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Tuesday, November 1, 2022

Indian Payment Methods

In progress...


RTGS - 2004 




Gross Settlement - fund settlement in RBI books for Inter Bank Electronic Money Transfer

Timing for payment -> 7 AM to 6 PM (Except 2nd and 4th Saturday, Sunday, Declared holidays)

Minimum - 2 lakh Rs

Maximum - No limit (through bank branch), 25 lakh Rs (Online)

Pros - Useful for merchants, and businessmen who could not visit banks in person.

Cons -  Smaller transactions cannot be done, 24x7 Not available 


NEFT - 2005 



Payment processing takes place in 30 min batches

First batch - 12.30 am

Last batch - 12.00 midnight

Minimum - 1 Rs

Maximum - No limit

Pros - Useful for the general public to perform small transactions, 24x7 Available.

Cons- Have to wait for 30 min for payment confirmation.


IMPS - 2010



The system is based on the mobile number and is not available through branches like that in NEFT.

Minimum - 1 Rs

Maximum - 5 lakh Rs

Pros - No wait of 30 min required. Instant payment system.

Cons - Users have to add an Account Number, IFSC Code, and Beneficiary Name to do the transaction.



UPI - 2016





The interface facilitates inter-bank peer-to-peer and person-to-merchant transactions.

Minimum - 1 Rs

Maximum - 2 lakh Rs.

Pros - Instant payment based on UPI ID/VPA. No need to add a bank account number, or IFSC code to pay. Instead, a mobile number linked to a bank account is required. Send and receive money. Request money. Use one app for many accounts.

Cons - Failed transactions are not well handled by the underlying technology. A higher success rate compensates for it though.


UPI Lite - 2022



A lighter version of the UPI Payment Method.

Minimum - 1 Rs

Maximum - 200 Rs.

Wallet limit - 2000 Rs.

Pros - No internet is required for the payer to pay the amount. Versatile for smaller transactions in remote areas with poor internet connectivity. The bank statement is generated for the whole day's expenses.

Cons - Not yet


NUUP - 2014




USSD - Unstructured Supplementary Service Data (NUUP is based on this)

Dial *99# on your mobile phone for the menu and proceed.

Pros - Users who do not own a smartphone can use the feature. Useful when internet connectivity is poor or the internet pack validity is expired.

Cons - Not yet


CTS - 2010




An electronic Image of the cheque is transmitted to the paying branch.

Pros - Time saver, No ambiguity, Transparency, Trustworthy, Secure, No employee needed.

Cons - Not yet


NACH - National Automated Clearing House 



For bulk transactions - repetitive and periodic

distribution of salaries, dividends, interest, subsidies, electricity bills, loans, water bills 


BBPS - Bharat Bill Payment System




Bills, Fees, MFs

AEPS - Aadhar Enabled Payment System



A foolproof method to identify dead and live people

saved - 90,000 cr/ year

Req - Aadhar Number and Fingerprint


Rupay





NETC






NFS











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