As per the reports by Google (Alphabet Inc.) and Boston Consulting Group, India is headed for an exponential increase in digital payments methods and the digital payments industry in India becoming Asia’s third-largest economy. It is estimated that it will grow by 10 times to touch $500 billion by 2020 and contribute 15% of gross domestic product (GDP), the report predicted.

Introduction of smartphones, the entry of several non-banking institutions offering payment services, consumer readiness to adopt digital payments, progressive changes in the regulatory framework will power the trend, it said.

Also, the Digital India program is a flagship program of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy. “Faceless, Paperless, Cashless” is one of professed role of Digital India.

As part of promoting cashless transactions and converting India into less-cash society, various modes of digital payments are available as below-

1. Banking Cards (Debit / Credit / Cash / Travel / Others)

Banking cards offer consumers more security, convenience, and control than any other payment method. The wide variety of cards available – including credit, debit and prepaid – offers enormous flexibility, as well. These cards provide 2 factor authentication for secure payments e.g secure PIN and OTP. RuPay, Visa, MasterCard are some of the example of card payment systems. Payment cards give people the power to purchase items in stores, on the Internet, through mail-order catalogues and over the telephone. They save both customers and merchants’ time and money, and thus enable them for ease of transaction.

2. Unstructured Supplementary Service Data (USSD)

The innovative payment service *99# works on Unstructured Supplementary Service Data (USSD) channel. This service allows mobile banking transactions using basic feature mobile phone, there is no need to have mobile internet data facility for using USSD based mobile banking. It is envisioned to provide financial deepening and inclusion of under banked society in the mainstream banking services.

*99# service has been launched to take the banking services to every common man across the country. Banking customers can avail this service by dialing *99#, a “Common number across all Telecom Service Providers (TSPs)” on their mobile phone and transact through an interactive menu displayed on the mobile screen. Key services offered under *99# service include, inter-bank account to account fund transfer, balance inquiry, mini statement besides host of other services. *99# service is currently offered by 51 leading banks & all GSM service providers and can be accessed in 12 different languages including Hindi & English as on 30.11.2016 (Source: NPCI). *99# service is a unique inter-operable direct to consumer service that brings together the diverse ecosystem partners such as Banks & TSPs (Telecom Service Providers).

3. Aadhaar Enabled Payment System (AePS)

AEPS is a bank led model which allows online interoperable financial transaction at PoS (Point of Sale / Micro ATM) through the Business Correspondent (BC)/Bank Mitra of any bank using the Aadhaar authentication.

4. Unified Payments Interface (UPI)

Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience. Each Bank provides its own UPI App for Android, Windows and iOS mobile platform(s) such as Axis Pay, SBI Pay, PhonePe App, Google Tez App, BHIM UPI App, Bonus App – PNB UPI.

5. Mobile Wallets Or E-Wallets

A mobile wallet or E-Wallet is a way to carry cash in digital format. You can link your credit card or debit card information in mobile device to mobile wallet application or you can transfer money online to mobile wallet. Instead of using your physical plastic card to make purchases, you can pay with your smartphone, tablet, or smart watch. An individual’s account is required to be linked to the digital wallet to load money in it. Most banks have their e-wallets and some private companies and various startups have also launched E-Wallets in India. e.g. PayTM, Freecharge, Mobikwik, Oxigen, mRuppee, Airtel Money, Jio Money, SBI Buddy, itz Cash, Citrus Pay, Vodafone M-Pesa, Axis Bank Lime, ICICI Pockets, SpeedPay etc . are digital payment methods.

6. Banks Pre-Paid Cards

Prepaid debit cards, sometimes referred to as bank prepaid cards, are credit instruments that banks issue that give people an easy and adaptable way to manage their finances. Prepaid cards are independent of bank accounts, in contrast to conventional debit or credit cards that are connected to checking or credit accounts. Rather, they preload money onto the card, which they then use for a variety of payments up to the available balance.

7. Point Of Sale

A point of sale (PoS) is the place where sales are made. On a macro level, a PoS may be a mall, a market or a city. On a micro level, retailers consider a PoS to be the area where a customer completes a transaction, such as a checkout counter. It is also known as a point of purchase.

8. Internet Banking

Internet banking, also known as online banking, e-banking or virtual banking, is an electronic payment system/digital payment methods that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website.

9. Mobile Banking

Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct different types of financial transactions remotely using a mobile device such as a mobile phone or tablet. It uses software, usually called an app, provided by the banks or financial institution for the purpose. Each Bank provides its own mobile banking App for Android, Windows and iOS mobile platform(s) which is one of the most popular digital payment methods now a days. 

10. Micro ATMs

Micro ATM meant to be a device that is used by a million Business Correspondents (BC) to deliver basic banking services. The platform will enable Business Correspondents (who could be a local kirana shop owner and will act as ‘micro ATM’) to conduct instant transactions.

The micro platform will enable function through low cost devices (micro ATMs) that will be connected to banks across the country. This would enable a person to instantly deposit or withdraw funds regardless of the bank associated with a particular BC. This device will be based on a mobile phone connection and would be made available at every BC. Customers would just have to get their identity authenticated and withdraw or put money into their bank accounts. This money will come from the cash drawer of the BC. Essentially, BCs will act as bank for the customers and all they need to do is verify the authenticity of customer using customers’ UID. The basic transaction types, to be supported by micro ATM, are Deposit, Withdrawal, Fund transfer and Balance inquiry.

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DigiLocker a Digital Locker service operated by the Government of India to store certain official documents on the cloud such as Digital Aadhaar, thus enables the citizen of India in reducing the need to carry physical documents and can be used anytime anywhere through the mobile devices. DigiLocker is part of the government’s Digital India initiative.

If you have already applied for the Aadhaar card then you can check Aadhaar card status online after the enrollment.

DigiLocker is a cloud-based platform for issuance, storage, sharing and verification of documents and certificates, according to GOI Digilocker Site. It helps in securing lot of documents online. Now, DigiLocker also allows citizens to access their digital Aadhaar card number. Digital Aadhaar in DigiLocker is the same as eAadhaar issued by UIDAI(Unique Identification Authority of India). UIDAI is as an issuer of digital Aadhaar in DigiLocker, said DigiLocker on it’s official website.

1 GB of storage space is offered to users to store identification card issued by government agencies, education certificates, PAN cards, driving license, vehicle ownership documents and some other documents.The service is aimed towards reducing the need to carry physical documents, and is part of the government’s Digital India initiative.

DigiLocker has partnered with UIDAI to make it available automatically to its users when they link their DigiLocker account with Aadhaar. The advantage of digital Aadhaar or eAadhaar is that it can now be used in the same way as any other DigiLocker document.

How to Access Digital Aadhaar From DigiLocker or eAadhaar in DigiLocker?

1. Signup to DigiLocker using your mobile number and email verification followed by creating user credentials, then login.
2. Upon login to DigiLocker, link your Aadhaar and then you will see a dialog box with a message to get your eAadhaar
3. Click on “Click here” link. OTP box will appear in the dialog
4. You will receive an OTP on your mobile number linked to Aadhaar. Enter this OTP in the OTP box and click “Verify OTP” button
5. On successful validation of the OTP you will be redirected to “Issued Document” page where URI for eAadhaar will be listed
6. Click on “Save” icon next to Aadhaar Card on “Issued Document” page
7. Your eAadhaar will be saved to “Uploaded Document” section.

DigiLocker Benefits

Since DigiLocker is a platform for issuance and verification of documents & certificates in a digital way, so the idea behind this to make paperless governance. The benefits are-

1. Citizens can access their digital documents anytime, anywhere and share it online in a convenient and time saving way.
2. It reduces the administrative overhead of Government departments by minimizing the use of paper.
3. Validation of authenticity of documents getting easier as they are issued directly by the registered issuers.
4. Self-uploaded documents can be digitally signed using the eSign facility (which is similar to the process of self-attestation).

There is also an associated facility for e-signing documents. The service is intended to minimize the use of physical documents, reduce administrative expenses, provide authenticity of the e-documents, provide secure access to government-issued documents and to make it easy for the residents to receive services.

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If you are looking the process for checking EPF balance online via missed call for free then you are at the right place where I’ve written the article where I’ve explained the steps to know your EPF balance online as well as giving miss call to EPFO. Retirement fund body EPFO (Employees’ Provident Fund Organization) has taken many initiatives to ease the claim process for subscribers as well as provide different services like online checking of EPF passbook and balance. Both the employer and employee contribute 12 per cent of basic salary plus DA (if any) towards EPF. If the employees whose wages more than 15000/- a month then they are required to join this fund.

An employee’s 12 per cent contribution goes toward EPF kitty, while 8.33 per cent out of the total 12 per cent of the employer’s contribution is invested in EPS or pension scheme. The balance 3.67 per cent is invested in EPF.

Financial planners say that EPF kitty should be meant for long-term savings, not to be withdrawn before one’s retirement.

Checking EPF Balance Online, EPF Passbook Online?

EPFO has prominently displayed the link (E-Passbook) for checking EPF balance, passbook on its website. The e-passbook link can be found at the top-right corner of EPFO’s website.

Subscribers are then asked to enter the UAN (UNIVERSAL ACCOUNT NUMBER) number and password. UAN is allotted by the retirement fund body and the number allows portability of provident fund accounts from one employer to another along with UAN enables linking of multiple EPF Accounts (Member Id) allotted
to a single member.

Subscribers can then click on the View Passbook button to open their passbook and know their balance.

Subscribers can also quickly check their passbook/balances through EPFO’s app. EFPO subscribers need to click on MEMBER and thereafter Balance/Passbook and then enter their UAN number and password.

EPF Balance Via Missed Call For Free

An EPF member can obtain their EPF balance, Aadhaar-linking status with UAN & Bank account by following below steps-

1. Give a Missed call to 9966044425 or

2. SMS EPFOHO UAN < LAN > to 7738299899

You should be using your registered mobile number for availing EPF Balance on your mobile number and checking EPF balance online facilities for free.

Other Developments for EPF Account Holders

Retirement fund body EPFO aims to go paperless by August next year as part of Digital India initiative, which would improve delivery of services for its 5 crore subscribers. The Employees’ Provident Fund Organization (EPFO), which runs social security schemes like EPF, pension and insurance for formal sector workers, has already launched a host of online services like EPF withdrawals. The EPFO has a corpus of over Rs. 10 lakh crore.

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