
y 3 uniq
unique
ue
users (either P2P or P2M), the referrer and the referee will be notified about the bonus amount
via notification in BHIM app. In this the referrer and referee has to be on BHIM user, however
he can perform financial transaction
transaction with any valid UPI user / merchan
merchant.t.
6. The bbonu
onuss will be cr credi
edited
ted to the
the bank acco
account
unts
s of the referre
referrerr and th
the
e refe
referee
ree after
after meeting
meeting
the eligibility criteria (as stated below)
Merchant
Merchant Incen
Incentive
tive Scheme –
1. Mer
Mercha
chantnt ca
can
n do
downl
wnload
oad and
and inst
install
all tthe
he BHIM
BHIM App
App or *99#
*99# in
in his pho
phone
ne a
and
nd wi
willll ha
have
ve an optio
option
n
to self-declare himself/herself as merchant by clicking on “I Am A Merchant’ tab in BHIM App.
2. On
Once
ce th
the
e use
userr cli
click
cks
s on the
the “I AM A MERCH
MERCHANANT”T” tab,
tab, he
he/s
/she
he has
has to fi
fillll in ap
appr
prop
opria
riate
te de
deta
tails
ils
asked by the BHIM App - business name, contact number (auto populated), merchant category
(drop-down), merchant address, city, pin-code, account type
3. The scheme
scheme app
applies
lies to all merchan
merchants
ts who
who rrece
eceive
ive pay
payment
ments
soon
n BH
BHIM
IM App
App or **99#
99#
4. Rew
Reward
ard sectio
section
n in BHIM
BHIM app
app wo
would
uld displa
display
y the
the cashb
cashback
ack rec
receiv
eived
ed tto
o the
the m
merc
erchan
hant.
t.
5. Me
Merch
rchan
antt can use
use any
any mode
mode ava
availilab
able
le on BHIM
BHIM [QR
[QR Cod
Code,
e, VP
VPA,
A, Mo
Mobi
bile
le nu
numbe
mber,
r, or A
Aadh
adhaar
aar
number]
numb er] to collect
collect the payment
paymentss from their custome
customers.
rs. Both
Both push
push and pull bas
based
ed pay
payment
ments
s
shall qualify for this payments.
6. On acachi
hiev
eving
ing th
the
e cashba
cashback
ck ince
incenti
ntive
ve slab
slab as define
defined
d for the mer
merch
chanants,
ts, NPCI
NPCI initia
initiate
tes
s the
cashba
cas hbackck pro
proces
cesss using
using NACH
NACH platfor
platform
m and the merchan
merchantt is not
notifie
ified
d of the cas
cashba
hbackck via
notification
notification in BHIM app
34. National Automated Clearing House (NACH)

National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House
(NACH)” for Banks, Financial Institutions, Corporates and Government a web based solution to facilitate
interbank,
interba nk, high volume,
volume, electronic
electronic transactions
transactions which are repetitive and period
periodic
ic in nature.
ECS will be replaced with NACH from 1.4.2016.
cookies to enable
NACH essential
systemsitewill provide a national footprint and is expected to cover the entire core banking enabled
functionality, as well as marketing, across the geography of the country irrespe
bank branches spread irrespective
ctive of the location of the bank branch.
NACH
NAC
personalization, HandSys
System
tem canYou
analytics. be used
used for maki
making
ng bulk
bulk transac
transaction
tions
s towards
towards distrib
distributio
ution
n of sub
subsid
sidies,
ies, divide
dividends
nds,,
may change interest, salary,atpension
your settings any timeetc. and also for bulk transactions towards collection of payments pertaining to
telephone, electricity,
or accept the default settings. water, loans, investments in mutual funds, insurance premium etc.
NACH’s Aadhaar Payment Bridge (APB) System has been channelizing the Government subsidies and
benef
benefitits
s to the
the in
inten
tende
dedd benef
benefic
icia
iarie
ries
s usin
using
g ththeir
eir Aa
Aadha
dhaar ar numbe
numbers.
rs. The
The AP APBB Sy
Syste
stem
m links
links the
the
Government Departments and their sponsor banks on one side and beneficiary banks and beneficiary on
Privacy Policy
the other hand.
Marketing
Personalization
Analytics
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Mr.Aravind
Aravind Sankar
Page 29

35. White Label ATM and Brown Label ATM

Sailent features of WHITE LABEL ATM (WLA) ,BROWN LABEL ATM (BLA) comaprision in each
point
1. ATMs set up, owned and operated by non-banks and authorized under Payment & Settlement Systems
Act, 2007 by the Reserve Bank of India. Any non-bank entity with net worth of Rs.100 crores can apply
for installation White Label ATMs. ATMs where hardware and the lease of the ATM machine is owned by
a service provider. Cash management and connectivity to banking networks is provided by a sponsor
bank. No instructions
instructions on net-worth
net-worth requirements for BLA entities.
2. Logo
Logo disp
displalaye
yedd on ATM
ATM mac machi
hine
ne and
and in ATM pr premi
emise
ses
s perta
pertain
in to WLA
WLA Op Oper
erat
ator
or (WL
(WLAO AO).). Logo
Logo
displayed
displa yed on ATM machine/ premises is of Sponsor Sponsor Bank.
3. Services available include:
Account Information
I nformation
Mini/Short Statement
PIN change
Request
Reque st for Cheque Book
Services available include:
Account Information
I nformation
Mini/Short Statement
PIN change
Request
Reque st for Cheque Book
Cash deposit
4. Contact number of officials /toll free numbers/ helpline numbers are to be displayed for lodging any
complain
comp laintt regard
regarding
ing failed
failed/dis
/dispute
puted
d tra
transa
nsacti
ctions.
ons. Contact
Contact number
number of offi
officia
cials
ls of the Bank
Bank /to/tollll free
numbers
numb ers// help
helpline
line numbers
numbers are to be displa displayed
yed for lodging
lodging any com
compla
plaint
int regard
regarding
ing fai
failed
led/dis
/disputputed
ed
transactions.
5. The Grievance Redressal Mechanism available to users of WLA is same as that available to users of
banks’
ban ks’ ATM
ATMs s for fai
failed/
led/disp
dispute
uted
d transac
transaction
tions.
s. The pri
primary
mary resp
respons
onsibi
ibility
lity to red
redress
ress gri
grieva
evances
nces of
customers relating to failed transactions at such WLAs will vest with the card issuing bank. The sponsor
bank will provide necessary support by ensuring WLAO makes available relevant records and information
to the Issuing bank. The Grievance Redressal Mechanism available to users of BLA is same as that
available
availa ble to users of banks’ ATMs for failed/disputed
failed/disputed transactions.
transactions.
6. Sponsor Bank provides the cash. The Bank provides the cash for the ATMs to the outsource outsourced d agency.
7. RBI provides license to White Label Companies. RBI is not involved directly, as the banks have
outsourced the contract.
36. Desired Features of Mobile Banking

Banking
This website stores

Apps aredata
fastsuch as
becoming the primary way to interact with consumers - When banks first launched apps,
they
they wewere
re co
conv
nven
enie
ient
nt to
tools
ols to ch
chec
eck k yoyour
ur ba
balan
lance
ce an
and
d ke
keep
ep on totop
p of yo
your
ur sp
spen
endin
ding.
g. Ho
Howe
wevever,
r,
consumers are expecting - and banks are delivering - ever more functionality. Particularly with younger
may change consum
con sumers,
your ers, app
apps
settings atsany
aretime
becomin
becomingg crit
critica
icall to attr
attracti
acting
ng and reta
retaini
ining
ng con
consume
sumers.
rs. The ben
benchma
chmarks
rks for
or accept theranking a settings.
default mobile banking are;
Privacy Policy range of tou

range touchp
chpoint
oints,
s,
enro
enrollm
llmen
entt an
and
d lologin
gin,,
Marketing account information,
Personalization
transactional functionality,
Analytics service features,
Save Accept All
Mr.Aravind
Aravind Sankar
Page 30
Page 30
cross channel guidance, and

marketing and sales.
Some of the important desired features in a mobile banking app across the world and India are as follows:
Download apps for a range of smartphone operating systems. This is one of the greatest challenges -to
make the app work across operating systems with various versions of each. Downloadable smartphone
apps
apps let digital
digital bankin
banking
g teams
teams use device
device-sp
-specif
ecific
ic feature
features
s to crea
create
te a smo
smooth
other
er and more intuiti
intuitive
ve
experience for mobile banking customers. Although some operating systems are more important in some
countries than others, the major four operating systems are - Android, BlackBerry OS, iOS, and Windows
Phone.
Easily complete banking tasks via a mobile website. Many customers use the browser on their mobile
devi
device
ce to acce
access
ss th
thei
eirr ba
bank
nk acco
accoun
untt in
info
form
rmat
atio
ion,
n, pa
pay
y bill
bills
s on the
the run,
run, or mamake
ke othe
otherr mo
mobi
bile
le
transactions — and today they expect to perform these tasks without the hassle of pinching and zooming
their way through a mobile-unfriendly web experience.
Interact with the bank via SMS. Most banks report falling use of SMS text messaging relative to other
mobile banking touchpoints. Yet some consumers — especially those who do not have a smartphone —
continue
continue to use text bankin
banking.
g.
Enroll in mobile banking directly from their smartphone. As younger generations start opening their first
bank accounts, the proportion of customers who are mobile-first and mobile-only will rise. Digital banking
teams need to enable customers to register for digital banking directly from their mobile devices — rather
than forcing them to sign up for online banking first.
Underst
Understand
and how to use mobile
mobile bankin
banking.
g. As conten
contentt and fun
functio
ctional
nality
ity bec
become
ome more extensiv
extensive,
e, wit
with
h
This website stores
leadin
lea ding datakssuch
g ban
banks offeas
offering
ring regula
regularr mobile
mobile update
updates,
s, it’s importan
importantt that
that dig
digital
ital ban
banking
king tea
teams
ms com
communi
municate
cate
cookies to enable essential ents
these improvements
improvem site and guide new users through how to use mobile banking.
Easily at any time
access security and privacy content. Many customers who are just starting to use mobile banking
worry about privacy and security, while others might want to be reassured in specific situations. This area
still remains a weak spot for many retail banks.
Privacy Policy
Get valuab
Marketingvaluable
le con
content
tent and accoun
accountt informat
information
ion pre-lo
pre-login.
gin. Digital
Digital ban
bankin
king
g tea
teams
ms have
have rec
recogn
ognized
ized tha
thatt
customers don’t need to be logged in for every banking task and that many like the convenience of
Personalization
accessing simple information without needing to enter a password. Log in easily. Banks must make the
mobile banking login process as painless as possible, without compromising security. Leading banks do
Analytics
this by using
using mul
multifa
tifacto
ctorr authen
authentica
tication
tion theoffer
first
first convenient
time customers
customers use such
the app,
as athe
thenn let
letting
ting them use a
Savesimplified login subsequently.
Accept All Many banks features, “remember this device”
Mr.Aravind
Aravind Sankar
Page 31
option and the ability to save user names, and they let users opt into an abbreviated login process using a
simple PIN code rather than entering
entering a full alphanumeric
alphanumeric password.
Log in easily.
easily. Banks must make the mobile
mobile banking
banking login process
process as paipainle
nless
ss as pos
possib
sible,
le, wit
withou
houtt
compromising security. Leading banks do this by using multifactor authentication the first time customers
use the app, then letting them use a simplified login subsequently. Many banks offer convenient features,
such as a “remember this device” option and the ability to save user names, and they let users opt into an
abbreviated
abbrev iated login process using a simple PIN code rather than entering
entering a full alphan
alphanumeric
umeric passwo
password.
rd.
Quickly work out how to ach

Quickly achiev
ieve
e their
their mobile
mobile banking
banking goals.
goals. The mobile screen
screen custome
customers
rs lan
land
d on
immediately after logging in is a crucial part of their mobile banking experience. Digital banking teams
must design
design screens
screens that make it easy
easy for customers
customers to com
comple
plete
te the tasks they log
logged
ged into mob
mobile
ile
banking to do. Most leading banks display prominent one-click links to the most common tasks directly on
the home screen.
Quickly and conveniently find transactions. Different customers will search their transaction history with
differe
different
nt search
search tools,
tools, accord
according
ing to person
personalal prefere
preference
nces:
s: Man
Manyy ban
banks
ks are exp
expand
anding
ing the transa
transacti
ction
on
history tools available via mobile. See an accurate forecast for their spending. A growing number of banks
provide customers with a “future view” of their upcoming payments and transfers. And some are even
using predictive
predictive tools to include
include transactions
transactions the customer
customer hasn’t yet set up.
Be
Bette
tterr unde
underst
rstan
and
d th
thei
eirr fi
fina
nanc
ncia
iall lives
lives with
with embe
embedd
dded
ed mon
money
ey man
manag
ageme
ement nt tools
tools.. Digit
Digital
al money
money
management will ultimately be embedded at the heart of digital banking. Not all money management
feature
features s make
make sense
sense for mobile
mobile touchpo
touchpoints
ints,, but digital
digital teams
teams sho
should
uld offer
offer simp
simple,
le, integra
integrated,
ted, and
contextual tools that help customers quickly and easily get the information they want or take the action
they need.
Move
Mo ve mone
money y witho
without
ut hass
hassle
les.
s. Ov
Over
erall
all,, th
the
e banks
banks off
offer
er st
stron
rong
g and
and easy
easy mo
mobi
bile
le mon
money
ey mo
move
vemen
mentt
functionality such as account-to-account and P2P money transfers.
Send
Sen d mon
moneyey to oth
other
er people
people wit
withou
houtt sensit
sensitive
ive personal
personal details
details-- Thi
This
s is one of the import
important
ant desired
desired
features
feature s in most of the countries.
Buy items in stores without plastic. It is observed that digital wallets integrating offers, coupons, point-of-
Privacy Policy
sale (POS) payments, and loyalty rewards are poised to transform the way consumers shop and make
Marketing
payments.
Personalization
Analytics
Solve account issues within the mobile app. Self-service features let a customer initiate or complete a
request without having to interact with a bank employee. Functionality that lets a customer dispute a card
Savetransaction,Accept
transaction, All or order a new debit card is not widely available
report fraud, available on banks’ mobile bankin
banking
g apps.
Mr.Aravind
Aravind Sankar
Page 32
Set up, receive, and manage alerts. Alerts continue to offer great value to customers. Just a few years
ago, customers were content to set up and manage alerts via the bank’s secure website and receive the
alerts via SMS or email. But behavior is changing with the mobile mind shift, and an
increasing number of banks are differentiating themselves by offering alerts delivery and management
within the mobile banking app.
Find
Find bra
branc
nche
hes
s and
and ATM
ATMs.
s. Most
Most of th
the
e bank
bankss eval
evalua
uated
ted mak
makee it easy
easy for custo
custome
mers
rs to fi
find
nd nearb
nearby
y
branches and ATMs, including key information such as hours of operation and providing step-by-step
directions.
Easily app
Easily apply
ly for a new produc
product,
t, accoun
account,
t, or service.
service. Applicati
Application
on abando
abandonme
nment
nt has been an issue
issue for
digital sales teams at banks for years, and the physical limitations of mobile devices can amplify the
problem. Someone trying to open a new account is more likely to give up if he or she needs to pinch and
zoom through the task flow while also entering information into dozens of data entry fields. So cross-
selling effectively means making buying as easy and quick as possible for a customer. For example,
mBank has developed simplified product applications with two-step task flows and embedded them within
mobile banking.
36.INTERNET
36.INTERNET SERVICE PROVIDERS / HOSTING / BANDWIDTH / DATA DOWNLOAD & UPLOAD
In a typical world scenario, we come across Internet Service Providers (ISPs) advertising about “high
speed internet”. But when we look at our own internet connections, the download speeds seems to be far
below
below comp
compared
ared to what
what has been advert
advertise
ised.
d. So what
what did your ISP actual
actually
ly mean
mean by “Con
“Connec
nectio
tion
n
Speed”?
Speed” ? Is “Connection Speed” totally different from “Download
“Download Speed”?

Connection Speeds and Download Speeds
People often confuse connection speed with downloading speed. Though both of these terms refer fairly
to the same thing, their interpretation
interpretation is slightly
slightly different from one another.
Privacy Policy
Marketing
Connection speed (or Internet Bandwidth) refers to the raw data transfer rate of the connection provided
by your ISP. This is the property that is usually advertised and can vary largely among different providers
Personalization
and data plans. Nowadays, this figure is usually expressed in terms of Kbps (Kilobit per Second) or Mbps
Analytics
(Megabit per Second).
Save Accept All
Mr.Aravind
Aravind Sankar
Page 33
On the other hand, when we download files from the internet, the same data transfer rate is interpreted as
Download Speed. Download speed is usually measured in KBps (Kilobyte per second).
A Typical Scenario
Sa
Say
y yo
youu have
have a 1 MbpsMbps InInte
terne
rnett co
conn
nnect
ectio
ion.
n. With
With such
such a co
conn
nnect
ectio
ion
n sp
spee
eed,
d, you
you mig
mightht expe
expect
ct to
download files at a rate of around 1 MB per second, but when you actually download a file, the download
speed only reaches up to 100 – 120 KB per second.
Where’s
Where’ s the
the ca
catc
tch?
h? If co
conn
nnec
ectio
tion
n sp
spee
eed
d and
and down
downloa
load
d sp
spee
eed
d are fairl
fairly
y one
one and
and the
the sa
same
me,, as we
mentioned earlier, then we should be ideally getting the same speed for connection and download. So
what’s missing here?
Actually, connection and download speeds are measured in two different units, so even though these
measurements
measure ments refer to the same thing, their interpreted
interpreted values turn out to be quite different.
Connection v/s Download (Units)
Unit used for Connection Speed: Kbps (Kilobit per Second), Mbps (Megabit per Second), Gbps (Gigabit
per Second) and so on…
Unit used for Download

Download Speed: KBps (Kilobyte
(Kilobyte per Second),
Second), MBps (Megabyte
(Megabyte per Second
Second)) and so on.
Relation
Relation between bit and byte
1 byteand
personalization, = 8analytics.
bit1 kilobyte
You(KB) = 8 kilobit (Kb)
Why different units are used ffor
or measuring connection
connection and download speed?
Privacy Policy
A Bit is the most fundamental unit of representing data. That is why it was adopted as a standard for
Marketing
measuring the raw data transfer rate, which refers to the connection speed. Hence, connection speeds
are measured in Megabit per second (Mbps)
Personalization (Mbps)..
Analytics
Save Accept All
Mr.Aravind
Aravind Sankar
Page 34
But a bit in itself is quite meaningless. The data in your computer is stored in the form of 8 bit blocks,
known as a byte. So when you download any file from the internet, it is generally represented in Byte.
Hence,, downlo
Hence downloadad speed is usually measured in Kilobyte
Kilobyte per second (KBps).
The noteworthy point here is the difference between bit and byte as used in the two units. Connection
speeda is
have represented
deeper withtwo
look at the a (small)
units. ‘b’ for bit while download speed takes a (capital) ‘B’ for Byte. Let us
1 Megabyte (MB) = 8 Megabit (Mb)
1 Megabyte (MB) = 1024 Kilobyte (KB)
8 Megabit (Mb) = 1024 Kilobyte (KB)
Therefore,1
Therefore,1 Megabit (Mb)= [1024/8 =] 128 Kilobyte (KB)
So, in a 1 Mbps connection, your maximum download speed would be 128 KBps (=1Mbps). And this
convention kind of suits the ISPs too, as it helps them to lure consumers into visually greater figures.
Factors affecting Download Speeds
So, we should get a maximum download speed of 128 KBps on a 1 Mbps connection. But practically, we
would only be able to download files at 80 KBps – 120 KBps on average. The fall in the download rate
can be attributed to several
several external and internal
internal factors.
factors.
functionality, as well factors
External as marketing,
affecting download speeds
or accept the
Yourdefault settings. speed is affected by several server-side factors:
downloading
Privacy Policy
Marketing
Personalization
Analytics
Save Accept All
Mr.Aravind
Aravind Sankar
Page 35
37.Downloading via Download Managers
Regular downloaders that are integrated with web browsers download files through a single connection.
To enhance downloading speeds, third party download manager applications (For example; IDM, DAP,
Orbit Downloader, etc.) are available which are able to set up multiple connections in parallel to download
a file.
file. Of cou
course,
rse, this feature
feature can be pri
primaril
marily
y control
controlled
led by ser
server
ver restrictio
restrictions.
ns. Howeve
However,r, if allowed
allowed,,
download managers can simultaneously download several parts of the file and hence improve the overall
downloading speed.
38.Downloading from Torrents
Torrent downloads work in a different way than regular downloads. Instead of the conventional client-
server
server model,
model, this
this techno
technolog
logy
y is based
based on a peer-to
peer-to-pee
-peerr mod
model
el (P2
(P2P).
P). In this model
model,, dat
data
a can flow
universally among number of connected users, known as peers. A file being shared on P2P is distributed
across the entire network.
network.
There are two types of Peer –Seeder and Leecher. Seeders are users uploading data in the network, and
leechers are those who are downloading it. In a torrent network, if there are more number of leechers
than seeders, downloading speed might decrease as there are more nodes downloading the data than
those who are uploading. On the other hand, if there are more number of seeders, downloading speed
might be higher.
Torrent dow
Torrent downloa
nloads
ds can,
can, in fact,
fact, be faster
faster than
than regula
regularr downloa
downloads,
ds, since
since the
there
re are nume
numerous
rous active
parallel connections to download parts of the data. Nodes can connect to a torrent network via BitTorrent
clients.. Once peers complete
clients complete download, they can also seed it for other leechers to downlo
download
ad from.

You can find out your own connection speed by performing an online test. Speedtest.net is a good web
application
applica site
tion to rate your connection in terms of Download and Upload speed.
Connection
or accept the speed and download speed are fairly the same thing, only measured in different units. So, to
default settings.
get download speed (in KBps) from connection speed (in Mbps), first multiply the connection speed by
1024 to convert from Megabit (Mb) to Kilobit (Kb), and then divide by 8 to convert it from Kilobit (Kb) to
Privacy Policy
Kilobyte (KB).
Marketing
Personalization
Analytics
Save Accept All
Mr.Aravind
Aravind Sankar
Page 36
39.Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project of the
Reserve Bank of India (RBI), commencing in 2010, for faster clearing of cheques. CTS is based on a
cheque truncation or online image-based cheque clearing system where cheque images and magnetic
ink cha
charact
racter
er rec
recogn
ognitio
ition
n (MIC
(MICR)
R) dat
data
a are cap
capture
tured
d at the col
collec
lecting
ting bank bra
branch
nch and tran
transmit
smitted
ted
electronically.
Cheque truncation means stopping the flow of the physical cheques issued by a drawer to the drawee
branc
branch.
h. ThThe
e phphys
ysica
icall in
instr
strume
umentnt is tru
trunc
ncat
ated
ed at sosome
me popoin
intt en
en-ro
-rout
ute
e to th
the
e drdraw
awee
ee bra
branc
nch
h an
andd an
electronic image of the cheque is sent to the drawee branch along with the relevant information like the
MICR
MIC R fie
fields
lds,, dat
date
e of pre
presen
sentati
tation,
on, pre
presen
senting
ting banks etc. Thi Thiss wou
wouldld eli
elimina
minate
te the nee
needd to mov
movee the
physica
phy sicall ins
instrum
trument
entss acro
across
ss bra
branch
nches,
es, exc
except
ept in exc
except
eption
ional
al circ
circumst
umstanc
ances,
es, res
result
ulting
ing in an effe
effectiv
ctive
e
reduct
reduction
ion in the time req require
uired
d for payment
payment of che cheque
ques,
s, the associate
associated d cos
costt of tran
transit
sit and del
delays
ays in
processing,
proces sing, etc., thus speedi
speeding
ng up the proces
process s of collection or realiz
realization
ation of chequ
cheques.
es.
CTS has bee

been
n impl
implemen
emented
ted in New Delhi, Chennai
Chennai and Mumbai
Mumbai with effect
effect from February
February 1, 200
2008,
8,
September 24, 2011 and April 27, 2013 respectively. After migration of the entire cheque volume from
MICR system to CTS, the traditional MICR-based cheque processing has been discontinued across the
country. The CTS-2010 compliant cheques are both image friendly and have enhanced security features.
All banks providing cheque facility to their customers have been advised to issue only 'CTS-2010'
standard cheques. Cheques not complying with CTS-2010 standards would be cleared at less frequent
intervals
intervals i.e. weekly once from November 1, 2014 onwards.
Banks derive multiple benefits through the implementation of CTS, like a faster clearing cycle meaning
technically possible realization of proceeds of a cheque within the same day. It offers better reconciliation/
verification, better customer service and enhanced customer window. Operational efficiency provides a
direct boost to bottom lines of banks as clearing of local cheques is a high cost low revenue activity.
Beside
Bes ides,
s, it red
reduce
ucess ope
operati
rationa
onall risk by sec
securi
uring
ng the tra
transmi
nsmissi
ssion
on rou
route.
te. Cen
Central
tralize
ized
d imag
imagee arc
archiv
hival
al
systems ensure that data storage and retrieval is easy. Reduction of manual tasks leads to reduction of
errors. Real-time tracking and visibility of the cheques, less frauds with secured transfer of images to the
RBI are other benefits that banks derive from this solution.
40.NG
functionality, RTGS-Next
as well Generation RTGS
as marketing,
NG-RTGS
NG-R
or accept the TGSsettings.
default has been intr
introdu
oduced
ced in Ind
India
ia sin
since
ce Octo
October
ber 201
2013.
3. With its adv
advanc
anced
ed liq
liquid
uidity
ity and quequeue
ue
manage
man agement
ment features,
features, the new RTGRTGS S sys
system
tem is exp
expecte
ectedd to sig
signifi
nifican
cantly
tly imp
improve
rove the effi
efficie
ciency
ncy of
financial
financ ial markets. He hoped the new RTGS system would be such a driver for India‘s financial system.
Privacy Policy
Marketing
Reportedly the first in the world to be built on ISO 20022 messaging standards, the new RTGS system is
highly
hig hly sca
scalab
Personalization lable
le and will hav
have
e sev
several
eral new funfuncti
ctiona
onaliti
lities.
es. The
These
se incinclud
lude e adv
advance
ance liq
liquid
uidity
ity fea
feature
tures,
s,
including
includ ing gridlock resolution mechanism and hybrid settlement
settlement facilit
facility,
y, facilit
facility
y to accep
acceptt future value dated
Analytics
transac
tran saction
tions,
s, opt
options
ions to pro
proces
cess
s mul
multi-c
ti-curre
urrency
ncy tran
transac
saction
tions,
s, etc
etc.. The
These
se funfuncti
ctiona
onaliti
lities,
es, as and whewhenn
Savemade available
available for use,
Accept All will be notified to the partici
participants.
pants.
Mr.Aravind
Aravind Sankar
Page 37
The new ISO 20022 compliant RTGS system provides three access options to participants thick-client,
Web-API
Web -API (th
(throug
roughh INF
INFINE
INET T or any oth
other
er app
approv
roved
ed net
network
work)) and Pay
Payment
ment Orig
Origina
inator
tor mod
module
ule.. The
participants can decide the mode of participation in the system based on the volume of transactions and
the cost of setting up the infrastru
infrastructure.
cture.
The
role RTGS infrastructure
of central banks as in India is critical
operators in facilitating
of large-value the orderly
payment settlement
systems of payment
is important in theobligations.
context of The
the
broader role of the central bank in a nation’s financial system insofar as it offers safety net attributes by
providing final settlement in central bank money.
RTGS is a critical Financial market Infrastructure (FMI) operated by the Reserve Bank of India and it will
be as
asse
sesse
ssedd ag
agai
ains
nstt th
the
e Co
Commi
mmitte
ttee
e on PaPayme
yment
nt an
and
d Se
Settl
ttleme
ement
nt Sy
Syste
stems
ms anand
d th
the
e In
Inte
terna
rnatio
tional
nal
Organisation
Organis ation of Securi
Securities
ties Commiss
Commissions
ions (CPSS-IOSCO) Principles for Financ
Financial
ial Market Infrastructures
Infrastructures
applicable to FMIs.
With implementation of the new RTGS system, the existing RTGS system will cease to be operational.
Further, the RTGS System Regulations 2013would replace the RTGS (Membership) Business Operating
Guidelines,
Guidelines, 2004 and RTGS (Member
(Membership)
ship) Regulations,
Regulations, 2004.
41.National Electronic Fund Transfer (NEFT)
National Electronic
National Electronic Funds Transfer (NEFT) is a nation-wide
nation-wide payment system maintai
maintained
ned by Reserv
Reservee Bank
of India (RBI), facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates
can electroni
electronical
cally
ly transfe
transferr funds
funds from any bank
bank branch
branch to any individua
individual,
l, firm or corp
corpora
orate
te hav
having
ing an
account with any other bank branch in the country participating in the Scheme. Against the principle of
RTGS which is a Real-Time as well as Gross Settlement
Settlement system, NEFT settlem
settlement
ent happens in batches.

functionality,
Forasbeing
well as marketing,
part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled. The list of
personalization,
bank-wand
iseanalytics.
bank-wise branchesYouwhich are participating
participating in NEFT is provided in the website of Reserv
Reserve
e Bank of India.
Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT.
Privacy Policy
Even such individuals who do not have a bank account (walk-in customers) can also deposit cash at the
NEFT-enabled branches with instructions to transfer funds using NEFT. However, such cash remittances
Marketing
will be restricted to a maximum of Rs.50,000/- per transaction. Such customers have to furnish full details
includ
including
ing complet
Personalization completee add
address
ress,, teleph
telephone
one number,
number, etc.
etc. NEFT,
NEFT, thus,
thus, faci
facilit
litate
ates
s ori
origin
ginator
ators
s or remi
remitte
tters
rs to
initiate funds transfer transactions
transactions even without
without having a bank account.
Analytics
Save Accept All
Mr.Aravind
Aravind Sankar
Page 38
Individuals, firms or corporates maintaining accounts with a bank branch can receive funds through the
NEFT system. It is, therefore, necessary for the beneficiary to have an account with the NEFT enabled
destination bank branch in the country.
The NEFT system also facilitates one-way cross-border transfer of funds from India to Nepal. This is
known
known as the Indo-Nepa
Indo-Nepall Remitta
Remittance
nce Facility
Facility Scheme.
Scheme. A remitte
remitterr can transfer
transfer fun
funds
ds from
from any of the
NEFT-en
NEF T-enabl
abled
ed branch
branches
es in to Nepal,
Nepal, irrespe
irrespecti
ctive
ve of whether
whether the benbenefic
eficiary
iary in Nep
Nepal
al mai
maintai
ntains
ns an
account
account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees.
Limit on the amount that could be transferred using NEFT – No. There is no limit – either minimum or
maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount
per transaction is limited to Rs.50,000/- for cash-based remittances within India and also for remittances
to Nepal under the Indo-Nepal
Indo-Nepal Remittance Facility Scheme.
Operating hours of NEFT - Unlike Real-time gross settlement (RTGS), fund transfers through the NEFT
system do not occur in real-time basis. NEFT settles fund transfers in half-hourly
batches with 23 settlements occurring between 8:00 AM and 7:00 PM on week days. Transfers initiated
outside this time period are settled at the next available window. No settlements are made on the second
and fourth Saturday of the month or on Sundays.
Process of NEFT system - An individual / firm / corporate intending to originate transfer of funds through
NEFT has to fill an application form providing details of the beneficiary (like name of the beneficiary,
name of the bank branch where the beneficiary has an account, IFSC of the beneficiary bank branch,
accoun
acc ountessential
cookies to enable
facility t type
type and
offered bysiteaccou
account
their nt number
numcan
bankers ber))also
andinitiate
the amount
amo
theunt to be
funds remi
remitte
transfertted.
d. Cus
Custome
request tomers
rs Some
online. enj
enjoy
oying
ing netoffer
banks bankin
banking
theg
NEFT as marketing,
facility even through the ATMs.
The originati
originatingng bank
bank branch
branch prepares
prepares a message
message and sendssends the messag
messagee to its poolin
pooling
g cen
centre
tre (als
(alsoo
called the NEFT Service Centre). The pooling centre forwards the message to the NEFT Clearing Centre
Privacy Policy
(operated by National Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next available
batch.
Marketing
Personalization
Analytics
The Clearing Centre sorts the funds transfer transactions destination bank-wise and prepares accounting
entries to receive funds from the originating banks (debit) and give the funds to the destination banks
Save Accept All
Mr.Aravind
Aravind Sankar
Page 39
(credit). Thereafter, bank-wise remittance messages are forwarded to the destination banks through their
pooling centre (NEFT Service Centre).
Finally, the destination

Finally, destination banks receive the inward remittance
remittance messages from the Clearing Centre and pass
on the credit to the beneficiary customers’
customers’ accounts.
IFSC- IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-
branc
branchh parti
particip
cipat
ating
ing in th
the
e NEFT
NEFT sy syste
stem.
m. This
This is an 11 digit
digit co
code
de with
with the
the fir
first
st 4 alph
alpha
a chara
characte
cters
rs
representing the bank, and the last 6 characters representing the branch. The 5th character is 0 (zero).
IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to
route the message
messages s approp
appropriately
riately to the concerned banks / branches.
branches.
Acknowledgement by SMS - In case of successful credit to the beneficiary's account, the bank which had
originated the transaction is expected to send a confirmation to the originating customer (through SMS or
e-mail) advising of the credit as also mentioning the date and time of credit. For the purpose, remitters
need to provide their mobile number / e-mail-id to the branch at the time of originating the transaction.
Tracking an NEFT transaction - The remitter can track the NEFT transaction through the originating bank
branch or its CFC using the unique transaction reference number provided at the time of initiating the
funds transfer. It is possible for the originating bank branch to keep track and be aware of the status of
the NEFT transaction at all times.
Benefits
Benefits of using NEFT:

NEFT offers siteadvantages over the other modes of funds transfer:
many
Thesettings.
remitter need not send the physical cheque or Demand Draft to the beneficiary. The
beneficiary
beneficiary need not visit his / her bank for depositing
depositing the paper instrume
instruments.
nts.
Privacy Policy
Marketing
The beneficiary
beneficiary need not be apprehensiv
apprehensive
e of loss / theft of physic
physical
al instruments or the likelihood
likelihood of
Personalization
fraudulent encashment thereof.
Analytics
SaveCost effective.
Accept All
Mr.Aravind
Aravind Sankar
Page 40
Credit confirmation
confirmation of the remittances
remittances sent by SMS or email.
Remitter can initiate the remittances from his home / place of work using the internet banking also.
Near real time transfer of the funds to the beneficiary account in a secure manner.
NEFT has gained popularity due to its saving on time and the ease with which the transactions can be
concluded. Introduction of Immediate Payment Services (IMPS) by 41.National Payments Corporation of
India (NPCI), which is gaining
gaining popularity reduces the burden on NEFT systems at RBI.
National
National Payments Corporation of India (NPCI) – Its Products
Products & Services
Services
National Payments Corporation of India (NPCI), is the umbrella organisation for all retail payment systems
in India, which aims to allow all Indian citizens to have unres
unrestricted
tricted access to e-payment services.
services.
Founded in 2008, NPCI is a not-for-profit organisation registered under section 8 of the Companies Act
2013.. The organisat
2013 organisation
ion is own
owneded by a con
consor
sortiu
tium
m of majo
majorr ban ks,[3] and has been promoted
banks, promoted by the
countr
cou ntry’s
y’s cen
centra
trall ban
bank,
k, the Reserv
Reservee Bank
Bank of India
India.. Its rec
recen
entt wo
work
rk of de
deve
velo
lopin
ping
g Unified Payments
Payments
Interface aims
Interface aims to move India to aa cashless
cashless society with
society with only digital transactions.
It has suc
succes
cessfu
sfully
lly comp
complet
leted
ed the dev
develo
elopmen
pmentt of a domedomestic
stic card paymen
paymentt network called RuPay,
RuPay,
reduci
red ucing
ng the dependen
dependency cy on int
intern
ernatio
ational
nal car
card
d sch
scheme
emes. s. The RuPay card is now acc accept
epted
ed at all the
ATMs,, Point-of-Sale
ATMs Point-of-Sale terminals
terminals and
and mo
mostst of th
the
e on
onliline
ne me
merc
rcha
hantnts
s in th
the
e co
coununtr
try
y. Mo
More
re th
than
an 30
300
0
cooperative
coopera tive banks
banks and the Regional Rural Banks (RRBs) in the country have also issued RuPay ATM
cards.
More
functionality, thanas250
as well million cards have been issued by various banks, and it is growing at a rate of about
marketing,
3 million at anyAtime
per month. variant of the card called ‘Kisan
‘ Kisan Card’
Card’ is now being issued by all the Public
Sector Banks in addition to the mainstream debit card which has been issued by 43 banks. RuPay cards
are also issued under the Jan
the Jan Dhan Yojana scheme.
Yojana scheme.
Privacy Policy
Marketing
NPCI has taken over NFS (National Financial Switch) operations from 14 December 2009 from IDRBT.
Personalization
Membership regulations and rules are being framed for enrolling all banks in the country as members so
thatt whe
tha
Analytics when
n the nat
nation
ionwide
wide payment
payment sys
systems
tems are lau
launch
nched,
ed, all wou
wouldld get inc
includ
luded
ed on a sta
standa
ndardi
rdized
zed
platform.
Save Accept All
Mr.Aravind
Aravind Sankar
Page 41
The key products of NPCI are:
National Financial Switch (NFS) which connects 1, 98, 953 ATMs of 449 banks (91 Member Banks, 358
Sub-
crore Member). Immediate
MMID (Mobile Money Payment
Identifier)Service (IMPS)
issued, and provided
crossed to 84 transactions.
10 million memberions.
transact banks, with more than 8.49
National
National Auto
Automate
mated
d Cle
Clearin
aring
g Hou
House
se (NA
(NACH)
CH) - has close to 400 banks on boa
board.
rd. Aad
Aadhaa
haarr Pay
Payment
ments
s
Bridge System (APBS) has more than 358 banks. Cheque Truncation System (CTS)
has fully migrated in 3 grids - southern, western & northern grids from MICR centres. Aadhaar-enabled
payment system (AEPS) - has 36 member banks. RuPay – Domestic Card Scheme- has issued over 20
crore
crore card
cards
s and enabled
enabled 10, 70, 000 PoS term termina
inals
ls in the cou
countr
ntry.
y. The newest
newest and most adv
advanc
anced
ed
addition to the NPCI revolution is the Unified Payments Interface (UPI) which has been launched on 11
April 2016.
RuPay PaySecure - Over 20 banks now offer this authentication mechanism to their RuPay RuPay cardholders.
The new transaction flow of Card + OTP has infused more simplicity to cardholders. More than 70,000
merchants
merchan ts accep
acceptt Rupay
Rupay cards online. RuPay PaySecure is live on 10 acquiring banks which includes
Union Bank of India,
India, Kotak Mahindra Bank,
Bank , Citi Bank,
Bank , ICICI Bank,
Bank, HDFC Bank,
Bank, State Bank of India,
India , IDBI
Bank,, IndusInd Bank,
Bank Bank, Bank of Baroda and
Baroda and Bank
Bank of India.
India.
42. Debit Cards known as check cards. It operates like cash or a personal check. Debit cards are
different from credit cards. Credit card is a way to “Pay Later” whereas debit card is a way to “Pay Now.”
In ca
case
se of debidebitt ca
card,
rd, bank
bank acco
accoun
untt of th
thee cu
cust
stome
omerr will
will be debi
debited
ted imm
immededia
iatel
telyy on co
compl
mplet
etio
ion
n of
transac
tran
cookies to enable saction
tion.. Debit
Debit cards
essential cards are accept
accepted
ed at many
many locati
locations,
ons, includ
including
ing retail
retail sto
stores
res,, pet
petrol
rol pumps,
pumps, and
restaurants. Thesite
liberalized norms coupled with ease of usage have led to increase debit card base over
functionality, asyears.
the well asOfmarketing,
late, banks are consciously driving the customers to alternate delivery channels by issuing
personalization,
debit and
cardsanalytics.
on the dayYouof opening of the account itself to reduce the work load and to enable them to pay
may change your settings at any
focused attention on core time banking activities. In order to make Credit/Debit Card transactions more secure,
or accept theRBIdefault
manda settings.
mandated ted the card holders
holders to enter
enter PIN while transactin
transacting g at POS termin
terminals.
als. As per recent
recent RBI
guidelines,
guidel ines, all banks are mandated to issue only Chip enabledenabled Cards w.e.f.01.
w.e.f.01.10.16.
10.16.
43.Credit Cards: The concept of credit card was used in 1950 with the launch of charge cards in USA by
Diners Club and American Express. Credit card became more popular with use of magnetic strip in 1970.
Privacy Policy
The first Credit Card was issued in 1981 and Gold Card in 1986 by VISA. Credit cardholder need not
Marketing
carry cash and purchase goods and services at any approved Merchant Establishments/Point of sale
Termina
Term inals
ls by tenderi
tenderingng the card
card duly
duly signin
signingg the charge
charge slip.
slip. Fur
Furthe
ther,
r, car
cardho
dholde
lders
rs can mak
makee onl
online
ine
Personalization
purchases through internet using the card and PIN. Added to this, cardholder can withdraw cash at any
ATM across the globe. However, cash advance attracts charge i.e. transaction fee as well as service
Analytics
fee/interest charge.
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Mr.Aravind
Aravind Sankar
Page 42
44 Charge Card is like any Credit or Debit Card. These cards neither offer revolving credit like the Credit
Card nor debit the account instantaneously like Debit Card. However, the cardholder is required to settle
the
the bill
bill in full
full by the
the due
due date
date each
each mont
month.
h. Ch
Charg
arge
e ca
cards
rds make a goodgood optio
option
n to deve
develo
lop
p finan
financi
cial
al
discipline which likely to enable the cardholders to improve their credit history. Further, charge card offers
a dynamic limit, while rewarding good payment record.
45 Prepaid Card looks like a credit card and works like a debit card. These cards resemble credit and
debit cards in appearance and allow users to load any amount up to ?100000/- and can be used at any
ATM/Point
preload theofcards
Salewith
Terminal. On ause
funds via cashofdeposit
card, funds are
or wire directlyThere
transfer. debited
arefrom the card.
no finance feesCardholders
or interest
payments as charges are deducted from the prepaid balance. It is an opportunity for people who have
had little or no access to the mainstream financial system by loading funds onto a prepaid card. It is a
secure and convenient alternative to cash. The issuers of prepaid cards should ensure KYC compliance
while issuing cards to the customers/public. Various types of Prepaid Cards are – Re-loadable Cards
(value is replenished once it is used), Disposable Cards (discarded once the value is used), Closed Cards
can be used for a specific purpose (Phone Cards) and Open Cards (multi-purpose). Re-loadable cards
are most popular among “under-banked” individuals, or those who tend not to possess conventional bank
accounts.
46 Gift Card is one of the paperless payment systems and is highly popular in card industry. It is a card
with predetermined
limit and value is loaded through cash or transfer from the account. Maximum value of each prepaid gift
instrument shall
not exceed Rs.10000/-.However, these instruments shall not be reloadable.
47 Forex Card: It is similar to a normal prepaid card with a special feature meant for the students going
to abroad for higher studies. It can be used at POS terminals, ATMs and for online transactions. Parents
can load/reload the card using the login credentials issued while buying the card. The banks are levying
reasonable charges for cash withdrawal and some banks waiving the charges too. Another advantage of
the
the ca
card
rd is that
that it ca
can
n be used
used to pay
pay fees
fees in
inste
stead
ad of payi
paying
ng throu
through
gh wire
wire tra
trans
nsfer
fer from Indi
India.
a. The
The
withdrawals or payments are allowed in five currencies viz., USD,GBP, EUR, CAD and AUD. The card
validity ranges up to five years and the maximum permissible limit by RBI under Liberalized Remittance
Scheme is $2.50 lakh. At present, ICICI and HDFC banks are issuing forex cards and other banks may
follow.
47RuPay
47R uPay Deb
Debitit Car ds: It is a domes
Cards domestitic
c card
card payme
paymentnt netwo
networkrk esta
establ
blish
ished
ed by NaNatio
tiona
nall Payme
Payment
nt
Corporation of India (NPCI) having more than 100 Banks in India as members with its ATM network
spread across the country. These cards can be used at all ATMs of NPCI network and POS terminals &
e-com transactions (Internet) enabled for RuPay acquiring. The various types of RuPay Debit cards are
as under:
Card Type Meant for
This websiteRuPay
storesKisan Farmers
data such as availing Agriculture production loans (Crop Loans)
RuPay essential
cookies to enable Aadhaar site
Beneficiaries of Electronic
Beneficiaries Electronic Benefit Transfer
Transfer (EBT) scheme
RuPay Debit Beneficiaries under Financial Inclusion schemes
It provides accidental insurance cover up to ?1 lakh without any charge to the customer. To avail this
benefit, the card must be used minimum once in 90 days. The existing identification modes used in new
delivery channelsat any
hastime
a major drawback as it recognize the PIN but not the person. Sometimes, it leads
or accept the default settings.and may cause financial loss. To overcome the problem, biometric technologies such as
to impersonation
Fingerprint Recognition, Face Recognition, Voice Authentication, Hand Geometry, Retinal Scanning, Iris
Scanning and Signature Verification have come in to force. Whenever the user access to delivery channel,
Privacy Policy
it verifies with the server and deliver the service if found correct. Recently, NPCI introduced two variants
of cards viz., Rupay Platinum and Rupay Select with value added features at competitive interchange fee
Marketing
compared to VISA/Master.
Personalization
Analytics
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Mr.Aravind
Aravind Sankar
Page 43
48.NPCII servic
48.NPC service
e portfolio now and in the near future include:
include:
National Financial Switch (NFS) - network of shared automated teller machines in India. Unified
Paymentt Interfa
Paymen Interface
ce (UPI) - Single mobile application
application for accessing different bank
accounts
App - Smartph
BHIM App - Smartphone
one app built using UPI interface.
Immediate Payment Service (IMPS)

Service (IMPS) - Real time payment with mobile number. *99# -
mobile banking using USSD
National Automated Clearing House (NACH)-
Cheque Truncation System -online

System -online image-based cheque clearing system
Aadhaar Payments Bridge System (APBS)
System (APBS) -
Bharat Bill Payment System (BBPS)

System (BBPS) - integra
integrated
ted bill paymen
paymentt system
system
49 IMPS (Immediate Payment Services)
Immediate Payment Service (IMPS) is an instant real-time inter-bank electronic funds transfer system
system
in India. IMPS offers
offers an inter-b
inter-bank
ank electro
electronic
nic fund transfer
transfer service
service thro
through
ugh mob
mobile
ile pho
phones
nes.. Unl
Unlike
ike
NEFT and
NEFT and RTGS, RTGS, the
the service is available 24/7 throughout the year including bank holidays. When one
initiates a fund transfer via IMPS, the initiator bank sends a message to IMPS, which debits the money
and sends it to the receiving
receiving account. All this happen
happenss within 5-10 second
seconds.
s.

IMPS isessential
cookies to enable an innovative
site real time payment service that is available round the clock. This service is offered
by National Payments Corporation of India (NPCI) that empowers customers to transfer money instantly
through
personalization, andbanks and RBI
analytics. You authorized
authorized Prepaid Payment Instrument
Instrument Issuers (PPI) across India.
Benefits
Benefits of IMPS
Privacy Policy
Marketing Instant
Personalization
Analytics Available 24 x7 (functional even on holidays) Safe and

secure, easily accessible and cost effective
Save Accept All
Mr.Aravind
Aravind Sankar
Page 44
Channell Independent can be initiat

Channe initiated
ed from Mobile/ Internet
Internet / ATM channels
channels
Debit & Credit Confirmation by SMS to both sender and receiver
49. National Unified USSD Platform (NUUP):
NUUP (National Unified USSD Platform) is a USSD based mobile banking service from NPCI that
bri
brings
ngs together
together all the Banks and Telecom
Telecom Service
Service Provide
Providers.
rs. In NUUP
NUUP,, a cus
custome
tomerr can acces
access
s
banking services by just pressing *99# from his/her mobile phones. This service works across all
GSM mobile handsets.
IMPS transactions can be sent and received 24X7, (round the clock), including on holidays. Both sender
& receiver get SMS confirmation.
confirmation.
For using IMPS on mobi

mobile
le phones
phones,, a custome
customerr wil
willl have
have to reg
regist
ister
er for mobile banking
banking with his/h
his/her
er
individual bank. However, for initiating IMPS using Bank branch, Internet banking and ATM channels, no
prior Mobile banking registration is required. Both banked as well as un-banked customer can avail IMPS.
Howeve
How ever,
r, unb
unbanke
ankedd custome
customerr can initiate
initiate IMPS transa
transacti
ction
on usi
using
ng the service
services
s of Pre
Pre-Pai
-Paid
d Pay
Payment
mentss
instrument issuer (PPI). MMID - Mobile Money Identifier is a 7 digit number, issued by banks. MMID is
one of the input which when clubbed with mobile number facilitates fund transfer. Combination of Mobile
no. & MMID is uniquely linked with an Account number and helps in identifying the beneficiary details.
Different MMID’s can be linked to same Mobile Number. (Please contact your bank for getting the MMID
issued)
Options available
available for a customer for doing IMPS transaction
cookies to enable• essential site iary M
Using Benefic
Beneficiary Mobile
obile no.
no. and MMID
functionality, as•well as marketing,
Using Benefici
Beneficiary
ary Account
Account no.
no. and IFS
IFS Code
may change your • settings at any time Aadhaar Number
Using Beneficiary
Privacy Policy
Bharat Interface for Money (BHIM)
Marketing
Personalization
Bh
Bhara
aratt Inte
Analytics Interfa
rface
ce for
for Mo
Mone
ney
y (BHI
(BHIM)
M) is an app
app th
that
at le
lets
ts yo
you
u mak
make
e simpl
simple,
e, easy
easy and
and quic
quick
k payme
payment
nt
transactions using Unified Payments Interface (UPI). You can make instant bank-to-bank payments and
SavePay and collect
Accept All using just Mobile number or Virtual Payment
money Payment Address
Address (VPA).
Mr.Aravind
Aravind Sankar
Page 45
The following are the features of BHIM:
1. Send Money:
Money: User can send money using a Virtual Payment Addres
Address
s (VPA), Account Number
Number &
IFSC, Aadhaar Number or QR code.
2. Request
Request Money: User can collect mon
money
ey by entering Virtual
Virtual Payment Address (VPA). Additionally
Additionally
throu
through
gh BHIM
BHIM App,
App, one
one cacan
n al
also
so tra
trans
nsfer
fer money
money usin
using
g Mo
Mobil
bile
e No
No.. (Mo
(Mobi
bile
le No sh
shou
ould
ld be
registered
registered with BHIM or *99# and account should be linked)
3. Scan & Pay: User can pay by scanning

scanning the QR code through
through Scan & Pay & generate you
yourr QR
option is also present.
4. Transactions:
Transactions: User can check transaction
transaction history and also pending UPI collect requ
requests
ests (if any)
and approve or reject. User can also raise complaint for the declined transactions by clicking on
Report issue in transactions.
5. Profile: User
User can view the static QR code and Payment addresses
addresses created
created or also share the QR
code through various messenger applications like WhatsApp, Email etc. available on phone and
download
downloa d the QR code.
6. Bank Account:
Account: User can see the bank account linked wi
with
th his/her BHIM App and set/change
set/change the
UPI PIN. User
User can also change
change the bank account
account lin
linked
ked with BHIM App by clicki
clicking
ng Change
account provided in Menu and can also check Balance of his/her linked Bank Account by clicking
“REQUEST BALANCE”
7. Language:
Language: Up to 8 regional
regional languages (Tamil,
(Tamil, Telugu, Bengali,
Bengali, Malayalam, Oriya,
Oriya, Gujarati,
Kannada ,Hindi) available on BHIM to improve user experience.
8. Block User: Block/Spam

Block/Spam users who are sending
sending you collect requests
requests from illicit sources
sources..
9. Privacy:
Privacy: Allow a user to disable and enable
enable mobilenumb
mobilenumber@up
er@upii in the profile if a secondary VPA
is created (QR for the disabled VPA is also disabled).
functionality, as wellAPP
**BHIM as marketing,
is available in play store (for android User) and App Store (for Apple User)**
may change 50. Bharat
your QR at any time
settings
In a major push for seamless cashless transactions, Govt. of India has launched Bharat QR Code, which
Privacy Policy
is world’s first interoperable payment platform. National Payments Corporation of India (NPCI), which is
the umbrella organisation for all digital and online retail payment systems in India, has developed this
Marketing
platform, which is expected to inspire and encourage more digital payments, without using debit or credit
Personalization
card.
Analytics
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Mr.Aravind
Aravind Sankar
Page 46
Codes are black and white two-dimensional machine readable code, which stores information about
QR Codes are
the merchant’s bank accounts and URLs. With Bharat QR Code interface, merchants need to take a
printout of their QR code (or have a soft copy) and show it to the consumer, who can simply scan the
code using his or her smartphone, and the payment would be made. Instantly, seamlessly and without
any hassles.
We had
had repo
reporte
rted
d la
last
st year
year th
that
at Govt
Govt.. is co
cons
nsid
ideri
ering
ng to create a common
create common QR Cod Codee bas
based
ed pay
payment
ment
mechanism, which
which has now been
been officia
officially
lly launch
launched.
ed. The Retail
Retail ind
indust
ustry
ry is exc
excite
ited
d by its pos
possib
sibilit
ilities
ies
because QR code-based payments solves two major problems in a single go: a) less time consumed to
make the payment, compared to debit/credit card b) no requirement to actually flash your credit/debit
cards for making the payment.
payment.
Here are some interesting facts about Bharat QR Code payment system, which every debit/credit holder
(who is also a bank account holder) should be aware of:
51.Smart Cards
The smartcards have increased data security, an active anti-fraud capabilities, multipurpose capabilities,
flexibility in applications, and off-line validation. These functions are more or less inter-related but the
most important of all is the high level of security provided by the smartcard compared to the other type of
cards in operation. This makes it possible the use the smart cards in transactions dealing with money,
property and personal data.
The Reserve Bank of India has set a target for banks to upgrade all ATMs by September 2017 with
additional safety measures to process EMV chip and PIN cards in order to prevent skimming and cloning
of debit and credit cards.
While the POS terminal infrastructure in the country has been enabled to accept and process EMV chip
and
This website PIN data
stores cards, theas
such ATM infrastructure continues to process the card transactions based on data from the
cookies to enable
magnet
mag essential
netic stripe.site
ic stripe. As a result,
result, the ATM card transacti
transactions
ons remain
remain vul
vulnera
nerable
ble to skimmin
skimming,
g, cloning
cloning,, etc.
etc.
frauds, even though
functionality, as well as marketing, the cards are EMV chip and PIN based.
may change It your
has become
settings atnecessary
any time to mandate EMV (Europay, MasterCard, Visa) chip and PIN card acceptance
and
or accept the processing
default at ATMs also. Contact chip processing of EMV chip and PIN cards at ATMs would not
settings.
only
onl y enhanc
enhance e the safety
safety and security
security of transac
transaction
tionss at ATMs but also
also faci
facilit
litate
ate prepare
preparedne
dness
ss of the
banks for the proposed
the proposed “EMV Liability Shift” for ATM transactions,
transactions, as and when it comes into effect.
Privacy Policy
Further, in order to ensure uniformity in card payments ecosystem, banks b anks should also implement the new
Marketing
requirements
require ments at their micro-ATMs which are enabled to handlehandle card-ba
card-based
sed payments.
Personalization
Analytics
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Mr.Aravind
Aravind Sankar
Page 47
53.CVV OR CSC NUMBER
The CVV Number ("Card Verification Value") on credit card or debit card is a 3 digit number on VISA,
MasterCard and Discover branded credit and debit cards. On American Express branded credit or debit
card it is a 4 digit numeric code.
The CVV number can be located by looking on credit

on credit or
or debit card, as illustrated in the image below:
Providing the CVV number to an online merchant proves that one actually has the physical credit or debit
card - and helps to keep one safe while reducing fraud.
CVV numbers are NOT the card's secret PIN (Person

(Personal
al Identification
Identification Number).
One should never enter one’s PIN number when asked to provide the CVV. (PIN numbers allow one to
use one’s credit or debit card at an ATM or when making an in-person purchase with debit card or a cash
advance
advance with any credit card.)
CVV numbers are also known as CSC numbers ("Card Security Code"), as well as CVV2 numbers, which
are the same as CVV numbers, except that they have been generated by a 2nd generation process that
makes them harder to "guess".
In 2016, a new e-commerce technology

technology called Motioncode was introduced, designed to automati
automatically
cally
refresh the CVV code to a new one every hour or so.
54.ATM & POINT OF SALE (POS)
ATM (Automated Teller Machine) A typical ATM could duplicate most of the services of a live teller;
deposits, withdrawals, and money transfers between accounts all could be made with relative ease. More
significantly, the terminals could be located outside the bank lobby, allowing 24 hour access and greater
customer convenience. For the banks ATM’s became mini-branches that extended their financial territory
and customer base far beyond physical buildings. As a result, many ATMs rapidly found homes inside
major retail outlets, convenience stores,
stores , gas stations, and other highly trafficked locations, a situation
This website stores
welcomed
welcome data such as
d by businesses
businesses because it provided
provided instant cash for customers.
customers.
White as ATMs
label marketing,
are those ATMs which do not belong to any bank but managed by a non-banking entity,
e.g., Indicash, YouATM, Prism Payment Services.
India-1
However, ATM’s would not be the final solution to the common electronic goal, because they still involved
the use of paper money. Yet, in a second generation machine called a Point of Sale terminal (POS), the
prospect of having a truly cashless society suddenly took a giant leap forward. The potential of POS for
Privacy Policy
achiev
ach ieving
ing a tot
totally
ally automated
automated economy
economy was enormous.
enormous. It was logical
logical to ass
assume
ume that if the cap
capabi
ability
lity
existed for electronic banking to the extent of
of obtaining
obtaining cash out of an account using a networked ATM
Marketing
system, then the technology also must be ripe for eliminating the need for physical money altogether.
Personalization
POS terminals were seen as a key ingredient in the transition to this goal.
Analytics
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Mr.Aravind
Aravind Sankar
Page 48
A point of sale terminal (POS terminal) is an electronic device used to process card payments at retail
locations. . Point of sale terminals are a combination of software and hardware that allows retail locations
to ac
acce
ceptpt ca
card
rd pa
payme
ymentnts
s wi
with
thout
out upupda
datin
ting
g th
their
eir ca
cash
sh reg
regis
ister
ters
s to re
read
ad ca
card
rdss di
direc
rectly
tly.. Th
The
e cocosts
sts of
inst
install
allin
ing
g POS te termi
rmina
nals
ls va
vary
ry wi
with
th th
the
e si
size
ze of th
the
e bu
busi
sine
ness
ss anandd th
the
e te
terms
rms fro
from
m th
the
e susupp
pplie
lier.
r. Sma
Smallll
merchants may have to pay rent for the terminal, as well as pay an additional per-transaction fee.
The trend is away from the traditional use of just magnetic stripe reader as more options open up for
mobile payments.
A POS terminal generally does the following:
Reads the information off a custome

customer’s
r’s credit or debit card
Checks whether
whether the funds in a custome
customer’s
r’s bank account are suffici
sufficient
ent
Transfers the funds from the custom

Transfers customer’s
er’s account to the seller’s account
account (or at least,
accounts
accoun ts for the transfer with the credit card network)
Records
Records the transa
transaction
ction and prints a receip
receiptt
Despite the more advanced technology of a POS system as compared to a simple cash register, the POS
system is still as vulnerable to employee theft through the sale window. A dishonest cashier at a retail
outlet can collude with a friend who pretends to be just another customer. During checkout the cashier
can bypass scanning certain items or enter a lower quantity for some items thus profiting thereby from the
"free" goods.
With the launch of mobile payment particularly Android Pay and Apple Pay both in 2015, it is expected
that because of its greater convenience
convenience couple
coupled
d with good security features, this would eventually
eventually eclips
eclipse
e
This websiteother types
stores ofsuch
data payment
as services - including the use of payment terminals. However, for mobile payment to
cookies to enable
go fullyessential
mainstream,site mobile devices like smartphones that are NFC-enabled must first become universal.
functionality,
NFCas well as marketing,
(near
(ne ar field
field comm
communiunicat
cation
ion)) is the tec
techno
hnolog
logy
y tha
thatt all
allows
ows two dev
device
ices—li
s—like
ke you
yourr pho
phone
ne and a
payments terminal—toYou talk to each other when they're close together. NFC is the technology that enables
may change contactless payments.time
your settings at any
Electronic funds transfer at point of sale (EFTPOS) is an electronic payment system involving electronic
funds transfers based on the use of payment cards, such as debit or credit cards, at payment terminals
Privacy Policy
located at points of sale. EFTPOS is highly popular in Australia and New Zealand, and being used in NZ
for about 60% of all retail transactions.
transactions.
Marketing
Personalization
Analytics
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Mr.Aravind
Aravind Sankar
Page 49
Latest Trends in eCommerce

eCommerce
A key outcome of the technology revolution in India has been connectivity, which has fuelled
unpre
unprece
cede
dent
nted
ed acce
access
ss to in
infor
forma
mati
tion
on.. Mi
Milli
llion
ons
s of peop
people
le wh
who o had
had lit
littl
tle
e me
mean
ans
s to join
join the
the natio
nationa
nall
discourse can now gain new insights into the world around them. Farmers know crop prices. Consumers
underst
und erstand
and global
global standa
standards
rds of pro
produc
ductt and service
service quality
quality.. Rural
Rural Ind
Indians
ians reco
recognis
gnise
e the differe
difference
nces
s
between the opportunities available to them and those available to their urban counterparts. And citizens
have a mass forum for expressing their political opinions. The upshot of this connectivity revolution has
been empowerment of Indians.
An analysis of the demographic profile of internet users further testifies that eCommerce will rise rapidly in
India in coming years. Around 75% of Indian internet users are in the age group of 15 to 34 years. This
category shops more than the remaining population. Peer pressure, rising aspirations with career growth,
fashion and trends encourage this segment to shop more than any other category and India, therefore,
clearly
clearly enjoys
enjoys a demogr
demograph
aphic
ic divide
dividend
nd that
that favour
favourss the growth
growth of eCo
eCommer
mmerce.
ce. In comi
coming
ng yea
years,
rs, as
internett presen
interne presence
ce increases in rural areas, rural India will yield more eComme
eCommerce
rce business
Mobile to be the most influen

Mobile influentia
tiall aspect
aspect of eCommer
eCommercece -With
-With mobile
mobile app
apps
s bei
being
ng develo
developed
ped by most
eCommerce websites, smartphones are increasingly replacing PCs for online shopping. In 2013, only
10% of the mobile users used smartphones, and only 5% of the eCommerce transactions were made
through
through a mob
mobile
ile devic
device.
e. This
This figure
figure has more than double
doubled,
d, and more tha
thann 13% of all eComme
eCommercerce
transactions today happen via mobile3. According to some industry players, over 50% of the orders are
being placed through mobile apps, which is not only leading to substantial customer acquisition but also
build
buildin
ing
g cu
cust
stome
omerr lo
loya
yalty
lty fo
forr va
vario
rious
us bra
brands
nds.. Ho
Howe
weve
ver,
r, most
most mobi
mobilele tra
trans
nsac
acti
tion
ons
s so far
far are for
entertainment, such as booking movie tickets and music downloads. This trend will change soon with
more and more merchandise
merchandise being orderedordered online.
online.
More business coming from smaller towns - eCommerce is increasingly attracting customers from Tier 2
and
and 3 ci citi
ties,
es, wh
where
ere peop
peoplele have
have lilimit
mited
ed acce
access
ss to br
bran
ands
ds but
but have
have high
high aspi
aspira
ratio
tions
ns.. Ac
Acco
cordi
rding
ng to
This website stores
eCommerce
eCommerc data such as
e companies,
companies, these cities have seen a 30% to 50% rise in transa
transactions.
ctions.
Enhanced shopping experience - Besides general online shopping, customers are also shopping online
for
for wedd
weddinings
gs and
and fefest
stiv
ival
als,
s, th
than
anks
ks to widewiderr ra
rang
nge
e of prod
produc
ucts
ts be
bein
ing
g offe
offere
redd and
and aggr
aggres
essi
sive
ve
advertisements
advert isements.. The free and quick shipment
shipment and wider choice of products, along with the ease of
Privacy Policy
shopping
shopping online as compared to in-store
in-store shopping,
shopping, is also helping eCommerce gather momentum.
Marketing
Personalization
Further,
Furthe r, eCommerce
eCommerce companies are doing rapid business due to sales.
Analytics
Exclusive partnerships with leading brands - Over the year or so, there has been a trend of exclusive tie-
ups between eTailers and established boutiques, designers, and high-end lifestyle and fashion brands.
SaveFor instan Accept
instance,
ce, All added
Jabong
Jabong added intern
internatio
ational
nal fashion
fashion brands
brands suc
suchh as Doro
Dorothy
thy Per
Perkins
kins,, Riv
River
er Island
Island,, Blu
Blue
e
Mr.Aravind
Aravind Sankar
Page 50
saint and Miss Selfridge, along with local fashion brands through Jabong Boutiques. Similarly, Myntra
benefited from exclusive tie-ups with brands such as Harvard Lifestyle, Desigual and WROGN from Virat
Kohli.
Expanding the product basket - There is a recent trend of relatively newer products such as grocery,
hygiene, and healthcare

hygiene, healthcare products being purchased online. Similarly
Similarly,, lingeri
lingerie
e and Indian jewellery has also
been
been in grea
greatt deman
demandd among
among cucusto
stomer
mers
s outsi
outside
de In
Indi
dia.
a. Ex
Expo
port rt co
comp
mpris
rises
es 95%
95% of cros
cross-
s-bo
bord
rder
er
eCommerce,
eCommerc e, with the US, UK, Australia,
Australia, Canada and Germany being the major markets.
Innovation in online business models
To get the maximum benefit from eCommerce business, a large number of companies such as Amazon,
Alibaba etc. are adopting different innovative ideas and operating models including partnering with online
marketplaces
marketp laces or setting up their own online
online stores. Some key operating models include
include the followi
following:
ng:
• Marketplace
Marketplace and pick-up & drop is a model where sellers often partner
partner with leading marke
marketplace
tplaces
s
to set up a dedicated online store on the latter’s website. Here sellers play a key role of managing
invento
inventory
ry and dri
drivin
ving
g sales.
sales. They
They levera
leverage
ge on high
high traf
traffic
fic on the mark
marketp
etplac
laces’
es’ web
websit
site
e and
access their distribution network. However, the sellers have limited say on pricing and customer
experience.
• Self-ow
Self-owned
ned inventor
inventory
y is a model
model where
where the eCommerc
eCommerce
e pla
player
yer owns the invent
inventory
ory.. The model
provides
provides bett
better
er post-
post-pu
purch
rchas
asee cu
cust
stome
omerr expe
experi
rienc
encee and
and fulfil
fulfilme
ment
nt.. It prov
provid
ides
es smoot
smoothe
her
r
operati
ope rations
ons due to ready
ready informa
informatio
tion
n on the invento
inventory,
ry, locatio
location,
n, sup
supply
ply cha
chain
in and shi
shipme
pments
nts,,
effectively leading to better control over inventory. On the flipside, however, there are risks of
potential
potenti al mark downs and working capital getting tied up in inventory
inventory..
• Private
Private label
label reflect
reflects
s a busines
business
s where
where an eCommerce
eCommerce company
company sets up its own bra
brand
nd goods,
goods,
which it sells through its own website. This model offers a wide-ranging products and pricing to its
customers and competes with branded labels. Here, margins are typically higher than third-party
This website storesbranded
data suchgoods.
as
functionality, as•well as marketing,
White label involves
involves the setting up of a branded online
online store managed by the eCommerce
eCommerce play
player
er
or a third
third party.
par ty. The brand takes
takes the respons
responsibi
ibility
lity of gen
generat
erating
ing website
website traf
traffic
fic and provid
providing
ing
services
may change your settings at by
anypartnering
time with payment gateways. It helps build trust, customer affinity and loyalty
and provides better control of brand and product experience.
54.SMS BANKING & BANKING ALERTS

Privacy Policy
Marketing
SMS banking is a form of mobile banking. It is a facility used by some banks or other financial institutions
to send messages (also called notifications or alerts) to customers' mobile phones using SMS messaging,
Personalization
or a service provided by them which enables customers to perform some financial transactions using
Analytics
SMS.
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Mr.Aravind
Aravind Sankar
Page 51
SMS banking services may use either push and pull messages. Push messages are those that a bank
sends out to a customer's mobile phone, without the customer initiating a request for the information.
Typically, a push message could be a mobile marketing message or an alert of an event which happens
in the customer's bank account, such as a large withdrawal of funds from an ATM or a large payment
involving the customer's credit card, etc. It may also be an alert that some payment is due, or that an e-
statementt is ready to be downloaded.
statemen downloaded.
Another type of push message is one-time password (OTPs). OTPs are the latest tool used by financial
institutions to combat cyber fraud. Instead of relying on traditional memorized passwords, OTPs are sent
to a customer's mobile phone via SMS, who are required to repeat the OTP to complete transactions
using online or mobile banking. The OTP is valid for a relatively short period and expires once it has been
used.
Bank customers can select the type of activities for which they wish to receive an alert. The selection can
be done either using internet
internet banking or by phone.
Pu
Pullll messa
messagegess are
are in
initi
itiate
atedd by th
the
e cu
cust
stome
omer,r, usin
using
g a mobi
mobile
le phon
phone,
e, for
for obtai
obtainin
ning
g infor
informat
matio
ion
n or
performing a transaction in the bank account. Examples of pull messages include an account balance
enquiry, or requests for current information like currency exchange rates and deposit interest rates, as
publish
pub lished
ed and updated
updated by the bank.
bank. Depend
Depending
ing on the select
selected
ed extent
extent of SMS bankin
banking
g tran
transac
saction
tions
s
offered by the bank, a customer can be authorized to carry out either non-financial transactions, or both
and
and finan
financia
ciall and
and non-f
non-fininan
anci
cial
al tra
trans
nsac
acti
tions
ons.. SMS banki
banking
ng so
solu
lutio
tions
ns off
offer
er cu
custo
stomer
mers
s a rang
rangee of
functionality, classified by push and pull services as outlined below.
Typical push services would include:
periodic
periodic account balance reporting (say at the end of month);
This website storesreportin
data such
reportingg ofassalary and other credits to the bank account;
personalization, andsuccessful
analytics. or
You un-successful execution of a standing order;
may change your settings at
successful
succes any
sful time of a cheque issued
payment issued on the account;
insufficient funds;
Privacy Policy
large value withdrawals on an account;
Marketing
large value withdrawals on the ATM or EFTPOS on a debit card;
Personalization
Analytics
large value payment on a credit card or out of country activity on a credit card. one-
Save timeAccept All and authentication
password
Mr.Aravind
Aravind Sankar
Mr.Aravind
Aravind Sankar
Page 52
an alert that some payment is due
an alert that an e-statement is ready to be downloaded.
Typical pull services would include:
Account balance enquiry; Mini statement request; Electronic bill payment;
Transfers between customer's own accounts,

Transfers accounts, like moving money from a savings
savings accou
account
nt to a
current account
account to fund a cheque;
cheque;
Stop payment instruction on a cheque;
Requesting for an ATM card or credit card to be suspended;
De-activating a credit or debit card when it is lost or the PIN

PIN is
is known to be
compromised;
Foreign currency exchange rates enquiry;

Fixed deposit interest rates enquiry
Security concerns in SMS Banking
The lack of encryption on SMS messages is an area of concern that is often discussed. This concern
sometimes arises within the group of the bank’s technology personnel, due to their familiarity and past
experience with encryption on the ATM and other payment channels. The lack of encryption is inherent to
the
the SMS bank
bankining
g ch
chan
anne
nell and
and seve
severa
rall banks
banks that use
use it have ove
overcom
rcomee the
their
ir fear
fears
s by introdu
introducin
cing
g
compens
comp ensatin
ating
g con
control
trols
s and limiting
limiting the scope of the SMS banking
banking appli
applicat
cation
ion to whe
where
re it offe
offers
rs an
advantage
This website over
stores data other
such as channels.
Suppliers You
of SMS banking software solutions have found reliable means by which the security concerns
can be addres
addressedat any time
sed.. Typica
Typically
lly the methods
methods employ
employed
ed are by pre
pre-reg
-registr
istrati
ation
on and usi
using
ng sec
securi
urity
ty toke
tokens
ns
where the transaction risk is perceived
perceived to be high.
Privacy Policy
Most online banking platforms are owned and developed by the banks using them. There is only one
open source online banking platform supporting mobile banking and SMS payments called Cyclos, which
Marketing
is developed to stimulate
stimulate and empower local banks in development countries.
countries.
Personalization
Analytics
Save Accept All

Mr.Aravind
Aravind Sankar
Page 53
SMS & Email Alerts in Banking
This is a very useful facility that sends customer information on customer’s banking transactions. The
al
alert
erts
s are eithe
eitherr even
eventt base
based
d or fre
frequ
quenc
encyy base
based.
d. When
When reg
regis
ister
ter for ce
certa
rtain
in alert
alerts
s they
they are
are se
sent
nt to
customer either via SMS or email, or both. Some alerts are made mandatory by regulator whereas for
others they customer may choose as per his requirement. Some banks send email alerts for monthly
account
accou nt statements in encrypted
encrypted pdf format which may be opened
opened using a passw
password
ord only.
RBI’s has made SMS for clearing cheque transactions mandatory- Expressing concern over the rise in
cheque-related fraud cases, the Reserve Bank of India (RBI) has made SMS alerts mandatory for such
transactions since November 2014. Banks now send SMS alerts to both payer and drawer in cheque
transactions
transactions as soon as the instruments are receiv
received
ed for clearing.
clearing.
56.Bharat Bill Payment System (BBPS)
Bharat Bill Payment System (BBPS) is an integrated bill payment system in India offering interoperable
and accessible bill payment service to customers online as well as through a network of agents, enabling
multiple payment modes, and providing instant confirmation of payment.
57. National Payments Corporation of India (NPCI) will function as the authorised Bharat Bill Payment
Central Unit (BBPCU), which will be responsible for setting business standards, rules and procedures for
technical and business requirements for all the participants. NPCI, as the BBPCU, will also undertake
clearing and settlement activities related to transactions routed through BBPS. Existing bill aggregators
and banks are envisaged to work as Operating Units to provide an interoperable bill payment system
irrespective of which unit has on-boarded a particular biller. Payments may be made through the BBPS
using cash, transfer cheques, and electronic modes. To start with, the scope of BBPS will cover repetitive
payment
pay mentss for eve
everyd
ryday
ay uti
utility
lity serv
service
ices
s suc
suchh as ele
electri
ctricity
city,, wat
water,
er, gas
gas,, tele
telepho
phone
ne and Dir
Direct-
ect-to-H
to-Home
ome
(DTH). Gradually, the scope would be expanded to include other types of repetitive payments, like school
This website/ univer
university
storessity
datafees,
suchmunicipal
munici
as pal taxes etc.
Computer
functionality, as well asSecurity which is also at times referred to as information security is concerned with three main
marketing,
areas:and analytics. You
personalization,
Confidentiality:-
or accept the1.default settings. Only authorized users can access the data resources and information.
2. Integrity:-
Integrity:- Only authorized
authorized users should be able to modify the data when needed.
Privacy Policy
3. Availability:-
Availability:- Dat
Data
a should be available
available to users when needed.
needed.
Marketing
Personalization
Each of the above three areas is critical for computer security. Confidentiality deals with prevention of
data theft such as bank account information, credit card information, passwords etc. Integrity refers to
Analytics
prevention of unauthorized data creation, modification or deletion. Last but not the least is availability,
which ensures
ensures that the users are able to access data whenever
whenever needed.
Save Accept All
Mr.Aravind
Aravind Sankar
Page 54
58.Aadhaar Enabled Payment System
Background
In order to further speed track Financial Inclusion in the country, Two Working Group were constituted by
RBI on MicroAT
MicroATM M standa
standards
rds and Central
Central Infrast
Infrastruc
ructure
ture & Connec
Connectivi
tivity
ty for Aad
Aadhaa
haarr bas
based
ed fin
financ
ancial
ial
inclus
inclusion
ion transac
transaction
tions
s wit
with
h members
members repres
represent
enting
ing RBI,
RBI, Unique
Unique Ide
Identif
ntifica
icatio
tion
n Auth
Authorit
ority
y of Ind
India,
ia, NPCI,
NPCI,
Institute for Development and Research in Banking Technology and some special invitees representing
banks and research institutions.
The workin
workingg gro
group
up on MicroAT
MicroATM M standard
standards
s & Central
Central Infrast
Infrastruc
ructure
ture & Con
Connect
nectivit
ivity
y has submit
submitted
ted its
report to RBI. As a part of the working group it was proposed to conduct a Lab level Proof of concept
(PoC), integrating the authentication & encryption standards of UIDAI, to test the efficacy of MicroATM
standards and transactions using Aadhaar before they are put to actual use. The PoC was successfully
demonstrated at various venues.
AEPS is a new payment service offered by the National Payments Corporation of India to banks, financial
institutions using ‘Aadhaar’. This shall be known as ‘Aadhaar Enabled Payment System’ and may also be
referred to as “AEPS”. AEPS is a bank led model which allows online interoperable financial inclusion
transac
tran saction
tion at PoS (Mi
(MicroA
croATM)
TM) through
through the Busine
Business
ss corr
corresp
espond
ondent
ent of any ban
bank
k usi
using
ng the Aadhaa
Aadhaar r
authentication. Any resident of India holding an Aadhaar number and having a bank account may be a
part of the Aadhaar Enabled Payment System.
The custom
customerer cond
conducti
ucting
ng an AEPS transa
transacti
ction
on may visit
visit a BC Cust
Customer
omer Acc
Access
ess Point.
Point. The BC using
using
the Point of Sale (MicroATM) device will be able to process transactions like Cash Withdrawal, Cash
Deposit, Balance Enquiry and Fund Transfer by selecting the transaction of their choice. The Customer
needs to provide their Aadhaar Number and their bank name or bank IIN number.
This websiteIINstores
number
dataidentifies
such as the bank to which the customer has mapped his/her Aadhaar number. Each bank
cookies to enable
wo
woul d essential
uld be isissu
suedsite
ed a uniqu
uniquee Is
Issu
suer
er Id
Ident
entifi
ifica
catio
tion
n Nu
Numb
mber
er (II
(IIN)
N) NPCI.
NPCI. This
This is a six
six digi
digitt numbe
number.
r. The
The
functionality, as well as
customer marketing,
service point will have the IIN number represented on the terminal by various bank logos/ bank
personalization,
names andoranalytics. You Correspondent (BC) agent will have a chart displayed of various banks IIN in the
the Business
may change your settings at any
customer service centre. time Therefore the customer need not necessarily remember the IIN. It is however
recommended
recommen ded that the customer
customer be aware of their bank IIN to completely ensure an AEPS transaction.
Privacy Policy
The four Aadhaar enabled basic types of banking
banking transactions are as follows:-
follows:-
Marketing
• Balance Enquiry
Personalization
• Cash Withdrawal
Analytics
• Cash Deposit
Save Accept All
• Aa
Aadh
dhaa
aarr to Aa
Aadh
dhaa
aarr Fu
Fund
nds
s Tr
Tran
ansf
sfer
er
Mr.Aravind
Aravind Sankar
Page 55
The only inputs required for a customer to do a transaction under this scenario are:-
• IIN (Id
(Iden
entif
tifyi
ying
ng th
the
e Ba
Bank
nk to wh
which
ich th
the
e cu
cust
stome
omerr is asso
associ
ciat
ated)
ed)
• Aadhaar Number
• Fi
Finge
ngerpr
rprint
int captu
captured
red duri
during
ng th
their
eir enro
enrollm
llmen
entt
Objectives
 To empowe
empowerr a bank cu custo
stomer
mer to use Aadhaa
Aadhaarr as his/her
his/her ide
identit
ntity
y to acc
access
ess hi
his/
s/ her res
respec
pective
tive
Aadhaar enabled bank account and perform basic banking transactions like balance enquiry,
Cash depos
deposit,
it, cash withdrawal,
withdrawal, remittances
remittances that
that are intrabank
intrabank or
or interba
interbank
nk in nature,
nature, through a
Business Correspondent.
 To sub-serve
sub-serve the goal of Government
Government of India (GoI) and Reserve
Reserve Bank of India (RBI) in furthering
furthering
Financial Inclusion.
 To sub-serve
sub-serve the goal of RBI in electronification
electronification of retail
retail payments.
payments.
 To enable banks to route the Aadhaar initiated
initiated interbank transa
transactions
ctions throu
through
gh a central switching
and clearing agency.
 To facilitate disbursements
disbursements of Government entitlement
entitlements
s like NREGA, Social Security pensio
pension,
n,
Handicapped Old Age Pension etc. of any Central or State Government bodies, using Aadhaar
and authentication
authentication thereof as supported
supported by UIDAI.
 To facilitate inter-opera
inter-operability
bility across banks
banks in a safe and secured
secured manner.
 To build the foundation
foundation for a full range of Aadhaar
Aadhaar enabled Banking
Banking services.
Services
Services Offered by AEPS
 Balance Enquiry
 Cash Withdrawal
 Cash Deposit
This website stores data such
 Aadhaar
Aadhaa r toasAadha
Aadhaar
ar Fund Transfer
Transfer
 Gateway Authentication Services
Privacy Policy
Marketing
Personalization
Analytics
Save Accept All

Mr.Aravind
Aravind Sankar
Page 56
Digital Banking Recollected questions:::
1.CTS abbreviation cheque truncation system

2. What is firewall?: A software
software programme for protecting
protecting against unauthorized
unauthorized access to the informat
information.
ion.
3.BBPS … Bhatart Bi
Billll payment
payment sytem
4.MDR: merchant discount rate
5. minimum amount which can be remitted under RTGS by a customer: Minimum Rs. 2 lac and no
Maximum.
6.Max amount
amount of NEFT can be remitted
remitted ..no limit
7. AEPS stand
standss for : Aadhar
Aadhar Enabled
Enabled Payment System.
8. CPPC stands
stands for : Central Pension
Pension Processing
Processing Cell.
9. IBPP stands for : Internet Bill Presentation & Payment.
10. Rupay Platform refers to: Nation
Nationalal Payments Corporation of India (NPCI) initiated
initiated the launch of
RuPay card in India. It was
done with the intention of integration of payment systems in the country. It has led to lower transaction
cost as
processing
proces sing is being done within country.
country. Also, transactions
transactions will be faster.
11. Encryption means: Conversion
Conversion of plain language
language into secret language,
language, i.e., coding and The extent of
coverage under
12. Maximum RTGS Charge for Rs.2 lac to 5 lac: Rs.25.00 + service tax
13. Application under ASBA can be applied for: a) IPO b) Right Issue c) Mutual fund
14. E-sahyog
E-sahyog portal:belongs
portal:belongs to Income Tax
Tax
15. A Proxy server is for: To provide secur
security
ity against unauthoriz
unauthorized
ed users
16. Phising?: To steal the customers
customers personal / confidential
confidential data
17. In case of failed ATM transaction customer will get money in 7 working days after compliant
18. CVV: Customer
Customer Verification
Verification Value
19.NPCI:
19.NPC I: National
National Payment
Payment Corporation
Corporation of India.
functionality,
20.asNUUP:
well asNational
marketing,
Unified USSD Platform.
personalization, and International
21.IMEI: analytics. YouMobile Equipment Identity.
22. CVD: Customer at any
Custome time tion Data.
r Verification
Verifica
or accept the defaultstraight
23.STP settings.
through process
24. . Forward Market Commissio
Commission n is established for:.- Commodity futures
25. Full form of ALU: Arithmet
Arithmetical
ical Logical Unit
Privacy Policy
26. Full form of HTTP: Hyper Text Transfer Protocol
27. Full form of INFINET? Indian Financial
Financial Network
Marketing
28. GBM: Govt. Business Module
29. IBPP stands for: Interne
Internett Bill Presentation
Presentation & Payment
Payment
Personalization
30. IMPS: Immediate Mobile Payment Service - Mobile to account
31. Starting of a computer is called: Booting
Analytics
32. Universal set of standards
standards and guidelines for communication by EDI is called: EDIFACT.
33. Full form of ISDN: Integrated
Integrated Services Digital Network.
Save Accept All
34. RTGS amount limit for customers: Min Rs.2 lac and no max
35. Which bank has max share in INFINO PAYTECH Ltd : ICICI Bank
Mr.Aravind
Aravind Sankar
Page 57
36. USSD: Unstructured Supplementary Service Data.

37. LAN: Local Area Network
38. AEPS stands for : Aadhar Enabled Payment System
39 ATM : Anywhere, anytime,
40. BCP- Business continuity Plan
41. First committee on compute
computerizatio
rization
n in banks was headed
headed by: Dr C Rangarajan.
Rangarajan.
42. In an Organisation communication
communication between the same organization,
organization, what type of system applicable:
applicable:
Intranet.
43. In CBS, signatures are loaded through
through scanning..
scanning..
44. WAN: Wide area network
45.WAN uses ….interconnecting computers at different Geographical locations
46.CHI : Clearing
Clearing Housing
Housing interface
47.ECE: electronic clearing system
48.APB: Aadhaar pay bridge
49. When in a computer
computer network one network protocol encaps
encapsulates
ulates a different payload
payload protocol, it is
called: Tunnel.
50 Computer Security Day : 30th November
November
51. customer’s account
account should be credited
credited within how many days of the complaint?
complaint?:: 7 workin
working
g
52. First step towards computerisation
computerisation in Banking:
Banking: Setting up ALPM (Advanc
(Advance e Ledger Postin
Posting
g Machin
Machine) e)
53. CIDR: central
central identities
identities data repository
repository
54.BBPCU:Bharat bill payment central unit
Today Digital banking recollected
Aeps
Nach
Upi
Virtual keyboard to safegaurd against keylogger
4 questions on process of chargeback
Nfc technology and RFID
Approx 8-10 question on security of POS terminals
2 que on MDR
This website storesisdata
What cashsuch as
withdrawal through pos called
Many
Privacy Policy questions were there from BC
, POS,
Marketing
off us,
on us transactions,
Personalization
pharming attack,
Analytics
phishing attack,
Save Accept All
ATM skimming,
business risk,
Mr.Aravind
Aravind Sankar
Page 58
memory scrapping,
jackpotting,
Financial inclusion,
Dispute Management System,
CTS,
Digital marketing,
internet banking 2FA
, AEPS,
Keylogger Virtual keyboard,
Pinterest ,
Graffiti,
OOH,
brown level ATM,
ekyc ,
FI is backed by
wat is Graffiti.
wat
Manis agCRM
ementcustomer
. Relationship one questions on fraud in ATM card
and Internet banking. wat is RTGS and Next generation
RTGS
watt is Ru
wa Rupapayy Pa
Pays
ysec
ecur
uree So
Solu
luti
tion
on.. Be
Bene
nefi
fits
ts of Rupa
Rupayy
Card. wat is NACH and it's Role.
ABPS and NACH diffrence. .wat is ASA and
KSA. .one question on NFS and EKYC. Offus and
OnUs transactio
transaction n Diffrence
Diffrence.. RTGS and NgT
NgTGS.
GS.
NG rtgs works on ISO 20022. wat is CCIL clearing Corporation of India
it's Role and Functions. wat is Diffrence between DVP-lll
This website stores datavs
(Delivery such as
payment and Payment Vs Delivey) System..
Diffre
Dif
personalization, frence
andnce bet
betwee
ween
analytics. n Com
You Compli
plianc
ancee and con
conven
venienc
ience.
e. mas
masque
queradi
rading
ng and Cyb
Cyber
er
may change mugging.
your settings at any time
or accept the
wadefault
t is Jesettings.
ckpotting. wat is MILTDOWN and
Spectrame. One question on Telebanking. MMID and MPlpin wat
Digit MMID 4 Digit
Privacy Policy
wat is giftcard prepaid card and store value card
Marketing
diffrences. .credit and charge card diffrences. .questions
Personalization
on magnetic strip card EMV chipbased
card.
Analytics questuons on what Document requires for
Representment in prearbitration
Save Accept All
process...... operating system hardening is a
Application server risk. diffrence between Enduser risk and
Mr.Aravind
Aravind Sankar
Page 59
application server risk. wat is mobile device

risk. wat is Identity Theft. Difference between
Basic Phishing and Spear phishing. . ......
Digital banking Recollected Questions on 1st July 2018 paper.... 1.cyber mugging
2.Miltdown & Spectrate. 3.what is Jeckpotting in ATM. 4.NPCI.... 5.CCIL one
question. 6 .one question on CIA confidentiality Availability and Integrity. 7 .one
separete question on only Integrity. 8.what is Plastic card. 9.one question on prepaid
card. 10.wat is single purpose and multy purpose Cards. 11.diffrence between credit
and charge card. 12.wat are benefit for using virtual key board. 13.diffrence between
Emv chip card and Magnetic strip cards. 14.diffrence between NFC near feild
communication and RFID Radio frequency Identifications...... 15.diffrence between
openscheme (4th Party and 3rd party close scheme.....
Digital banking Recollected Questions on 1 July

2018............. 16.one Questions on
M Dleme
sett Rment
settle . nt.. 18
18.o
.one 1arat
ne sep 7.ate
separ dieffqu
renesti
quesction
e on
beton
weCT
en tSraan
CTS nsdaction processing clearing and
and
Clearing. 19.wat is phishing Pharming and
Cyber mugging. 20.one question on
Aadhar bridge system for giving Subsidy. 21 which is
not a 24*7 system IMPS NPCI UPI or
USSD. 22.one question on what is
SFMS
SF MS.. 23
23.d
.dif
iffr
fren
ence
ce be
betw
twee
eenn In Us an
and
d Of
Offf Is AT
ATMM 24
24.w
.wat
at is diff
differ
eren
ence
ce
between IMPS and IMT. 25.diffrence
between CDM ATM aand nd POS

1 July Digital Banking
Paper Recollected
Quesand
personalization, tion s.
analytics. You 26.diffrence between white and Brown level
may change your
ATM. settings at any time 27.diiffrence between Clearing and
or accept the
Sedefault
ttlemesettings.
nt process. 28.wat is keystroke Logging and
benefits of vitual key board. 29.wat is difference between
business Declines and technical Declines.
Privacy Policy 30.difference between
authorization and Settlement process. 31.wat is limit of
Marketing
chargebeck-9
charg ebeck-90 0 days. 32.on
32.onee quest
question
ion on prearb
prearbirati
iration
on proce
process
ss and disp
dispute
ute
Personalization
mananag
agem
emenentt Co
Coll
llet
ette
te.. 33.o
3.one qu
ques
esttion on sm
smsh
shin
ing
g an
and d Phish
ishing
ing
attack.......
Analytics 34 diffrence between malware and
Torz
To rzan
an.. 35
35.w
.wat
at is *9
*99*
9*99
99#
# an
and
d it's
it's be
bene
nefi
fit.
t. 36 .m
.mob
obil
ilee wa
wall
llet
etss ar
aree pr
prep
epai
aid
d
Save Accept All
or pos
postpa
tpaid.
id. 37.
37.one
one que
questi
stion
on on OTP and TWO facfactor
tor Aut
Authon
honthi
thicat
cation
ion
process. 38.What is end-user risk. 39.wat
Mr.Aravind
Aravind Sankar
Page 60
is mobile device risk. 40 one question on

Spea
Sp earp
rphi
hish
shin
ing.
g. 41 .w
.wat
at is qu
quer
ery
y serv
servic
icee on Aa
Aadh
dhar
ar Mapp
Mapper
er.4
.42.
2.on
onee qu
ques
esti
tion
on
on firewell and intrusions detection
system. 43.diiffrence between encryption and
Decryption. 44.diffrence between GPRS and PSTN
POS 45.diffrence between portable and Pooled
terminal. 46.one question only on Mobile
POS. 47.wat is EKYC and it's benefits. 48.wat is Terminal
Management System. 4 49
9.wat is Mural-Advertising. 50.wat is
OOH out of home.....
Recollected Questions on Digital Banking Paper 1 July. .51.wat is Graffiti. 52.wat is

CRM customer Relationship Management. 53.one questions on fraud in ATM card
and Internet banking. 54.wat is RTGS and Next generation RTGS 55.wat is Rupay
Paysecure Solution.
58.ABPS and NACH56.Benefits of Rupay
diffrence. 59.wat Card.and
is ASA 57.wat
KSA.is 60.one
NACHquestion
and it's Role.
on NFS and
EKYC. 61. Offus and OnUs transaction Diffrence. 62.RTGS and NgTGS. 63.NG rtgs
works on ISO 20022. 64.wat is CCIL clearing Corporation of India it's Role and
Functions. 65 .wat is Diffrence between DVP-lll (Delivery vs payment and Payment
Vs Delivey) System..
Recollected Questions. 66.diffrence between Compliance and Convenience.

67.masquerading and Cyber mugging. 68.wat is Jeckpotting. 69.wat is MILTDOWN
and Spectrame. 70.one question on Telebanking. 71.MMID and MPlpin wat Digit
MMID 4 Digit 72.wat is giftcard prepaid card and store value card diffrences.
This website stores data
73.credit such
and as
charge card diffrences. 74.questions on magnetic strip card EMV
chipbased
functionality, card. 75.questuons on what Document requires for Representment in
prearbitration
personalization, and analytics.process......
You 76.operating system hardening is a Application server risk.
may change your settings at
77.diffrence any time Enduser risk and application server risk. 78.wat is mobile device
between
risk. settings.
79.wat is Identity Theft. 80.Difference between Basic Phishing and Spear
phishing. . ......
Privacy Policy
Q81.what is SSL full form and it's signal turns into which colour green blue Aur Red.
Marketing
Q82.one Drawback of Smishing. Q.83.the process of remain hidden Online is
Personalization
called..... Q.84.what is Back and Access.... Q 86.one question on Cash Advance.
Q87.wat is diffrence between VOID and Refund. Q 88.SFMS. Q 89.Encoding
Analytics
deciding Difference.. Q90..wat is Rootkit. Q 91.Social engineering. Q 92.diffrence
Save Accept All
between IDS and IPS. Q.93.OTP and Two fector Authonthication. Q.94.KeyStroke
Loggers
Mr.Aravind
Aravind Sankar
Page 61

GLOSSORY:
COMPUTER TERMINOLOGY
may change yourAutomated
ATM: settings at any time
Teller Machine '
SWIFT: Society for worldwide Interbank Financial Telecommunication
Privacy Policy
SFMS: Structured Financial Messaging System
Marketing
OLTAS: Online Tax Accounting System
Personalization
CBS: Centralized/ core Banking Solution
Analytics
PIN: Personal Identification Number
Save Accept All
LAN: Local Area Network (used in the same building)
Mr.Aravind
Aravind Sankar
Page 62
MAN: Metropolitan
Metropolitan Area Network (used in the same city)
WAN: Wide Area Network (used in different locations)
1DRBT: Institute for development & Research in Banking Technology
Banknet: Payment System Network established by RBI
NICNFT: National Informatics Centre Network (currency chest operation)
WWW: World Wide Web
HTTP: Hyper Text Transfer

Transfer Protocol
Protocol
URL: Uniform Resource Locator
VSAT: Very Small Aperture terminal

terminal
Firewall: Software programme that restricts unauthorized

Firewall: unauthorized access to data and acts as a security to privat
private
e
network
Booting:: Starting
Booting Starting of a computer
Hard Disk: A device for storage of data fitted in the processor itself
Modem: Modulator
Modulator & Demodulator:
Demodulator: A device used for converting digital signals
signals to analog signals & vice-
versa
Encryption:
Encryption: Changing the data into coded form
Decryption: Process of decoding the data
Virus: Vital Information Resources

Resources Under Seize: Software programme that slows down the working of a
computer or damages the data. Main source of virus is internet (other sources are floppy or CD)
This website stores
Vaccine:
Vaccin e:data
Anti such
VirusasSoftware programme used for preventing entry of virus or repairing the same
Digital as marketing,
Sign: Authentication of. electronic records by a subscri
Authentication subscriber
ber by means of electronic method or
personalization, and
procedure analytics. You
or accept the
Key default
used:settings.
For digital signatures, there is a pair of keys, private key & public key
RTGS: Real time Gross Settlement

Settlement
Privacy Policy
ECS: Credit: One account
account debited, number of accounts credited
Marketing
ECS: Debit: One account
account credited,
credited, number of accounts debited
Personalization
Hacking: Knowingly concealing, destroying, altering any computer code used for computer network
Analytics
Address: The location of a ffile.

ile. You can use addresses to find files
f iles on the Internet and your computer.
Save Accept All
Internet
Mr.Aravind
Aravind Sankar
Page 63
addresses
addresses are also known as URLs.
IMPORTANT ABBREVIATIONS
Al – Artificial intelligence ,
ALGOL – Algorithimic
Al gorithimic Language ,
ARP – Address resolution

resolut ion Protocol,
ASCII – American Standard
Code for Information Interchange
BINAC - Binary Automatic Computer,

Computer,
BCC – Blind Carbon Copy ,
Bin – Binary
BASIC - Beginner’s
Beginner’s All-purpose Symbollic
Instruction
Instruction Code, BIOS – Basic Input Output System,
Bit – Binary Digit, BSNL – Bharat Sanchar Nigam Limited.
CC – Carbon Copy,
CAD – Computer
Computer Aided Design,
Design,
COBOL – Common Business Oriented Language, CD – Compact Disc, CRT –
Cathode Ray Tube ,CDR – Compact Disc Recordable ,
CDROM – Compact
Compact Disc Read Only Memory,
This website stores–data

CDRW such as
Compact Disc
functionality, as wellble,
Rewritable,
Rewrita as CDR/W
marketing,
– Compact
Compact Disk Raed/Write
may change DBAyour– settings
Data Base Administra
Administrator,
at any time tor,
DBMS – Data Base Management
Management System,
DNS – Domain Name System,

Privacy Policy
DPI – Dots Per Inch,
Marketing
Personalization
DRAM – Dynamic Random Access Memory,
Analytics
DVD – Digital Video Disc/Digital
Disc/Digital Versati
Versatile
le Disc,
Save Accept All

DVDR – DVD Recordable , DVDROM –
Mr.Aravind
Aravind Sankar
Page 64
DVD Read Only Memory ,DVDRW –DVD Rewritable ,
DVR – Digital Video Recorder ,
DOS – Disk Operating System
EBCDIC – Extended Binary Coded Decimal Interchange

Interchange Code ,
e-Commerce
e-Commerce – Electronic
Electronic Commerce, EDP – Electro
Electronic
nic Data
Processing
EEPROM – Electronically
Electronically Erasable
Erasable Programmable Read Only Memory,
Memory,
ELM/e-Mailil – Electronic
ELM/e-Ma Electronic Mail, ENIAC - Electronic
Electronic
Numerical Integrator and Computer
EOF - End Of File
EPROM - Erasable
Erasable Progra
Programmable
mmable Read Only Memory
Memory,,
EXE - Executable
FAX - Far Away Xerox/ facsimile ,FDC - Floppy Disk Controller, FDD - Floppy Disk Drive ,FORTRAN -
Formula Translation,
Translation, FS -
File System
FTP - File Transfer Protocol
GB – Gigabyte ,
GIF - Graphics Interchange
Interchange Format,
GSM - Global System
System for Mobile Communication
Communication

Disclaimer
While settings.
every effort has been made by me to avoid errors or omissions in this publication, any error
ordiscrepancy
ordisc repancy noted may be brought to Srinivaskante4u@gmail.com which
brought to my notice throughr e-mail to Srinivaskante4u@gmail.com which
shall be taken care of in the subsequent
subsequent editions. It is also suggested that toclarify any doubt collea
colleagues
gues
should
Privacy Policy cross-
cross-check
check the facts, laws and conten
contents
ts of this publication
publication with origina
original
l Govt. / RBI /
Manuals/Circulars/Notifications/Memo/Spl Comm. of our bank.
Marketing
Personalization
Analytics
Save Accept All

Mr.Aravind
Aravind Sankar
Page 65

Privacy Policy
Marketing
Personalization
Analytics
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Digital Banking

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IIBF & NISM Adda

This website stores data such as

Srinivas Kante B.Tech, CAIIB

SaveCompiled byAccept AllKante Email: srinivaskante4u@gmail.com Special Thanks to Mr.

About Certificate Examination

IIBF Certificate Examination

SUBJECT OF EXAMINATION: Digital Banking

(ii) The examination will be held in Online Mode only

(iii) There will NOT be negative

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The table given below Cut-off Date of Guidelines

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CASH DEPOSIT MACHINE

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Vehicles for Financial Inclusion

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This website stores data such as

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This website stores data such as

Many large enterprises employ a dedicated security group to

is critical for busines

Thr eats to sensitive and private inf

with effect from 12th August 2008

10. The PSS

15.Electronic Clearing Service (ECS Credit)

18.Real-time gross settlement

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19.National Electronic Funds Transfer (NEFT)

20.Indo-Nepal Remittance Facility Scheme

21.Immediate Payment Service (IMPS)

MMID - Mobile Money Identifier

IMPS Fund transfer/Remittance options:

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Query Service on Aadhaar Mapper (QSAM).

Internet banking channel

31.NUUP (*99# Service on USSD platform)

This website stores

Convenience of *99*99# Service

This website stores data such as 1. Mobile Number ,

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1. Change Bank Account

E. Pending request : pending

F. Transactions : Previous Transactions can be checked

G. UPI PIN : UPIN can be set or changed

32.Value Added Services:

Aadhaar number seeding/linking in the bank account.

Main Features of *99# Service

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32.Unified Payments Interface ("UPI")

Analytics This innovative

 Once the payment

The new solsolutio

This website stores

1. How is UPI differen

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3. Does the customer

4. Can I link more than one bank

5. What are the

6. What is the limit of fund transfer

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The following are the features of BHIM:

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Convenience of 9999# Service