Digital Payment In India Essay – Know the types of digital payment platform & their benefits

The Indian Government initiated a flagship program named ‘Digital India’ with an objective to promote digital payments and it aspires to convert India into a digitally empowered society and knowledge economy. Recently, Ms. Nirmala Sitaraman made a statement in Budget 2022 to establish one digital payment system in 75 districts across the country. In this post we have talked about digital payment in India essay followed by the pros and cons of digital payments across the nation.

Digital Payment In India Essay – Introduction

A digital payment, commonly known as an electronic payment, is an electronic transfer of funds from one account to another. As a result, no real money or instruments such as cash, cheques, or other similar things are exchanged. However, one should be aware that digital transaction does not only refer to online transactions; it also includes transactions processed in a physical location. This indicates that both the payer and the payee exchange currency via digital means. ATMs aren’t the only way to make digital payments, online banking and UPI are also options. RTGS, NEFT, and IMPS are examples of online banking. Nearly every single bank in India offers digital payment systems, allowing customers to pay and receive payments electronically in a timely manner.

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Essay On Digital Payment In India – Kinds of Digital Payments

Following the advent of Cashless India, India now has ten different digital payment options. Some approaches have been in use for over a decade, while others have only lately gained popularity. Let’s take a look at some of the most common digital payment platforms and see which one would be the best fit for you based on the features they provide.

Mobile Banking

Several banks offer mobile applications that can be downloaded from App stores. It allows customers to conduct various types of transactions using a smartphone from a distance. It enables customers to conduct various types of financial transactions using a smartphone or tablet from a distance. Mobile Banking is a terrific method to keep track of the bank accounts in today‘s world.

Micro ATMs

Micro ATM systems are used by thousands of Entrepreneurs to provide basic banking services. The said entrepreneurs utilizes a gadget that authenticates the fingerprint and allows the customer to transfer money from your Aadhar-linked bank account. Banks all around the country are linked to the Micro ATM devices. It allows a person to transfer or withdraw funds instantaneously to any bank.

Internet Banking

Customers can process transactions and other financial operations over a bank’s website using Internet Banking. It  enables customers to conduct all of their banking transactions online. Customers must first register for online banking with the bank where they have a Savings Account.

Mobile Wallet

A mobile wallet/digital wallet/ e-wallet is a sort of virtual wallet that allows a person to link the debit or credit card details to your mobile wallet software and transfer funds to the wallet online. Instead of physically utilizing cards, this app can be used to make transactions digitally. A customer must link their bank account to their mobile wallet in order to transfer money into it.

Bank Prepaid cards

These are plastic cards provided by banks that are pre-loaded with funds and can be used in the same way as a debit card. These are not linked to an account and must be charged with funds from your bank account, either online or in-person.

Unified Payment Interface (UPI)

It connects several bank accounts (from any partner bank) to a single mobile app, allowing for multiple banking functions, smooth fund routing, and merchant payments all under one roof. Transactions can be carried out 24*7*365 via UPIs.

AADHAAR Enabled Payment System (AePS)

The AePS was created to help accelerate financial inclusion in the country by leveraging the visibility and reputation of Aadhar. It allows banks to safely and securely route Aadhar-initiated interbank transfers via a central switching and clearance service.

Unstructured Supplementary Service Data (USSD)

The system is intended to promote financial inclusion and development in remote areas with limited internet access. The transfers are limited to Rs 5,000 for each transaction for security reasons.

Banking Cards

It encompasses all card kinds, including debit, credit, and prepaid cards. Visa, MasterCard, and RuPay are the most popular card payment methods in India. Banking cards have become one of the most popular payment methods due to the immense convenience, control, flexibility, and security they provide when compared to other options. 

Point of Sale (POS) Terminals

A POS is a location where sales are carried out. As a result, a POS can be anywhere. It’s readily available and has no transaction limits set by the RBI, making it a suitable and safe way to pay for things.

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 Importance Of Digital Payments In India 

• Digital payments are a speedy, friendly and safe mode of payments.
• Most of the digital payment wallets and other modes don’t charge anything as processing fee and thus it is economical for most of them.
• Users also get rewards and other benefits on certain digital transactions.
• Digital wallets help in maintaining the transaction records.
• With the help of digital payments, govt. can keep track of unappropriate transactions.

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Conclusion of Digital Payment In India Essay

Firstly due to demonetization and then because of COVID-19 and India’s push for cashless transactions, our reliance on cash has decreased significantly with the emergence of many digital payment options. These approaches are not only simple and friendly to use, but they also provide additional protection, cost savings, and adaptability.

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