Digital Financial Tool & Services

Digital Financial Tool and Services

Digital Financial Tool & Services -: In Today’s world, everything is digitised, which means we can access or get every service in digital format through mobile phones, computers, tablets, etc. The invention of computers and smart phones has created a huge impact on financial services. Today using computers and mobile phones, a person can access his or her bank account, verify account details, transfer funds, deposit cash, pay bills, book tickets, etc. Also, the invention of ATM s reduced the time taken to withdraw and deposit money from banks. Digital services help to save time by providing services in a single touch. Customers want to know where they are and what’s happening with their property. They want immediate access to information, at any time. In this case no need for the customer to go any bank, fill the online form, apply online from, and needs to wait for the result. Take a look at below topics.

There are three key components of any such Digital Financial services.
  • Digital Transactional Platform:- It enables a customer to use a device to make or receive payments and transfers and to store value electronically with a bank or any such non bank institutes which permitted to store electronic values. The important thing is that there is no contribution of cash money in it.
  • Retail Agent:- Retail Agents use a digital device connected to communications infrastructure to transmit and receive transaction detail. It enables customers to convert cash into electronically stored value and to transform stored value back into cash. Thier main task is to manage the promotion and dissemination of digital service to the customer.
  • Devices:- The customer’s device can be digital like mobile phones that is a mean of transmitting data and information or an instrument like payment card machines that connects to a digital device like POS terminal.

Objectives of Digital Financial

Digital Financial services (DFS) can expand the delivery of basic Financial service to poor through innovative technology is like mobile phone enable solution electronic money models and digital payment platform digital channel can drastically drive down cost for customer and service providers opening the door to remote and under served population. Financial regulators around the world have realised the Termendous role DFS can play for financial inclusion and sick to unlock this potential by creating involvements for Digital Financial service the channel provide service 365x 24x 7.

OTP (One Time Password) 

OTP is a string of characters or numbers. Automatically generated to be used for one single login attempt. OTP can be sent to the user’s phone via SMS or push massaging and is used to protect web based service, private credentials and data.

OTPs minimize the risk of fraudulent login attempts and thus the risk of stolen data. OTP works through randomness algorithms that generate a new and random password each time they are used.

How to get a One Time Password? 

When an unauthenticated user attempts to access a system or perform a transaction on a device, an authentication manager on the network server generates a number Or shared secret, using one time password algorithm. The same number and algorithm are used by the security token on the smart card or device to match and validate the one time password and user.

Many companies use short message service (SMS) to provide a temporary pass code via text for a second authentication factor.

QR (Quick Response) Code 

A QR code is a type of two dimensional bar code that is used to provide easy access to information through a smartphone. It refers to the instant access to the information hidden in the code. QR code are gaining popularity because the technology is open source that is available for everyone.

QR Code consists of black squares arranged in a square grid on a white background. It can be read by an imaging device such as camera, and processed using Reed -Solomon error correction until the image can be appropriately interpreted.

Types of QR Code 

There are two types of QR Code as Follows:-

  •  Static QR Code:- These code are most common type of QR code which are used to disseminate information to the general public.
  • Dynamic QR code:- These codes are sometimes referred to as unique QR code that offer more functionality. The owner can edit the code at any time and can target a specific individual for personalized marketing.
UPI (Unified Payment Interface) 

UPI is a digital mode that helps you to transfer funds from one bank to another without using any account number, bank name, account type and IFS code. It facilities users to access multiple bank accounts with a single mobile application. It combines merchant payments, numerous banking feature and seamless fund rooting to be accessed from a single place to eliminate the need to enter bank detail or other sensitive information each time a customer initiate a transaction.

How to Register for UPI? 

Steps to Registration for UPI are as follows:-

  1. Download the BHIM (Bharat interface for money app Banks at third party app).
  2. Create your profile by adding details such as name, password, UPI PIN etc.
  3. Link the bank account with VPA (virtual payment address) to complete the registration process.
How to Generate UPI Pin? 

Steps to generates UPI Pin, are as follows:-

  1. Select the bank account in the app from which you want to carry out transaction.
  2. Once you select the bank account you will be asked to generate your UPI Pin.
  3. N OTP will be sent to your registered mobile number with the bank account.
  4. Enter the OTP to generate your UPI pin.
  5. Create your 6 or 4 digit upi pin which will be required for making all transaction.
Benefits of UPI 

Benefits of UPI for Customers

  • Transfer can be made instantly by it.
  • It is easy to use.
  • It required single click authentication.
  • It highly secured as no account detail is shared.
Benefits of UPI for banks 
  • It is safe and Secure transaction system.
  • It required single click with two factor authentication.
  • Use of the existing infrastructure insure no additional cost is incurred by the bank.
Benefits of UPI for Merchants
  • It provide instant receipt of fund.
  • For this there is no need for sharing bank detail.
  • It is suitable for E-Commerce platform.
  • COD cash on delivery collection is made easy with UPI payment.
How to perform a UPI Transaction? 

Steps to perform transaction money using UPI are as Follows:-

  1. Open the UPI based App on your smartphone.
  2. Select the transverse and money option.
  3. Enter the account detail mobile number.
  4. Enter the amount to be transferred and enter the UPI pin to confirm the payment.
  5. Money will Transferred instantly and confirmation message is sent to the users mobile number.

Steps to do bill payment using UPI are as follows:-

  1. Once log the into your UPI based app.
  2. You will have to add a bill detail to the avail the service.
  3. Enter the amount that you have to pay the bill for.
  4. Enter the UPI pin to make the payment.
  5. Your payment will be credited to the billet instantly.

AEPS (Aadhar Enabled Payment System) 

AEPS is a type of penis system that is based on the Unique Identification number and allow Aadhar card holder to similes Le make financial transaction through other weight authentication it helps all individual carried out financial transaction on a micro ATM it helps in empowering all section of the society by making financial and banking services available through aadhar.

Service offered by AEPS
  1. Cash deposit and withdrawal.
  2. Payment transaction
  3. Balance enquiry.
  4. Fund transfer.
  5. Obtain a mini statement.
Benefits of AEPS 
  1. There is no requirement of a signature on your debit card.
  2. It is safe and Secure payment method.
  3. It is easy to use.
  4. It increase the reach to rural areas as banking executives.
  5. With AEPS, the only information required to initiate a transaction is Aadhar number and bio-metric information.
How to use AEPS? 
  1. Go to a micro ATM or banking correspondent.
  2. Provide Aadhaar number and Bank name.
  3. Choose the type of transaction you want to make.
  4. Provide verification to fingerprint or scan.
  5. Collect your receipt.
USSD (Unstructured Supplementary Service Data) 

It is a communication protocol available on every GSM enabled mobile device it is a session based text communication without store and forward mechanism that is practical for interactive communication such as banking or education.

USSD can have up to 182 alpha numeric character and the time it takes from a request to a response is 2 second while it takes 6 second for an SMS to reach a mobile phone.

How to Send Money Using USSD *99#? 
  1. Dial *99# using registered mobile number with bank account.
  2. The interface will appear you can type three letter of your bank short name of first letter of bank HDFC or two digit bank numeric code and proceed to click send.
  3. Now choose number 3 to send money and proceed he in pay beneficiary mobile number.
  4. Proceed to key in the beneficiary MMID transaction amount.
  5. Key in MPIN the last four digit of your bank account number.
information/Detail Required for USSD Fund Transfer 
  • MMID
  • MPIN
  • Registered mobile number
Features of USSD*99# Service 
  • It is easy to use
  • It is works on all GSM handsets.
  • It is highly secure interface.
  • It is works without data connection on a basic phone.
Services offered by USSD 
  • Change MPIN
  • Generate OTP
  • Know MMID
  • Funds Transfer
  • Balance Enquiry
  • Mini Statement
Credit Card

It is thin rectangular slab of plastic issued by a financial company, that lets cardholders borrow funds with which to pay for goods and services. Credit card impose the condition that cardholders pay back the borrowed money plus interest as well as any additional agreed upon charges.

                               Credit Card
Types of Credit Card 

There are four main types of credit card as follows:-

Reward Credit Card 

This type of credit card earns rewards on purchases. Some cards will pay out at a flat rate of 1℅ – 2℅, while others will give an extra bonus in predetermined spending categories.

Low Interest Credit Card 

These cards are best if you carry some credit card debt month to month. Depending on your financial situation, you can choose a card with a reliably low ongoing interest rate or one that has no interest for on introductory period.

Balance Transfer Credit Card 

These cards are meant for those who already have a lot of credit card debt. They allow you to shift your debt from your current card to a new one and give you a period of 6-21 months to pay it off interest free.

Secure Credit Card 

This type of credit card may be a good credit building option for those with no credit history or poor credit.

Debit Card 

It is a payment card that deducts money directly from a consumers account to pay for a purchase. Debit card eliminate the need to carry cash to make purchase.

Debit card
                                Debit Card
Types of Debit Card 
Online Debit Card 

Online debit card need electronic authorisation, every time a transaction is reflected in the user account. The transaction of an online debit card is further secured with a personal identification number (PIN) verification system for added safety. The PIN has to be validated during each and every transaction.

Offline Debit Card 

This generally include the logo of major card such as visa or MasterCard. This type of file required the card holder signature for validation during each and every transaction of line debit card usually have a daily limit restricted to the value of transaction.

Prepaid Debit Card 

This are also refer to as reloadable debit card to use this type of debit card the user has to pay the entire amount in advance and letter using money according to his/her discretion.


E wallet (Mobile Wallet) is a type aap prepaid account in which a user can store his her money for any future online transaction and E wallet is protected with a password with the help of an evolid one can make payment for groceries online purchases and flight tickets among the other and evaluate needs to be linked with the individual bank account to make payment the main objective of paperless money transaction easier.

E Wallet
                                 E Wallet
Point of Sale (PoS)

The point of sale POS or point of purchase POP is the time and place where are retail transaction is completed at the point of sale the merchant would calculate the amount owned by the customer and indicate the amount he may prepare and invoice for the customer which may be a cash register print out and indicate the option for the customer to make payment POS  is also the point at which a customer makes a payment to the merchant in exchange for goods or after provision of a service. The POS  transaction is completed by online payment gateway the online payment are enabled 3 on payment gateway or third party service providers called intermediates.

Internet Banking 

Internet banking allow the user to conduct financial transaction via the internet it is a also known as online banking or web banking and internet bank will offer customer just about every service that is traditionally available through a local branch few internet banking basic banking transaction such as paying bills and transferring fund between accounts can easily be performed by the consumer.

NEFT (National Electronic Funds Transfer)
  • It is a nation wide system that facilitates individual firm and corporate to electronically transfer fund from any bank branch to any individual firm or corporate having an account with any other branch in the country.
  • There is not limit either minimum or maximum on the amount of one that could be transferred using an NEFT.
  • Even search individual form or corporate who do not have a bank account can also deposit cash at the NEFT enabled branch with instruction to transfer fund using NEFT.
Real Time Gross Settlement System (RTGS)
  • RTGS system is a fund transfer mechanism for transfer of money from one bank to another on a real time and on gross basis.
  • This is the fastest possible money transfer system through the banking channel.
  • Settlement in real time means payment transaction is not subject to any waiting period the transaction are settled as soon as they are proceed gross settlement means the transaction is settled on 121 bases without bunching with any other transaction.
  • The RTGS system is premier league made for large value transaction the minimum amount to be reminded thought RTGS is 200000 there is no upper ceiling for RTGS transaction.

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Pooja Rastogi

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