One can access and operate one’s bank account via the banks app or browser.
Mobile Wallets
It is a digital payments mechanism.
It helps users transact up to Rs 20,000 per month with minimum Know Your Customer (KYC).
One needs just phone number and government identity like Aadhaar, driving licence, etc. to get started.
With full KYC (one has to submit documents like ID proof, residence proof etc.) one can transact up to Rs 1 lakh per month.
Wallets
User loads wallet by linking to debit or credit cards and if he wants it back in his account, wallet company charges 1%.
A merchant can’t withdraw more than Rs 25,000 a month from wallet sales. So if he sells goods worth Rs 5 lakh a month via wallet, he can withdraw only Rs 25,000/month.
In all, 40 companies have mobile wallet licences; 25 are operational.
NEFT, RTGS, UPI and Other Options
National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) help one-to-one and business-to-business funds transfer.
Immediate Payment Service (IMPS) is a real time electronic funds system using mobile phones. It is on 24x7x365.
Unified Payments Interface (UPI) inter connects banks to help transfer funds. Both the money sender and receiver needs a UPI identity. Thirty banks offer this wallets are more popular due to ease of use.
Unstructured Supplementary Service Data (USSD) helps link mobile number and bank account to make payment.
