Post demonetisation, attention has shifted to cashless payments. Payment apps and mobile wallets have become the ‘in-thing’. While private operators and mobile wallets like PayTm are hogging the limelight, National Payments Corporation of India (NPCI), an umbrella organisation for all retail payments system in India has also brought in a wide range of products for cashless payments like the Unified Payment Interface (UPI), Aadhar Enabled Payment System (AEPS), Rupay cards and others. Here, we take a look at how NPCI’s initiatives are faring post demonetisation.
Unified Payment Interface (UPI)
UPI is a mobile app ecosystem with banking features to facilitate payments that NPCI introduced in August, 2016.
It primarily enables quick and convenient fund transfer from one account to another and for payment to merchants during shopping.
21 banks like State Bank of India (SBI), Union Bank of India, Andhra Bank have UPI apps which can be downloaded from Google Playstore. Transactions to the tune of Rs 1 lakh can be done through UPI.
Payment through UPI can be made even if the bank with which he has an account, does not have UPI app.
NPCI claims that UPI usage has doubled post demonetisation.
But lack of awareness about UPI is hindering its progress. Many do not know about UPI.
Instead of separate UPI app for each bank, users say it will be convenient if only one UPI app is brought in
RuPay Cards
RuPay Cards have seen good growth post demonetisation as usage at PoS terminals, retail outlets and e-commerce sites, increased by more than 100 percent
Number of RuPay Cards in circulation : 300 million.
4 lakh transactions daily before demonetisation.
10 lakh transactions daily after demonetisation.
To encourage RuPay transactions, many banks pre-emptively waived Merchant Discount Rate (MDR) on transactions till December 30.
However RuPay cards can only be used to pay for transactions in India
USSD (*99#) & AEPS
Unstructured Supplementary Service Data (USSD) is a mobile banking service feature which enables users to transfer money through mobile without internet.
A person has to register with his bank for mobile banking to use USSD banking
Offers balance checking, mini statement and other services besides fund transfer
Transfers can be executed by dialing *99#.
Drawback is that there is a limit of H5000 for each transaction.
Aadhar Enabled Payment System (AEPS) can be considered the next level of online payment solutions, where payments are made swift and transparent by linking Aadhar details with users bank account.
RBI, Unique Identification Authority of India (UIDAI), NPCI and Institute of Development and Research in Banking Technology (IDRBT) are working together to introduce AEPS successfully.
NPCI has successfully integrated Aadhar details with banks accounts and tested transferring of funds from one bank account to other through PoS (Micro ATM). AEFS may soon be launched.
While Aadhar Payment Bridge System is already used to transfer benefits, feel that it will help financial inclusion, enhance transparency and control black money.
Can check balance, withdraw, deposit and transfer at micro ATMs.