Retail Banking &

Wealth Management
Support Services- Marketing of
Banking Services / Products Module C
Dr G JEGANATHAN ( Retired AGM, Indian Overseas Bank & Sr. Faculty, IBS )
Marketing UNIT 17

Marketing is a process through which a market creates,

communicates and delivers value to customers.

Bank Marketing
Bank Marketing is the creation and delivery of customer-satisfying
services at a profit to the bank. ( Sir Frederick Seebohmn )
Bank Marketing is the matching of bank’s resources with the
customer’s needs in the most profitable manner. ( Kenneth
Andrew)
 Marketing

Bank Marketing

Bank Marketing is a proactive business strategy aimed at

organizational excellence. ( Deryk Vander Weyer)

1) Identifying the most profitable markets now and in the future

2) Assessing the present and future needs of customers
3) Setting business development goals & making plans to meet them
4) Adapting to a changing environment in the market place
CUSTOMER

Customer is the centre of attraction in retail banking and

marketing and all the activities have to be focused towards,

1) Identifying customer needs

2) Developing appropriate products to satisfy their needs
3) Providing them with efficient delivery channels for
availing the products
4) Making them to avail the products continuously
MARKETING IN RETAIL BANKING – STAGES
Marketing Stages
Marketing Analysis Marketing Planning
1. Analysing the markets and 1.Defining Strategic Business
market environment Units, goals & objectives
2.SWOT Analysis 2.Market Plan for each
business, product & brand
called “Offering”
3.Setting up of Executive
Summary, Action Program,
Budgeting & Control
Marketing Implementation Marketing Control
1.Answer to “ Who, Where, 1.Regulating goals by
When and How” for offering auditing, measuring
evaluating and acting upon
defined parameters
2.Performing activities in the
right manner
2. By (a) Reactive
Methodology
(b)Pro-Active Methodology
3. Finally Corrective Action
 Product
Deposit
Advances
Physical
Other Service
Evidence products Price
Developing

MARKETING MIX
tangibility to Txn Cost, Int
intangibility, Debit
Card/ATM Card, Rate

Retail
personalised
Ch.book Fees/Charges

IN Banking-
RETAIL BANKING Process
Product Marketing Promotion
Personal Selling,

Mix
Development,

7 Ps
Advertisement, Sale
Structuring Promotion,
and Delivery Publicity

People Place
Banker & Brick & Mortar
Customer ie. to e-banking
Marketing Internet &
persons & Mobile Banking.
beneficiaries No boundaries
MARKETING MIX AND 7 Ps - SUM UP

Marketing Mix Effectiveness Success of Retail

and 7Ps can be measured Banking depends
represents a by the response on effective
holistic of the customer marketing of the
approach to to the marketing retail products
retail banking. strategies and services

Channels are the

medium through Channels enhance
The Right Mix the customer
which retail
will Deliver the experience of the
banking products
Right Results banking services
and services are
delivered to the
MARKETING MIX AND 7 Ps - SUM UP

Give personal touch

Branch , Extension
Physical Channel to the service
Counters
process
Delivery Channels
Two Types
Electronic Channels Give the freedom to
Remote Channel ATM, Internet , avail the services at
Mobile Banking their convenience

Procedures are Fixed and Processes

are Defined for availing the services
through the above Channels
DELIVERY CHANNEL IN RETAIL BANKING UNIT 18
DELIVERY CHANNEL IN RETAIL BANKING
-CHANNEL EXPERIENCE UNIT 18
Multi-channel distribution is the practice adopted by almost all banks for total customer experience

Channel Delivery
Channel

Physical or
Electronic & Remote
Types Direct
Channel
Channel

categories Extension Internet Mobile

Branch ATMs
Counters Banking Banking
Physical / Direct Channels - Branch

S.No Particulars

1 Branch is the primary direct channel that drives retail banking

2 Branch offers tangibility to the intangible nature of banking services
3 Branch personnel relate with the customer for their transactions
4 Direct Communication and better understanding
5 Physically seeing and a sense of bonding with the bank staff
6 Products and services directly explained
7 A good branch lay out and ambience enhances the feel good factor
Branch Lay Out and Ambience
S.No Particulars
1 Layout refers to the arrangements of all physical components
2 Ambience increases the comfort factor in the minds of the customers
3 Promote efficiency, internal communication and better coordination
4 Image building, good will, maximising efficiencies & cost optimisation
5 Counters with corporate colours replaced traditional counters
6 Single Window Concept brought customers close to service personnel
7 Total automation and CBS changed the concept service delivery
8 Traditional layout exists in rural and semi-urban branches
Personal Banking Business

Corporate Branch Specialised Personal Banking Branches to meet

retail banking requirements
Retail Banking
SME Branch
Branch Specialised Retail Assets Processing Centres for
speedy processing & disbursement of retail loans

Personal Banking Agri Finance To enhance the delivery effectiveness of services

Branch Branch
by prescribing TAT (Turn Around Time) for
different retail loans

Formalities for opening a/c at branch level and opening of account, issue of PB &
cheque, Debit card ,PIN etc through centralised back-office mechanism
Bank Business Correspondents (BC)
Bank Business Facilitators (BF)
• Permitted to make txns on behalf of the

BC bank and
• serve customers as agent of the bank

• Permitted to refer clients, pursue

BF client’s proposal and facilitate bank to

carry out the txns.
• Not allowed to personally do the txns.
Advantages of Using BC Channel

S.No Particulars
1 Enables bank to reach out more rural population at much faster pace.
2 Helps bank to achieve financial inclusion
3 Facilitates doorstep banking
4 Banks are assured of better quality of assets
5 Easier and cost effective
6 BCs need to undergo a mandatory certification process
Automated Teller Machines (ATMs)

To offer convenience
ATMs to customers an
additional choice to withdraw money during
any time of the day according to their will
and pleasure
To move the customers away from the
counters as service cost is comparatively less
through ATMs than at the branch
ATMs

Type of ATMs Details

On Site ATMs To offer the facility of Cash Withdrawals, Cash
Remittances, Balance Enquiry etc., at the branch
premise itself

Off Site ATMs Designed to be situated away from the branches at

convenient and busy locations to enable customers
to access it for their different needs but not
necessarily from the branch. Very popular.
ATMs

First ATM was set up by In next 12 years only In September 2021

HSBC Bank in 1987 in about 1500 ATMs were No.of ATMs in India
Mumbai set up in India 2,13,145

“National Financial
Two common net-
Switch” a common
working
net-working
arrangements are
arrangements was
initiated for ATM “Cash Tree” and
operations “Infinet”
 Charges for Operations in ATMs of Other Banks

a) Transactions at Bank’s Minimum of Five Free Transactions( including both financial and non-
own ATMs at Any financial) in a month, irrespective of the location of ATMs
Location

b) Transactions at any 1.In case of ATMs located in six metro locations (Mumbai, New Delhi,
other bank’s ATMs at Chennai, Kolkata, Bengaluru & Hyderabad), banks to offer to SB a/c
Metro Location holders a minimum of THREE Free txns (F&NF) in a month.
2.As per RBI, Customers to pay Rs.21(instead of Rs.20) per Txns carried
c) RBI mandated only out thro. ATMs beyond permissible limit (wef 1.1.2022)
3.Permissible free txns (a) FIVE for customer’s own bank ATMs
min.no. free Txns at (b) THREE for ATMs of other
ATMs. Banks may offer banks in Metro centres
more free Txns (c) FIVE in Non-metro
Failed ATM Transactions

 Banks have been mandated to resolve customer complaints by re-crediting

the customer’s account within a maximum of T+5 days from the date of
complaint.
 Wef 15.10.2019,beyond T+5 days ,Banks to pay compensation Rs 100 / day
 Compensation to be credited to customer’s a/c without any claim
 If complaint is not made within 30 days of txn, customer is not entitled for
any compenstion
White Label ATM

White Label ATMs (WLAs)

• ATMs set up, owned and operated by non-bank entities.
• RBI permitted non-bank entities under Companies Act 1956 to set up WLAs
• Non-banking entities are called “White Label ATM Operators ( WLAO)”
• ATMs are called “White Label ATMs ( WLAs)”
• Provide banking services based on the cards(Debit / Credit / Prepaid)
• Role confined to acquisition of txns of all banks’ customers
• To establish technical connectivity with authorised shared ATM Network
Operators / Card Payment Network Operators
ATM Issues and Risk

 ATMs are one of the successful remote channels for service delivery.

 ATMs are always complaint prone because of the break downs and cash out
situations.

 These two faults would result in reputation risk for the bank and may result
in customer switching also.

 ATMs have changed the concept of account management and cash

management

 ATMs have considerably reduces the transaction costs of service delivery.

ATM Complaints- Various Grounds(RBI Review)
Grounds Details
Frequent -Power / Network Failure, Cash Handler Faults, Reject Bin Full, Machine
Breakdowns Breakdown
-Periodic Visits, Monitoring of uptime of ATMs, Immediate Notification and
Restoration, Top Management Oversight, Preventive Maintenance, Corrective
Action
Discrepancies in -Short/non dispensation of cash is less than 0.15% of total complaints.
Cash Dispensation -To be resolved within 7 days. Online monitoring, proper cash loading &
oversight
Cash-out (Running -Regular Monitoring & forecasting cash requirements .
out of Cash) - Cash levels are set and monitored, vendors informed to replenish cash
Quality of Notes -ATMs loaded with newly minted or ATM fit notes with hi-tech note sorting
Grievance Procedure displayed. Auto escalation of complaints . For failed txns, reversal
Redressal Mechanism within T+5 days. If not, compensation Rs.100 per day without any claim
Security Measures for ATMs

 With spread of ATM network instances of frauds are also on the rise
 All ATMs shall be operated for cash replenishment only with digital One Time Combination
(OTC) locks.
 All ATMs shall be grouted to a structure (wall, pillar, floor, etc.) except for ATMs installed in
highly secured premises such as airports, etc. which have adequate CCTV coverage and are
guarded by state / central security personnel.
 Banks may also consider rolling out a comprehensive e-surveillance mechanism at the ATMs to
ensure timely alerts and quick response.
 Dip-Card Readers (Card is not swallowed by the machine)pre-empt capture of data through
extraneous devices.
 Disabling cash retraction facility at ATMs. * Reduction of per screen transaction time
Customer Awareness and Education Measures ATM

 Posters/notices containing safety tips on usage of card / ATM are

prominently displayed at the ATM machines.

 Customer are provided with user manual / letter along with the card
at the time of card issue.

 Customers are also imparted knowledge on safety measures on ATM

 Feedback from customers through surveys / phone calls

Cash Recycling Machines (CRM) CRM
One of the Working of the CRM
technological
innovations that is In a cash recycler or CRM, banknotes are placed into a feeder first when
going to replace the a person is depositing cash.
work of ATMs is Cash Then, it is passed through a bill identifier to determine the denomination
Recycler Machine. (Rs 2000, Rs 500 or Rs 100 notes) and to check the validity of the
banknotes.
The CRM is a self-
service terminal that Validity means to check whether the note is counterfeit currency.
allows a customer to The recycled notes are then stored into separate cassettes in the
make both cash machines automatically for dispensing to the customers.
deposit and
withdrawals. The CRM thus do an exact recycling process – collecting cash from the
depositors and giving it to those who withdraws money.
Cash Recycling Machines
Major features of the CRMs established with Indian banks:

•Cash recyclers allows both cash withdrawal and deposit.

•To check the genuineness of notes, the CRMs are supported with Bill Validation
•Accurate Counterfeit recognition and retention (as per RBI parameters) of the
currency notes are made by CRMs and notes are recorded on behalf of the
account of the depositing customers.
•Cash deposits are in line with the current KYC norms. Deposit with debit card
up to Rs.2 lakh per day in the case of PAN submitted accounts and Rs.49,999/-
where PAN is not registered with the account.
•Card less transaction (by feeding account number) up to Rs. 20,000/- per day is
also allowed.
•In case the customer deposits above the permissible limit, then the CRM rejects
the transaction and notes are given back to the customer
Point of Sale Terminals ( PoS)

 A point-of-sale terminal is a hardware system for processing card payments at

retail locations.

 NCR developed the first PoS system.

 In recent times, the market has grown to include technology companies like
Square.
 PoS terminals started out as manually-operated machines, transformed into
mobile PoSes with bar codes and scanners, and now are moving towards
cloud-based PoS systems.

NCR-National Cash Register

Cash withdrawal limit from PoS
RBI/2021-22/40 DPSS.CO.PD.No.S-99/02.14.006/2021-22 May 19, 2021

The cash withdrawal limit from Points of Sale (PoS) terminals using debit cards and open system
prepaid cards issued by banks in India advised vide circular DPSS.CO.PD.No.449/02.14.003/
2015-16 dated August 27, 2015 has also been rationalised to ₹2,000 per transaction within an
overall monthly limit of ₹10,000 across all locations (Tier 1 to 6 centres).
Charges, if any, levied on cash withdrawals shall not exceed 1% of the transaction amount. (RBI FAQ)

The facility is available irrespective of whether the card holder makes a purchase or not.

Under the facility of cash withdrawal at PoS terminals, cardholders can withdraw cash using their debit
cards and full KYC prepaid cards issued by banks and non-banks in India. However, credit cards cannot be
used under this facility. Cash can also be withdrawn at PoS terminals through Unified Payments Interface
(UPI) as well as through use of electronic cards that are linked with overdraft facility provided along with
Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
Internet Banking

Internet Banking and Electronic Channels in USA

Ernest T.Parkins observed that Internet Banking would have great

implications on

1) Internet Commerce
2) New types of Electronic Retail Payments
3) Electronic Retail Banking
4) Movement from Retail Financial Services to Electronic Delivery
including Insurance, Discount Brokerages and Mutual Funds
Internet Banking – Important Observations

 Electronic Commerce involving both Financial and Non-Financial products

 ATMs would become more sophisticated and offer more services
 Retail Banking would become largely an electronic, remote delivery, self-service business
 Movement from Banking Services to Electronic Delivery would bring following changes
 (1) Reduction in Geographical Barrier
 (2) Commoditization of Banking Products
 (3) New Competitive Strategies deployed by banks
 Banks would find ways to cut costs and gain access to the consumer. Putting Smaller
Branches in Super Market
 Banks would use large amount of information to serve select customers with new
products
 Banks try to sell the value of the overall, individually customised relationship services.
Internet Banking

 Internet Banking as a service and channel was initiated by foreign

banks and new generation private sector banks

 Usage of electronic channel was more in private banks because of

young generation customers

 In public sector banks , initially a lukewarm response because of old

age customers and staff

 Level of penetration of internet banking in public sector banks is low as

compared to private sector banks.
Internet Banking – RBI Concepts
S.No Details
1 Broadly ,Three Levels of Banking Services offered through Internet
1) The Basic Level Services is the Bank’s Website
2) Simple Transactional Websites ( No fund Based Txns)
3) Fully Transactional Websites
** Some Banks are known as “Virtual Banks” or “Internet-Only Banks “ without physical
presence in a country but offering different banking services
2 Internet Banking is nothing more than Traditional Banking Services delivered through an
electronic communication backbone ie Internet. Features of i-banking
a) Removes Traditional Geographical Barriers
b) Added new dimensions to different kinds of Risks
c) Internet is a public domain, not subject to control by any single authority or group
of users
d) It poses a strategic risk of loss of business to those banks who do not respon in time
to this new technology
e) New form of competition has emerged from existing & new players
Internet Banking – RBI Concepts

S.No Details
3 Security of Internet Banking Transactions is one of the most important areas of
concerns
4 The Supervisory and Operational issues include Risk Control measures, advance
warning system, Information Technology Audit and Re-engineering of operational
procedures.
5 Impact of Internet Banking on Monetary and Credit Policies
(a) If Internet Banking is used only as medium of delivery of banking services
and facilitator ,it may not impact monetary policy
(b) If produces electronic substitution of money like e-cheque, cards , digital
coins impact on monetary system cannot be overlooked
6 Cost of delivery of banking services through Internet is several times less than
the Traditional delivery methods
Net banking makes banking easier for consumers

Net Banking Saves Time

Net banking Helps Open Accounts and Transact Digitally
Net Banking Ensures Security of the Bank Account
Net Banking Aids Financial Empowerment
Net banking makes banking easier for consumers

•Net Banking Saves Time

•Net banking Helps Open Accounts and Transact Digitally
•Net Banking Ensures Security of the Bank Account
•Net Banking Aids Financial Empowerment
Uses Of Net Banking In 2023

5. Using Net banking

Uses Of Net Banking 6. Using Net banking
to Pay Insurance
In 2023 to Pay EMIs
Premiums

7. Using Net banking

1. Using Net banking 4. Using Net banking to Apply for a New
to Transfer Funds to Apply for Loans Debit Card and
Cheque Books

2. Using Net banking

to Generate and 3. Using Net banking
Track Account to Pay Bills
Statements
In the digital age that we are in now, banking as
a service is evolving faster than ever and it is in
the best interest of consumers to learn how to
transact and avail themselves of service
digitally.

It is especially important to embrace online

banking in a heavily populated country such as
India, where precious hours are wasted in long
traffic jams and physical bank queues are often
longer than expected.
Internet Banking Operations by Indian Banks
Services Offered

S.No Services S.No Services

1 View of Account Balance 8 Pay Direct Taxes

2 View of Last Few Txns 9 Utility Payment (Ins., Tel.Bills, EB Bills)

3 General Statement of Account 10 Book Air /Train/Bus Tickets,Hotel Room)

4 Transfer of Funds from SB,CA,CC to 11 Purchase of Units in Select MF

SB/CA/CC/Loan/ RD within Bank
5 Transfer of Funds to a/c with Other Banks 12 Investment in Gold Bonds/ IPO

6 Viewing of RD / loan a/c 13 Payment to several other Merchants

7 Pay Indirect Taxes

Eligible Customers – Internet Banking
S.No Eligible Customers
1 Individuals and Corporate Customers of Net worked Branches
2 Proprietary Concerns
3 Corporate Customers where operations entrusted to specific persons
4 Customers to comply with KYC / AML
5 Individuals A/c- Single or E or S or Any one or Survivor
6 Jointly A/c or A/c holder minor not eligible
7 More than one account in his name can be added in same log-in –id
8 Minor jointly operated a/c not eligible
Procedure for Availing Service

•Net Banking

• 1. Approach Your Bank for a Net banking Account

• 2. Collect Your User ID and Password
• 3. Generate New User ID and Password
• 4. Begin Transactions Online
RBI Guidlines

 Prior Approval of RBI for undertaking Internet Banking is Mandatory

 Submission of a Security Policy with Auditor Certificate
 Banks should report to RBI every breach or failure of security system
 Risks and Controls in Computer and Telecommunications guidelines is applicable
 RBI cover entire risk associated in e-banking in its regular inspection of banks
 Banks should develop outsourcing guidelines
 Banks should set up Inter-Bank Gateways
 Members of Cheque Clearing System only permitted to participate Inter-Bank Gateways
 Each Bank to nominate a Clearing Bank to settle all Txns
RBI Guidelines

 Credit Cards , cross border e-commerce, intrabank txns excluded in interbank gateway
 Both Net and Gross settlements in Interbank Gateway
 Connectivity between interbank gateway and computer system thro leased line.(No internet)
 RBI get the security of entire infrastructure certified
 Bilateral contracts between participants form the legal basis
 Banks should make mandatory disclosure of risk and responsibilities
 Hyperlinks from bank’s website confined to payment arrangements
Internet Payment Gateway

Internet Payment Gateway provides an interface between merchants and

consumers for secured internet payment using Credit/Debit Cards/
Internet Banking

Internet Payment Gateway provides an easy and secure mechanism to

merchants for processing online payments by shielding them from
underlying complexity of payment txns and integration with electronic
funds transfer switches
Payment Gateway vs. Payment Processor
A payment gateway is distinct from a payment processor, a service that
connects the customer's bank to the merchant account and facilitates the
actual movement of money.

You can think of these like two halves of the transaction: a payment gateway
collects customer information for payment, and a payment processor uses
that information to contact the customer's bank and the merchant account,
debiting one account and crediting the other.
Definitions

A payment gateway collects customer card information and encrypts it for

later processing.

A payment processor uses that information to charge the customers' bank or

credit card provider.
Future of Digital Channels in India

The Value of Currently 250 UPI is the

Digital Payments banks are live Single Largest
in India will grow UPI members. Payment Transaction
three fold to System in the data analysis
touch Over 50 UPI country in shows that 50%
$ 1 trillion by apps , with terms of of Txns through
financial year Phone Pe volume of Txns. UPI were below
2026 compared to leading the (14 cr txns per Rs.200/=
$ 300 billion in space day, October
financial 2021 2021)
Mobile Banking

•The latest and most convenient delivery channel which has gained lot
of interest in retail banking is Mobile Banking.
•Banking can be done at your fingertips and right in the place where
you are.
•Started by Wachovia(now Wells Fargo Bank), USA in 2005
•Operational convenience, Reach and Time Flexibility
•Convenient , Simple and Readily Accessible
•Banks are aggressively marketing
Mobile Banking Advantages

•Mobile Banking
• Time Saving
• Remote Banking
• Monitoring Transactions
• Easy Access
• Round-the-clock availability
• Value-Added Services
Mobile Banking – Features and Benefits

•1) 24x7 Access to Your Bank Account

•2) Instant Money Transfer Facilities
•3) Timely Payments of Bills & Loan EMIs
•4) Make Investments Securely
•5) Quick Customer Service
•Multi-stage Security Features
Benefits and Uses of Mobile Banking
For Customers
• Facility for using from anywhere
• Easy Operations
• Payment of Utility Bills
• Transfer of funds between a/cs
(same bank & other bank
• Facilities for setting up of alerts
• Balance Enquiries
• Facility for shopping and paying
For Banks
• Easy & Most Acceptable Delivery
Channel
• Cost Effective Solution
• Enhanced Customer Service
• Lesser Transaction Cost
• Tool to attract next generation
clients
• Ease of effective banking Txns
Mobile Banking

 Mobile banking is a facility that enables customers to initiate and/or

perform banking tasks on their smartphones.

 This is provided by most of the banks in India and abroad.

 Customers can use mobile banking to view their account balance, make
instant fund transfer and pay bills, etc.

 Some banks such as SBI, ICICI Bank, HDFC Bank, etc. have incorporated
services like loan approval and linking of insurance policy in their mobile
banking apps apart from normal financial transactions.
Types of Mobile Banking Services

 Mobile banking is one step closer to creating a completely digitalized

environment.
 It lessens paperwork and shrinks waiting time which is otherwise wasted
in long queues.

 Banks provide mobile banking services to their clients in the different

ways :

1) Mobile banking over mobile applications

(for smartphone;
SBI Yono and iMobile by ICICI Bank, etc.)
2) Mobile banking over SMS (also known as SMS banking)
Mobile Banking

What services can be availed using Mobile Banking

Mobile banking is useful to customers in the following ways:
1.Access to Account Information
With mobile banking, account holders can access their account details and
funds in their savings account anytime and anywhere. This helps in better
management of funds. One can check the following services:

• View account balance (balance enquiry)

• Transaction history
• E-statement of account
• Loan statements
• Card statements
• E-Passbooks
Mobile Banking

2.Financial Transactions
 Making payments and transferring money from one account to another is the most basic
banking activity.
 These are the most useful and in-demand mobile banking services.
 You can transfer funds to anyone by adding them as beneficiaries or simply via Unified
Payments Interface or UPI.

You can perform the following services via mobile banking:

• Bank to bank transfers

• Transfer of funds to self
• Payments to third parties (rent payments, bill payments, etc.)
• Giving standing instructions for periodic payments
• Payments via NEFT/IMPS/RTGS/UPI
Mobile Banking
3.Investments
Following investments can be performed via mobile banking:
• Opening fixed/recurring deposit
• Mutual fund investments
• Portfolio management services (e.g. – SBI Capital Securities)

4.Other Services
• Apart from the account summary, bill payments, fund transfers and investments, there are
other services that a customer requires for smooth banking experience.
• When you have some grievances and due to lack of time, are not able to address, you can
always resort to your bank’s mobile banking and find solutions to your complaints or queries.
These services include:
• ATM locators
• Branch locators
• Lodging complaint/tracking applications
• Ordering a new cheque book
• Cancelling/stopping an issued cheque
Mobile Banking

Mobile Banking Registration

 Banking apps allow the users to analyse their income and pattern of
expenditure on a daily, monthly, or annual basis.

 With each passing year, the number of customers switching to mobile banking
is increasing in order to stay up to date about their banking account.

 This change in the structure of banking would be the initial stages of a new
banking world in the future.

 Thus, it becomes of importance to be aware of the mobile banking registration

Mobile Banking

How to Register for Mobile Banking

The core procedure of registration, as mentioned above, varies among the financial providers.
But, some of the common steps involved in mobile banking registration are as follows:

Step 1: Some providers demand a duly-filled registration form from the customers.
Step 2: You may need to provide the financial company with your identity proof along with the registration
form.
Step 3: You need to download and install the mobile banking app of your bank/financial provider based on
your handset.
Step 4: Some financial providers will allow you to activate your mobile application with a Personal
Identification Number (PIN), while some banks will voluntarily provide you with an MPIN and SMS.
Step 5: You need to enter the PIN every time you wish to log in to your mobile banking account.
Step 6: Additionally, after the activation, you would need to enter your net banking ID and password in
order to access your banking account.
Mobile Banking

How to Update Mobile Banking Password

The process to update mobile banking password may differ from bank to bank.
Below-mentioned is the standard process to update mobile banking password:

• Open mobile banking application of your bank.

• Click on ‘Forgot Password’.
• In the next step, enter your user/customer ID.
• Then you need to enter the account details such as account number, linked debit
card, and PIN of the debit card. (In many cases, the bank may not ask for these
details)
• Now, you need to proceed further and enter a new password twice.
• Once you enter the new password, your mobile banking app will be updated with
the new password that you have created.
Mobile Banking

How to Transfer Funds using Mobile Banking

To transfer funds through mobile banking, banks offer

their customers three ways:

•NEFT – It may take up to 30 minutes for fund transfer

•RTGS – For transactions above Rs. 2 Lakh

•IMPS – For transactions up to Rs. 5 Lakh using mobile

Updated: 08-12-2022 07:57:01 AM

Mobile Banking - Advantages

For Banks For Account Holders

• Decreased infrastructure • Enhanced security
costs over telephone
• Efficient utilization of banking
experts and human capital
• Documents sharing and • Increase in
assistance with other accessibility to
digital banking service underserved customer
segments
Mobile Banking

Advantages of Mobile Banking Services

For Banks

• Decreased infrastructure costs: The need to develop more physical branches for the bank
reduces with the increase in the use of mobile banking services. The overhead expense also
reduces, as the customer does not have to go to the bank often. The transaction can be carried out
via mobile banking apps.
• Efficient utilization of experts and human capital:The limited pool of banking can be
centralized by the banks and one can avail the service of experts irrespective of the location.
Therefore, banks can have maximum utilization of the human capital whereas, for account holders,
it provides greater access to experts and banking services.
• Documents sharing and assistance with other digital banking service:The bank representative
can have a real-time view, document review with the mobile banking app. Mobile banking enables
the document sharing and screen sharing of the customer’s mobile device. Hence, the document
review can be done from anywhere with a mobile banking app to carry out a complicated
transaction.
Mobile Banking

Advantages of Mobile Banking Services

For Account Holders

• Enhanced security over telephone banking: As nowadays, mobile phones include

fingerprint scanners and face recognition, etc., the bank can easily ensure that the customer
is an actual customer or not with the help of biometric data. This provides more data
security rather than using simple telephone banking passwords. Therefore, chances of fraud
are less.
• Increase in accessibility to underserved customer segments: With the mobile banking
app facility, customers living in a rural area or far from the branch location can easily access
all major banking services from the comfort of their homes. Mobile banking also provides
individuals with a facility to communicate through sign language to get connected with an
interpreter over live video for easier access to banking services.
Mobile Banking

Limitations of Mobile Banking Services

• Internet phishing scams:

• Unsafe use of internet and mobile banking can lead to internet phishing scams.
• The details of the account are at risk if you store your password and other banking
information on your phone.

• Technical knowledge and issues:

• To operate and access mobile banking, one must know how to operate mobile banking
and its services.
• Bugs may occur at the time of making transactions and availing services from mobile
banking which might cause issues while operating mobile banking.

Updated: 08-12-2022 07:57:01 AM

Mobile Banking

Tips for Safe Mobile Banking

• Mobile banking, either by mobile banking apps, internet banking, USSD or SMS, is protected.
• If you use the bank’s website or mobile app to transfer funds, etc, there are protections like
firewalls and SSL encryption that make sure your data is safe and cannot be used by anyone
else.(SSL-Secure Socket Layers)
Use a safe network connection:
• Do not use public Wi-Fi and/or someone else’s device for online banking.
• If you have to use a public network, set up a VPN software to go ahead.(Virtual Private
Network)
•Licensed anti-virus:
• Make sure you have anti-virus software installed in your device for an added layer of
protection.
• This should be a licensed software for which you will receive a key when you buy it.
• Without this key, nobody can make changes in this software. This provides full-proof
protection.
Mobile Banking

Tips for Safe Mobile Banking

•Subscribe for push message notification:

• Ensures that you are always informed about any transaction that takes place to/from your
account.
• If there are any unsuccessful login attempts to your internet banking account, your bank will send
you a notification. In such cases, you can contact your bank and get your account secured.

•Avoid signing in via a third-party website or promotional emails:

• Never click on URLs received in an SMS or promotional email.

• Also, avoid using third-party websites to sign in to your account at all costs.
• This can be extremely harmful and can place a big dent in the security of your accounts.
IMPS (Immediate Payment Service)

 IMPS is an instant money transfer service facilitated by NPCI (National Payment Corporation of
India).

 The full form of IMPS is Immediate Payment Service which allows people to send and receive funds
from savings accounts in real-time.

 The service facilitates inter-bank transactions through mobile banking and internet banking.

 The major reason behind using IMPS is that it is available 24×7, 365 days which makes it highly
flexible and dependable.

 Unlike bank branches that are closed on public and gazette holidays, IMPS is always available.

 You can be assured that the funds you have transferred reach the destination even on bank
holidays.
IMPS (Immediate Payment Service)
Features of IMPS
Highly preferred medium of fund transfer in the country, IMPS is loaded with certain features.

• Flexible: IMPS is highly flexible in various aspects.

• Availability: IMPS is available 24×7, 365 days. Need not go to bank and
wait
• Multi-Platform Support: Although IMPS is designed for mobile banking, it supports net
banking.
• Versatile: IMPS is versatile as it can be used for several other
purposes rather than just sending and
receiving money.

The payments can be classified as P2P and P2M payments.

Both P2P and P2M modes can be used for making payments for online
shopping, online merchant payments, insurance premium payment, OTC
IMPS (Immediate Payment Service)

Features of IMPS

Easy to Use: IMPS is quite easy to use. only require the mobile
number (linked to the bank account) and
the unique MMID of the receiver to transfer the
money.
Fast Money Transfer: IMPS is an instant money transfer medium.Funds transfer in real-
time.
A Secure Medium: IMPS is one of the safest mediums of fund transfer.
Bank servers are fairly protected through firewalls whereas the data
traveling on the web is encrypted which is almost impossible to crack.

Mobile alerts: IMPS utilizes mobile banking to its full capacity.

As soon as you transfer funds to the receiver, both sender and receiver
receive text messages from the bank as alerts from the app
IMPS
Bank Charges
IMPS Transaction Limit
The maximum transfer limit of funds through ICICI Bank Rs. 3.50 – Rs. 15.00
IMPS is Rs. 5 lakh. However, it may vary from Punjab National Bank Rs. 6.00 – Rs. 12.00
bank to bank. while the minimum limit usually
is Rs. 1. However, the limit may vary from bank State Bank of India No charges
to bank.
HDFC Bank Rs. 3.50 – Rs. 15.00
Kotak Mahindra Bank No charges
IMPS Charges Axis Bank Rs. 2.50 – Rs. 10.00
IMPS charges are largely subject to the amount
which is being transferred along with the Bank of Baroda Rs. 2.50 – Rs. 25.00
bank’s policies. However, the regular IMPS
charges range from Rs. 2.50 to Rs. 25 for AU Small Finance Bank Rs. 10
amounts of Rs. 10,000 to Rs. 5 lakh. IMPS
Canara Bank Rs. 5.00 – Rs. 18.00
charges for some prominent banks of the
country are given here.
Why is IMPS Useful?

IMPS is, without a doubt, a convenient option to make fund transfers easily.
There are several benefits of using this service such as:
• You can access IMPS 24×7, even on bank holidays.
• This service allows you to transfer funds anywhere and at any time.
• You can transfer up to Rs. 2 lakh each time instantly to the
beneficiary of your choice.
• SMS alert with each transaction allows to keep track of number of
funds transferred.
• IMPS charges are quite nominal.
IMPS

IMPS Eligibility

 Being a service integrated into mobile banking, IMPS requires a person

to have savings bank accounts with mobile banking enabled.
 Even if you are transferring money through IMPS using the internet, you
need to have the MMIDs of both parties.
 This makes it mandatory to have a functioning bank account.

Banks are also required to fulfil various eligibility criteria to facilitate IMPS.

As per the RBI regulations, only the banks that offer mobile banking facilities
approved by RBI can participate in this payment system.
IMPS

How to Transfer Funds through IMPS

You can make IMPS transfers using internet banking, mobile banking facility, or using a Pre-Paid Payments
instrument issuer (PPI). To carry out these transfer electronically, you will be required to follow the below-
mentioned steps:
Step 1: Install the mobile banking application of the respective bank. For example – SBI Anywhere, iMobile
Pay, etc. Alternatively, you can also transfer funds via IMPS using internet banking and following the same
steps mentioned below.
Step 2: Log in using your credentials (User ID / Customer ID and Password)
Step 3: After successful login, click on “Transfer” and select add beneficiary or select One Time Transfer
method.
Step 4: Transfer funds using IMPS by providing either MMID & mobile number details or account
number & IFSC code.
Step 5: Enter the required details such as the name of the beneficiary, registered mobile number of the
beneficiary, beneficiary MMID, and the amount to be transferred. Alternatively, you can also provide the
account number and IFSC code instead of the registered mobile number and MMID.
Step 6: Click on ‘Accept Terms of Service (Terms & Conditions)’ and confirm the transaction.
IMPS
What is MMID
•To carry out an IMPS transaction, you will require a Mobile Money Identifier.
•It is a seven-digit number that is issued to customers upon registering for mobile banking.
•It is necessary for the remitter and the beneficiary to have an MMID to successfully carry out an
IMPS tfr.
•Using the mobile number and MMID allows you to transfer funds without any mistakes
•For every account of the customer, a unique MMID will be allocated. You can select the account
for fund transfer using the MMID allocated.
•Combination of the MMID and the mobile number of the beneficiary allows you to make
transfers without any errors. If either number is entered incorrectly, the funds are not
transferred.
•MMID can be checked online by signing into mobile banking app & choosing “Know your
MMID” option.
•You can send an SMS to the number provided by your bank for IMPS reference number
tracking. You will be able to receive your MMID through an SMS.
IMPS - BENEFITS

Accessibility

Inexpensive Always Available

Does not Require

Instant Fund
Confidential
Transfer
Details
Factors to Consider While Using IMPS

•IMPS requires mobile banking for transferring funds. Even if you are
transferring funds through IMPS using the web, you need to have the MMID of
both parties and it cannot be generated without mobile banking.
•IMPS through net banking requires beneficiary information such as bank
details, IFS code, mobile number of the receiver, name of the receiver, and
MMID.
•Users must check the details twice before confirming the payment through
UPI or IMPS. This is because the money transferred to the wrong bank account
can only be returned with the consent of the beneficiary.
•In any case, it requires an internet connection either on a mobile phone or on
your computer to transfer funds.
IMPS P2A vs P2P
What does IMPS P2A Mean
IMPS P2A means that you can make a fund
transfer from your phone to the accounts of
any beneficiary by providing account details.
This is an option when you do not have access
to the Mobile Money Identifier or MMID
number.
With IMPS P2A, you can transfer money by
providing the beneficiary account number and
the IFSC Code for the branch where the
beneficiary account is held in.
What is the difference Between P2P & P2A
IMPS P2P means Phone to Phone transfer.
The difference between P2A and P2P
transactions lies in the beneficiary details that
you provide when you make the transfer.
For a P2P transfer, you will require the MMID
and mobile number of the beneficiary.
The beneficiary will have to generate the MMID
by downloading the banking app of his or her
bank.
For P2A, on the other hand, you do not require
the MMID.
All you need is the IFSC code and the account
number of the beneficiary.
IMPS

History of IMPS

 It is built on the current NFS (National Financial Switch) and is managed by NPCI (National
Payments Corporation of India).
 IMPS started in August 2010 with a pilot from NPCI for mobile payment systems with 4
banks, viz. State Bank of India, Bank of India, Union Bank of India, and ICICI Bank.
 NPCI then expanded IMPS and included YES Bank, HDFC Bank, and Axis Bank later that
year.
 On 22nd November 2010, IMPS was launched publicly.
 It is more popular on mobile phones but it can also be used on desktops, laptops, and
tablets.
 On mobile phones, you only have to generate a unique 7-digit MMID (Mobile Money
Identifier). After that, you can avail of the service as per the mobile application of your
bank.
UPI - Unified Payments Interface

What is UPI transaction?

 In the past few years we have seen a massive upgradation in the way we carry out
monetary transactions.
 From cash to cheques and Demand Drafts, to now RTGS and NEFT.
 The way we make and receive payments is constantly changing.
 In the spirit of constant evolution, the latest upgradation to our economy is
digitization.
 Since the time of demonetization, the practice of carrying cash has reduced
considerably.
 The government, in order to ensure minimum disruptions during the transitional
phase, introduced UPI under the aegis of National Payments Corporation of India
(NPCI).
Updated: 17-05-2022 05:57:28 AM
UPI

What is UPI?

 UPI or Unified Payments Interface is an instant money transfer system developed by the National
Payments Corporation of India (NPCI).
 The system is regulated by the Reserve Bank of India (RBI).
 UPI mechanism is created over the infrastructure of IMPS and enables you to transfer money
between two parties, instantly.
 UPI uses Virtual Payment Address (VPA) to transfer the funds from bank account of one party to
another.
 A VPA is a unique identity which is created while you register with a UPI application.
 It helps you in all your future UPI transactions. Anything can be made your VPA. It can be your
name, Aadhaar number, mobile number or bank account number.
 Once the registration is made and the formalities of linking your bank account with UPI are
completed, you can easily access your UPI account by typing your VPA.
 Mostly people prefer keeping their name or cell number as the unique identity with which they
operate the UPI application.
Features of UPI
•Allows Aadhaar/Mobile Number with Pay-by-date
•Ensures 1 click 2 Factor authentication UPI
•Virtual Address No security Compromise
•Immediate Funds Tfr. 24x7,IFSC,A/c No. No cut off time
•Standardised across banks
•Scan & Pay user friendly, without registration Payment
•Collect request to get money from any UPI user
•Mandate Registration
•QR code Registration
•Raise UPI txns related complaint
•View UPI Txns
UPI New Features
The UPI-PayNow linkage is a significant milestone in the development of
infrastructure for cross-border payments between India and Singapore and
closely aligns with the G20’s financial inclusion priorities of driving faster,
cheaper and more transparent cross-border payments.

1. Who can undertake remittance transactions between India and Singapore through the UPI-PayNow linkage?

Account-holders of the participating banks and financial institutions in India and Singapore can do the cross-
border remittance transactions through the UPI-PayNow linkage.

2. Which are the participating banks in India for receiving remittances through the UPI-PayNow linkage?

Currently, participating banks in India for receiving remittances through the UPI-PayNow linkage are:

Axis Bank ,DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank, State Bank of India

3. Which are the banks in India presently enabled for sending remittances through the UPI-PayNow linkage?

Banks in India presently enabled for sending remittances through the UPI-PayNow linkage are:

ICICI Bank, Indian Bank, Indian Overseas Bank, State Bank of India, ( RBI
FAQs)
UPI

Transactions through UPI

 Transactions through UPI application are convenient and easy.

 All you have to do is add the payment address of the vendor and you can easily
transfer the specified amount to his bank account.
 In certain online shopping mediums, it may be necessary to ensure that the other party
also has a UPI address, so that the instant transfer is done effectively.
UPI
Steps for Transactions
The transactions can be authenticated under UPI by your bank only after the registration is done. The
steps are as under:
•Download the UPI application on your smartphone. Preferably of the bank in which you have an account.
•Open the application and follow the instructions. It will ask you to enter your details such as name,
mobile number and bank account details.
•Your mobile number should be the one on which you have downloaded the application. Also the bank
account number that you have linked with the UPI app must be linked to this mobile number. That helps
in seamless processing of transactions.
•Once you have entered the relevant details, they will ask you for your VPA. This is your unique identity
through which you can make future transactions without having to repeatedly feed in your bank account
details.
•After creating your VPA, you can now explore the services offered by your UPIapp. You may also add
beneficiaries to the UPI account for a seamless money transfer.
•For every transaction that you make through UPI you will need the recipient’s UPI address or bank
account number and the money will be transferred instantly.
UPI
Facts to Know about UPI Transactions

Here are certain basic facts about the UPI Transactions that you must be aware of:
•It is imperative that you link your bank account with your UPI, linking a wallet will not help.
•Every time you make a transaction via UPI, the bank will notify you about the same through an
SMS.
•The SMS may be delayed by a few minutes due to certain network issues, but if you have not
received any notification for over an hour, it is advised that you call up your bank and get it sorted.
Make sure that the number you are using is the same as that given to the bank while opening the
account. That is the only number on which the bank will send the alerts. In case it is not the same
number, please get it
•Transactions through UPI can be done 24*7 without any issue. You do not need to go to the bank
or seek any approvals. As long as you have money in your bank account you can have transactions
over UPI.
•The transfer of money is instant and hence there is no delay between sending and receiving of the
money.
UPI - Key Aspects of UPI

a) UPI permits payments via mobile app, web

b) Payment can be both sender (Payer) and receiver (Payee) initiated

c) Payments are carried out in a secure manner aligned with the extant RBI
guidelines

d) Payment can be made using Aadhaar Number, Virtual Address, A/c Number and
IFSC code, Mobile Number and MMID

e) Payment uses 1-click 2 factor authentication, Biometric Authentication and

use of smart phone
UPI

UPI Participants

 Payer Payment Service Provider (PSP)

 Payee Payment Service Provider (PSP)
 Remitter Bank
 Beneficiary Bank
 NPCI
 Bank Account Holders
 Merchants
UPI

Benefits of UPI

 Confidentiality –- only Virtual Address is shared

 Multiple Utility-Cash on delivery, Bill split sharing,

Merchant Payments, Remittance

 One Click 2 FA- Authorise transactions only by

entering PIN

 Availability-Available 24 x 7
 E-RUPI

e-RUPI is a digital solution launched by the Hon'ble PM via video conferencing to allow cashless
payment solution for COVID-19 vaccination. The digital payment solution has been developed with the
support of DFS (Department of Financial Services) and NHA (National Health Authority) and is powered
by National Payments Corporation of India (NPCI).

This seamless one-time payment mechanism enables users to redeem the voucher without a card,
digital payments app or internet banking access, at the merchants accepting UPI e-Prepaid Vouchers.
The e-RUPI would be shared with the beneficiaries for a specific purpose or activity by organizations
via SMS or QR code.

This contactless e-RUPI is easy, safe and secure as it keeps the details of the beneficiaries completely
confidential. The entire transaction process through this voucher is relatively faster and at the same
time reliable, as the required amount is already stored in the voucher.
Future of Digital Channels in India
Bharat Interface for Money (BHIM)

BHIM UPI
 Bharat Interface for Money (BHIM) is an app that allows you to make
simple, easy, and quick payment transactions using Unified Payment
Interface (UPI).
 This app allows you to make instant bank-to-bank payments and pay and
collect money using mobile number or VPA (Virtual Payment Address).
 VPA is a unique identifier which one can use to send and receive money on
UPI
 BHIM is a UPI based payment interface which allows real time fund transfer
using a single entity
 BHIM can be used on all handsets with IOS & Android version 4 & above
Features of BHIM
User can send money using a VPA, A/c No. IFSC,
Aadhaar or QR code. Cardless withdrawal from ATM

User can collect money by entering VPA.

One can also transfer money using Mobile No.

registered with BHIM

User can pay by scanning the QR code thro. Scan

& Pay & generate your QR option is also present

User can check txn history, pending UPI collect

request and approve or reject
Features of BHIM
User can view the static QR code and Payment
address or share QR code or down load QR code

User can see bank account linked with BHIM and

set/change UPI PIN. Change Bk a/c.Check balance

Block / Spam users from illicit sources

Allow a user to disable and enable mobile number

Mandate registration and raise complaint about UPI

transaction
BHIM

BHIM App with UPI Features

•Send Money: The user can send money by entering UPI ID, account number,
Aadhaar, or by scanning a QR.
•Request Money: User can request money from other UPI users by entering their UPI
ID.
•Scan & Pay: You can make payments quicker by scanning the QR of the person
you want to send money. Other people who want
to make payments to you can scan your QR and
send you money.
•Transactions: You can get your UPI passbook at your fingertips and you can check
the transaction history. If you have a complaint
regarding any transaction, you can report the
same in the app.
•Profile: In BHIM UPI app, you can view your QR code and payment
BHIM

BHIM App with UPI Features

•Bank Account: The user can check the details of his/her bank account at any time. It
is easy to change your PIN or set a new PIN in the app.
The account balance can be reviewed in
the app and customers can change the bank account linked
with the app by choosing the ‘Change Account’ option.
•Language: Currently, BHIM app is available in 20 languages namely Hindi,
English, Tamil, Telugu, Malayalam, Bengali, Odia,
Kannada, Gujrati, Marathi, Assamese, Bengali,
Haryanvi, Marwari, Konkani, Manipur, Khasi, Mizo
and Urdu.
•UPI Autopay: The user can enable recurring e-mandates via any UPI-enabled app
for recurring payments such as mobile bills, EMI
payments, etc.
*99# works on Unstructured Supplementary
Service Data (USSD)

The innovative payment service *99# works on Unstructured

Supplementary Service Data (USSD) channel. This service allows mobile
banking transactions using basic feature mobile phone, there is no need to
have mobile internet data facility for using USSD based mobile banking.

*99# service has been launched to take the banking services to every
common man across the country. Banking customers can avail this service
by dialling *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. This can be accessed in 12 different
languages including Hindi & English.
*99# works on Unstructured Supplementary
Service Data (USSD) Services Offered

S.No Services Offered Details

1 Financial Services
2 Non-Financial Services
Sending Money using Mobile No.
Sending Money using UPI ID
Sending Money using Aadhaar No.
Sending Money using A/c No. + IFSC
Requesting Money using UPI ID / Mobile No.
Account BAlance
Set UPI PIN
Change UPI PIN
Last 5 Txns

3 Value Added Services Aadhaar Linking Sttus

PMJDY A/c Overdraft Status
*99# works on Unstructured Supplementary
Service Data (USSD)

Requirements Features & Benefits of USSD *99#

Service
1) KYC compliant Bank account
 Works without data connection on a
2) Mobile No. linked with Bank account basic phone
3) Register for USSD / Mobile Banking  Works round the clock
4) Get MMID ( Mobile Money Identifier)  Easy to use
5) Get MPIN9 Mobile PIN)  Works on all GSM handsets
 Highly secure interface

Funds Transfer Limit

Rs 5000 per transaction
UPI 123 PAY

 Unified Payment Interface is a single platform for accessing different bank

accounts for making or requesting payments.
 It is an immediate money transfer service that lets users do transactions round
the clock 24×7 and 365 days.
 This service was earlier limited to smartphones that needed internet
connection.
 RBI in association with NPCI has launched the UPI 123Pay which will allow
customers to do digital transactions without having an internet connection.
 It is especially launched for feature phone users.
What is UPI 123Pay?

 UPI 123Pay is a newly launched instant payment system which will allow users to make UPI
transactions without an internet connection.

 The feature is expected to benefit 40 crore feature phone users which will increase financial
inclusion for rural areas of the country.

 With the world becoming digitalised, it is imperative to make the population of the country
digital friendly.

 Post COVID era, there has been a jump in digital transaction.

 NPCI has given the slogan – Click karo, Pay karo

What is UPI 123Pay?

 The new 123Pay is different from the traditional UPI Transactions

service.
through UPI
 Earlier, one needed to have at least a smartphone and an 123Pay can be
active internet connection to carry out a UPI transaction. done through
 This limited the extent of UPI transactions to people who 1. IVR,
are proficient in using smartphones. 2. Missed call,
 Most of the people in India use feature phones and 3. Sound-based
providing a payment service that will help adding these and
users in the ecosystem will be beneficial for all. 4. OEM-
supported.
OEM – Original Equipment Manufacturer
UPI 123 PAY
UPI Payment through Pre-defined
IVR Number (Interactive Voice Response)
Under this payment, users are required to
make a secured call from their feature
phone on 080 4516 3666 & 080 4516 3581
& 6366 200 200 to start making financial
transactions without internet connection.
With the IVR providing multiple language
options, customers can avail the service in
their preferred language. IDFC First Bank,
City Union Bank, & NSDL Payments Bank
have gone live on IVR payments.
Steps to know the process better:
Step 1: Dial IVR number from your feature phone
Step 2: As you proceed on the call, profile is created
for the first-time user
Step 3: Mention the name of the bank for list account
activity
Step 4: UPI ID will be assigned to you in the format
mobile.voice@psp
Step 5: Set the UPI PIN by entering debit card details
and OTP received
Step 6: Create a UPI number which will be used for
sending/receiving payments
Step 7: The registration is successful, you can make
transactions henceforth
UPI 123 PAY
UPI Payment through Missed Call
• This method will allow users to do
transactions and pay bills just by giving
a missed call on the number displayed
at the merchant’s place.
• Users will receive a call to
authenticate the transaction by
entering UPI PIN in order to complete
the transaction once they give a
missed call on the number displayed at
the merchant’s place.
Steps to set your UPI 123Pay account:
Step 1: Enter your postal pin code
Step 2: Select your preferred language
Step 3: Speak your preferred name which you want to
listen
Step 4: Speak your bank name
Step 5: Enter your 6-digit debit card number
Step 6: Enter the debit card’s expiry month and year
Step 7: Enter the debit card’s PIN
Step 8: Enter bank OTP which you receive
Step 9: Enter new UPI PIN
Step 10: Confirm the new UPI PIN
Step 11: The registration is successful
UPI 123 PAY
UPI Payment through Functionality
Implemented by OEM
 In this type of method, an app will be
installed on the feature phone which will
allow customers to use various UPI
functions except scan and pay feature.
 The interested partners will have to tie up
with the feature phone mobile
manufacturer to enable a native payment
app.
Steps to know the process better:
Step 1: Open the UPI app on your feature phone
Step 2: Enter the phone number
Step 3: Select your bank
Step 4: Select your account
Step 5: Enter the OTP that you have received
Step 6: Create UPI ID
Step 7: Set the UPI PIN
Step 8: UPI ID is created and the registration is
successful
UPI 123 PAY
UPI Payment through Sound-based
Technology
 The feature will allow users to do
transactions verbally.
 The solution has been created in
collaboration with Tonetag and is
supported by NSDL Payments Bank.
 The technology uses sound waves, to
enable offline communication on any
device and make transactions.
Steps to know the process better:
Step 1: Dial IVR number from your feature phone
Step 2: As you proceed on the call, a profile is created
for the first-time user
Step 3: Mention the name of the bank for list account
activity
Step 4: UPI ID will be assigned to you in the format
mobile.voice@psp
Step 5: Set the UPI PIN by entering debit card details
and OTP received
Step 6: Create a UPI number which will be used for
sending/receiving payments
Step 7: The registration is successful, you can make
transactions henceforth
UPI 123 PAY - Important Points

 An instant pay facility for feature phones

 A feature launched for people who cannot afford a smartphone
 Doesn’t require internet connectivity
 Is a three-step process-call, choose and pay
 Users are required to link their bank accounts with their feature phone
 The service can be accessed in various Indian languages
 All the facilities of UPI are available except scan and pay feature
 Will give a boost to digital inclusion
Customer’s Liability – Unauthorised Transaction

S.No Details
1 Banks must ask their customers to mandatory register for SMS alerts
and wherever available register for e-mails alerts, for electronic
banking transactions
2 SMS alerts shall mandatorily be sent to the customers , while email
alerts may be sent, wherever registered
3 On receipt of a report of an unauthorised transaction from the
customer, banks must take immediate steps to prevent further
unauthorised transaction in the account
Customer’s Liability – Unauthorised Transaction

Zero Liability of a Customer

A customer’s entitlement to zero liability shall arise where the unauthorized transaction
occurs in the following events:

• Contributory fraud/ negligence/ deficiency on the part of the bank (irrespective of

whether or not the transaction is reported by the customer).
• Third party breach, where the deficiency lies neither with the bank nor with the
customer but lies elsewhere in the system, and the customer notifies the bank
within three working days of receiving the communication from the bank regarding the
unauthorized transaction.
Customer’s Liability – Unauthorised Transaction
Limited Liability of a Customer

Below are the cases where a bank customer can be liable for the loss due to unauthorized transactions ;
•In cases where the loss is due to negligence by a customer, such as where he/she has shared the payment
credentials, the customer will bear the entire loss until he reports the unauthorized transaction to the bank. Any
loss occurring after the reporting of the unauthorized transaction shall be borne by the bank.

•In cases where the responsibility for the unauthorized electronic banking transaction lies neither with the bank
nor with the customer, but lies elsewhere in the system and when there is a delay (of four to seven working
days after receiving the communication from the bank) on the part of the customer in notifying the bank of
such a transaction, the per transaction liability of the customer shall be limited to the transaction value or the
amount mentioned in the below table, whichever is lower ;
 Limited
Liability of a
Customer
 Limited
Liability of a
Customer

In case of delay more than 7

days ,customer liability
determined as per Bank
Approved Policy
Customer’s Liability – Unauthorised Transaction

So, if there is a third-party

breach and where the
fault/deficiency is neither with
the bank nor with the bank
customer then customer’s
liability is summarized as
below ;
Customer’s Liability – Unauthorised Transaction

Reversal of Unauthorized Transaction Amount

•The bank has to pass a reversal transaction and credit the concerned customer’s
account within 10 working days from the date of notification by the customer about
unauthorized / fraudulent electronic bank transaction(s). Banks should not wait for
settlement of insurance claim, if any.
• Value date of the Credit shall be as of the date of the unauthorized transaction.
•Banks may also at their discretion decide to waive off any customer liability in case of
unauthorized electronic banking transactions, even in cases of customer negligence.
DrGJ