NPCI – Day 1

I reported to my supervisor, Tiru Sarma, and his team, including Viveka. I was
assigned relationship management with SBI. My project requires a
comparative analysis of YONO SBI with other payment apps, such as Google
Pay, and other mobile banking applications.

On Day 1, I was given two tasks: to familiarize myself with the SBI
organization structure and to gather information on payment methods.

SBI Organization:
Chairman >> MD >> DMD >> CGM >> GM >> DGM >> AGM >> CM >> M
>> DM >> AM >> Probationary officers >> Clerical staff >> Sub staff

Chairman: Challa Sreenivasulu Setty

MD - Corporate banking: Ashwini Kumar Tewari

MD – Retail Banking: Vinay M. Tanse

MD – Risk, Compliance and SARG: Rana Ashutosh Kumar Singh

MD – International Banking and Technology: Rama Mohan Rao Amara

Directors:

Nagaraju Maddiraju, Ajay Kumar, CA Ketan S Vikamsey, Mrugank M

Paranjape, Rajesh Kumar Dubey, Dharmendra Singh Shekhawat, Swati
Gupata

Payment Methods:
There are various payment methods available. UPI, IMPS, NEFT, RTGS, IBT
(FT), Card-based payment, and liquid cash transfers.

UPI – Unified Payment Interface, developed by NPCI and regulated by RBI. It

was developed on April 11, 2016. It revolutionized the payment structure in
India. It has a daily limit of 1 Lakh. We can transfer funds through mobile
number, QR code, Virtual Payment address, and UPI ID. In India, 60cr
average daily transactions take place through UPI. In UPI, there are two types

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of transactions: P-P (peer-to-peer) and P-M (peer-to-merchant). Most of the
UPI transactions don’t have any transaction fees.

IMPS – Immediate Payment System, developed by NPCI in 2010. It is also a

24|7 payment system like the UPI. The only difference between the two is
that IMPS will work with only one bank account. Whereas with UPI, we can
link different bank accounts, and we can choose the bank account from
which we want to transfer funds at the time of the transaction. The daily
transaction limit is capped at 5 lakhs. The transaction fee varies based on
the transaction amount.

NEFT – National Electronic Fund Transfer processes the fund transfer in

batches. It will be useful for the organizations to pay salaries to their
employees on a timely basis. We can transfer from as low as Rs 1, and there
is no cap for the fund transfer. The transaction fee varies from rupees 2.5 to
25 based on the transaction amount.

RTGS – Real Time Gross Settlement, is used for bulk transaction amounts.
There is a minimum cap of 2.5 lakhs, and no upper limit. It usually takes less
than 30 minutes to process the transaction. The transaction fee varies from
Rs 25 + GST based on the transaction amount.

IBS – Internal Bank Transfer, fund transfer within the same bank. It can be
between the accounts of the same user or different users. These transactions
don’t involve any other banks or other financial institutions. Banks usually
charge minimal or no fees for internal transfers, and the fees, if any, depend
on the transaction amount.

Card-Based Payment – Debit and Credit cards. The merchant fee is shared
between the banks and the payment networks like Visa, Master Card and
Rupay.

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Day 2: A study on YONO SBI
YONO SBI: You Only Need One

YONO Lite: New name for SBI Anywhere personal (Pure banking needs)

 A customer-centric unified platform for both financial and non-financial

services
 Launched in November 2017 by the then chairman, Rajnish Kumar
 The launch of YONO had a code name, Project Lotus. Yono emerged
from SBI's initial plan to create an "online marketplace" aimed at
attracting millennials. The initiative was named "Project Lotus"

“An account can be opened in 5 minutes, and funds transferred in just four
clicks.”

- Rajnish Kumar

Sources: https://www.thehindubusinessline.com/money-and-banking/sbi-
launches-yono-an-integrated-app-for-financial-services/article9970915.ece

https://www.financialexpress.com/business/banking-finance-state-bank-of-
india-to-unveil-project-lotus-here-is-how-you-can-gain-852561/

Services Offered:

Financial services include Account opening, Fund transfers, bill payments,

and loan applications, UPI integration, a Digital lending platform,
Investments, and YONO Cash.

Non-financial services include online shopping, travel planning, movie ticket

booking, and integrating 100 e-commerce companies.

User Base:

60.7 million registered customers

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10 million daily login rates

5,50,000 daily average transactions.

Revenue Model: Generates revenue by acting as a distribution platform for

SBI’s products and services. Transaction fee from the sale of products and
services offered by SBI.

Issues with mobile banking apps:

 Non-uniformity of device versions and screen sizes

 Poor cellular connectivity
 Low broadband connections

SBI Mobile banking apps SBI YONO, SBI Anywhere, and SBI Freedom app

Competitors of YONO:
YONO works both as a mobile banking app and as a third-party application
provider (TPAP)

Competitors in mobile banking applications: HDFC, ICICI, Axis, Union

Competitors in TPAP: Google pay, Phone pay, and Paytm.

Among the mobile banking apps, SBI is performing better with 27% market
share.

However, in the UPI market, mobile banking apps lag other fintech apps like
Google Pay, Phone Pay, and Paytm.

Comparative analysis of Mobile banking apps:

Challenges faced by the users of YONO SBI:

 Slowness of the app, frequent session expires, and bad UI/UX are the
issues faced by most users.
 Fails to connect even with a stable internet connection. Not able to
access from the older Android versions.
 Frustrated with changing the profile password frequently (180 days
validity).

Sources: Google Play Store reviews

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Survey link: https://forms.office.com/r/RBcRrnntFa

Results:

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Day 3: YONO SBI as a UPI app
 Currently, only Rupay credit cards are used for UPI transactions.

VPA: Virtual Payment Address, a unique identifier that enables users to send
and receive money through the Unified Payments Interface (UPI).

How UPI Works:

Source: https://aswinmohan.me/how-upi-works

 IMPS facilitate transfer of money from Sender to Receiver and the

transaction is initiated by the Sender.

 UPI facilitates transfer of money using both Push & Pull mechanism
where the transaction can be initiated by Sender as well as Receiver.

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Users of the BHIM SBI Pay app have reported several recurring issues
based on reviews and feedback:

1. Technical Glitches and Crashes:

o Users frequently experience app crashes during transactions,

leading to inconvenience.

o Instances where the app logs out unexpectedly while making

payments have been reported.

2. Login and Registration Problems:

o Difficulties in logging in, with error messages like "device binding

failed," hinder user access.

o Some users face repeated prompts to re-verify their devices

without successful login.

3. Transaction Failures:

o Complaints about payments not processing and transactions

failing without clear reasons.

o Users report frustration due to unsuccessful transactions,

especially during peak hours.

4. User Interface and Feature Limitations:

o The app's interface is considered cluttered and less intuitive

compared to other UPI apps.

o Features like QR code scanning and mobile number-based

transfers are either absent or not functioning optimally.

5. Security Concerns:

o Instances of unauthorized transactions and potential fraud have

been highlighted, raising concerns about the app's security
measures.

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RCC (Rupay Credit Card) Sourcing:
How do UPI apps source Rupay Cards?

Co-branding cards: Offered by the retailer or other business in

partnership with card issuers or card networks.
Lead generation is the process of generating interest in a product
or service and converting that interest into a sale

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