TOWARDS A CASHLESS INDIA

TOWARDS A CASHLESS INDIA
STPI GUWAHATI

Towards a Cashless India
STPI Guwahati

Points of this Presentation Background Digital Payments Framework Benefits – Short Term & Long Term Road Map STPI Guwahati

BACKGROUND STPI Guwahati

Background India - 4th largest user of cash in the world Government of India has taken measures to promote a cashless economy through digital payments In the past, progress had been made, such as: Electronic banking in the 1990s In the following decade: ‘Core banking’ plus use of credit cards Popularization of digital payments in this decade - electronic wallets, swipe cards, debit cards etc. Now we need a leap forward towards a cashless economy STPI Guwahati

Background STPI has embraced a role to act as a change agent to promote cashless economy by means of digital payments Its role will be to enable the IT fraternity to adopt a cashless way of life with support of other stakeholders Other Stakeholders include State IT Department, Financial Bodies, IT Industry etc. About 3.7 million IT professionals in India, who belong to higher income groups and form a powerful consumer group IT professionals can lead the way as early adopters of cashless transactions through digital payments STPI Guwahati

Background Cashless transactions may include (progressively): Official receipts and payments Purchase of costlier items (like vehicles, durables, holidays etc.) Purchase of daily items (groceries, medicines etc.) IT fraternity needs to motivate their circles: friends, family members, shop keepers, domestic helps ….. to move in a similar manner All stakeholders can play a meaningful role to promote digital payments, as outlined in the next slide STPI Guwahati

Background Stakeholder Role in Promoting Digital Payments STPI To act as the Change Agent for IT Fraternity to adopt cashless economy through digital payments State IT Departments Collaborate in the conduct of Training Programmes to spread awareness of cashless economy Financial Bodies Partners of STPI in its endeavours IT Industry Adopt cashless transactions at office level Encourage employees to adopt cashless transactions IT Professionals Adopt cashless transactions at personal level Encourage others (friends, family, domestic assistants, shop keepers etc.) to act similarly STPI + All Other Stakeholders Connect to the lowest level POS (shops, vendors etc.) to spread awareness about digital payments STPI Guwahati

Implementation Strategy STPI has embraced a role to work as a change agent , with the aim of enabling the IT fraternity to become early adopters of cashless and digital transactions The major implementation steps include: Formation of IT Teams for Awareness Creation Preparation & Dissemination of Awareness Materials Training Programmes for Awareness Creation Support & Guidance Cells at STPI Centres The above are briefly presented in the next few slides STPI Guwahati

Teams for Awareness Creation Teams will be formed at the following levels for creating awareness amongst the IT Industry: National Level Team Regional Teams National Team will include DG-STPI, Senior Director -STPI and all Jurisdictional Directors; apart from nominees of Government, Financial Institutions, Academicians & IT Industry Regional Teams will be formed at level of STPI Directorate, with nominations from State Govt., industry etc. STPI Guwahati

Materials for Awareness Creation Following types of materials will be developed to motivate the adoption of cashless transactions: Presentations Presentations on Cashless Economy, its features, benefits, case studies etc. Social Media Content Promotion of concept of ‘cashless economy’ over social media – FB, Twitter etc. Audio Visual Content Content prepared for AV media Guidebooks In English, Hindi and other languages regarding digital payments STPI Guwahati

Training Programmes for Awareness Creation The objective of conducting training programmes is to deepen the awareness of cashless transactions amongst the IT industry through interactive presentations etc. Regional Teams will have to prepare a detailed schedule in consultation with local industry and State IT Department Training may be held at different places on weekly basis Trainees will be motivated to spread awareness amongst friends and family members for adopting digital modes Feedback from trainees is to be shared with the National Team STPI Guwahati

Support & Guidance Cells Such Cells will be formed at each STPI Centre These Cells will provide guidance and answer any query raised by anyone who visits the Centre The Cells will aim to support IT Industry as well as anyone else who walks in STPI Guwahati

DIGITAL PAYMENTS FRAMEWORK STPI Guwahati

Why CASH? HABIT – Being used from days of grand-parents and earlier EASE OF USE – Need not be emphasized NO EXTRA COSTS – like cost of POS equipment, service tax on digital transactions (15%) etc. INSECURITY - ABOUT SECURITY OF ON-LINE PAYMENTS TAX EVASION - in Cash based Transactions STPI Guwahati

DIMENSIONS OF THE OPPORTUNITY PARAMETER VALUE REMARKS Population of India crore Census of India 2011 Notes in Circulation on 8th NOV 2016 MOS FINANCE IN RAJYA SABHA (a) Rs. 1000 685.8 crore (b) Rs. 500 crore BANK BRANCHES 135,263 RBI - ALL SCHEDULED COMMERCIAL BANKS (2nd Quarter of ) ATM 202,801 RBI (AUGUST 2016) MOBILE PHONES 93.65 crore TRAI – March 2016 (ACTIVE NOS.) INTERNET USERS 46.2 crore Estimates for JUNE 2016 by IAMAI [37.1 crore – mobile Internet users] STPI Guwahati

DIMENSIONS (2) BANK BRANCHES (PER 100,000 PERSONS) – 11.17 ATMs (PER 100,000 PERSONS) MOBILE PHONES (PER 100,000 PERSONS) – 77,360 INTERNET USERS (PER 100,000 PERSONS) – 38,163 RURAL INDIA BANK BRANCHES (PER 100,000 PERSONS) – 5.70 INTERNET USERS (PER 100,000 PERSONS) – 13,087 STPI Guwahati

Methods of Digital Payment BANK CARDS USSD – ‘MOBILE’ BASED BANKING (*99# banking) AADHAR Enabled Payments [NOT AVAILABLE IN ASSAM] E-Wallets Unified Payment Interface (UPI) STPI Guwahati

STPI Guwahati

BANK CARDS Cards issued by Banks may be of following types: DEBIT CARD Issued by the Bank where you have an account. Any expenditure made is immediately debited to user’s account. User can use this card to withdraw cash up to the limit available in his/her bank account. CREDIT CARD These are issued by banks / other entities approved by RBI. Unlike debit cards, in case of credit cards, a customer can also withdraw beyond the amount of money present in his bank account. But there is a limit for each credit card up to which extra money can be withdrawn PRE-PAID CARD These are pre-loaded from a customer’s bank account. Can be used for limited amount of transaction. These can be recharged like mobile recharge. Safe to use. STPI Guwahati

BANK CARDS STPI Guwahati

BANK CARDS Simple to use at POS - as shown below: SWIPE CARD ENTER PIN GET RECEIPT IT IS OVER !!! STPI Guwahati

BANK CARDS Actually – the steps are more (but need not concern the user) Signing is not compulsory STPI Guwahati

BANK CARDS STPI Guwahati

STPI Guwahati

Unstructured Supplementary Service Data Unstructured Supplementary Service Data (USSD) aims to take banking services to the common man or woman USSD enables a person to access banking services with a single number It is offered through a National Unified USSD Platform (NUUP) on a short code *99#. Can be used for payments up to Rs per day per customer. STPI Guwahati

Unstructured Supplementary Service Data Needed: Bank Account Mobile Phone on GSM Network Registering mobile phone number against account with the Bank How to get it Visit Bank Branch to link Mobile Number with Bank Account – can be done on-line Get MPIN (Mobile PIN) & MMID (Mobile Money Identifier) Remember the above … MPIN & MMID STPI Guwahati

Unstructured Supplementary Service Data How to Use: EXAMPLE FOR MONEY TRANSFER Step Screen Message Dial after typing *99# Welcome to NUUP TYPE 3 Letters of Bank short name OR first 4 Letters of Bank IFSC Type ‘SBI’ or ‘SBIN’ (or as per your Bank) Enter your option 1. Account Balance 2. Mini Statement 3. Send Money using MMID 4. Send Money using IFSC 5. Fund Transfer – AADHAR [Not available in Assam] 6. Show MMID 7. MPIN 8. Generate OTP STPI Guwahati

Unstructured Supplementary Service Data How to Use: (Continued) Step Screen Message Type ‘3’ (to send Money using MMID) Enter Beneficiary Mobile Number Type ‘97060 XX908’ Enter Beneficiary MMID Type ‘MMID’ of Beneficiary Enter Amount separated by space and Remarks (Optional) 500 RENT Want to transfer Rs 500 to Beneficiary with Mobile No XX908 and MMID XXXX For RENT ENTER YOUR M-PIN (space) last four digits of account No. STPI Guwahati

Unstructured Supplementary Service Data How to Use: (Continued) FUND can be transferred by: Inputting MMID and Mobile Number of Beneficiary (Option 3) Inputting IFSC and Account Number of Beneficiary (Option 4) Step Screen Message ABCD 02577 Your Account No XXXXXXXX02577 is debited for Rs 500 on and a/c linked with mobile XX40908 credited )IMPS Ref No XXXXXXXXXXXX) STPI Guwahati

Unstructured Supplementary Service Data OTHER SERVICES BALANCE ENQUIRY of Bank Account linked with Mobile Number MINI STATEMENT of above Account KNOW MMID – User can know the Mobile Money Identifier (MMID) allotted by Bank to Account during the mobile banking registration GENERATE / CHANGE MPIN STPI Guwahati

STPI Guwahati

AADHAR Enabled Payment System AADHAR Enabled Payment System is a payment service empowering a bank customer to use AADHAR as his/her identity to access his/ her respective AADHAR enabled bank account and perform basic banking transactions. It allows bank-to-bank transaction at PoS (MicroATM) with the help of Banking Correspondent (BC)/VLE. The user has to seed his/her account with their AADHAR number at bank or with the help of BC/VLE. User can do as many transactions at any AEPS point without any PIN or password. STPI Guwahati

AADHAR Enabled Payment System Needed: IIN (Identifying the Bank to which the customer is associated) AADHAAR Number Fingerprint captured during their enrolment Services: Balance Enquiry Cash Withdrawal or Deposit Purchase at Fair Price Shop Transfer of Funds to/ from another AADHAR Account STPI Guwahati

STPI Guwahati

E-WALLET E-wallet stands for electronic wallet. It is a type of electronic card which is used for transactions made online through a computer or a smart-phone. The utility of e-wallet is same as a credit or debit card. An e-wallet needs to be linked with the individual's bank account to make payments. The main objective of e-Wallet is to make paperless money transaction easier. STPI Guwahati

E-WALLET FEATURES OF E-WALLET: CLICK ON PAYTM WALLET ICON STPI Guwahati

E-WALLET Needed: BANK ACCOUNT SMART PHONE 2G / 3G / 4G CONNECTION E-WALLET APP ALSO: Need to register Mobile No. with Bank for SMS on transactions Never share PIN Use at trusted Merchants only STPI Guwahati

USING E-WALLET CONSUMER: DOWNLOAD THE APP SIGN-UP & RECEIVE PASSWORD LOAD MONEY USING DEBIT /CREDIT CARD OR NET-BANKING AFTER ON-LINE SHOPPING; USER INFORMATION IS AUTOMATICALLY FILLED UP ON PAYMENT FORM AFTER ON-LINE PAYMENT IS MADE, NO NEED TO FILL UP ANY OTHER FORM – AS INFORMATION IS ON DATABASE AND GETS UPDATED AUTOMATICALLY STPI Guwahati

USING E-WALLET MERCHANT: MERCHANT DOWNLOADS THE APP SIGN-UP & RECEIVE PASSWORD DECLARE AS MERCHANT START ACCEPTING PAYMENTS STPI Guwahati

E-WALLET STPI Guwahati

E-WALLET Example: CLICK ON PAYTM WALLET ICON STPI Guwahati

E-WALLET CLICK ON ‘ADD MONEY’ BUTTON STPI Guwahati

E-WALLET STPI Guwahati

STPI Guwahati

UNIFIED PAYMENTS INTERFACE (UPI) UPI is a system for instant, electronic payments through user’s smart phone. It is an advanced version of Immediate Payment Service (IMPS) which was used to transfer money between bank accounts. Like IMPS, UPI will facilitate round-the-clock funds transfer service. It authenticates the identity of the user like a debit card does using the phone as a tool instead of a separate card. It works 24x7, 365 days. STPI Guwahati

UNIFIED PAYMENTS INTERFACE (UPI) Needed: SMART PHONE WITH INTERNET FACILITY BANK ACCOUNT DETAILS (ONLY FOR REGISTRATION) UPI APP AVAILABLE UPI APPS 28 BANK APPS (SBI, PNB, UNION BANK, CANARA BANK, AXIS BANK, ICICI BANK, UCO BANK etc.) STPI Guwahati

STPI Guwahati

UNIFIED PAYMENTS INTERFACE (UPI) UPI eliminates the need to share User’s name, bank account number, IFSC code, or bank branch. UPI also eliminates the use of physical tools like debit cards. No need to use multi-step processes like net-banking, which are prone to phishing due to insecure frameworks. Very simple application and can be used by anyone. Instant and secure authentication and can be initiated anywhere. Opens up the pathway for a completely cashless digital society. Can be used to send a request for money, like an invoice. Customers can also use UPI to make online payments of utility bills and school fees. STPI Guwahati

TO SUM UP STPI Guwahati

STPI Guwahati

BENEFITS SHORT TERM & LONG TERM STPI Guwahati

BENEFITS – SHORT & MEDIUM TERM For the CITIZEN: adds the existing liquidity though easy processes No need for SMART Phones in USSD (*99# BANKING) Supplements the Bank Branch & ATM – especially in Rural India through AADHAR EPS 24x7 services – every day of the year and less risk of cash losses Government has announced incentives for digital transactions For BANKS: adds to their offerings and reduces pressure on manpower and space For the GOVERNMENT: Improved compliance with tax structures For IT INDUSTRY: Added services leading to revenues and innovation For MOBILE SERVICE PROVIDERS: Data usage increases leading to revenues STPI Guwahati

BENEFITS – LONG TERM India utilizes her IT and Mobile infrastructure to provide modern services to the citizens – especially in rural areas and less banked locations – which can be an example to the 3rd World nations Citizens need not spend time to go to bank branches for each and every matter Less usage of cash – leading to savings in printing and replacement of worn-out notes Optimal usage of bank resources to provide value added services to the citizens Better tax compliance leading to improved revenues for Government – which can help in improving the conditions of India’s poor citizens STPI Guwahati

ROAD MAP STPI Guwahati

ROAD MAP Regional Team Notified Regular Meetings to guide the process Materials for Awareness Creation To be prepared like: PRESENTATIONS SOCIAL MEDIA CONTENT AV CONTENT HANDBOOK / USER GUIDE Training Programmes To prepare a schedule of such programmes for awareness creation in consultation with the stakeholders Support & Guidance Cell at STPI Guwahati Under formation Volunteers may be associated STPI Guwahati

ROAD MAP ‘Be the change you wish to see in the world’ Mahatma Gandhi-ji STPI Guwahati

THANK YOU STPI Guwahati

TOWARDS A CASHLESS INDIA

Similar presentations

Presentation on theme: "TOWARDS A CASHLESS INDIA"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

TOWARDS A CASHLESS INDIA

Similar presentations

Presentation on theme: "TOWARDS A CASHLESS INDIA"— Presentation transcript:

Similar presentations

About project

Feedback