Friday, 17 May 2019

Digital banking

Digital Banking: Very important

National Payments Corporation of India (NPCI) – Its Products & 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 unrestricted access to e-payment services. Founded in 2008, NPCI is a not-for-profit organisation registered under section 8 of the Companies Act 2013. The organisation is owned by a consortium of major banks,[3] and has been promoted by the country’s central bank, the Reserve Bank of India. Its recent work of developing Unified Payments Interface aims to move India to a cashless society with only digital transactions. It has successfully completed the development of a domestic card payment network called RuPay, reducing the dependency on international card schemes. The RuPay card is now accepted at all the ATMs, Point-of-Sale terminals and most of the online merchants in the country. More than 300 cooperative banks and the Regional Rural Banks (RRBs) in the country have also issued RuPay ATM cards. More than 250 million cards have been issued by various banks, and it is growing at a rate of about 3 million per month. A variant of the card called ‘Kisan 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 Dhan Yojana scheme. NPCI has taken over NFS (National Financial Switch) operations from 14 December 2009 from IDRBT. Membership regulations and rules are being framed for enrolling all banks in the country as members so that when the nationwide payment systems are launched, all would get included on a standardized platform.
The key products of NPCI are: National Financial Switch (NFS) which connects 1, 98, 953 ATMs of 449 banks (91 Member Banks, 358 Sub- Member). Immediate Payment Service (IMPS) provided to 84 member banks, with more than 8.49 crore MMID (Mobile Money Identifier) issued, and crossed 10 million transactions. National Automated Clearing House (NACH) - has close to 400 banks on board. Aadhaar Payments 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 cards and enabled 10, 70, 000 PoS terminals in the country. The newest and most advanced 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 cardholders. The new transaction flow of Card + OTP has infused more simplicity to cardholders. More than 70,000 merchants accept Rupay cards online. RuPay PaySecure is live on 10 acquiring banks which includes Union Bank of India, Kotak Mahindra Bank, Citi Bank, ICICI Bank, HDFC Bank, State Bank of India, IDBI Bank, IndusInd Bank, Bank of Baroda and Bank of India.
NPCI service portfolio now and in the near future include:
 National Financial Switch (NFS) - network of shared automated teller machines in India.
 Unified Payment Interface (UPI) - Single mobile application for accessing different bank accounts
 BHIM App - Smartphone app built using UPI interface.
 Immediate Payment Service (IMPS) - Real time payment with mobile number.
 *99# - mobile banking using USSD
 National Automated Clearing House (NACH)-
 Cheque Truncation System -online image-based cheque clearing system
 Aadhaar Payments Bridge System (APBS) -
RuPay - card scheme
 Bharat Bill Payment System (BBPS) - integrated bill payment system
IMPS (Immediate Payment Services)
Immediate Payment Service (IMPS) is an instant real-time inter-bank electronic funds transfer system in India. IMPS offers an inter-bank electronic fund transfer service through mobile phones. Unlike NEFT and RTGS, 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 account. All this happens within 5-10 seconds.
IMPS is an innovative 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 banks and RBI authorized Prepaid Payment Instrument Issuers (PPI) across India.
Benefits of IMPS Instant Available 24 x7 (functional even on holidays) Safe and secure, easily accessible and cost effective Channel Independent can be initiated from Mobile/ Internet / ATM channels

Debit & Credit Confirmation by SMS to both sender and receiver
National Unified USSD Platform (NUUP):
NUUP (National Unified USSD Platform) is a USSD based mobile banking service from NPCI that brings together all the Banks and Telecom Service Providers. In NUUP, a customer can access 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.
For using IMPS on mobile phones, a customer will have to register for mobile banking with his/her 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. However, unbanked customer can initiate IMPS transaction using the services of Pre-Paid Payments 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 for a customer for doing IMPS transaction
• Using Beneficiary Mobile no. and MMID
• Using Beneficiary Account no. and IFS Code
• Using Beneficiary Aadhaar Number
Bharat Interface for Money (BHIM) 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 (VPA). The following are the features of BHIM: 1. Send Money: User can send money using a Virtual Payment Address (VPA), Account Number & IFSC, Aadhaar Number or QR code. 2. Request Money: User can collect money by entering Virtual Payment Address (VPA). 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) 3. Scan & Pay: User can pay by scanning the QR code through Scan & Pay & generate your QR option is also present. 4. Transactions: User can check transaction history and also pending UPI collect requests (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 can view the static QR code and Payment addresses created or also share the QR code through various messenger applications like WhatsApp, Email etc. available on phone and download the QR code. 6. Bank Account: User can see the bank account linked with his/her BHIM App and set/change the UPI PIN. User can also change the bank account linked with BHIM App by clicking Change account provided in Menu and can also check Balance of his/her linked Bank Account by clicking “REQUEST BALANCE” 7. Language: Up to 8 regional languages (Tamil, Telugu, Bengali, Malayalam, Oriya, Gujarati, Kannada ,Hindi) available on BHIM to improve user experience. 8. Block User: Block/Spam users who are sending you collect requests from illicit sources. 9. Privacy: Allow a user to disable and enable mobilenumber@upi in the profile if a secondary VPA is created (QR for the disabled VPA is also disabled). **BHIM APP is available in play store (for android User) and App Store (for Apple User)** Bharat QR In a major push for seamless cashless transactions, Govt. of India has launched Bharat QR Code, which 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 platform, which is expected to inspire and encourage more digital payments, without using debit or credit card. QR Codes are black and white two-dimensional machine readable code, which stores information about 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 reported last year that Govt. is considering to create a common QR Code based payment mechanism, which has now been officially launched. The Retail industry is excited by its possibilities 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. 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: 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 PIN cards, the ATM infrastructure continues to process the card transactions based on data from the magnetic stripe. As a result, the ATM card transactions remain vulnerable to skimming, cloning, etc. frauds, even though the cards are EMV chip and PIN based.
It has become necessary to mandate EMV (Europay, MasterCard, Visa) chip and PIN card acceptance and processing at ATMs also. Contact chip processing of EMV chip and PIN cards at ATMs would not only enhance the safety and security of transactions at ATMs but also facilitate preparedness of the banks for the proposed “EMV Liability Shift” for ATM transactions, as and when it comes into effect.
Further, in order to ensure uniformity in card payments ecosystem, banks should also implement the new requirements at their micro-ATMs which are enabled to handle card-based payments.
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 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 (Personal 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 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 called Motioncode was introduced, designed to automatically refresh the CVV code to a new one every hour or so.

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