CCC - Course on Computer Concept - Digital Financial Tools (CHAPTER-8)

                                                       

Digital Financial Tools Application – CHAPTER-8

·         Understanding OTP

·         Quick Response (QR) Code

·         Unified Payment Interface

·         Aadhaar Enabled Payment System

·         ebanking

·         eWallet

·         Point of Sale

·         Internet Banking

·         NEFT

·         RTGS

·         IMPS

·         Online Bill Payment

·         Credit and Debit Card

·         USSD

Digital Financial Tools

Electronic Payment System

Issues of trust and acceptance play a more significant role in the e-commerce worldthan in traditional businesses as far as payment systems are concerned. Traditionally, a customer sees a product, examines it, and then pays for it by cash, check, or credit card (Figure 3.1). In the e-commerce world, in most cases the customer does not actually see the concrete product at time of transaction, and the method of payment is performed electronically.

EPSs enable a customer to pay for the goods and services online by using integrated hardware and software systems. The main objectives of EPS are to increase efficiency, improve security, and enhance customer convenience and ease of use. Although these systems are in their immaturity, some significant

development has been made. There are several methods and tools that can be used to enable EPS implementation

While customers pay for goods/services by cash, check, or credit cards in conventional businesses, 

Electronic funds transfer (EFT): EFT involves electronic transfer of money by financial institutions.

Payment cards : They contain stored financial value that can be transferred from the customer's computer to the businessman's computer.

Credit cards : They are the most popular method used in EPSs and are used by charging against the customer credit.

Smart cards: They include stored financial value and other important personal and financial information used for online payments.

Electronic money (e-money/e-cash): This is standard money converted into an electronic format to pay for online purchases.

Online payment: This can be used for monthly payment for Internet, phone bills, etc.

Electronic wallets (e-wallets) : They are similar to smart cards as they include stored financial value for online payments.

Micro-payment systems : They are similar to e-wallets in that they include stored financial value for online payments; on the other hand, they are used for small payments, such as kurus in Turkey .

Electronic gifts : They are one way of sending electronic currency or gift certificates from one individual to another. The receiver can spend these gifts in their favorite online stores provided they accept this type of currency.

One Time Password OTP

A one-time password (OTP) is an automatically generated numeric or alphanumeric string of characters that authenticates the user for a single transaction or login session. A one-time password (OTP), also known as one-time pin or dynamic password. 

An OTP is more secure than a static password, especially a user-created password, which can be weak and/or reused across multiple accounts. OTPs may replace authentication login information or may be used in addition to it in order to add another layer of security.

How to get a one-time password?

When an unauthorized user tries to access a system, an authentication manager on a network server generates a number, using a one-time password algorithm. The same number and algorithm are used by security tokens on a smart card or device to match and validate a one-time password and user. 

Benefits of a one-time password

The one-time password avoids common pitfalls that IT administrators and security managers face with password security. They do not have to worry about composition rules, known-bad and weak passwords, sharing of credentials or reuse of the same password on multiple accounts and systems. 

Another advantage of one-time passwords is that they become invalid in minutes, which prevents attackers from obtaining the secret codes and reusing them.  

Quick Response (QR) Code

The abbreviation for QR Code is Quick Response Code. A QR Code is a two-dimensional barcode that is readable by smart phones. QR Codes may be used to display text to the user, to open a URL, save a contact to the address book or to compose text messages. "QR Code" is a registered trademark of DENSO WAVE INCORPORATED. It is a machine-readable optical label with information on the associated item or product. QR codes were designed for car manufacturing plants to manage car part inventories.

A QR code uses four standardized encoding modes (numeric, alphanumeric, byte/binary, and kanji) to store data efficiently. 

How to read QR Code?

To read QR codes with your smartphone, you need the appropriate software in your phone. For Android-based devices, you can use a barcode scanner. QR code readers are also available on AppStore on iOS-devices such as iPhones.

 Scanning of QR Code

To scan a QR Code, you first need to have a scanner app on your smartphone. A large selection of these can be downloaded for free in the various app stores. When you have installed one, start the application and keep the camera of your smartphone over the QR Code to scan it. If the Code is readable, the encoded address or action will be accessed automatically.

Features of QR Code

High Capacity Encoding of Data:- Conventional bar codes can store up to 20 digits. On the other hand, QR codes can provide up to a hundred times more information than bar codes. QR codes can manage all types of data, for example, letters, numbers, graphics, and audio or video files. 

Small Printout Size :- Since a QR code symbol is designed with a two-dimensional structure, it can encode 10 times more data than a barcode of same size. A micro QR code may be used for a smaller print size.

Dirt- and Damage-resistant Durability :- The QR code has the ability to perform error correction. Data in QR codes can be recovered even if parts of the symbol have been destroyed or damaged. 

Readable from Any Direction in 360 Degrees :- A QR code is designed to be rapidly readable from any direction in 360 degrees. 

Structured Appending Feature :- One QR code symbol can contain up to 16 separate smaller symbols, each of which contains different unique information. The advantage of this structure is that it can be printed in a smaller space. Conversely, multiple QR code symbols can be grouped in a single data symbol.

UPI (Unified Payment Interface)

A Unified Payment Interface (UPI) is a smartphone application which allows users to transfer money between bank accounts. It is a single-window mobile payment system developed by the National Payments Corporation of India (NPCI). It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction. UPI (Unified Payments Interface) is a unique payment system through which you can link your bank account to a mobile application and make transactions safely

UPI ID and PIN

A UPI ID is a unique identification for a bank account that can be used to send and receive funds. UPI PIN is a 4-digit personal identification number that must be entered to authorize the transfer of money via UPI. The PIN can be chosen by the account holder. 

Key Features of UPI

Some of the features of UPI are listed below:

·         Instant transfer of fund through Immediate Payment Service (IMPS) which is faster than NEFT.

·         Since it is completely digital, one can use UPI 24 hours and on all public holidays.

·         Single mobile application for accessing various bank accounts.

·         Uses Virtual Payment Address which is a unique ID as given by the bank .

·         Uses Account Number with IFS Code and Mobile Number with MMID or Mobile Money Identifier

·         Every bank provides its own UPI for different platforms of Android, Windows, and IOS. The banks may or may not charge for the UPI service.

·         Bill Sharing facility.

·         Best for doing merchant payment, utility bill payments, OTC payments, Barcode based payments.

·         One can file a complaint from Mobile App directly. 

Registration in UPI enabled application

Steps for Registration:

·         User downloads the UPI application from the App Store/Banks website.

·         User creates his/her profile by entering details like name, virtual id (payment address), password etc. 

·         User goes to “Add/Link/Manage Bank Account” option and links the bank and account number with the virtual id.

Working of Unified Payments Interface (UPI) 

UPI uses existing systems, such as Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS), to ensure seamless settlement across accounts. It facilitates push (pay) and pull (receive) transactions and even works for over-the-counter or barcode payments, as well as for multiple recurring payments such as utility bills, school fees and other subscriptions.

Sending Money vs. Receiving Money

Sending money on the UPI is called a "push." For sending money, the user logs into the interface and selects the Send Money/Payment option. After entering the recipient's virtual ID and the amount desired, he chooses the account from which the money will be debited. The user then enters a special personal identification number (PIN) and receives a confirmation 

AEPS (Aadhaar Enabled Payment System)

AEPS stands for ‘Aadhaar Enabled Payment System’. It is a new payment service offered by the National Payments Corporation of India to banks, financial institutions using ‘Aadhaar’. 

AEPS is an Aadhaar-enabled payment system .With the help of AEPS you can perform many basic banking transactions like making several payments, interbank or Intrabank money transfer, making withdrawals, depositing cash, enquiring about your bank balance, etc. AEPS is a simple, safe and user 

What is an Aadhaar?

An Aadhaar is a 12-digit unique number issued by the UIDAI (Unique Identification Authority of India) to the Indian residents.

·         Services Offered by AEPS

·         Cash Withdrawal

·         Cash Deposit

·         Balance Enquiry

·         Aadhaar to Aadhaar Fund Transfer

·         Mini Statement

·         Best Finger Detection

Benefits of AEPS

·         Very easy usage 

·         Completely safe and protected method of payment

·         Interoperable across many banks

·         Using AEPS, bank account holders will be in a position to access their accounts in banks through Aadhaar authentication.

·         With AEPS digital India payments, the only prerequisite needed for initiation of a transaction is Aadhaar number and the respective biometric information.

Steps to use AEPS

Step 1: Go to a micro ATM or banking correspondent

Step 2: Provide Aadhaar number and bank name

Step 3: Choose the type of transaction you want to make

Step 4: Provide verification through fingerprint/iris scan

Step 5: Collect your receipt 

Working of AEPS

The AEPS machine works like a Point of Sale (POS) machine. Instead of a debit/credit card pin, the merchant will have to key in the customer’s Aadhaar number and authenticate the transaction using the customer’s biometric data.

Requirements for AEPS transactions:

·         Bank’s Issuer Identification Number (IIN) or name

·         Aadhaar Number

·         Fingerprint 

E-Banking (Electronic Banking)

Electronic banking also known as e- banking, virtual banking, online banking, or internet banking. Through e-banking, a customer can access his account and conduct many transactions like funds transfer, payment of bills, opening bank accounts online etc. using his computer or mobile phone.

There are mainly two methods to deliver e-banking to the customers:

1. Banks with physical presence offering electronic transaction : Most of the banks have a physical presence and offer banking facility online.

2. Virtual banks offering transaction services: There are some banks that don’t have any physical presence anywhere. Such type of banks called virtual banks.

Features of e-Banking:

ATM

Full form of ATM is Automated Teller Machines . ATM machines are electronic terminals. These machines provide the customers to bank anytime. ATM is designed to perform the most important functions of the bank. It is operated by a plastic card (ATM card) with its special features.

Working of ATM

The ATM machines take inputs from the ATM card that the banks provide to its customers. To make use of ATM, the user must have a password. When customer needed money, they go to the nearby ATM machine, insert their ATM card, and take the required amount. Banks charge a nominal fee from the customers on every transaction made after crossing the specified limit of free transactions, if the transaction is done from any other bank’s ATM machine.

Point-of-Sale Transfer Terminals

Under e-banking, this service allows customers to pay for purchase through a debit/credit card instantly.  

Deposit and Withdraws (Direct)

Under e-banking, this service allows the customer to regularly approve paychecks in the account. The customer can make any type of installment, insurance payment, and multiple payments to the bank to pay his bills.  

E-Wallet

E-wallet (sometimes called digital wallet) is a type of electronic card that allows you to pay for things, through a computer or a smartphone. It is a pre-paid account in which a user can store his/her money for any future online transaction. It is password protected. An E-wallet needs to be linked with the individual’s bank account to make payments. Its utility is same as a credit or debit card. E-wallet is a secure place that contains other items such as a driver's license, gift cards, tickets transportation passes etc.

Note: The main objective of e-Wallet is to make paperless money transaction easier.

Components of E-wallet

it has mainly two components:-.

·         Software: It stores personal information and provides security and encryption of the data.

·         Information: It is a database containing user details such as their name, shipping address, payment method, amount to be paid, etc.  

Requirement to using an e-wallet

·         A Free/Paid wallet app.

·         Smart phone.

·         Bank Account.

·         2G/3G/4G connections.

Payment Process

·         Download the app on your device.

·         Sign-up by entering the relevant information.

·         The user will receive a password.

·         Load money using debit/credit card or Netbanking.

·         After shopping online, the e-wallet automatically fills in the user's information on the payment form.

·         Once the online payment is made, the user is not required to fill the order form on any other website as the information gets stored in the database and is updated automatically. 

Various e-Wallet payment gateways

There are many e-Wallet payment gateways in India such as Paytm, Mobikwik, PhonePe, Freecharge, Airtel Money, State Bank Buddy, ICICI Pockets etc. Note:- PayTM is the largest digital wallet app in India.  

Point of Sale

The abbreviation of POS is Point of Sale ”. POS is a system which refers to any place where a transaction can happen, whether it is, for a product or service. In other words, POS is the place, where your customer makes a payment for products or services at your store. In a store, a POS is where, the checkout happens, orders are processed and bills are paid. It can be in a physical store, where POS terminals and systems are used to process card payments or a virtual sales point such as a computer or mobile electronic device.  

POS System A POS System is the overall hardware and software system used for billing in a POS Store.

Note:-Card readers have also become an integral part of a POS system.

Hardware Components of a POS System

POS system typically contains following hardware:-

·         A display unit  - to show the billing

·         A keyboard/touchscreen device- to select products and enter data

·         Barcode scanner -to scan billed objects

·         A Printer-to print the receipt

·         Cash register – for storage of cash obtained during sales

A software interface - to complete the process 

Advantage of POS System

·         POS eliminates human errors and save money in the long term.

·         POS monitors your sales records and alerts you when stock is running low.

·         POS keeps accurate record of daily transactions and report about the volume of the stock.

·         POS makes it easy for you to look up past transactions.

·         POS is faster from authorizing a credit card transaction to printing a customer receipt.

·         POS reduces the chances of user errors because the software checks to ensure that the information entered is accurate and correct.

·         POS allows you to add promotions and discounts on the products.

Internet Banking

Internet Banking is, also known as Online banking or Net Banking . It is the system that provides the facility to the user to conduct the financial and non-financial transactions from his net banking account. It allows you to conduct many different types of transactions through the internet from the comfort of your home. Using Internet Banking, user can transfer funds from his account to other accounts of the same bank or different bank.

Features of Internet Banking

·         The user can view account statements.

·         Various types of forms, Bank statements can be downloaded.

·         The user can transfer funds, pay any kind of bill, recharge mobiles, DTH connections, etc.

·         The user can buy and sell on e-commerce platforms.

·         The user can also book transport, travel packages, and medical packages.

·         The user can also check the history of the transactions for a given period by the concerned bank. 

Advantages of Internet Banking

·         The customers get permanent access to his/her bank anytime and anywhere.

·         An online account is simple to open and easy to operate.

·         Transactions are safe and highly secure.

·         It is fast and efficient.

·         Immediate funds transfer helps the user in time of urgent need.

·         It saves valuable time of the users. 

Disadvantages of Internet Banking

·         Requirement of Internet connection.

·         Security of transactions is a major issue.

·         Password security is a also a big issue.

·         Your banking information may be spread out on several devices, making it more at risk.

·         Inconvenient to make deposits.

NEFT (National Electronic Funds Transfer)

NEFT (National Electronic Funds Transfer ) The “NEFT” stands for National Electronic Funds Transfer. NEFT is one of the most prominent electronic fund transfer system of India. It is the facility provided to bank customers to enable them to transfer funds easily and securely on one-to-one basis. It means it is an online system for transferring funds from one financial institution to another within India usually the banks. National Electronic Funds Transfer (NEFT) is introduced by the Reserve Bank of India (RBI) in November 2005

Who can transfer funds using NEFT?

Individuals, firms and corporates maintaining accounts with any bank can transfer funds using NEFT system.

Who can receive funds using NEFT?

Individuals, firms and corporates maintaining accounts with any bank can receive funds using NEFT system. It is therefore, necessary for the beneficiary to have an account with the NEFT enabled destination bank branch in the country.

Operating hours of NEFT

The NEFT system is available on all days, i.e., on 24x7x365 basis. NEFT presently operates in batches on half-hourly intervals throughout the day. In case of non-availability of NEFT for any reason, appropriate message will be broadcasted by RBI to all system participants. 

Key Features of NEFT

·         No Limit for a maximum and minimum amount.

·         Offered by branches of all domestic banks.

·         Offered on bank working days between 8 am to 6:30 pm from Monday to Friday and 8 am to 1 pm on working Saturdays.

Advantages of NEFT

·         It is economical to use NEFT for money transfer.

·         NEFT is built on a secure platform.

·         No need of using a cheque or demand draft for money transfer.

·         Transferring money does not require you to visit the bank.

·         Initiate funds transfer online

RTGS (Real Time Gross Settlement)

The “RTGS” Stands For ‘Real Time Gross Settlement ’. It is an electronic payment system managed by Reserve Bank of India that allows the interbank transfer of funds on a real-time and on gross settlement basis.

‘Real-time’: It means that the payment transaction is not subjected to any waiting period. The transaction will be completed as soon as the processing is done.

Gross settlement: It means the money transfer is completed on a one to one basis without clustering with another transaction. 

Key Features

·         Real-Time, within a few minutes.

·         Minimum limit of Rs. 2,00,000.

·         It can be offered only by RTGS enabled branches.

·         Offered on bank working days between 8 am to 4 pm. Monday to Friday and working Saturdays.

IMPS (Immediate Payment Service)

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, NPCI 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. 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, 590 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.

Objectives of IMPS

·         To enable bank customers to use mobile instruments as a channel for accessing their banks accounts and remit funds

·         Making payment simpler just with the mobile number of the beneficiary

·         To sub-serve the goal of Reserve Bank of India (RBI) in electronification of retail payments

·         To facilitate mobile payment systems already introduced in India with the Reserve Bank of India Mobile Payment Guidelines 2008 to be inter-operable across banks and mobile operators in a safe and secured manner

·         To build the foundation for a full range of mobile based Banking services

The participants for IMPS will be as follows:

·         Remitter (Sender)

·         Beneficiary (Receiver)

·         Banks

·         National Financial Switch – NPCI

Pre-Requisites for Mobile Banking through IMPS Registration for Remitter:

·         Register yourself with the mobile banking service of the bank.

·         Get Mobile Money Identifier (MMID) and MPIN from the bank

·         Download Software (Application) for mobile banking (ensure the compatibility of mobile with the application) or use the SMS facility in your mobile if your bank provides IMPS on SMS

Registration for Beneficiary:

·         Link your mobile number to the account in the respective bank

·         Get Mobile Money Identifier (MMID) from the bank

For Remitter (To send money):

·         Login to the application and select the IMPS menu from the IMPS or use the SMS facility in your mobile if your bank provides IMPS on SMS

·         Get Beneficiary Mobile number and MMID

·         Enter Beneficiary Mobile number, beneficiary MMID, Amount and your MPIN to send

·         Await confirmation SMS for the debit in your account and credit in beneficiary account

·         Note the transaction reference number for any future query

·         Share your Mobile number and MMID with the remitter

·         Ask the remitter to send money using your Mobile number and MMID

·         Check the confirmation SMS for credit to your account from the remitter

·         Note the transaction reference number for any future query

Fund transfer/Remittance

·         Using Mobile number & MMID (P2P)

·         Using Account number & IFS Code (P2A)

Using Mobile number & MMID (P2P)

IMPS offer an instant,24*7 interbank electronic fund transfer service capable of processing person 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 and integrity maintained for security required for even high worth transactions

Sender & Receiver - Have to register for Mobile Banking & get a unique ID called "MMID

Generation of MMID is a One-time process

Remitter (Sender) transfer funds to beneficiary (Receiver) using Mobile no. & 7digit MMID of beneficiary

Additional information's:

MMID - Mobile Money Identifier (7 digit code) Each MMID is linked to a unique Mobile Number. Different MMIDs can be linked to same Mobile Number

Using Account number & IFS Code (P2A)

Presently, IMPS Person-to-Person (P2P) funds transfer requires the Remitter customer to make funds transfer using Beneficiary Mobile Number and MMID. Both Remitter as well as Beneficiary needs to register their mobile number with their respective bank account and get MMID, in order to send or receive funds using IMPS

There may be cases where Remitter is enabled on Mobile Banking, but Beneficiary mobile number is not registered with any bank account. In such cases, Remitter shall not be able to send money to the Beneficiary 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.

Online Bill Payment

Online bill pay services offer a convenient, safe and inexpensive way to ensure that all of your bills are paid on time. It is a service that lets you pay your bills securely from a website or app. Many financial institutions offer this service. Online bill payment is a secure electronic service that allows customers to pay bills without having to write checks and mail them. Online bill payment usually is link to a checking account from which funds are withdrawn electronically for payment of one-time or recurring bills

Advantages of online bill payment

There are many benefits using online bill pay service. Some of them are given below

·         It is convenient and time-saving

·         It is safe and secure

·         It helps in record keeping

·         Online Bill Pay Simplifies Money Management

·         Online Bill Pay is Ecological

One of the biggest benefits of paying bills online is the elimination of paper waste. Paying your bills online will reduce paper checks. Apart from eliminating paper waste, it also eliminates the cost of postage and envelopes.

Credit and Debit Card

Credit card and debit cards typically look almost identical, with 16 digit card number, expiration dates and personal identification number (PIN) codes. But that is where the similarity ends. Debit cards allow bank customers to spend money by drawing on funds, they have deposited at the Bank. Credit cards allow customers to barrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash.

Credit card

A credit card is a payment card issued by financial institutions to users (cardholders) to borrow money from those institutions. Cardholders agree to pay the money back, with interests, according to the institution’s terms. Most major credit cards, which include Visa, MasterCard, Discover, and American Express, are issued by banks, credit unions, or other financial institutions. 

Types of Credit cards

There are many types of credit cards. Some of them are as given below:-

Standard Credit Cards

It simply extends a line of credit to their users because they offer no frills or rewards.

Rewards Credit Cards

Rewards cards are those cards that offer rewards on credit card purchases. There are three basic types of rewards cards: cashback, points, and travel.

 Secured Credit Cards

Secured cards require a security deposit to be placed on the card.

Prepaid Credit Cards

It requires the cardholder to load money onto the card before the card can be used. Purchases are withdrawn from the card's balance.

Business Credit Cards

Business credit cards are designed specifically for business use.

Advantages of using a credit card

·         A credit card is safer than carrying cash.

·         Earn reward points when you spend.

·         Credit cards work in any currency.

·         Credit cards give you an emergency line of credit.

·         Low-cost loan

Disadvantages of using a credit card

·         Paying high rates of interest

·         Credit card fraud.

·         Annual fees

·         Temptation: Since they’re so easy to use, they also make it easy to overspend.

Debit card

 A debit card is a payment card that deducts money directly from a consumer’s checking account rather than via loan from a bank. Debit cards eliminate the need to carry cash or physical checks to make purchases directly from your savings. It is also known as bank card, or check card.

Debit cards can function in two ways:

·         Like an ATM card for immediate withdrawals of cash

·         Like a check when buying an item

Types of Debit Cards

There are many types of debit cards. Some of them are as given below:-

·         Check Card.: A check card is a debit card that functions like writing a check. ...

·         Visa Debit Card.: A Visa debit card is backed by Visa, a credit card processing network. ...

·         Maestro Debit Card: Maestro is a debit card service owned by MasterCard, more commonly seen in Europe. Maestro cards require a PIN to verify the transaction.

·         Prepaid debit card: A prepaid debit card will keep your spending completely within your budget since there’s no  way to spend more than you loaded onto the card.

Advantages of Debit card

·         Debit card can be easily obtained.

·         They are widely accepted around the world

·         No more debts.

·         You don’t have to carry cash with you.

·         Multiple debit cards can be associated with one account.

Disadvantages of Debit card

·         It is easier to steal your money if you lose a debit card.

·         It can be easy to lose track of your account balance.

·         Many debit cards have daily limits.

·         They wear out over time.

·         Additional fees on ATM withdrawals

Unstructured Supplementary Service Data (USSD)

USSD stands Unstructured Supplementary Service Data. It is a technology platform through which information can be transmitted through a GSM(Global System for Mobile Communications) network on a basic phone. This service will be available on all mobile phones with SMS facility.

USSD allows users (without a smartphone or data/internet connection) to use mobile banking through the *99# code. This service is available in 12 languages, including English and other Indian languages. There are many banks in India that are currently providing the *99# service.

Using USSD mobile banking:

To use USSD mobile banking, users will have to simply dial *99# and use the interactive menu. There are many banks in India that are currently providing the *99# service.

Objective of the *99# payments service:

The main objective of the *99# payments service is to allow financial inclusion of the underbanked and economically weaker sections of the society, and integrate them into mainstream banking.  

Services of USSD Banking

Users can perform two types of services using USSD Banking:

• Financial Services
• Financial Services

Financial Services

Fund transfer via

• Using MMID
• Using Aadhaar
• Using Account number

 Non-Financial Services

• Balance Enquiry
• Mini statement
• Generation and change of MPIN
• Generate OTP

How to get it?

• Provide KYC to open a new account
• Mobile no. should be linked with bank a/c
• Register for USSD/Mobile Banking
• Get MMID (Mobile Money Identifier)
• Get MPIN (Mobile PIN)

Requirement for Transaction:

• Remember MMID
• Remember MPIN and Dial *99#
• Registered mobile number with any phone 

Funds Transfer limit:

• Rs 5,000/day
• Rs 50,000/annum 

How to Send Money Using USSD *99# Using MMID & Mobile Number

• Register bank account with mobile number and dial *99#
• The interface will open up and you can: Type 3 letters of your bank short name or first 4 letters of bank IFSC or 2-digit bank numeric code, proceed to click ‘Send’
• Now, choose number ‘3’ to send money and proceed key in payee/beneficiary mobile number
• Proceed to key in the beneficiary/payee MMID, transaction amount
• Key in MPIN and last 4 digits of your bank account number