BUSINESS SERVICES

E-Banking meaning
&
Types of digital payments

Chapter 4
 e-Banking
Internet banking means any user with a PC and a browser can get
connected to the banks website to perform any of the virtual banking
functions and avail of any of the bank’s services

● e-banking is a service provided by many banks, that allows, a

customer to conduct banking transactions, such as managing
savings, checking accounts, applying for loans or paying bills
over the internet using a personal computer, mobile telephone or
handheld computer
Services offered by e-banking
● Automated Teller Machines (ATM)
● Point of Sales (PoS)
● Electronic Data Interchange (EDI)
● Credit Cards
● Electronic or Digital cash
● Electronic bank transfer (EFT)-The two ways in which
EFT can be done:
# NEFT (National Electronic Fund Transfer)
# RTGS (Real Time Gross Settlement)
● IMPS-Immediate Payment Service
DIGITAL PAYMENTS

BUSINESS
SERVICES
 DIGITAL PAYMENTS
MEANING:
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● A way of payment which is made through digital modes.

● Payer and payee both use digital modes to send and receive money.
● It is also called electronic payment.
● Apart from the sender having such means, the receiver of the
payment too must have these ways to accept payments.
● This means that there must be a medium of transmission between the
sender and the receiver wherein the former instead of paying
the latter in cash / physical format pays in
digital format.
 BANKING CARDS (DEBIT / CREDIT)
1. Banking cards offer consumers more security and convenience

2. These cards provide 2 factor authentication for

secure payments e.g. secure PIN and OTP.
3. EG. -Credit Card, Debit Card
-RuPay, Visa, MasterCard

4.These cards can be used at PoS (Point of

Sale) machines, ATMs, micro ATMs, Shops,
wallets, online transactions, and for
e-commerce websites.
 UNIFIED PAYMENTS INTERFACE (UPI)
1.Unified Payments Interface (UPI) is a system
that powers multiple bank accounts into a
single mobile application (of any participating
bank)

2. Each Bank provides its own UPI App for

Android, Windows and iOS mobile platform(s)
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3. Real-time bank-to-bank payments can be made
using a mobile number or virtual payment
address (UPI ID) round the clock 24*7 and 365
days.
MOBILE WALLETS
1. A mobile wallet is a way to carry cash in digital
format.
2. Can link credit card or debit card information
in mobile device to mobile wallet application or
can transfer money online to mobile wallet.
3. An individual's account is required to be linked
to the digital wallet to load money in it.
4. EG. Paytm, Freecharge, Mobikwik, Oxigen,
Airtel Money, Jio Money, SBI Buddy, itz Cash,
Vodafone M-Pesa, Axis Bank Lime,
ICICI Pockets etc.
 POINT OF SALE
● A point of sale (PoS) is the place where
sales are made & also known as a point
of purchase.
● It refers to the place where a customer
executes the payment for goods or
services and where sales taxes may
become payable.
● It can be in a physical store, where POS
terminals and systems are used to
process card payments or a virtual
sales point such as a computer or
mobile electronic device.
A customer completes a transaction, at checkout
counter.
3. For example, if you decide to buy two products and
take them to the checkout counter, the staff there would
scan the products and create a receipt
 INTERNET BANKING
1. Internet banking, also known as online
banking, e-banking or virtual banking

2. It 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 EG. NEFT, RTGS, IMPS
institution's website
 MOBILE BANKING
1. 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.

2. It uses software, usually called an app,

provided by the banks or financial
institution for the purpose.

3. Each Bank provides its own mobile

banking App for Android, Windows and
iOS mobile platform(s).
 AADHAAR ENABLED PAYMENT SYSTEM
(AEPS)
1. AEPS is a bank led model which allows online financial transaction at
PoS (Point of Sale / Micro ATM) using the Aadhaar authentication.
The only inputs required for a customer to do a transaction under this
scenario are:-
● Bank Name
● Aadhaar Number
● Fingerprint captured during enrollment.

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 Micro ATMs
Micro ATMs are card swipe machines through
which banks can remotely connect to their core
banking system.

This machine comes with a fingerprint

scanner attached to it.

Micro ATMs are handheld point of sale Micro ATMs are similar to point of sale
terminals used to disburse cash in (PoS) terminals and are a doorstep
remote locations where bank mobile banking arrangement
branches cannot reach. cum-mobile ATM device.

https://www.youtube.com/watch?v=PD4i_z
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 PREPAID CARD
A prepaid card is a card you can use to pay for
things. You buy a card with money loaded on it.
Then you can use the card to spend up to that
amount. A prepaid card is also called a prepaid
debit card, or a stored-value card.

It is not linked to a bank account.

● A prepaid debit card can be a useful
alternative to cash.
● Prepaid debit cards are an option
for people who don't have a credit
card or access to a regular debit
card connected to a bank account.
 EDI (Electronic data interchange)
● EDI is a standard format to exchange business
information between two organizations electronically
instead of using paper documents.
● With EDI transactions, information moves directly from
a computer application in one organization to a
computer application in another.
● Electronic Data Interchange (EDI) is the
computer-to-computer exchange of business documents
in a standard electronic format between business
partners.
 EDI-Process

Traditional Manual Data

Transfer Process
 IMPS-Immediate Payment Service
● IMPS offer an instant,24*7 interbank electronic fund transfer
service capable of processing person to person, person to account
and person to merchant remittances via mobile, internet and
atms.
● IMPS is an emphatic service which allows transferring of funds
instantly within banks across India which is not only safe but also
economical.
● This facility is provided by NPCI through its existing NFS switch.
● The eligible criteria for the Banks who can participate in IMPS is
that the entity should have valid banking or prepaid payment
instrument license from Reserve Bank of India to participate in
IMPS.
National Payments Corporation of India (NPCI),-
An initiative of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA), is
an umbrella organisation for operating retail payments and settlement systems in
India.
NPCI has ten core promoter banks—State Bank of India, Punjab National Bank, Bank of
Baroda, Canara Bank, Bank of India, HDFC Bank, Citibank, HSBC, and ICICI Bank.

The corporation's service portfolio includes:

● Aadhaar Enabled Payment System
● BHIM
● Immediate Payment Service (IMPS)
● RuPay
● Unified Payments Interface (UPI)
● National Financial Switch--It is the largest network of shared automated teller
machines (ATMs) in India.

NOT TO BE LEARNT
Comparison NEFT RTGS IMPS

Settlement Type Half hourly batches Real-time Real-time

Minimum Transfer Re.1 Rs.2 lakh Re.1

Limit

Service Timings Available 365 days Available 365 days Available 365 days
24×7 24×7 24/7

Payment Options Online and Offline Online and Offline Online

Transaction No charges for No charges for inward transactions Charges for remittance
No Charges for online transactions through IMPS are decided
Charges inward transactions
by the individual member
Charges applicable for outward banks.The taxes are
Charges applicable transactions for amount:
included.
for outward
transactions for EX. Rs.2 lakh – Rs.5 lakh: not exceeding
amount: Rs.25

EX. upto Rs. 10000 Above Rs.5 lakh: not exceeding Rs.50
Rs.:Rs. 1+GST
GST is also applicable

Rs. 10000-100000:
Rs.2+GST…...

Maximum No Limit No limit Rs.2 lakh

Transfer
Limit