EXPLAIN THE DIFFERENT TYPES OF BANK PAYMENTS
Ans :- The Government of India has been taking several measures to promote and encour- age digital payments in the country. As part of the 'Digital India' campaign, the Government aims to create 'digitally empowered' economy that is 'Faceless, Paperless, and Cashless'. There are various types and modes of digital payments. Some of these include the use of debit/credit cards, internet banking, mobile wallets, digital pay- ment apps, Unified Payments Interface (UPI) service, Unstructured Supplementary Service Data (USSD), Bank prepaid cards, mobile banking, etc. The important types of payments are presented as follows:
TYPES OF PAYMENTS:-
1) CHEQUE.
2) NEFT.
3) RTGS.
4) IMPS.
5) PAYMENT WALLET.
1 ) Cheque: A Cheque is a document which orders a bank to pay a particular amount of money from a person's account to another individual or company's account in whose name the cheque has been made or issued. The cheque is utilized to make safe, secure and convenient payments. It serves as a secure option since hard cash is not involved during the transfer process; hence the fear of loss or theft is minimized.
There are different modes of financial payments which are successfully used by individuals, firms and corporate organizations. Out of these varied options, a cheque does act as an important negotiable instrument, which can also be transferred by simple delivery options.
2. National Electronic Fund Transfer (NEFT): National Electronic Fund Transfer (NEFT) is a country-wide electronic fund transfer system for sending money from one bank account to another in a safe and hassle-free manner. All NEFT settlements are made in a batch-wise format. Money can be sent using this system to all NEFT-enabled banks in India on an individual basis.
3. Real Time Gross Settlement (RTGS): 'RTGS' or Real Time Gross Settlement is a fund transfer method through which money is sent in 'real time' basis without any delays. This electronic fund transfer system allows the money sent by the remitter to immediately reach the payee/beneficiary as and when money transfer transaction is initiated. Here, 'Gross Settlement' refers to the processing of transactions on an individual basis and not in a batch-wise system. RTGS is typically meant for larger value transactions and the minimum amount that can be sent via this mode is Rs. 2 lakh.
Money can be sent using RTGS through net banking. To initiate such a transaction, it important to collect some details from the payee such as account number, bank name, IFSC code, and account holder name. Another interesting feature about this wire transfer method is that transactions can be scheduled in advance.
4) Immediate Payment Service (IMPS): Immediate Payment Service (IMPS) is a real-time electronic fund transfer method through which money is credited immediately to the payee/beneficiary account. IMPS transfers can done at anytime on a 24/7 basis and on all 365 days in a year, including on Sundays and other bank holidays. Through IMPS. interbank transfers can be initiated through multiple channels such as mobile banking, internet banking, SMS, ATMs, etc. Unlike other types of fund transfer methods, the main advantage of IMPS over NEFT and RTGS is that the service is available round the clock. The IMPS services are managed by the National Payments Corporation of India (NPCI) and come under the purview of the Reserve Bank of India.
5) Payment Wallets: A wallet is a small software program used for online purchase transactions. E-wallet is a type of electronic card which is used for transactions made online through a computer or a smartphone. Its utility is same as a credit or debit card. An E-wallet needs to be linked with the individual's bank account to make payments. E-wallet is a type of pre-paid account in which a user can store his money for any future online transaction. An E-wallet is protected with a password. With the help of an E-wallet, one can make payments for groceries, online purchases, and flight tickets, among others.
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The steps involved in the Mobile Wallet payments are:
i) Open the App
ii) Enter the PIN
iii) Choose the type of transaction you want to carry out and
iv) Make Payment. Some of the popular Mobile Wallet companies in India are: Paytm, Google Pay, BHIM Axis Pay, PhonePe, Mobikwik, SBI's Yono, Citi MasterPass, ICICI Pockets, HDFC PayZapp, Amazon Pay, etc.