Know the different modes of Digital Banking payments

The Indian government has taken several measures to promote digitisation in the country. As part of this, it introduced the ‘Digital India’ campaign to create a faceless, cashless, and paperless economy. Now, Digital Banking mainly includes making instant Fund Transfers and managing funds remotely. But the innovations have led to the emergence of various digital payment modes.

It has become common for customers to use different channels while shopping, sending funds, and making retail payments. This way, reliance on a particular medium reduces. Even if a mode does not work out due to technical issues, you have other options. To effectively leverage these options, you should know all types of online payment modes. Here is a classification of payment channels that come with Digital Banking in India:

Debit/Credit cards

These are the most widely used payment methods. It is due to their convenience and adaptability. They come with the welcoming kit after online Saving Account opening if you opt for them. They include features that ensure comfort and security. The significant aspect that sets them apart from other payment options is versatility. They can get used in other digital payments like mobile apps, wallets, online Banking, etc.

Unstructured Supplementary Service Data

Banking might get complicated if you stay in a remote area with low bandwidth or no internet access. As a solution to this, banks offer USSD as a payment option for Saving Account. Here, you dial *99# to carry out mobile transactions without downloading banking apps. The National Payments Corporation of India (NPCI) backs this facility. Its main aim is to drive financial inclusion by giving access to remote and underprivileged sections of society.

Mobile and Online Banking

These two together make up the entirety of what Digital Banking entails. Mobile Banking is the most convenient as it gives you access at your fingertips. It only requires a one-time setup to get started. Online Banking involves using the bank’s official website. Here, you get to open an online Bank Account, make payments, Transfer Funds, and so on.

Unified Payment Interface

It is a new type of digital payment system. Its unique feature is Virtual Payment Address (VPA). By creating a virtual identity, you save time transacting. This means you need not enter your bank credentials every time to make payments. The only information required is your mobile number registered with the bank.

The interoperable system enables you to send cash to vendors, peers, and other recipients regardless of their bank. Also, you get to link more than one Bank Account in the UPI app to use funds from different accounts simultaneously. 

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Created on Dec 9th 2021 06:12. Viewed 174 times.

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