Page 2 of 6
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 01
January 2019
Available online: https://ejbss.org/ P a g e | 815
NPCI took various initiatives to improve digital payment systems. In this regard it launched various
product and services. Such products are as follow.
Banking Cards: Banking cards offer consumers more security, convenience, and control than any
other payment method. The wide variety of cards available – including credit, debit and prepaid –
offers enormous flexibility, as well. These cards provide 2 factor authentication for secure payments
e.g secure PIN and OTP. RuPay, Visa, MasterCard are some of the example of card payment systems.
Payment cards give people the power to purchase items in stores, on the Internet, through mail-order
catalogues and over the telephone. They save both customers and merchants’ time and money, and
thus enable them for ease of transaction.
USSD: The innovative payment service *99# works on Unstructured Supplementary Service Data
(USSD) channel. This service allows mobile banking transactions using basic feature mobile phone,
there is no need to have mobile internet data facility for using USSD based mobile banking. It is
envisioned to provide financial deepening and inclusion of underbanked society in the mainstream
banking services.
AEPS: AADHAAR ENABLED PAYMENT SYSTEM (AEPS) is a bank led model which allows
online interoperable financial transaction at PoS (Point of Sale / Micro ATM) through the Business
Correspondent (BC)/Bank Mitra of any bank using the Aadhaar authentication.
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. It also caters to the “Peer to Peer” collect request which
can be scheduled and paid as per requirement and convenience. Each Bank provides its own UPI App
for Android, Windows and iOS mobile platform(s).
Mobile Wallets: A mobile wallet is a way to carry cash in digital format. You can link your credit
card or debit card information in mobile device to mobile wallet application or you can transfer
money online to mobile wallet. Instead of using your physical plastic card to make purchases, you can
pay with your smartphone, tablet, or smart watch. An individual's account is required to be linked to
the digital wallet to load money in it. Most banks have their e-wallets and some private companies.
e.g. Paytm, Freecharge, Mobikwik, Oxigen, mRuppee, Airtel Money, Jio Money, SBI Buddy, itz
Cash, Citrus Pay, Vodafone M-Pesa, Axis Bank Lime, ICICI Pockets, SpeedPay etc.
Banks Pre-paid Cards:Spending money are loaded onto the prepaid card in advance with a bank
account debit card if you have “opted in” to your bank’s overdraft program. This means that your
There was a problem loading this page. Retrying...
Page 3 of 6
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 01
January 2019
Available online: https://ejbss.org/ P a g e | 816
bank may charge you a fee for covering the cost of a purchase or ATM withdrawal that exceeds what
you have in your account.
Point of Sale: A point of sale (PoS) is the place where sales are made. On a macro level, a PoS may
be a mall, a market or a city. On a micro level, retailers consider a PoS to be the area where a
customer completes a transaction, such as a checkout counter. It is also known as a point of purchase.
Internet Banking: Internet banking, also known as online banking, e-banking or virtual banking, is
an electronic payment system that enables customers of a bank or other financial institution to conduct
a range of financial transactions through the financial institution's website. It includes National
Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS), Electronic Clearing System
(ECS) and Immediate Payment Service (IMPS) .
Mobile Banking: Mobile banking is a service provided by a bank or other financial institution that
allows its customers to conduct different types of financial transactions remotely using a mobile
device such as a mobile phone or tablet. It uses software, usually called an app, provided by the banks
or financial institution for the purpose. Each Bank provides its own mobile banking App for Android,
Windows and iOS mobile platform(s).
Micro ATMs: Micro ATM meant to be a device that is used by a million Business Correspondents
(BC) to deliver basic banking services. The platform enable Business Correspondents (who could be a
local kirana shop owner and will act as ‘micro ATM’) to conduct instant transactions.
Literature Review
Mishra (2017) in her study found that Government is decided to set digital targets for banks and
payment firms. The government has taken a holistic approach to digital banking, looking at ways to
incentivize train merchants and customers who use digital platforms, food and civil supply with the
five lakh ration shops. Government is also planning to educate people well about digital payments.
The process of demonetization was not properly planned. Planning for making India truly digital has
begun only post demonetization.
Bhakta (2017) noted that digital payments grew 57% year-on-year in the last fiscal with mobile
wallets more than doubling and card payments rising 44%, helped by a strong government push
particularly after the demonetisation. He had also reported Aadhaar-enabled payment systems and the
government-backed, Unified Payments Interface (UPI), have crossed transaction of 8.8 billion.
Agarwal and Variyar (2017) reported in their article that in Budget our finance minister Arun Jaitley
encouraged digital payments and announced a mission targeting at least 2,500 crore cashless
