i C All Types of Digital Banking Products and Types of ATMs Kepil KathpalCollection Facility Banks give the facility to their customer to get the credit of the funds in their account if they receive the cheque of the another bank in which they don’t have their account. This is also commonly known as Clearing System. Cheque Truncation system (CTS): In this system, cheques are not physically handled instead a scanned image of the cheque is sent through the system to the respective bank.Cheque truncation means stopping the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument is truncated at some point en route to the drawee branch and an electronic image of the cheque is sent to the drawee branch along with the relevant information. This would eliminate the need to move the physical instruments across branches, except in exceptional circumstances, resulting in an effective reduction in the time required for payment of cheques, the associated cost of transit and delays in processing, etc., thus speeding up the process of collection or realization of cheques.National Automated Clearing House, or NACH, introduced by National Payments Corporation of India, is a centralised clearing service that aims at providing interbank high volume, low value transactions that are repetitive and periodic in nature. Offering credit and debit service to corporates, banks, and financial institutions, the service, aimed at integrating all regional ECS into one National Payment System, is claimed to be better than its predecessor, Electronic Clearing Service NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc. eae KapilReserve Bank of India acts as Banker to the Government but due to its non-presence at each centre it has authorised various other banks to carry out the Government business transactions on their behalf. Ex: Collection of Taxes, Payment to the government employees, Payment for Development works, Payment for any kind of Calamities.For keeping the valuable items/ornaments, important documents at a safety vault to reduce the risk of theft & lost.Selling of Gold Coins by the bank; Name of the Bank is encrypted on that. Only can sell the Coins, No buying. Used for Gift purposes.Sovereign Gold Bonds SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. The Bond is issued by Reserve Bank on behalf of Government of India. The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investorThe nominal value of Gold Bonds shall be in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewelers Association Limited, for the last 3 business days of the week preceding the subscription period. Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. The bond will be tradable on Exchanges, if held in demat form. It can also be transferred to any other eligible investor.Foreign Exchange Business Remitting of Funds from one nation to other nation. Exchange of Currency. Issuance of Letter of Credit.Authorised Dealer (AD) is any person specifically authorized by the Reserve Bank under Section 10(1) of FEMA, 1999, to deal in foreign exchange or foreign securities and normally includes banks. International Transfers Most international transfers are executed through SWIFT, a co-operative society founded in 1974 by seven international banks, which operate a global network to facilitate the transfer of financial messages. Using these messages, banks can exchange data for the transfer of funds between financial institutions. SWIFT's headquarter is in La Hulpe (Belgium). Each financial institution is assigned an ISO 9362 code, also called a Bank Identifier Code (BIC) or SWIFT Code. These codes are generally eight characters long.‘Non-resi indi [NRI) is a person resident outside India who is a citizen of India. ‘Person of indian Origin (PIO) is a person resident outside India who is a citizen of any country other than Bangladesh or Pakistan or such other country as may be specified by the Central Government, satisfying the following conditions: Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or Who belonged to a territory that became part of India after the 15th day of August, 1947; or Who is a child or a grandchild or a great grandchild of a citizen of India or of a person referred to in clause (a) or (b); or Who is a spouse of foreign origin of a citizen of India or spouse of foreign origin of a person referred to in clause (a) or (b) or (c) ‘APIO will include an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of the Citizenship Act, 1955. Such an OCI Card holder should also be a person resident outside India.Particulars | Non-Resident (External) | ForeignCurrency(Non- | Non-Resident Ordinary Rupee Rupee Account Scheme Resident) Account Account Scheme [NRE Account] (Banks) Scheme [NRO Account] [FCNR (B) Account] Who can | NRis and PIOs Any person resident outside India ‘openan for putting through bonafide account transactions in rupees. Currency | Indian Rupees Any permitted currency | Indian Rupees ie. a foreign currency which is freely convertible Typeof | Savings, Current, | Term Deposit only (Savings, Current, Recurring, Fixed) Account | Recurring, Fixed Deposit DepositMajor foreign currency accounts that can be opened in India by a resident individual Particulars Exchange Earners Resident Foreign Resident Foreign Foreign Currency |Currency(Domestic)} | Currency (RFC) (EEFC) Account [RFC(D)] Account Account Who can open the Exchange Earners Individuals Individuals account Type of Current Current Current/ savings/ term Account deposits Interest | Non-interest earning |Non-interest earning) De-regulated (As decided by the AD bank)Why Bancassurance? > Fluctuation in NIM (Net Interest margin). > Fixed commission based income without any extra cost. NIM = Interest received- Inter Total amount of Loans & AdvancesFew facts about Insurance sector in India > Insurance is the protection against various types of Risk i.e. Life, Theft, Fire and Accident. > Two types: Life Insurance & General Insurance >IRDA (Insurance Regulatory and Development Authority) is the Regulator> An ATM card is any payment card issued by a financial institution that enables a customer to access an automated teller machine (ATM) in order to perform transactions such as deposits, cash withdrawals, obtaining account information, etc. > Issued to saving & current account holder (Exception). > PIN - Personal Identification Number. > CVV - Card Verification ValueCredit Cards _ >Buy now pay latercard. ~~ >A bill is generated after a fixed bill cycle and we have to make payment before a fixed date. >One can withdraw money but heavy interest is being charged. >We can do shopping by using the cards at POS terminals/machines. eeeStore value card >No need of any account for purchasing this. » Its just like Filpkart/Amazon gift vouchers. »Some commission is being charged by the bank.Unified Payments Interfacé (UPI) >> Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. + Immediate money transfer through mobile device round the clock 24*7 and 365 days. * Single mobile application for accessing different bank accounts. * Single Click 2 Factor Authentication + Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc. + Merchant Payment with Single Application or In-App Payments. + Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments. + Donations, Collections, Disbursements Scalable.Cm Bharat Interface for Money (BHIM) is an app that lets you make simple, easy and quick payment transactions using Unified Payments Interface (UPI). You can make instant bank-to-bank payments and Pay and collect money using just Mobile number or Virtual Payment Address (UPI ID). he following are the features of BHIM: ‘Send Money: Send money by entering Scan. + Request Money: Collect money by entering Virtual Payment Address (UPI ID). Additionally 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). * Scan & Pay: Pay by scanning the QR code through Scan & Pay or generate your to let others make + Transactions: Check your transaction history and also pending UPI collect requests (if any) You can raise complaint for the declined transactions by clicking on report issue in transactions. + Profile: You can view the static QR code and Payment addresses linked to your account. You can also share the QR code through various messenger applications like WhatsApp, Email etc. available ‘on phone and can also download the QR code. + Bank Account: Switch between multiple bank accounts linked with your BHIM App. You can set/change your UP! PIN or check your balance. + Language: Currently BHIM is available in 12 languages, i.e. Hindi, English, Tamil, Telugu, Malayalam, Bengali, Odia, Kannada, Gujarati, Marathi, Assamese and Bengali. irtual Payment Address| (UPI ID), Account number and QRImmediate Payment Services (IMPS) ~~ 141 hice For transferring funds real time and 24X7X365 interbank was a major challenge faced in banking industry. Only NEFT & RTGS were available to user for fund transfer during banking hours. With the above context in mind, NPC! conducted a pilot study on the mobile payment system with the banks like SBI, BOI, UBI and ICICI in August 2010. Also the banks like Yes bank, Axis and HDFC bank joined this league in the month of September, October and November 2010 respectively. Immediate Payment Service (IMPS) public launch happened on 22nd November 2010 by Smt. Shyamala Gopinath, DG RBI at Mumbai and this service is now available to the Indian public. IMPS provides robust & real time fund transfer which offers an instant, 24X7, interbank electronic fund transfer service that could be accessed on multiple channels like Mobile, Internet, ATM, SMS, Branch and USSD(*99#). IMPS is an emphatic service which allow transferring of funds instantly within banks across India which is not only safe but also economical. Currently on IMPS, 243 members are live which includes banks & PPIs. This facility is provided by NPCI through its existing NFS switch. The eligible criteria for the Banks who can participate in IMPS is that the entity should have valid banking or prepaid payment instrument license from Reserve Bank of India to participate in IMPS. Kapil( The Bhar Bi naa nt System) is a Reserve Bank of India (RBI) conceptualised system driven by National Payments Corporation of India (NPCI). It is a one-stop payment platform for all bills providing an interoperable and accessible “Anytime Anywhere’ bill payment service to all customers across India with certainty, reliability and safety of transactions. Bharat Bill Pay a One-stop access: Bharat BillPay has multiple modes of payment and provides instant confirmation of payment via an SMS or receipt. Bharat BillPay offers bill collection categories like electricity, telecom, DTH, gas, water bills etc. through a single window. In future biller categories may be expanded to include insurance premium, mutual funds, school fees, institution fees, credit cards, local taxes, invoice payments, etc. An effective mechanism for handling consumer complaints has also been put in place to support consumer regarding any bill related problems in Bharat BillPay. Different Payment Channels Bharat BillPay transaction can be initiated through multiple payment channels like Internet, Internet Banking, Mobile, Mobile-Banking, POS (Point of Sale terminal), Mobile Wallets, MPOS (Mobile Point of Sale terminal), Kiosk, ATM, Bank Branch, Agents and Business Correspondents. Different Payment Modes Bharat BillPay facilitates myriad payment modes enabling bill payments. The payment modes options facilitated under Bharat BillPay are Cash, Cards (Credit, Debit & Prepaid), IMPS, Internet Banking, UPI, Wallets , Account transfer & AEPS. KapilBharat Bill Payment Operating Unit aka BBPOU is the entity that is authorized by Reserve Bank of India. It can be a Bank or a Non-Bank. BBPOU may choose to integrate either with the customers, (COU: Customer OU) or with the billers (Biller OU) or may wish to participate as both — which means such BBPOU wil be integrated with customers as well as billers. Going forward, only authorised BBPOU - both banks and non-banks authorised by RBI - can handle payment and aggregation of payment services relating to bills under the scope of Bharat BillPay. Eligible Entities who wish to offer or those who are currently in bill payment, collection and aggregation business, would operate under a COU (Customer BBPOU) on receiving authorisation from RBI. Customer BBPOU will on-board Agent institutions which may further on-board agents and/ or set up customer service points in various regions and locations. ‘Agents are the customer touch points and service points in the Bharat BillPay ecosystem available in the form of agent outlets, Business Correspondent outlets, Bank branches, collection centres, retail outlets. Service providers, who shall receive payments from customers for services rendered. By participating in the Bharat BillPay scheme, the biller will be able to receive payments from third party channels for the services provided to the customer. A biller may tie up with up to two BBPOUs to access the entire universe of its consumers and all payment channels. Kapila USSD based mobile banking service of NPCI was initially launched in November 2012. _SERPCT launched Unified Payments Interface (UPI) with member banks on 25th August, 2016. UPI ‘allows account holders across banks to send and receive money using a unique id known as UPI id or payment address. UPI allows users the facility to generate their own UPI ID. Besides UPI ID, user can also send money using the conventional financial address i.e. Account number + IFSC and also, through ‘emerging option of AADHAAR number. Conceptualized as a mobile application based solution primarily catering to internet compatible phones ( smart-phone users) , UPI is now available for non- internet based mobile devices ( smartphone as well as basic phones ) in the form of dialing option (“99# ) and is known as USSD 2.0 .This functionality i.e. USSD 2.0 is launched along with BHIM on 30th December 2016. + "99H service has been launched to take the banking services to every common man across the country. Banking customers can avail this service by dialing *99#, a “Common number across all Telecom Service Providers (TSPs)" on their mobile phone and transact through an interactive menu displayed on the mobile screen. Key services offered under *99# service include, Sending and Receiving interbank account to account funds, balance enquiry, setting / changing UPI PIN besides host of other services. “99# service is currently offered by 41 leading banks & all GSM service providers and can be accessed in 13 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). + It is @ common technology platform developed by NPCI which allows the Banks and TSPs to seamlessly integrate with each other to provide banking services to the customers at large over the mobile phones (basic as well as smartphone). KapilAePS is a bank led model which allows online interoperable financial inclusion transaction at PoS (MicroATM) through the Business correspondent of any bank using the Aadhaar authentication. The only inputs required for a customer to do a transaction under this scenario are:- * IIN (Identifying the Bank to which the customer is associated) + Aadhaar Number + Fingerprint captured during their enrollment. Services Offered by AePS * Cash Withdrawal + Cash Deposit * Balance Enquiry + Aadhaar to Aadhaar Fund Transfer + Mini Statement + Best Finger DetectionBHIM Aadhaar Pay BHIM Aadhaar Pay is meant for merchants to receive digital payments from customers over the counter through Aadhaar authentication. It allows for any merchant associated with any acquiring bank on BHIM Aadhaar Pay service, to allow the merchant to accept payment from a customer of any bank, by authenticating the customer's biometrics — currently only fingerprints, directly from the customer's Aadhaar enabled bank account and receive the sale proceeds instantaneously directly into merchant's own bank account. To be able to effect the same, the merchant must have an Android mobile with the BHIM Aadhaar app and a certified biometric scanner attached with the mobile phone on the USB port AND both the merchant and customer should have had linked their Aadhaar numbers to their bank accounts respectively.AQR code consists of black squares arranged in a square grid ona white background, which can be read by an imaging device such as a camera. It contains information about the item to which it is attached. NPCI jointly worked with International card Schemes to develop a common standard QR code specifications. BQR is Person to Merchant (P2M) Mobile payment solution. Payment Using BQR enabled Mobile banking Application/wallet: Merchants need to display QR codes in their premises. User can scan these QR via BQR enabled mobile banking app and pay using Card linked account / VPA / IFSC + Account / Aadhaar. Kapélvvvvvv National _Financial_Switch (NFS) ATM network having 37 members and connecting about 50,000 ATMs was taken over by NPCI from Institute for Development and Research in Banking Technology (IDRBT) on December 14, 2009. Over the span of few years, NFS ATM network has grown many folds and is now the leading multilateral ATM network in the country. As on 31 st August’ 17, there were 941 members that includes 101 Direct, 776 Sub members, 56 RRBs and 8 WLAOs using NFS network connected to more than 2.37 Lac ATM. NFS has introduced sub-membership model which enables smaller, regional banks including RRBs and local co-operative banks to participate in the ATM network. Apart from basic transactions like Cash Withdrawal, Balance Enquiry, PIN Change and Mini Statement, NFS also offers other Value Added Services (VAS) on ATMs/CDMs like: Interoperable Cash Deposit (ICD) Mobile Banking Registration (MBR) Card-to-Card Fund Transfer (C2C) Cheque Book Request (CBR) ‘Statement Request (SR) Aadhar Number Seeding (ANS)