By interfacing with the National Financial Switch (NFS) of NPCI, the UCBs get an access to host their customers through a network of 2,15,000+ ATMs across the country in a cost-effective manner. RuPay is the domestic brand of cards which can be issued by the banks at reasonable eligibility criteria. Recently, NPCI has also announced the facility to issue credit cards in addition to the existing debit card scheme. RuPay cards can help in customer education and propagate a gradual shift from cash to plastic money as these cards can be used at ATMs, POS and e-commerce platforms. It is worth mentioning the impact of e-commerce on payments. With large number of businesses going online, e-commerce is indispensable for all groups of customers and UCBs need to be prepared for it. In addition to this, RuPay can act as a competition against international card schemes, enable customized products for domestic audience and ensure that payment information lies within the country’s infrastructure.
Nothing can be more attractive than a service which is 24x7x365 for a customer. Immediate Payment System (IMPS) is an interbank electronic payments mechanism that enables customers to use mobile instruments, internet banking and ATMs as channels for accessing their bank accounts and placing fund transfer in a secured manner. Currently, IMPS facilitates transactions like are P2P (Person to Person), P2A (Person to Account), P2M (Person to Merchant), M2P (Person to Merchant) & P2U (Person to UID).
As per a study from Cisco, India is the third largest smartphone market globally and is expected to have 651 million smartphone users by 2019. While according to US based firm – VNI (Visual Networking Index) forecast, the number of tablets will be 18 million by 2019. Decreasing prices of the devices, ease of use, advent of 3G and 4G services and competitive data tariff plans have given a boost to smartphone market and mobile internet penetration in the rural areas as well. A report by IAMAI and KPMG says that while 3G and 4G will remain an urban phenomenon, 2G will remain in limelight for rural growth. The report has also projected that India will reach 236 million mobile internet users by 2016, and 314 million by 2017. While channels like mobile and internet can be used for smartphone users, USSD and SMS channels of IMPS can serve feature phone users effectively. This opens up another facet for UCBs which they should tap.
Aadhaar Enabled Payment System (AEPS) – a bank led model is more a door-to-door banking which uses Aadhaar number and finger print to perform basic bank transactions at PoS (Micro ATM) through the Business correspondent (BC). The objective of AEPS is to empower a bank customer to perform basic bank transactions through a BC by using his Aadhaar number which is mapped to his Bank account. This will also help to achieve RBI’s goal of electronification of retail payments and Financial Inclusion. Under Aadhaar Payment Bridge System (APBS), the disbursements of Government entitlements like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any Central or State Government bodies would be directly credited in Aadhaar enabled accounts of intended beneficiaries without any leakage or pilferage. UCBs being more close to the rural segment that may lack awareness about these benefits have to consider this as a powerful support to their fundamental vision of growth, development and social upliftment of rural areas.
Unified Payment Interface (UPI) of NPCI aims to provide a single interface across all existing retail payments channels like IMPS, AEPS, NFS etc. Third party API integration can collect payment from a virtual address without the need to share account details or credentials on 3rd party applications or websites. This will enable banks to come up with Universal apps for payments ensuring security, use of unique identifier, opportunity to tap Customer to Business (C2B) segment and E-commerce & M-commerce (PULL initiated) transactions and all this with a simplified one-click authentication system.
Bharat Bill Payment System (BBPS) will offer interoperable bill payment service online as well as through agents. It will facilitate recurring bill payments like utilities bills, school fees, DTH, etc. under a common platform without having the need to go to different offices or different websites. In this system, NPCI will act as a Bharat Bill Payment Central Unit (BBPCU) while Banks can act as Bharat Bill Payment Operating Units (BBPOUs) accepting payments from the customers.