As India is moving towards a cashless economy, many
developments are being made to promote digital payments. To achieve this we
need to reach out to rural areas, where the knowledge of using digital
transaction is lacking. Indian economy can become completely cashless, if and
only if the rural India gains knowledge to use digital payments.
Now the question arises as to what different types of
digital payment modes are there? Let’s look into the different types of payment
enabled payment system (AEPS): You only need your Aadhaar card or
the aadhaar number for AEPS. This type of payment can be done in micro ATM or
bank. You need to select the type of transaction and the bank and give your
finger print for authentication and get the slip on completion of payment. With
AEPS you can do
a. Account balance
b. Aadhar to Aadhar fund
c. Cash withdrawal
d. Cash deposit
e. Purchase at Fair Price Shops
Payment Interface (UPI): You need a SMART phone with internet
facility for UPI. Download the APP (bank or third party). Choose your unique id
(aadhar, mobile no.) as virtual payment address (vpa) and select the bank. Give
the bank details (for the first time). Set the M-PIN for transaction. Now you
can send money and collect money on demand. You can pay your bills through UPI
by scanning QR code provided by your retailer or accepting the demand request
sent by your retailer. To know more on AEPS and UPI click
cards/Debit cards: This is one of the easiest modes for payment. You
can buy anything anywhere and how much ever you want, within the card limit.
How to use it? Simple! You just need to swipe-in the card in the swiping
machine or the EDC or the POS machines.
varies from debit card. Debit card allows you to spend the money which you have
in your bank account. Whereas credit card allows you to borrow money, up to a
certain limit from your card provider. The only problem is the safety of the
card. Anyone can use the card if lost.
banks: Payment banks were authorized by RBI and are effective from
November 2014. These are just like banks but restricted to receiving deposits
only. From these payment banks you can pay for your bill, do recharge, etc.
They also give interest for the money deposited. You can only deposit up to Rs.
One lakh in these payment banks and not more than that. To know more about
payment banks click
banking: Payments through internet banking is also one of the
ways. Here you are redirected to your online banking portal and from there you
can pay the bills or recharge, etc.
offline method for digital payment is through the usage of credit/debit cards.
But why is this not widely used?
being the requirement for using the card that is, you need EDC or POS machine
for swiping the card. Can a roadside/platform vegetable vendor afford to have
POS machine? Or other small scale business men afford the POS/EDC machine?
come up with an idea with which even a small scale vendor can go cashless!!
Paytm has introduced a new payment method which does not require internet
toll free number: Paytm has introduced payment through toll free
number. How can this be done? First you need to be registered with paytm. This
can be done through mobile APP or in the paytm website. Second, after
registering your mobile number with the paytm, call 1800-1800-1234 from the
registered mobile number and set a 4 digit paytm PIN which will be used for the
Now for payment, you need to enter the recipient’s mobile number, amount and
your Paytm PIN to successfully transfer the money from your Paytm wallet to
another Paytm wallet.