Contents

PAGE
Foreword I-3
Acknowledgement I-7
Syllabus I-9
Recommended Reading I-13

MODULE A
Digital Banking Products

Unit 1

Digital Banking

1.1 Introduction to Digital Banking 3

1.2 Need for Digital Channels 5
1.3 Customer Preferences for Digital Banking 6
1.4 Consumer expectations are evolving with digitalisation 7
1.5 Technology lays the foundation for user-friendliness and 9
customer interaction
1.6 Security is a cornerstone of Digital Banking 9
1.7 Information Security 10
1.8 Let us Sum up 11

I-15
I-16 Contents

PAGE
1.9 Keywords 12
1.10 Check Your Progress 12
1.11 Answers to “Check Your Progress” 14

Unit 2

CARDs

2.1 Overview and Brief History 15

2.2 Various Types of Cards 16
2.3 Product Features of different types of card 17
2.4 Benefits of Cards to Customers 19
2.5 Data Security Standard-Payment Card Industry 19
2.6 Magnetic Strip Card and EMV Technology 23
2.7 New Technologies - NFC based Tap & GO 26
2.8 Approval Process for Card Schemes 28
2.9 Profitability of the Card Business 33
2.10 Back end Operations 35
2.11 Recovery and Follow up 37
2.12 Legal action 38
2.13 Information Security Issues 39
2.14 Let us Sum up 41
2.15 Keywords 42
2.16 Check your Progress 42
2.17 Answers to “Check your Progress” 44

Unit 3

Automated Teller Machines (Atms)

3.1 Overview and Brief History 45

3.2 Product features 46
3.3 White Label and Brown Label ATMs 48
3.4 ATM Networks 49
3.5 Instant Money Transfer (IMT) Systems 51
 Contents I-17

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3.6 Profitability of ATMs 52
3.7 Cash Deposit Machine (CDM) 53
3.8 Risk Management and Frauds 54
3.9 Back end Operations and Technology 56
3.10 Dispute Management System (DMS) 57
3.11 Information security and customer awareness tips 62
3.12 Let us Sum up 64
3.13 Keywords 65
3.14 Check Your Progress 65
3.15 Answers to “Check Your Progress” 67

Unit 4

Mobile Banking

4.1 Overview and brief history 68

4.2 Product features and diversity 72
4.3 IMPS 79
4.4 Profitability of Mobile Banking 82
4.5 Risk Management and frauds 84
4.6 Back end operations and technology 87
4.7 Information Security Tips 91
4.8 Conclusion 93
4.9 Let us Sum up 94
4.10 Keywords 95
4.11 Check Your Progress 95
4.12 Answers to “Check Your Progress” 97

Unit 5

Internet or Online Banking

5.1 Overview and brief History 98

5.2 How Internet Banking Works 99
5.3 Product features 99
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PAGE
5.4 Profitability of Internet Banking 101
5.5 Risk Management and frauds 104
5.6 Let us Sum up 114
5.7 Keywords 114
5.8 Check Your Progress 115
5.9 Answers to “Check Your Progress” 116

Unit 6

POS Terminals

6.1 Overview and Brief History 117

6.2 Product Features 118
6.3 Types of POS terminals 119
6.4 Key Benefits of POS Systems to Merchants 123
6.5 Key Benefits to of POS Systems to Customers 123
6.6 Types of transactions at POS terminals 123
6.7 Cash withdrawal at Point of Sale (POS) 124
6.8 On-boarding Merchant on POS 124
6.9 Approval process for POS terminals 125
6.10 Parties to a POS Set-up 126
6.11 Profitability of POS Business 128
6.12 Risk Management and Frauds 130
6.13 Back End Operations and Technology 131
6.14 Let us Sum up 137
6.15 Keywords 138
6.16 Check Your Progress 139
6.17 Answers to “Check Your Progress” 141
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MODULE B
Branchless Banking

Unit 7

Digital Banking & Financial Inclusion (FI)

7.0 Objective 145

7.1 What is FI 146
7.2 Actions Required to serve FI 147
7.3 Banking actionables in FI 148
7.4 Technologies for FI 150
7.5 Digital Banking services in FI - Status 173
7.6 Factors beyond technology - Awareness, FI-infra 173
7.7 Global Observations 174
7.8 Information Security Issues in FI 176
7.9 Let us Sum Up 179
7.10 Keywords 180
7.11 Check Your Progress 181
7.12 Answers to “Check Your Progress” 183

MODULE C
Marketing of Digital Banking Products

Unit 8

Marketing of Digital Banking Products

8.1 Concept of Marketing Digital Banking Products 187

8.2 Channels for Marketing Digital Banking 189
8.3 Product Planning 198
8.4 Structure for Marketing Digital Banking Products in Banks 199
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8.5 Sales delivery to customers 201
8.6 Concept of e-Galleries/digital outlets/e-service points 203
8.7 After sales service to customers 204
8.8 Marketing for Financial Inclusion 206
8.9 Dangers of Mis-selling 207
8.10 Use of Analytics in marketing of Digital Banking Products 207
8.11 Customer Education and Protection 208
8.12 Let us Sum up 211
8.13 Keywords 212
8.14 Check Your Progress 212
8.15 Answers to “Check Your Progress” 214

MODULE D
Payment Systems

Unit 9

Developments in Payment Systems

in India, and Digital Banking

9.1 Overview of Global Payment Systems 218

9.2 Overview of Domestic Payment Systems 221
9.3 New Domestic Payment Vehicles and Platforms 223
9.4 Innovative Banking and Payment Systems 248
9.5 Payments, Digital Banking, Information Security 250
9.6 Let us Sum up 250
9.7 Keywords 253
9. 8Check Your Progress 254
9.9 Answers to “Check Your Progress” 256
Annexure Transaction Flow of Rupay Paysecure Solution 257