What is Cashless Transaction

A cashless economy is one in which all the transactions are done utilizing cards or digital implies. The circulation of physical currency is minimal. A Cashless Society describes an financial state whereby financial transactions are not performed with money in the form of physical banknotes or coins, but rather by means of the transfer of digital details (normally an electronic representation of funds) between the transacting parties.

Digital Payment Methods

The Digital India programme is a flagship programme of the Government of India with a vision to transform India into a digitally empowered society and expertise economy. “Paperless, Faceless, Cashless” is a single of professed role of Digital India. As component of promoting cashless transactions and converting India into significantly less-cash society, numerous modes of digital payments are accessible.

Cards

Cards are supplied by banks to their account holders. These have been the most employed digital payment modes till now. A lot of of us use cards for transferring funds and producing digital payments. Credit cards, debit cards and prepaid cards are the primary types of cards. You can also use Rupay debit card for digital payments. Credit cards are issued by banks and some other entities authorized by RBI. These cards give you the capability to withdraw or use extra money. Credit cards are employed for domestic as well as international payments. Debit cards are issued by the bank exactly where you have your account. You can use these cards for the cash in your account. The payments you make with these cards debited from your account and credit right away to the payee’s account. You can use these cards to make payments to one bank account to yet another.

USSD

USSD banking or *99# Banking is a mobile banking primarily based digital payment mode. You do not want to have a smartphone or internet connection to use USSD banking. You can very easily use it with any regular function phone. USSD banking is as straightforward as checking your mobile balance. You can use this service for several financial and non-economic operations such as checking balance, sending cash, altering MPIN and getting MMID. The *99# code functions as a bridge between your telecom operator’s server and your bank’s server. It utilizes your registered mobile number to connect with your bank account. Therefore, dial *99# with your registered quantity only. USSD banking has a transaction limit of Rs. 5000 per day per consumer. RBI has also set a maximum charge of Rs. two.five per operation.

AEPS

AEPS is an Aadhaar based digital payment mode. The term AEPS stands for Aadhaar Enabled Payment Service. Consumer requirements only his or her Aadhaar quantity to spend to any merchant. AEPS makes it possible for bank to bank transactions. It implies the cash you spend will be deducted from your account and credited to the payee’s account directly. You want to hyperlink your Aadhaar number to your bank account to use AEPS. As opposed to Debit cards and USSD, AEPS does not have any charges on transactions. You can use AEPS with the support of PoS (Point of sale) machines. You can withdraw or deposit money, send income to an additional Aadhar linked account with it. The good issue about AEPS is that it doesn’t need your signature, bank account information or any password. It utilizes your fingerprint as a password. No one can forge your fingerprints, thus it is the most secure digital payment mode.

UPI apps

UPI or unified payment interface is a payment mode which is utilised to make fund transfers via the mobile app. You can transfer funds among two accounts using UPI apps. You will have to register for mobile banking to use UPI apps. Currently, this service is only offered for android telephone users. Hence you can use UPI only when you have an android telephone.

You need to download a UPI app and produce a VPA or UPI ID. There are also many excellent UPI apps offered such as BHIM, SBI UPI app, HDFC UPI app, iMobile, PhonePe app etc. It is not mandatory to use the UPI app from your bank to get pleasure from UPI service. You can download and use any UPI app. UPI apps are a quicker solution to send money making use of VPA or even IFSC and account number. But they have some limitations also. If you do not have an android phone you can't use UPI app, It is not for you. Lack of stable internet connection can also trigger problems for these apps.