Individual Report

By: Amith Kumar (BL.BU.P2MBA19010)

SECURTY AND PRIVACY

INTRODUCTION

The internet has created a huge platform for social networking sites. There is a huge impact on
people who use this platform to interact with friends, colleagues, family, and few interact with
random people or strangers. The platform is created in such way that people can create their
own set of groups based on private or public according to their interest. This can be based on
their work, place, community, or advertisement, etc.

The social networking sites allows people to communicate, share their interest, post their
pictures, and create a profile for a huge network of people to view. In doing all these one of the
most important factors that we come across is the social networking security and privacy.

All the people who sign into a network is asked to give a declaration on using the site by
agreeing the terms and conditions of a particular social media. Most of the people do not follow
the rules and do not consider the declaration which they signed. The whole system is filled with
various amounts of people all around the world from kids to elders. This is just about human
networking, there are also companies having social networking sites to generate and lead their
business or company. While bringing an individual or a company into the social sites it needs to
be protected and the safest way to generate is following the security and privacy by these sites.

There are so many complications and issues that we see in a social networking unit. Many are
trapped and have lost money and are publicly exposed with their content even though it was
safely secured. This happens due to no security.

CASE

This is the link of the case which is a video- https://youtu.be/dbg4hNHsc_8

I would like to take a case done by a team in Florida, who intercepted conversation between a
12-year-old girl and a 40-year-old pedophile. These people on Instagram and other social media
have become a threat to our young kids and siblings. Kids now a days tend to get into the social
media network at the age of 10 and above. They hardly know the network or how it works. But
they just tend to work on it and build their network. Some kids are trapped they do not
understand the social media effects and security aspects of it.

So, the case is related to how he approaches a girl and builds an interaction with the girls on
Instagram and these are young girls who have been particularly picked. These pedophiles don’t
just speak or build in conversations with the young girl. But he, was abusing and asking
questions or trying to be expressive in ways which a 11-year-old will not even know about.
There are nudity and abusive comments, irrelevant photos which were shared, etc. These guys
tend to meet these girls in personal and threaten them to be physical. So, to find such
pedophile and men who are doing it where put on a search with the team working on trapping
them.

This person was collecting images and videos of the girl. Which most of the parents never know
about it. Even if the profile is private of public the normal pics shared by the girl child is taken
and been used for a sexual content. This was a very disturbing factor that the team was going
through.

To find more the team made a fake account on Instagram. The team works for an Artificial
intelligence to detect issues which are caused by grooming and sexual predation. These issues
are not been recorded and are still been continued so they worked on to find out why it
happens. They wanted to bring awareness to the kids, youngsters, family members and their
parents to know something sort of this is happening on the social networks.

My take on the case was the social media is a huge threat not just to a 12-year-old kid. It is a
threat to every human, maintaining the social media network. Some accounts are been hacked
and some created to influence others to the black side of the network. The security or the
privacy really does not take any control over the social media. It is only the human who have to
personally take a step in deciding and figuring it out to secure the network for the people. Like
this team in the case took this as a personal challenge in solving the issue and finding people
who are major threats to the community and the world.

It is quite hard to maintain the personal information on these sites. In general, these issues are
based on identification and other information of an individual. These things can easily be
accessed by any person if shared with minimum information on the sites.

Artificial intelligence is finding such threats and bringing it to the cyber enforcement and law
enforcement team to put this to an end. But every day in this world each person gets or faces a
security and privacy issue. There are lakhs of people where their account gets blocked even
though its secure. Maintaining the social media is hard and gets more to even protecting it.

All that a person can do is to report and maintain private account with information to protect
the sites. But again, it is the personal information which is shared.
Impact of the topic on Information Assurance.

Security practitioners are affected by both system design and its use. In the current information
aspects, the employees or any individual data should meet the IT department or any system
where it is entered. This is to handle the network and security requirement of data handling.

We have seen identity of theft, crimes, the private data security breaches, and the privacy
protection data. These prove that private information must take privacy issues seriously.
Individual privacy rights constitute some of the privacy restriction of data. The Human resource,
Risk management unit and organizational departments also the social media sites for business
or individual account are facing compliances.

The current system of security and access control unit are taking information and threats to
notify an emergency. This is lead to a cycle of data collected to run in and identical security
check to locate the data existence. These are defining for the purpose of restricting and
applying security on the data storage system.
References

http://www.123seminarsonly.com/CS/Security-and-privacy-in-social-Networks.html#:~:text=Most
%20social%20network%20users%20share,in%20their%20social%20network%20space.&text=With
%20these%20social%20network%20characteristics,issue%20in%20the%20cyber%20world.

https://www.google.com/search?q=security+and+privacy+in+social+networks&sxsrf=ALeKk00oW5-
JWx4Vx0g4gsEcHmWC9eLuJQ:1598177117546&source=lnms&tbm=isch&sa=X&ved=2ahUKEwi_pITbibH
rAhXdxDgGHYIcBKoQ_AUoAXoECBoQAw&biw=1536&bih=754#imgrc=RHhOVh9DYat1xM

https://www.researchgate.net/publication/220491487_Security_and_Privacy_in_Social_Networks

https://youtu.be/dbg4hNHsc_8

Individual Report
By: Arjun Vijayakumar (BL.BU.P2MBA19016)

Digital Payments across the Globe

Introduction:
Digital Payments have revolutionized the way that people everywhere pay and accept money
for goods and services. Consumers & Merchants no longer have to worry about inconvenience
and security risk involved with carrying around large amounts of cash in order pay for the things
they need. The benefits of digital payments go beyond just convenience and security. It turns
out it expands the potential customer base for merchants reduce cash and handling cost. It
provides access to financial services to many previously unbanked populations and bring many
shadow economy transactions into formal economy increasing the tax revenues for
government. All of these factors have reduced the overall friction for the economy, leading to
increased spending and consumption. We are going to understand how the landscape of the
digital payments have changed around the globe in the recent years and also how it has
changed the landscape of India.
Four Trends that shifted the Global Landscape:
Digital Payments is globally driven by four trends that are expected to drastically impact the
future of this industry:
1) Ongoing digital technology:
As we can see around the world, the usage of digital technology has been increasing
throughout the world. Number of users accessing internet services have increased
drastically. It is expected that the no. of internet users that will be accessing internet
through mobile handsets will be about 80 per cent [CITATION Alp20 \l 1033 ]. It is
providing simplicity and convenience by e-commerce which alters the behavior of the
consumers.

2) Entry of non-traditional players:

The payment landscape is now seeing heightened activity across multiple player
categories, ranging from device manufacturers such as (Apple, Samsung), tech firms
(Google, eBay, Alibaba), retailers (Starbucks, Walmart), telecom companies (Vodafone,
Airtel) and many more [CITATION Alp20 \l 1033 ]. The FinTech startups has doubled up to
1,000 in approx. 5 years with a huge increase in funding. Given below fig. tells the
number of FinTech’s and funds grown in the last 10 years.
 Recently many digital payments are being dominant in there specific-use cases, such as
Apple Pay offering wallets, Google Pay offering paying bills and transferring money.

3) More Demanding Customers

Customers expect the flow of transaction to be very smooth. So, the companies work on
meeting the expectations of the customer like for e.g. Apple Pay introducing biometric
authentication and Google Pay introducing Rewards & Offers. In a way, it helps make
the customer satisfy and secure.
There has been a growing need for intuitive and frictionless user interface and design as
provided already by players [CITATION Alp20 \l 1033 ]. So that they can build on
enhancing and increasing customer interactions and building relationship.

4) Enabling Regulations:
Regulations play a critical role in determining the nature and success of payment
solutions. It has a mandate to protect the stability of the financial system as well as the
consumer. Some companies find it difficult to adapt to the regulatory landscape. There
are some instances, where they have to increase measures in data privacy, data
protection or fraud scams. Some companies find it difficult to adopt to these measures.
There are some markets who are still dominant in cash, governments have started
promoting the use of digital payments. Countries such as UAE, has implemented to
achieve a cashless economy which includes payroll cards for wages etc.
Cross-Border Payments:

The global cross-border payment landscape is at the center of a number of trends that
could fundamentally change competitive dynamics: increasing pressure from emerging
technologies (including distributed ledger technology—DLT—and card and network
innovations) shifting regulatory and sanctions frameworks; accelerating international
commerce (retail as well as corporate) and, especially, changing customer demands. In
addition, firms new to the cross-border market, such as TransferWise, Alibaba and
Amazon, are increasing competitive pressure on incumbents. [CITATION Har18 \l 1033 ]

There has been an increase in the transaction volumes over the past few years, driven
by growth in global trade.

It is expected that there will be a rise in both corporate and retail payments (C2C, C2B,
B2C) by 5.6% per year. And a rise in the C2B market is also expected to be the highest in
terms of growth rate. There are certain risks that have occurred in banks, 25% of banks
are at risks in terms of cross-border payments.

There are still many challenges still exist in terms of securing digital payments like lack of
global standards, varying regulatory requirements, need to improve infrastructure in
terms of digital payments, to bridge the gap between laws and development in digital
payments. If these challenges could be improved, there could be a significant rise in the
economic growth and also reducing the friction of cross-border payments.
Digital Payments in India:

Since the introduction of demonetization, the government has focused on making the
country a cashless economy with the introduction of digital payments. Many companies
have come forward and invested in India and they have shown an exponential growth in
the recent years.

India is one of the largest markets with a wide variety of opportunities in terms of digital
payments. Companies such as BHIM, Paytm, Google Pay etc. have all been successful in
India and the no. of customers using these applications have increased by huge amount.
It has evolved in terms of rapid advancements in technology and had a good impact on
the economy.

The major trends that made India transform in terms of digital payment are:
1) India going digital
2) A ‘favorable’ regulatory environment
3) Emergence of service providers
4) Providing a seamless customer experience.

If we look at 2020, there has been a huge increase in terms of no. of people using
mobile phone and smart phones. In terms of internet users also there has been an
increase in the no of users. This shows that India is slowly moving towards becoming a
digital country.
 Digital Ecosystem in India:
Digital Payment in India has been carried out by different modes of payment such as
mobile apps, cards etc. The ecosystem consists of buyer (customer), seller (merchant,
service provider) and Payment Service Provider that enables the buyer to transfer
money to the seller. India acts as the regional powerhouse with payments,
modernization, and innovation agenda driven by NPCI (National Payments Corporation
of India) [CITATION Sma \y \l 1033 ].

Benefits for Economy:

 A new route for income equality.

 Creates a new job opportunity.
 It will boost consumption and investment opportunities
 Motivates women’s economic empowerment
Conclusion:
Digital Payment provides a bigger impact when it is adopted in different countries. So, it is high
time that countries focus more on usage of digital payments, so that companies could invest
and provide better opportunities.
References
1) https://image-src.bcg.com/BCG_COM/BCG-Google%20Digital%20Payments%202020-July
%202016_tcm21-39245.pdf
2) https://www.accenture.com/_acnmedia/PDF-81/Accenture-Payments-in-the-Digital-Age.pdf
3) https://www.accenture.com/_acnmedia/pdf-85/accenture-international-payments-digital-
world-international-payments-digital-world.pdf
4) https://www.slideshare.net/harshitraghuwanshi9/digital-banking-and-payments-management-
project-by-harshit-raghuwanshi-at-imt-hyderabad
5) http://smartadvisors.in/2020/03/27/digital-payment-ecosystem-india/
6) https://www.weforum.org/projects/digital-payments-for-trade-and-commerce
Individual Report

By: Krishnanunni S Nair (BL.BU.P2MBA19031)

Digital Apps, Bank payments and Security

Digital India
● It is the flagship program of the government of India.
● The vision of the program is to transform India into a digitally empowered society.
● Many forms of digital payment methods are used to convert India into a digital based
platform.
● Banking cards, USSD, Aeps, UPI, Mobile wallets, Point of sale, Mobile banking, Micro Atm’s
are some examples.
Demonetization: - The Emergence and Boom of payment apps
● On 8 November 2016, the Government of India announced the demonetization of all ₹500
and ₹1,000 banknotes of the Mahatma Gandhi Series.
● It also announced the issuance of new 500 and 2000 banknotes in exchange for the
demonetized banknotes.
● The announcement of demonetization was followed by prolonged cash shortages in the
weeks that followed, which created significant disruption throughout the economy.
● The government estimated that ₹3 lakh crore, or approximately 20%, of the demonetized
banknotes would be permanently removed from circulation. The unavailability of bank notes
forced a large percentage of Indians to shift to digital payment apps for their day to day
activities
● A surge in Users were observed for digital payment apps.
● Existing companies like paytm experienced a huge rise in daily users.
● The people become more accustomed to using phone payment for their daily activities.
● The vendors and retailers started accepting digital payments.
● Cities were the first ones to adapt even though rural India took time to get used to the new
online environment.
● The government managed to shift a high percentage of people to use online payments.
● This also encouraged the emergence of multiple platforms of digital payments namely
○ PhonePe
○ Paytm
○ Google pay
○ Amazon pay
○ Jio Money
○ Free charge
○ Yono SBI
○ Airtel money
○ Payzapp
● These are some of the companies that took the opportunity for their advantage and started
their business.
● Most of them were successful and some were not able to keep up with the competition.
Payment apps and its safety- Indian and American
Paytm
Features of Paytm
● Send Money: Send money by entering Virtual Payment Address (UPI ID), Account number and
QR Scan.
● Request Money: Collect money by entering Virtual Payment Address (UPI ID).
● Scan & Pay: Pay by scanning the QR code through Scan & Pay or generate your to let others
make easy payments to you.
● Transactions: Check your transaction history and also pending UPI collect requests.
● 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 paytm App. You can
set/change your UPI PIN or check your balance.
● Language: Currently paytm is available in 20 languages, i.e., Hindi, English, Tamil, Telugu,
Malayalam, Bengali, Odia, Kannada, Gujarati, Marathi, Assamese, Bengali, Bhojpuri, Haryanvi,
Marwari, Konkani, Manipuri, Khasi and Mizo.
● Block User: Block/Spam users who are sending you collect requests from illicit sources.
● Privacy: Allow a user to disable and enable mobilenumber@upi in the profile if a secondary
UPI ID is created.
● Payment Reminders: Schedule payments as per your convenience.
● Split Bill: Splitting bills with multiple UPI users at a click of a button.
Safety of Paytm
● Paytm is PCI DSS compliant in terms of security.
● All financial transactions on Paytm are done with 128-bit encryption SSL security.
● Paytm engages in real time monitoring and transaction engine to weed out suspicious
transactions and ensure the customer’s money is always secure.
● App password feature for your Paytm Wallet. This will ensure money in your Paytm Wallet is
safe even if you lose or misplace your phone.
● Mobile number is only partially revealed to the recipient.
● This feature not only guarantees our customers full security against any fraud, but also
protects them from possible harassment and spam calls.
Incidents of Vulnerability
● Paytm has alleged that telecom companies are not blocking numbers used for phishing
activities and sued them for 100 cr damages in Delhi High Court.
● The company had provided the Indian government with the personal data of Paytm users in
the Indian state of Jammu and Kashmir, violating user's privacy and policies.
● It was then later denied by the company.
Google Pay
● Google Pay is a digital payment app for India.
● This app was known as Google Tez. It was recently renamed as Google Pay.
● In addition to the change in name a lot of additional features are added in this app to
increase popularity.
● It will also offer pre-approved loans on the go in association with ICICI bank and HDFC
This app works with all Banks that support BHIM UPI.
Key Features and Benefits of Google Pay
Send and Receive Money via Audio
● Pay Utility Bills
● Multiple Payment Options
● Rewards
Benefits of Google Pay
Benefits of GooglePay Payment App are given below.
● Quick and Easy way to send and receive money.
● Multiple cashback and rewards benefits.
● Encryption and multiple layers of security by Google to secure transactions.
● Pay Utility bills, recharge your mobile and do online shopping using this app.
● No additional cost of usage.
● This app can also be used for business purposes. Integration is very easy by API and no fee is
involved.
Safety Of the app
● RBI has authorized NPCI as a Payment System Operator (PSO) of UPI and NPCI in its capacity
as PSO authorizes all UPI participants which is used by Google pay.
● Multiple security levels.
● Monitoring activities
● Ensuring privacy protection.
● Specified guidelines are provided to protect the user data.
Online banking safety and security
● FinCEN (the Financial Crimes Enforcement Network, established by the U.S. Treasury
Department) has determined that financial cybercrime is the fastest-growing sector of this
burgeoning market – measuring a 115% in 2010.
● The area of greatest concern is fraud in online banking systems; the estimated annualized
growth numbers for crimes related to online banking is 30-50%, with the size of losses more
than doubling annually.
Online banking Trojans
● The standard method for obtaining online banking credentials is social engineering or
phishing, often in conjunction with a Banking Trojan.
■ Two of most widespread such targeted malware programs are Zeus and SpyEye.

Zeus
● The Zeus Trojan is widely referred to as “the God of all Trojans” in the world of online banking
fraud and is estimated to be responsible for about 90 percent of banking fraud worldwide.
● Individual hackers can fine-tune the Zeus code to target specific information for acquisition.
● Examples include login credentials for online social networks, email accounts, and, of course,
online banking or other online financial services credentials.
SpyEye
● Released in 2009, the SpyEye Trojan has gained momentum rapidly
● it was cheaper for hackers to acquire than Zeus, but offered sophisticated control and
targeting mechanisms.
● With the news of a SpyEye and Zeus merger, the potential for more sophisticated banking
Trojans is even higher.
Techniques in use for online banking security and vulnerability
● HTTPS and SSL Vulnerability
○ Zeus, SpyEye, and other online banking Trojans serve as a heads-up for all those who believe
that banking transactions over HTTPS with SSL encryption cannot be intercepted.
○ These techniques are ineffective against MITB (Man –In-The-Browser) attacks, when the
victim uses an infected computer for online banking.
● SMS authentication Vulnerability
○ To confirm certain browser transactions, banks send a one-time password (OTP) as a text
message to the customer’s mobile phone for confirmation.
○ Mobile devices are a hot target for cybercriminals, because most such devices have little or
no security, and their users don’t think about security either.
○ SMS messages sent to a compromised mobile phone (either a smartphone or even a regular
cell phone with Java support) can be redirected to an attacker’s computer, and then replayed
on a bank site to manipulate online transactions.
○ The attack is complex and multi-layered, but readily perpetrated, thanks to the sophistication
of the Zeus and SpyEye botnets. Such attacks are increasingly lucrative.
Solutions to the Problem
Multi Layered security is the answer to online banking threats
● Adding a host intrusion prevention system (HIPS) that blocks any unauthorized code from
entering or activating on their PCs.
● Application whitelisting alone offers many of these advantages and has the potential to
evolve into strong protection, current implementations require much manual tweaking to be
effective and minimize false positives.
● SafenSoft’s VIPO Proactive Protection technology (Valid Inside Permitted Operations) was
developed in large part to overcome this problem.
VIPO combines three levels of protection to deliver comprehensive system and application
integrity:
● Dynamic Integrity Control (DIC) - Protects all executable software on the system by detecting
any unauthorized activation attempt and preventing the process from launching before damage
can occur.
● Dynamic Sandbox Execution (DSE) – A specially-designated user account for potentially
vulnerable software provides system-level privilege controls to block potentially dangerous
software activity.
● Dynamic Resource Control (DRC) - Controls how different applications can access files and
folders, registry keys, external devices, and network resources.

References
● https://blog.paytm.com/a-few-key-facts-about-your-paytm-account-6bc71f0c207
● http://www.safensoft.com/Online_Banking_Security/
● https://www.bankinfosecurity.com/application-security-c-482
● https://www.nerdwallet.com/blog/banking/online-banking-security/
● https://blog.nationwide.com/safe-online-banking/
Individual Report

By: Ganesh (BL.BU.P2MBA19023)

DIGITAL PAYMENTS
The digital payment is something when a purchase of goods/services happens through various
electronic mediums. There is no direct cash or cheque involved.
The Government of India has been taking several measures to promote and encourage digital
payments in the country. As part of the ‘Digital India’ campaign, the government aims to create a
‘digitally empowered’ economy that is ‘Faceless, Paperless, Cashless’. There are various types
and modes of digital payments. Some of these include the use of debit/credit cards, internet
banking, mobile wallets, digital payment apps, Unified Payments Interface (UPI) service,
Unstructured Supplementary Service Data (USSD), Bank prepaid cards, mobile banking, etc.
Digital payment methods are often easy to make, more convenient and provide customers the
flexibility to make payments from anywhere and at any time. These are a good alternative to
traditional methods of payment and speedup transaction cycles. Post demonetization, people
slowly started embracing digital payments and even small-time merchants and shop owners
started accepting payments through the digital mode.
This paves way for cashless economy which uses different types of payment which does not
involve any physical use of money. There are 10 different types of digital payment methods used
in India. They are:
 Banking cards (Debit/Credit).
 USSD.
 Aadhaar Enabled Payment System (AEPS).
 UPI.
 Mobile Wallets.
 Bank pre-paid cards.
 Point of Sale (PoS).
 Internet Banking.
 Mobile Banking.
 Bharat Interface for Money (BHIM) app.

Banking cards: Cards are among the most widely used payment methods and come with various
features and benefits such as security of payments, convenience, etc. The main advantage of
debit/credit or prepaid banking cards is that they can be used to make other types of digital
payments. For example, customers can store card information in digital payment apps or mobile
wallets to make a cashless payment. Some of the most reputed and well-known card payment
systems are Visa, Rupay and MasterCard, among others. Banking cards can be used for online
purchases, in digital payment apps, PoS machines, online transactions, etc.

USSD: Another type of digital payment method, *99#, can be used to carry out mobile
transactions without downloading any app. These types of payments can also be made with no
mobile data facility. This facility is backed by the USSD along with the National Payments
Corporation of India (NPCI). The main aim of this type of digital payment service is to create an
environment of inclusion among the underserved sections of society and integrate them into
mainstream banking. This service can be used to initiate fund transfers, get a look at bank
statements and make balance queries. Another advantage of this type of payment system is that it
is also available in Hindi.

AEPS: Expanded as Aadhaar Enabled Payment System, AEPS, can be used for all banking
transactions such as balance enquiry, cash withdrawal, cash deposit, payment transactions,
Aadhaar to Aadhaar fund transfers, etc. All transactions are carried out through a banking
correspondent based on Aadhaar verification. There is no need to physically visit a branch,
provide debit or credit cards, or even make a signature on a document. This service can only be
availed if your Aadhaar number is registered with the bank where you hold an account. This is
another initiative taken by the NPCI to promote digital payments in the country.

 UPI: UPI is a type of interoperable payment system through which any customer holding any
bank account can send and receive money through a UPI-based app. The service allows a user to
link more than one bank account on a UPI app on their smartphone to seamlessly initiate fund
transfers and make collect requests on a 24/7 basis and on all 365 days a year. The main
advantage of UPI is that it enables users to transfer money without a bank account or IFSC code.
All we need is a Virtual Payment Address (VPA). There are many UPI apps in the market and it
is available on both Android and iOS platforms. To use the service, one should have a valid bank
account and a registered mobile number, which is linked to the same bank account. There are no
transaction charges for using UPI. Through this, a customer can send and receive money and
make balance enquiries.

 Mobile Wallets: A mobile wallet is a type of virtual wallet service that can be used by
downloading an app. The digital or mobile wallet stores bank account or debit/credit card
information or bank account information in an encoded format to allow secure payments. One
can also add money to a mobile wallet and use the same to make payments and purchase goods
and services. This eliminated the need to use credit/debit cards or remember the CVV or 4-digit
pin. Many banks in the country have launched e-wallet services and apart from banks, there are
also many private players. Some of the mobile wallet apps in the market are Paytm, Mobikwik,
Freecharge, etc. The various services offered by mobile wallets include sending and receiving
money, making payments to merchants, online purchases, etc. Some mobile wallets may charge
a certain transaction fee for the services offered.

 Bank pre-paid cards: A prepaid card is a type of payment instrument on to which you load
money to make purchases. The type of card may not be linked to the bank account of the
customer. However, a debit card issued by the bank is linked with the bank account of the
customer.

PoS terminals: Traditionally, PoS terminals referred to those that were installed at all stores
where purchases were made by customers using credit/debit cards. It is usually a hand held
device that reads banking cards. However, with digitization the scope of PoS is expanding and
this service is also available on mobile platforms and through internet browsers. There are
different types of PoS terminals such as Physical PoS, Mobile PoS and Virtual PoS Physical PoS
terminals are the ones that are kept at shops and stores. On the other hand, mobile PoS terminals
work through a tablet or smartphone. This is advantageous for small time business owners as
they do not have to invest in expensive electronic registers. Virtual PoS systems use web-based
applications to process payments.

Internet Banking: Internet banking refers to the process of carrying out banking transactions
online. These may include many services such as transferring funds, opening a new fixed or
recurring deposit, closing an account, etc. Internet banking is also referred to as e-banking or
virtual banking. Internet banking is usually used to make online fund transfers via NEFT, RTGS
or IMPS. Banks offer customers all types of banking services through their website and a
customer can log into his/her account by using a username and password. Unlike visiting a
physical bank, there are to time restrictions for internet banking services and they can be availed
at any time and on all 365 days in a year. There is a wide scope for internet banking services.

 Mobile Banking: Mobile banking is referred to the process of carrying out financial

transactions/banking transactions through a smartphone. The scope of mobile banking is only
expanding with the introduction of many mobile wallets, digital payment apps and other services
like the UPI. Many banks have their own apps and customers can download the same to carry out
banking transactions at the click of a button. Mobile banking is a wide term used for the
extensive range or umbrella of services that can be availed under this.

 Bharat Interface for Money (BHIM) app: The BHIM app allows users to make payments
using the UPI application. This also works in collaboration with UPI and transactions can be
carried out using a VPA. One can link his/her bank account with the BHIM interface easily. It is
also possible to link multiple bank accounts. The BHIM app can be used by anyone who has a
mobile number, debit card and a valid bank account. Money can be sent to different bank
accounts, virtual addresses or to an Aadhaar number. There are also many banks that have
collaborated with the NPCI and BHIM to allow customers to use this interface. This is the first
application which was launched by National Payments Corporation of India for UPI payments.
Later it was followed by other applications like PhonePe, Google Pay, etc.
National Payments Corporation of India (NPCI) is responsible for the all the digital payments
and should make sure that they are happening in a secured manner. This is supported by Reserve
Bank as well as Indian Banks Association.
So, I’ll be explaining about the different Risk Management as well as Cyber security of NPCI.

Risk Management in NPCI:

The management of risks is core to NPCI's vision mission and objectives of ensuring safety,
security and sustainability of national retail payment systems. Effective risk management is
fundamental to being able to generate critical mass and optimum risk-reward and is thus
considered to be the epicenter of decision making at NPCI. The risk management activities are
carried out under the realm of enterprise risk management framework, with the objective of
maximizing risk-adjusted returns while remaining within defined risk appetite and tolerance
levels.

Risk Management: Governance & Framework.

A comprehensive risk management process allows management to take risks in a controlled
manner. In order to provide all-inclusive view of retail payment systems, risks and opportunities
are assessed and identified in a seamless manner using elements of top-down and bottoms-up
approach. As part of the risk management framework, NPCI use a set of principles that entails
the risk management culture we wish to promote, preach and practice at NPCI
 Recognition - To identify any risk early on and take proactive steps before it gets out of
hand.
 Improvisation - Improving new methods, techniques and tools to secure better
monitoring and providing for a feed-forward rather than a feed-back system.
 Segmentation - In address smaller systems and sub-systems individually so as to address
their unique features while also being mindful of the systemic impact.
 Knowledge – This is to enable knowledge for making decisions in a knowledge-powered
economy, resulting in scientifically-engineered and output-oriented action.

Operational Risk Management:

 The risk resulting from inadequate or failed internal processes, systems, human error, or from
external events related to any element of payment, clearing, and settlement systems. NPCI
identifies and assesses the operational risk inherent in all its material products, activities,
processes and systems. Furthermore, NPCI ensures that before new products, activities,
processes and systems are introduced or undertaken, the operational risk inherent in them is
subject to adequate assessment procedures.

Objectives of NPCI ORM framework:

•    To identify, evaluate & control, measure, monitor and report operational risks for all Units
across the organization.
•    To develop a "risk aware" culture that encourages all staff to identify risks and associated
opportunities and to respond to them with cost effective actions.

Cyber Security:
Below are the few technologies and controls that are deployed at NPCI which have evidently
mitigated some of the real time Cyber-attacks targeting NPCI.

 Perimeter security controls including firewall, web application firewall, micro-

segmentation of network, routing controls, secured switch configurations, proxy server, Anti-
Distributed Denial of Service Solution, Anti – Advanced Persistent Threat etc.
 Various Detective controls including SOC to monitor and restrict the attacks from
external world to NPCI
 Privileged identity & access management solutions which further segregates the logical
access and restricts user to access critical systems supported by two factor authentications
 Security assessment tools that are used to carry out vulnerability assessment, penetration
testing and other application security assessment on periodic basis ensuring that the
vulnerabilities are periodically identified and fixed as part of our Secure Software Development
Lifecycle.
NPCI has incorporated data security policy which is in line to most of the global accepted
standards around data privacy and security. The policy has been put to effect since September
2018 and majority of our applications are assessed and mitigated to adhere to data security policy
of NPCI. There are appropriate remedial actions that are being worked to ensure customer data
remains safe and secure at NPCI.

References:
1. https://www.bankbazaar.com/ifsc/digital-payment.html
2. https://www.npci.org.in/risk-management-npci
3. https://www.npci.org.in/risk-management-npci
4. https://www.npci.org.in/cyber-security
Individual Report

By: Satvik (BL.BU.P2MBA19043)

In the digital era, electronic payments and online shopping

have gained immense popularity in the last decade. Many
utilized this opportunity to innovate. Paytm is one of the e-
commerce platforms which achieved success in early stage
itself.
PAYTM is one of its kind e-commerce payment system and
financial technology company in India, headquarters in Noida.
Paytm is founded by Vijay Shekhar Sharma. He started one97
Communications Ltd., which deals with news, cricket scores,
ringtones and exam results before starting PAYTM. It is the
parent company of Paytm. In 2017 Vijay Shekhar Sharma
appeared in Forbes World Billionaire list and also the youngest
on the list.
Founded in 2010 with an investment of 2 million dollars. In
initial stages, it has offered only prepaid mobile and DTH
recharge. Later the company increased different type of
payments such as postpaid and landline payments. During
demonetization, Paytm has seen more growth due to use of
digital payments were important at that particular time. “Paytm
Karo” was used and seen all over the media.
By the year 2020, revenue is at 500 million dollars with 350
million users. Holding companies include Alibaba, Softbank and
others. It offers services such as payment systems, digital
wallets, mobile payments and online shopping.

Paytm mall app launched in 2017, users can shop online which
is of B2C model. The app focuses on selling electronics, fashion
and FMCG. Paytm mall has seen a growth in the year 2019 but
it lags behind Amazon and Flipkart. This app seemed to start
without a proper plan. It was doing what other e-commerce
platforms were already doing.
Mall has spent more money on discounts and cash backs in the
year 2019, which resulted in a decline.

Benefits of using Paytm

1. It offers a wide range of options such as bill payments,
booking bus, flight, train and movie tickets. Also, shopping
recharges etc.
2. Paytm wallets have been linked to many applications such as
Ola Cabs, Uber, Zomato, Swiggy etc.
3. Online transactions are approved by Reserve Bank of India
and authorized as a safe platform for online payments.
4. Money saved in wallets and for the extending the limit, a
user has to follow the regulations by RBI.
5. Paytm offers guaranteed refunds within a few hours of
transactions failures.
6. Paytm offers discounts and cash backs on movie tickets and
others frequently to increase the trust of followers.
7. Money from the wallet can be transferred to the bank by
completing the KYC form.
Overall Paytm have many advantages and safe to use.

Disadvantages/glitches of Paytm

1. Few users have felt that customer support is satisfying.

2. When money transferred to a bank from wallet, money
charged to transfer can be between 1-4%. Transaction charges
are high if you want to transfer the money.
3. KYC has to be registered to unlock all the benefits of the
Paytm while many are not ready to register KYC.
4. Unless one is not sharing the OTPs and bank details Paytm is
considered safe.
5. Paytm asks to pay making charges to convert into physical
gold.
6. Users may face difficulty in transactions due to server issues.
This happens quite regularly.
7. A user interface to be improved and website performance is
low on desktop.
8. User verification is slow except when registered through
Aadhar ID.
9. Customer service in Paytm mall has raised many complaints,
takes up to hours to a few days.

Demonetization effect on Paytm

Demonetization gave the company a powerful lift. Due to the
effect, digitization pushed to larger levels. Paytm downloads
increased rapidly because the liquidity of cash reduced
drastically. After effect Paytm touched a record of about 7
million transactions. Users have to adapt to the new order of
things such as adding money in the wallet, online transactions
and shopping. Mobile wallet gained immense popularity with
the government move. Small to big shops started using Paytm
by allowing the customers to pay through the app and this is
seen even now in most parts of India. Overall Paytm became
more successful due to Modi's government.
2020 corona outbreak also made Paytm gain more users but
losses seen in online movie tickets and transport booking. But
payments by customers in shops and other online linked
platforms has seen growth.
Digital payments are in fewer risks due to disasters compared
to offline activities.

References:
https://www.moneycontrol.com/
https://entrackr.com/2020/06/three-years-and-600-mn-later-
is-paytm-mall-back-at-the-starting-line/
http://www.financepedia.in/advantages-and-disadvantages-of-
paytm.html
https://www.dqindia.com/paytm-beneficiary-demonetisation-
exercise/
Individual Report

By: John K Mathews (BL.BU.P2MBA19024)

THE TRANSFORMATION OF DIGITAL PAYMENT IN INDIA.

About digital payments.
Digital payments are the mode of payment which is done digitally and cashless. In
digital payment both sender and the receiver both use digital medium to transfer
money. This type of transaction is also known as electronic payments. No hard
cash is involved in digital payments. All the transactions in digital payments are
completed online. It is an instant and convenient way to make payments. The
money which is transferred from the sender account will directly transferred to
receivers account or e wallet.

Advantages of having digital payments.

Its more easy, faster and more convenient, one of the biggest advantages
of cashless payments is that it speeds up the transaction process and there
is no need to fill in too much information. There is no need to stand in a line
to withdraw money from an ATM or carry cards in the wallet. Also, with the
move to digital, banking services will be available to customers on a 24/7
basis and on all days of a year.

Less transaction fee and more economical - There are so many payment
apps and mobile wallets that do not charge any kind of service fee or
processing fee for the service provided in India. The UPI interface is one
such example, where services can be utilized by the customer free of cost.
Various digital payments systems are bringing down costs. Some examples
of these kind of payments are Google pay, PhonePe and Paytm in India.
Transactions are recorded- The greatest benefits of going digital is that all
transaction records can be maintained. Customers can track each and every
transaction that is made, no matter how small the transaction amount this.

Discounts and cash backs- In India to promote digital transactions there is

huge promotion going on as companies are giving huge cash back and
rewards for inviting new people to the digital world.

Easy settlement of bill- Due to the high population and people density we
have to stand in a long que for paying our utility bill and all payments for
our necessary goods. With online payments it’s too easy for the payment of
the bill and its easy for the customers to buy products from online.

Keeps black money under control- Digital transactions will help the
government keep a record of things and it will help eliminate the
circulation of black money and counterfeit notes in the long run. Apart from
this, this may also give a rise to the economy as the cost of minting
currency also goes down.

EFFECT OF DEMONTIZATION ON THE TRANSFORMATION OF CASHLESS

INDIA.

The government’s decision to ban Rs. 500 and Rs. 1000 notes on November
8, 2016, to destroy black money and terrorism financing through
counterfeit notes has evoked mixed reactions. Demonetization has affected
millions of people’s life, especially those in what is called the informal
sector—domestic workers, small traders, and farmers—but what its impact
will be in the long term remains to be seen.

In the short term, demonetization has led to the rapid change in mind of to
e-wallets, and credit and debit cards as a means of payment. Such digital
payments have in a large way replaced cash transactions at least in urban
areas and also some areas in rural part. Many economists and socio-
political researchers also believe that the country’s path to digitization was
smoothened and the time to achieve a cashless society has been
compressed.

DIGITAL PAYMENT METHODS IN INDIA.

Banking cards.
This card is commonly known as credit, debit, travel card etc. Banking cards
offer customers more security, convenience, and control than any other
payment method. There are many varieties of cards available – including
credit, debit and prepaid. These cards provide 2 factor authentications for
secure payments e.g. secure PIN and OTP, the OPT will be mostly received
to their registered mobile no or email id. RuPay, Visa, MasterCard are some
of the example of card payment systems. Payment cards give people the
power to purchase items in stores. They save both customers and
merchants’ time and money, and thus enable them for ease of transaction.
The major benefits offered by this card is to swipe on Pos machines, to
swipe at ATM, to use at online purchasing.

Unified Payments Interface (UPI).

The most used mode of transaction in the current scenario, (UPI) is a
system that powers multiple bank accounts into a single mobile application
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). The main services offered n=by UPI apps is that free balance
check, transaction of money in one click, Transaction history etc. The major
UPI apps are Amazon pay, Google pay PhonePe etc.

Mobile banking
Mobile banking is the 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 application, provided by the banks
or financial institution for the purpose of transaction. Each Bank provides
its own mobile banking App for Android, Windows and iOS mobile
platform(s). Example of mobile banking are YONO
Unstructured supplementary service data (USSD)
*99# service has been launched to take the banking services to every
common man in 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, interbank account to account fund transfer, balance enquiry, mini
statement besides host of other services. *99# service is currently offered
by 51 leading banks & all GSM service providers and can be accessed in 12
different languages including Hindi & English.

Point of sale
A point of sale is the place where sales are made. It is a simple machine
which we can use our debit or credit card for the payment of cash to the
merchant.

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.

Electronic Clearing System (ECS)

ECS is an alternative method for effecting payment transactions in respect
of the utility-bill-payments such as telephone bills, electricity bills,
 insurance premia, card payments and loan repayments, etc., which would
obviate the need for issuing and handling paper instruments and thereby
facilitate improved customer service by banks / companies / corporations /
government departments, etc., collecting / receiving the payments.
PROMOTION FROM GOVT OF INDIA FOR CASHLESS INDIA.

In the aftermath of the cancellation of the legal tender character of old

Rs.500 and Rs.1,000 notes, there has been a surge in the digital
transactions through use of credit/debit cards and mobile phone
applications/e-wallets etc. To further accelerate this process, the Central
Government has decided on a package of incentives and measures for
promotion of digital and cashless economy in the country.

The Central Government Petroleum PSUs shall give incentive by offering a

discount at the rate of 0.75% of the sale price to consumers on purchase of
petrol/diesel if payment is made through digital means. To expand digital
payment infrastructure in rural areas, the Central Government through
NABARD will extend financial support to eligible banks for deployment of 2
POS devices each in 1 Lakh villages with population of less than 10,000. All
railway passengers buying online ticket shall be given free accidental
insurance cover of upto Rs. 10 lakh. No service tax will be charged on digital
transaction charges/MDR for transactions upto Rs.2000 per transaction.

CONCLUSION
From the year 2016 there is a dramatic change in increase of online mode
of payments. It was one of the missions of the prime minister to make India
truly cashless and it is a successful till date. In India There are many
methods to do digital payments as mentioned above and at the current
state more than 40% of people use digital mode of payment.
REFERENCE

Digital payments in India by Jaspal singh

https://www.pymnts.com/tag/digital-payments/#:~:text=Digital
%20payment%20is%20a%20way,is%20also%20called%20electronic
%20payment.

https://upipayments.co.in/digital-payment/

http://cashlessindia.gov.in/digital_payment_methods.html

http://cashlessindia.gov.in/package-for-promotion-of-digital-and-cashless-
economy.html

https://www.bankbazaar.com/ifsc/digital-payment.html

https://www.marsh.com/in/insights/research/demonetization-and-
digitization-of-the-indian-economy.html#:~:text=The%20government's
%20decision%20to%20ban%20Rs.&text=In%20the%20short%20term%2C
%20demonetization,at%20least%20in%20urban%20areas.

https://economictimes.indiatimes.com/industry/banking/finance/banking/
demonetisation-impact-bharat-going-digital-for-
payments/articleshow/66550675.cms?from=mdr

https://www.quora.com/What-is-digital-payment
Individual Report

By: Adarsh R (BL.BU.P2MBA19006)

Digital Payments in India

 A brief history

In India money transactions are always preferred in hard cash but a certain incident led to the
start of widespread usage of digital payment platforms like Paytm, PayPal, GPay, PhonePe,
MobiKwik and many more. It was the demonetization of Rs.500 and Rs.1000 bills by the Indian
government on November 8, 2016. During the Demonetization period, the People of India were
forced directly or indirectly to do all commercial transactions via Digital mode. They started to
move from traditional payment system to Digital Payments systems; that ensured safe, secure
and convenience. With great technological advancements in the smart phone technologies and
easy internet access has led Indian market to accept Digital Payments. The percentage of the
digital payments through other forms is also increasing in a significant pace. Digital revolution
has made the cash less transaction an easy one. As a result that in 2015-2016, a total of 4018
billion has been transacted through mobile banking when compared to 60 billion in 2012-13.
The reach of mobile network and Internet is expanding digital payments to remote areas. So,
with no doubt it can be said that future transaction system is cashless transaction system.
Currently the digital payment systems include a number of ways through which transaction can
be carried out

1. Banking cards – Including debit and credit cards are a secure method for transaction. It
can be used to get physical money out of an ATM machine and its details can also be
used to do online transactions.
2. USSD (Unstructured supplementary service data) – also called quick code or feature
code is a protocol used by cellular telephones with GSM to communicate with service
provider’s computer. USSD code start with a * sign and terminate with # sign and in
between have numbers which mark the command a particular USSD needs its service
provider to fulfill. In case of pre-paid GSMs USSD cuts the amount and gives the service
but if the payments have to be made from a bank account it would a mobile banking
personal identity number(MPIN) and the user’s Aadhar card number.
3. Aadhar Enabled payment service (AEPS) - This system is controlled by NPCI (National
Payments Corporation of India). The AEPS system uses Aadhar enabled bank accounts
and online Aadhar authentication to help the operation of anytime-anywhere bank
accounts through micro-ATMs. For this the only requirements are:
a. Aadhar number
b. Bank issuer identity number or name
c. Finger print
4. Unified Payments Interface (UPI) – it is a new payment system introduced by NPCI
(National Payments Corporation of India) and the most commonly used mode of digital
payment. It consists of applications that are connected to the user’s bank account and
can be used to transfer money with much ease. These apps recognize the users through
their UPI ID and transaction happens between two accounts. In this the user can
connect all his account related to a single cell phone number and hence doesn’t needs
 to remember or keep entering his bank user id and password again and again; giving the
user a hassle-free experience.
5. Digital Wallets – A digital wallet is a digital way of carrying cash. It needs debit or credit
card information to be linked to the wallet application. It helps in transferring money
from bank account to wallet. This transaction has no fee but it is charged when money is
transferred from wallet to bank account. These are even faster than UPI but user’s
wallet needs to have money. To increase wallet usage all the companies having wallets
are giving huge number of offers and discounts and other customer benefits on
payments through their wallets. Major players providing wallets are Paytm, Freecharge,
JioMoney, SBI Buddy, Vodafone M-pesa, ICICI pockets etc.

6. 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.

 Security in digital payments-The need for security for internet payments

The internet as a medium has made it possible for converting commerce to e-commerce. Today
a critical factor of success for any organization is to implement and operate an e-commerce
mechanism for material, money and information flow. As now all these things are connected to
the internet it has opened new ways and methods used by conmen to fraud people. So that
invites a lot of security measures to be taken in order for people’s data be safe as well as the
money transactions remain secure.

So, in this assignment I would like to bring light to the organization which was
established with the sole responsibility of being the umbrella organization for operating retail
payments and settlement systems in India. It is NPCI
 NPCI – National Payments Corporation of India

The National Payments Corporation of India (NPCI), incorporated by the Reserve Bank of
India, functions as a hub for all electronic retail payment systems in the country. These retail
payment systems include a diverse range of products, delivery channels, service providers and
technology solutions. The NPCI facilitates an affordable payment mechanism that benefits all
member banks and their customers.

The organization functions under the provisions of the Payment and Settlement Systems
Act, 2007 in order to create robust payments and settlement infrastructure for India. It is a non-
profit organization set up under the provisions of Section 25 of Companies Act, 1956 (now,
Section 8 of Companies Act, 2013). NPCI aims to provide infrastructure to the whole banking
industry, both physical and electronic payment and settlements system.

The NPCI’s service portfolio includes,

 National Financial Switch (NFS)

 Immediate Payment Service (IMPS) provided to 59 member banks and financial

institutions

 National Automated Clearing House

 Aadhaar Payments Bridge System (APBS)

 Aadhaar-enabled payment system (AEPS)

  Interoperable Financial Inclusion System (IFIS)

 Cheque Truncation System (CTS)

 Express Cheque Clearing System

 Domestic Card Scheme - RuPay

For NPCI

VISION – To be the best payments network globally

Mission – To touch every Indian with one or the other payment service

NPCI, during its journey in the last seven years, has made a significant impact on the retail
payment systems in the country. Dedicated to the nation by our former President, Shri Pranav
Mukherjee, endorsed by the Hon’ble Prime Minister, Shri Narendra Modi and later made the
card of choice for the ambitious Pradhan Mantri Jan Dhan Yojana, RuPay is now a known name.
It is akin to Visa/MasterCard from card industry perspective. RBI and the government work
through NPCI to further their own interests and causes such as Financial Inclusion, digitalization
of payments and overall futuristic product deployments.

References used

https://www.researchgate.net/publication/336835369

https://www.npci.org.in/
Individual Report

By: Kovela N (BL.BU.P2MBA19029)

Overview
The Dynamic Payments Ecosystem is expanding and evolving day by day. Unified
Payments Interface (UPI) has emerged as a major payment option for Indians
which made banking services more accessible to everyone.
The Government of India has been introduced Digital India and taking several
measures to promote and encourage digital payments in the country. As part of
the ‘Digital India’ campaign, the government aims to create a ‘digitally
empowered’ economy that is ‘Faceless, Paperless, Cashless’.

10 Types of Digital Payment Methods in India

1. Banking cards
2. USSD
3. Aadhaar Enabled Payment System (AEPS)
 4. UPI
5. Mobile Wallets
6. Bank pre-paid cards
7. Point of Sale (PoS)
8. Internet Banking
9. Mobile Banking
10. Bharat Interface for Money (BHIM) app

Payments using 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 transfers through mobile device round the clock 24*7
and 365 days.
 Single mobile application for accessing different bank accounts.
 Single Click 2 Factor Authentication – Aligned with the Regulatory
guidelines, yet provides for a very strong feature of seamless single click payment.
 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.
 Bill Sharing with friends.
 Best answer to Cash on Delivery hassle, running to an ATM or rendering
exact amount.
 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.
 Raising Complaint from Mobile App directly.

Participants in UPI

 Payer PSP
 Payee PSP
 Remitter Bank
 Beneficiary Bank
 NPCI
 Bank Account holders
 Merchants
How UPI is Encrypted?

UPI has made the money transfer process a lot easier. You do not have to
remember the receiver’s account number, account type, IFSC, and bank name.
Instead, you can do the money transfer only by knowing their Aadhaar number,
mobile phone number registered with the bank account, or UPI ID.
UPI transactions use highly secure encryption format that is not easy to tamper.
NPCI’s IMPS network handles about Rs. 8,000 crores worth transactions every
day. This is expected to exponentially increase with UPI technology. It uses a two-
factor authentication method, similar to OTP, for verifying every transaction.
However, UPI PIN will be used in the place of OTP for validation.

Benefits of Digital Payments

Faster, easier, more convenient
Economical and less transaction fee
Waivers, discounts and cashbacks
Digital record of transaction
One stop solution for paying bills
Helps keep black money under control
References
https://www.npci.org.in/product-overview/upi-product-overview
https://www.datareign.com/upipos-existing-pos-terminal-accept-upi-payments/
https://cleartax.in/s/upi-unified-payments-interface#:~:text=UPI%20transactions
%20use%20highly%20secure,OTP%2C%20for%20verifying%20every
%20transaction.
Individual Report

By: Darshan G (BL.BU.P2MBA19020)

We all are living in a digital era where our mode of money transactions has become ease, digital
payments is an approach where payments are made through digital forms where the payee and
payer use electronic payment modes to send and receive money.

UPI- Unified Payments Interface:

It is an instant system that powers multiple bank accounts into a single mobile application
developed by the National Payments Corporation of India facilitating fund transfers within the
banks; it was introduced on 11 April 2016 initially the firm had less number of clients when it
started, as on October 2016 the number of banks live on UPI was around 21 the number of
transactions grew gradually the main interest to bring up the UPI was to completely provide a
digital platform and eliminate the flow of black money . The Unified Payments Interface is
encrypted with a framework and set of API specifications in the functioning of online payments.
Later on, the growth substantially increased as well as the popularity of UPI, now there are
around 164 banks linked surpassing around 1.22 billion transactions as on November 2019.
Major apps enabled with UPI features in India are:
PhonePe, Paytm, BHIM app, MobiKwik, Google Pay, Uber, Chillr, Paytm payments bank, Sbi pay,
iMoblie, Axis bank, BOB UP

The main highlights of UPI are:

 Payments are channelized in such a way that both the sender and receiver can initiate
funds.
 It’s based on mobile platforms any can using a Smartphone can link their account.
 Secure payments following the guidelines of RBI.
 Different mode of security is maintained.
 They offer few credible points based on the transaction carried out.
 It uses two factor authentications in addition to your biometrics.
 We can send money by QR code which has enclosed VPA, Account number and IFSC or
Mobile number.
On August 16 2018, UPI had launched a 2.0 version which allows their clients to link their
overdraft accounts to their UPI they were also allowed to pre-authorize their transactions by
providing a mandate. UPI enables both business and personal transitions quickly and efficiently.
They are also planning to operate overseas in areas such as (UAE and Singapore) which has a
majority count on Indians, and this can also reduce the burden and eases the mode of
payments for tourists visiting abroad providing security and ease of mind.
Advantages of UPI:

 No additional charges: Government has mandate not to add any additional charge for
the transactions made.
 Secured payments: Your account is secured with an UPI pin; it is more secured than any
other mode of online payments through your journey with UPI you will never share your
bank details with others.
 UPI is Universal: we can link many accounts into a single UPI
 Instant transfer: We can make instant transfer through this channel and its reliable
24x7, even on public holidays.
 Cash back offers: when we use this channel to send or receive funds, immediately after
the transfers they provide cash back or other exiting offers.
 Portability: UPI is supported in more than 164 banks hence making payments is very
easy.
 Convenience: we can pay our bills such as electricity, phone recharges and other bills
through UPI sitting at our homes.

Disadvantages of UPI:

 Payment Delay: At times the bank severs goes down and it may take some time to
transfer your money or refund it in case of any failure.
 Transfer Limit: There is a limit of Rs 1,00,000 to be transferred from one account at a
time.
 Difficult to convince the customers: People tend to get afraid to link their bank account
to the UPI due to the various online frauds happening around us and it’s also a new
exposure to them.
 Requirement of internet and Smartphone: It not convenient for people residing in rural
areas as they are facing issues from network.
 Password issues: The UPI is enabled with a four or six digit password, at times its easier
for people to crack the authentications.
  Miss interpretation of number: Since most of them try sending funds to the associated
phone numbers, at times there is a possibility to enter wrong mobile numbers where its
ends up in loss of money.
 Security Measures:
 First layer of security: UPI verifies the user during the login and registration process.
Your phone number should be linked with your bank account followed by the Aadhar
number. In case there is any change in your phone or number you should go through
the following process again.
 Two-Factor Authentication: After the following registration process you should enable a
four-six-digit MPIN during the registration process followed by the credit card details
and your secure 3-D pin, in case of any unauthorized access the account gets blocked.
 Signed Intent and QR: Every individual is provided with a unique code where we can
check for the authenticity in case the merchant is not UPI verified user gets notified and
can deny payments.
 Generated Invoice: Before you proceed with the payments, we can have a quick check
on the participant with the name and number appeared on the screen, if verified we can
grant permission else cancel.

Audits:

 UPI audits takes place to ensure there is a secure environment and also ensures a
seamless user experience at the same time.
 They ensure the identity of mobile users.
 Their team will constantly monitor and improve the effectiveness of security.
 A well-maintained forensic team to identify and recover cyber-crimes.
 Review customer concern on regular basis.
 Ensure the team responds quickly in case of any emergency.
 Maintain the client security and have necessary back-up.

Precautionary measures:

 Be cautious on transfer requests.

 Check in case there is any warning or spam.
 Be alert when third party is allowed to your respective screens.
 Verify the helpline numbers before contacting.
 Never share your card details or OTP even to bank when asked.
 Counterfeit UPI apps galore
 Check on the arrows if its denoting as a receiver or a payee (<-,->)
Common Errors Faced by Users:

 At times many users don’t get a confirmation message on weather money was credited
or debited on their account this might lead to confusion and a possibility for a repeated
payment.

 Linking of account number: When you get enrolled to the UPI app with your name and
number there is a possibility of auto detection of your bank account and IFSC code there
might be a probability a wrong account is linked to that number. An incorrect account
gets linked when the number has previously been with the person who hasn’t updated
her profile.

 Cards without expiry date: Few cards are not chipped with the date of issue and expiry
in such cases your UPI pin won’t be generated hence you cannot use the application for
money transfer.

 Technical issues: There is a high probability for the denial of your transaction due to low
sever or low inter band with leading to delay your payments

 Process Delay: Your failed transactions might take few days to process to send or revert
your money hence we cannot completely reply on this app during emergency situations.

 Many customers have raised the complaint on not receiving the OTP on time hence
leading to a failed transaction.

 At times the UPI apps won’t support in phones.

 Not compatible with all banks.

 It’s not user friendly for aged and beginners.

 Unsuccessful attempt made to login will lead to blockage of your account for 24 hours.
  Should provide with an additional security.

Impact due to Corona virus:

The pandemic had bought in fear to many individuals and the repeated urge by the government
authorities to stay at home and also maintain social distance in public places in order to stay
safe. This initiative has increased the consumer base as most of the transactions are carried
through UPI to unsure there is no contact.

There was a huge hike in their transactions, initially when there was a lockdown imposed and
only essential services were open there was a decline in the usage during the month of April it
was reported that around 990 million amounting to Rs.1.5 Lakh crore later on during the month
of June the firm reported its highest transactions since it came into existence the UPI processed
around 1.43 billion transactions worth Rs 2.31 crore
The transformation to complete digital India cannot happen over a quick span of time, but the
progress towards the goal will certainly be accomplished in the nearest future. This pandemic
has completely changed our lives and people are moving swiftly towards the digital era for all
needs of their lives. Post demonetization the usage of digital platforms has been rising, looking
forward to be called as a complete digitalized country.
References:
https://www.npci.org.in/product-overview/upi-product-overview

https://www.entrepreneur.com/article/343273#:~:text=Trajectory%20of%20Growth&text=In
%20October%2C%20the%20number%20of,the%20billion%20mark%20last%20month.

https://www.npci.org.in/product-statistics/upi-product-statistics

https://upipayments.co.in/upi-benefits/

https://www.cnbctv18.com/personal-finance/five-key-steps-to-make-money-transactions-on-the-upi-
safe-3574621.htm
Individual Report

By: Batta Sai Harsha (BL.BU.P2MBA19018)

Contents
1. Introduction
2. Indian context
3. Compare BHIM and PAYPAL
4. BHIM 2.0
5. What more can be done to increase digital payments
6. *99#
7. Data protection
Digital payments are any electronic fund transfer that is initiated by any
person by way of instruction, authorization to a bank or any credit or
debit card maintained with the bank in electronic means include the
transfer of funds initiated through ATM, telephone, internet and card
payment.
Digital payments in India especially have two segments that is retail
payment and instruments done through the systematically important
financial market infrastructure (SIFMI)
Under SIFMI it includes RTGS, CBLO, government securities and forex
clearing and under retail payment it includes paper clearing, retail
electronic clearing and card payments this include NEFT, IMPS, UPI,
USSD, *99#...
EVOLUTION OF DIGITAL PAYMENTS IN INDIA
It started in 1980s with MICR slowly it started evolving issuing of credit
and debit cards in 1990s, RTGS and NEFT in 2004 and from 2004 the
pace increased rapidly with the new initiatives of government like NCPI,
BHIM, Bharath quick response code solution as part of digital India.
To bring the policy changes to encourage government made some
amendments to the payment and settlement systems act, 2007.

Digital payments in India has very positive impact like with this
government is able to implement the DBT (direct benefit transfer)
Through which it can directly deposit to the stake holders bank account
it is possible with the PMJDY (Pradhan Mantri Jan Dhan yojana)

In our project we took two digital payments in application one is BHIM

(Bharath interface for money) which is India’s own application and
PAYPAL an international company.

In recent years there is a rapid growth in India’s digital payments to do

this some of the initiatives taken by the government and RBI are as
follows:
Recently RBI has announced that it is going to announce the pilot
project which promotes the digital payments without internet
connectivity it is mainly to bring all citizens to words the digital
payments. It uses the near field communication technologies which
encourages the bank payments through the normal keypad mobile.
To minimize the human interaction in grievance redressal mechanism
its RBI came with an initiative that is payment system operators it will
address the failed payments problems by itself.
RBI released the payment and settlement system in India vision 2019
-2021 this vision document mainly aims to achieve the highly digital and
cash lite society through 4Cs goals that is competition, cost
effectiveness, convenient and confidence.
Key focus areas of vision document are: -
 Boosting customer experience with robust grievance redressal
 Empowering e payment service providers
 Enabling ecosystem and infrastructure for e payment system
 Putting down forward-looking regulations
 Understanding risk focused supervision

Governments initiatives are

NCPI (national payments corporation of India)
USSD based services that is *99# through this we can do financial
transactions without internet
BHIM
BHIM2.0
Main features of BHIM and PayPal
BHIM
 We can send and receive money, through request also
 You can pay or get paid through scanning QR code
 You can go through all the previous transactions done in your
bhim
 It is available in almost 20 Indian languages
 In security you can block user and enable disable
 Payment remainders and split bill
PAYPAL
 We can send and receive money, through request also
  We can connect PayPal with google pay
 Shop and pay with PayPal account
 You can pay bill using code
 You can do transactions in different countries
 It is introduced to increase the experience simplicity, security and
seamless transactions at next level
 It is initiative of ministry of information technology
Features
 Available in three more languages (languages other than included
in schedule 8)
 You can link over draft account on UPI
 User will get additional security with signed intent and QR issues
relating to tampering can be reduced
 You can pre authorize the transaction
 You can view the invoice in the inbox
What can be done to boost the digital payments in India
 First government should deadline its and big organization to
digital
 RBI should strictly implement the 100 plus action arising out its
own 2021 vision document
 They can come up with combination of UPI with Rupay
 RBI must replicate the design off UPI in bank credit as credit to
GDP ratio (ratio of the magnitude of loans given by financial
institutions in an economy to GDP of the country) in India is low
i.e. 50 percent against 300 percent in china
 However, this needs to be complemented by raising India’s
human capital and technology game in regulation and supervision,
issuing more private bank licenses, facilitating management
 changes in old private banks and human capital revolution in PSU
banks.
 Also, digitization of the economy should be backed by the strong
statutory framework
 To encourage the digital payments, it allows the Indians especially
in remote areas, villages and to the people who are not able to do
in smart phone NCPI came with an initiative USSD based *99#.

Features of *99# services

 Uses USSD as the access channel that works across all GSM
(smartphone or otherwise) making it reach the last mile user
 Supports menu-based applications that is easy to maneuver for
the users
 Does not require data connectivity (works on signaling channel)
that makes it high availability service
 Does not require data connectivity (works on signal channel) that
makes it high availability service
 Round the clock availability works even on holidays
 Access through a common code *99# across all GSM operators
and mobile hand sets
 Additional channel for using bhim and key characteristics for
financial inclusion

Data protection
Data protection is very important in this digital era.
Data protection followed by bhim
NCPI is the umbrella organization under which BHIM is the subsidiary
institution. It is established as a part of digital India programmed by
government of India. NCPI ensures the protection of the data of users.
Collection and usage of data is in accordance if the statutory and
regulatory guidelines. The jurisdiction of the any disagreements will in
courts of Mumbai in accordance with Indian law.
Some of the important aspects of the information security system are: -
 Audit of all vendors and service providers and execution of
nondisclosure agreements before availing their services
 Continuous monitoring of the physical and technical environment
for vulnerabilities to address the privacy related issues
 NCPI has comprehensive documented information security policy
and procedures and certified payment card industry – data
security standard (PCI-DSS), ISO27001-ISMS to ensure that the
information provided to it is reasonably secure, available and with
assured quality
 NCPI is also certified IS022301 complaint for its business
continuity management system and IS09001 for quality
management system

Reference:
1. https://www.drishtiias.com/summary-of-important-reports/niti-aayog-digital-payments-trends-issues-
and-opportunities
2. https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/rbi-announces-a-slew-of-
measures-to-boost-digital-payments/articleshow/77390622.cms?from=mdr

3.https://www.insightsonindia.com/2019/05/16/rbi-releases-vision-2021-for-e-payment-system/

4. https://www.livemint.com/politics/policy/govt-launches-bhim-2-0-with-new-functionalities-
additional-language-support-11571670479614.html

5. https://www.npci.org.in/product-overview/99-product-overview

6. https://www.bhimupi.org.in/upi2

7. https://www.npci.org.in/privacy-and-security-policy