FACILITATING 100% DIGITIZED MONEY TRANSACTION.

INTRODUCTION
Digital payments are transactions that takes place via digital or online modes,
with no physical exchange of money involved. This means that both parties, the
payer and payee, use electronic mediums to exchange money. 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 has an
aim to create a ‘digitally empowered’ economy that is ‘Faceless, paperless,
Cashless’. There are various types and methods of digital payments. Note that
digital payments can be take place on the internet as well as on physical premises.
For example, if you buy something from Amazon and pay for it via UPI, it
qualifies as a digital payment. Similarly, if you purchase something from your local
Kirana store and choose to pay via UPI instead of handing over cash, that also is a
digital payment. After the lunch of cashless India, we currently have ten methods
of digital payment available in India. Some methods have been in use for more
than a decade, some have become popular recently and others are relatively new.

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1: BANKING CARDS
Indians widely use banking cards, or debit/credit cards, or prepaid cards as an
alternative to cash payments. Andhra Bank launched the first credit card in India in
1981. Cards are preferred because of the multiple reasons, including but not limited
to, convenience, portability, safety, and security. This is the only mode of digital
payment that is popular in online transactions and physical transactions alike.
Nowadays, many apps are being launched with the sole purpose of managing card
transactions like cred, square, etc.

2: UNSTRUCTURED SUPPLEMENTARY SERVICE DATA

USSD was launched for those sections of India’s population which don’t have
access to proper banking and internet facilities. Under USSD, mobile banking
transactions are possible without an internet connection by simply dialing *99# on
any essential feature phone. This number is operational across all Telecom Service
Providers (TSPs) and allows customers to avail of services including interbank
account to account fund transfer, balance inquiry, and availing mini statements.
Around 51 leading banks offer USSD service in 12 different languages, including
Hindi & English.

3: AADHAR ENABLED PAYMENT SYSTEM

AEPS is a bank-led model for digital payments that was initiated to leverage
the presence and reach of Aadhar. Under this system, customers can use their
Aadhaarlinked accounts to transfer money between two Aadhaar linked Bank
Accounts. As of February 2020, AEPS had crossed more than 205 million as per
NPCI data. AEPS doesn’t require any physical activity like visiting a branch, using
debit or credit cards or making a signature on a document. This bank-led model
allows digital payments at Po’s (Point of Sale / Micro ATM) via a Business
Correspondent(also known as Bank Mitra) using Aadhaar authentication. The AePS
fees for Cash withdrawal at BC Points are around Rs.15.

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4: UNIFIED PAYMENT INTERFACE

UPI is a payment system that culminates numerous bank accounts into a single
application, allowing the transfer of money easily between any two parties. As
compared to NEFT, RTGS, and IMPS, UPI is far more well-defined and
standardized across banks. You can use UPI to initiate a bank transfer from
anywhere in just a few clicks. The benefit of using UPI is that it allows you to pay
directly from your bank account, without the need to type in the card or bank
details. This method has become one of the most popular digital payment modes in
2020, with October witnessing over 2 billion transactions.

5: MOBILE WALLETS
Mobile Wallets, as the name suggests, are a type of wallet in which you can
carry cash but in a digital format. Often customers link their bank accounts or
banking cards to the wallet to facilitate secure digital transactions. Another way to
use wallets is to add money to the Mobile Wallet and use the said balance to
transfer money. Nowadays, many banks have launched their wallets. Additionally,
notable private companies have also established their presence in the Mobile Wallet
space. Some popularly used ones include Paytm, Freecharge, Mobikwik, mRupee,
Vodafone M-Pesa, Airtel Money, Jio Money, SBI Buddy, Vodafone M-Pesa, Axis
Bank Lime, ICICI Pockets, etc.

6: BANK PREPAID CARDS

A bank prepaid card is a pre-loaded debit card issued by a bank, usually
singleuse or reloadable for multiple uses. It is different from a standard debit card
because the latter is always linked with your bank account and can be used
numerous times. This may or may not apply to a prepaid bank card. A prepaid card
can be created by any customer who has a KYC-complied account by merely
visiting the bank’s website. Corporate gifts, reward cards, or single-use cards for
gifting purposes are the most common uses of these cards.

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7: PoS TERMINALS
PoS(Point of Sale) is known as the location or segment where a sale happens.
For a long time, PoS terminals were considered to be the checkout counters in
malls and stores where the payment was made. The most common type of PoS
machine is for Debit and Credit cards, where customers can make payment by
simply swiping the card and entering the PIN. With digitization and the increasing
popularity of other online payment methods, new PoS methods have come into the
picture. First is the contactless reader of a PoS machine, which can debit any
amount up to Rs. 2000 by auto-authenticating it, without the need of a Card PIN.

8: INTERNET BANKING
Internet Banking, also known as e-banking or online banking, allows the
customers of a particular bank to make transactions and conduct other financial
activities via the bank’s website. E-banking requires a steady internet connection to
make or receive payments and access a bank’s website, which is called Internet
Banking. Today, most Indian banks have launched their internet banking services.
It has become one of the most popular means of online transactions. Every
payment gateway in India as a virtual banking option available. NEFT, RTGS, or
IMPS are some of the top ways to make transactions via internet banking.

9: MOBILE BANKING
Mobile banking refers to the act of conducting transactions and other banking
activities via mobile devices, typically through the bank’s mobile app. Today, most
banks have their mobile banking apps that can be used on handheld devices like
mobile phones and tablets and sometimes on computers. Mobile banking is known
as the future of banking, thanks to its ease, convenience, and speed. Digital
payment methods, such as IMPS, NEFT, RTGS, IMPS, investments, bank
statements, bill payments, etc., are available on a single platform in mobile banking
apps. Banks themselves encourage customers to go digital as it makes processes
easier for them too.

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10: MICRO ATM’s

Micro ATM is a device for Business Correspondents (BC) to deliver essential

banking services to customers. These Correspondents, who could even be a local
store owner, will serve as a ‘micro ATM’ to conduct instant transactions. They will
use a device that will let you transfer money via your Aadhaar linked bank account
by merely authenticating your fingerprint.
Essentially, Business Correspondents will serve as banks for the customers.
Customers need to verify their authenticity using UID(Aadhaar). The essential
services that will be supported by micro ATMs are withdrawal, deposit, money
transfer, and balance inquiry. The only requirement for Micro ATMs is that you
should link your bank account to Aadhaar.

WHAT ARE THE BENEFITS OF DIGITAL PAYMENTS?

In a country like India, where disparities are sometimes poles apart, ensuring
financial equality becomes an issue of prime importance. One of the reasons why
our government started vocalizing Cashless Economy and Digital India was to
improve access to financial resources. There are multiple benefits that digital
payments bring to the table.

Ease and convenience

One of the most significant advantages of digital payment is the seamless
experience they provide to customers. Reduced dependency on cash, fast transfer
speed, and the ease of transacting make online payments a preferred option.
Traditional payment methods like cash and cheques add to factors like risk, steps,
and physical presence. With digital payment, you can send and receive funds from
anywhere in the world at the click of a button.

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Economic progress
Customers transact more online when they see the ease, convenience, and
security of online payments. This means that more and more people feel
comfortable buying online, investing digitally, and transferring funds via electronic
mediums. The increase in money movement and online business contributes to the
progress of the economy. This is why online ventures are being launched every day
and even more are making profits daily.

Safety and efficient tracking

Handling and dealing in cash is a cumbersome and tedious task. Along with the
risk of losing money, there is the hassle of carrying cash everywhere you go and
keeping it safe. With digital payments, one can keep their funds secured in online
format effortlessly. Nowadays, your mobile phone alone is enough to make and
receive payments – thanks to UPI, net banking, and mobile wallets. Additionally,
most digital payment channels provide regular updates, notifications, and
statements for a customer to track his funds.

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LOCATION AND BACKGROUND

The Suggatta village is located 1.5 kms west of Hunasamaranahalli on
Bangalore- Hyderabad National Highway (NH-7). The institute encompasses 100
acres of land falling in Latitude N 13o 08’ 30” – Longitude E 77o 36’ 00” falling in
Survey of India Topo sheet No. 57G/12. The study area is well connected with
network of roads, railways and airport.

According to census 2011 information the location code or village code of

Suggatta village is 612895. Suggatta village is located in Bengaluru North taluk of
Bengaluru district in Karnataka, India. The total population of Suggatta is 673
peoples, out of which male population is 343 while female population is 330.
Literacy rate of Bettahalasur village is 73.05% out of which 78.43% males and
67.48% females literate. There are about 200 houses in the Suggatta village,
pincode of Suggatta village locality is 562157.

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OBJECTIVES
• The main objective of performing this activity is to achieve “Faceless,
Paperless, Cashless” money transactions.

• To provide access to financial payment services to every citizen along with

ability to conduct cards/digital transactions.

• To make the people of Suggatta improve the ease of conducting card/digital

transactions for an individual.

• To create awareness among the people to reduce the risks and cost of
handling cash at the individual level.

• To teach people, how to use various online transaction modes.

• To migrate payment transactions from cash dominated to non cash through

incentivization of card digital transactions and disincentivization of cash
based transaction among the people of Suggatta.

• To crate awareness among the people about the online fraud activities related
to online payments.

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METHODOLOGY

• To spread awareness about digital payments we organized rally and visit to

every house in a village.

• Door-to-Door campaigns and surveys were conducted by every group to

literate and to aware people about digital payments, in village.

• As information can be disseminated faster and more efficiently through

audio video means of training, we used our laptops and mobiles to show the
information and videos regarding digital money transactions.

• We used banners, charts and placards pasted with information and pictures
regarding digital money transitions in order make people of the village to
understand the concepts in a better and easy way.

• Schools and colleges were visited by every group to impart knowledge about
digital payments to students and using them to spread knowledge about
digital payment amongst people.

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PLAN OF ACTION
Our plan was to visit every house in the Suggatta village, to educate and create
awareness in them regarding digital money transactions. Firstly we started from
our collage and reached Suggatta village where our ‘Facilitating 100% digitized
money transaction’ activity got started. We visited every house in the village and
educated peoples HOW? WHERE? AND WHY? to use digital payment modes. We
not only educated them about the payment modes but also clarified all their doubts
by providing required information regarding the digital money transaction. We
showed videos, charts and placards prepared by us regarding digital payments to
make people understand the concept in a easier way. And further we visited to
schools and collages to educate students about the digital money transactions.

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OBSERVATIONS AND LEARNING

• Create complaint and feedback channels: Digital financial transfer

recipients sometimes experience difficulties accessing the complaints and
feedback mechanism systems, or having their problems addressed.

• Increase financial and digital literacy: The recipients of government

benefits are usually low income with limited or no exposure to digital
payments. Digital transfer programs are typically rolled out at a fast speed,
which means the recipients may find it challenging to understand and access
the digital tools. Governments can partner with business and
nongovernmental organizations to create education campaigns targeting
specific capacity challenges through popular media channels among target
groups in local languages.

• Spread information to increase inclusivity: Lack of identification, living

in rural areas, limited information of eligibility criteria and enrollment
information, disabilities, poor connectivity and limited agent network
outreach have all contributed to excluding people from participating in
digital transfer programs.

• Learn from transaction failures: Factors that lead to transaction failures

include poor connectivity, the poor performance of a payment partner’s
system, or a mismatch in biometrics/identities due to the poor quality of
biometrics captured at enrolment or the matching algorithm.

• Provide details about cash-out points: Given most of the transactions

among digital transfer program recipients may still require cash, it is
important to provide Information on cash-in and cash-out points. There is a
need for governments and private sectors to work together to come up with a
common platform that maps cash-in and cash-out points across various
service providers

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CONCLUSION
From this research, it was found that, from the various available techniques
of payment digital or non-digital, 23% of the people still use cash as the
preferred mode of transaction, Debit/ credit cards (30%), NTFS (2%), UPI (58%)
and RTGS (2%) and net banking (1%). It was found from the research that the use
of UPI is becoming very popular among the residents of Suggatta. Respondents
agree that digital payment is very important and plays a significant role as it saves
the very crucial time of the people but, there is moderate agreement by the people
towards improvisation in the quality of services with the introduction of digital
banking and payment sources. It was found that the people feels traditional banking
is better and convenient way and this is the main reason for not choosing digital
payment techniques. Backup power problem and load shedding are also the done
on regular basis in rural area, this also hamper while implementing digital payment
system as it requires constant supply of electricity. People have to suffer more
during demonetization period because of these problems. In recent times,
people in rural regions are becoming aware about the digital payment
techniques and getting used to it. So, government should arrange training
program for the villagers on the usage of digital payment techniques. So that
their fear of fraudulent actions and risk for using digital payment will decreased.

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