OTP

A one-time password (OTP) is a security code that is used only once to verify a user's

identity or authorize a transaction. It’s a temporary, secure PIN-code sent to you via

SMS or e-mail that is valid only for one session.

OTP is a four or six digit number that you must enter (on your mobile or computer) to

authenticate an online financial transaction.

This secret code changes every 30 or 60 seconds, depending on how the token is configured.

The one-time password (OTP) system was introduced in India in 2006. It is a technology that enhances online

security by generating unique passwords for each transaction or session.

Examples of OTP use:

1- Online Banking: Verifying transactions or accessing online banking accounts.

2- Login to Websites/Apps: Securing access to websites and apps with an extra layer of authentication.

3- Account Verification: Verifying a new account or confirming contact information.

4- Password Reset: Using an OTP to reset a forgotten password.

QR (Quick Response Code)

It refers to a type of two-dimensional

barcode.

A QR Code is a type of 2D barcode that can

store up to 4,296 alphanumeric characters.

It's arranged in a square grid made up of

alignment markers located in three corners,

black and white modules, data correction

keys, a quiet zone, and position detection markers.

These codes are scanned by a smartphone camera or a dedicated QR code reader app.

QR code's structure:

1- Quiet Zone:

A blank area surrounding the code, ensuring proper reading by scanners.

2- Position Detection Patterns (Corners):

Three large square patterns at the top-left, top-right, and bottom-left corners, used to identify the code's

orientation and alignment.

3- Alignment Patterns (Mid-field):

Smaller squares within the code, facilitating accurate reading even if the code is tilted or at a distance.

4- Timing Pattern:

A sequence of alternating black and white modules between position detection patterns, used for

precise data module identification.

5- Error Correction:

Redundant information embedded within the code, allowing for successful reading even if parts are

damaged.

QR codes are widely used for various purposes, including:

1- Contactless payments: Businesses use QR codes for customers to pay with their smartphones.

2- Accessing information: Scanned QR codes can lead to websites, apps, or other online resources.

3- Ordering and ticketing: QR codes are used for ordering food, booking tickets, and more.

4- Marketing and promotions: They can be used for coupons, discounts, and other promotional offers.

5- Tracking and inventory: QR codes can be used for tracking and managing inventory, especially

in logistics and warehousing.

UPI, or Unified Payments Interface

UPI (Unified Payments Interface) is a real-time payment system in

India that allows users to transfer money directly between bank

accounts using mobile applications.

It's like a single platform for various banking functions, like

sending money, receiving money, and making payments.

How to get it:

 Bank a/c

 Mobile number should be linked with bank a/c

 Smart Phone with internet facility

 Debit Card for re-setting MPIN.

Service Activation:

 Download the App for UPI

 Do registration online on the App with a/c details

 Create a virtual ID

 Set MPIN

 5-7 minutes

What is required for Transaction:

 Smartphone with internet facility

 Registered device only

 Use registered MPIN

 Self Service Mode

Transaction Cost:

 NIL to customer by most Banks

 Customer pays for data charges

AePS (Aadhaar Enabled Payment System)

AEPS, or Aadhaar Enabled Payment System, is a payment service that allows bank customers to use their

Aadhaar number and biometric data to perform basic banking transactions.

It's a bank-led model, meaning it is initiated by

the bank and allows for online transactions at

Point of Sale (PoS) devices like Micro ATMs

through Business Correspondents (BCs).

Who launched Aeps?

The Aadhaar Enabled Payment System

(AEPS) was launched by the National

Payments Corporation of India (NPCI).

It is a payment platform that allows

individuals to use their Aadhaar number and biometric authentication to perform financial

transactions.

Services Offered by AePS Banking Servies:

1- Cash Deposit

2- Payment Transaction

3- Balance Enquiry

4- Cash Withdrawal

5- Aadhar to Aadhar Fund transfer

USSD (Unstructured Supplementary Service Data)

USSD stands for Unstructured Supplementary Service Data. It does not require the device

to be connected to the internet, which enables it to function on even the most basic phones.

As per gsm network specifications, a USSD message can be a maximum of 160 bytes long.

USSD message format

A USSD message typically starts with an asterisk symbol (*) or a hash symbol (#) and is terminated with a hash

symbol (#).

For example: *99#.

It can have up to 160 alphanumeric characters, and the time it takes from a request to a

response is two seconds.

To Take facility-

1- Bank A/C + Mobile number( Linked to Bank a/c)

2- Dial with phone *99# -> display some menu on mobile

(For Ex:

To transfer money to other person Bank A/c-

Receiver registered mobile number (which is must link with bank a/c)

MMID(Mobile Money Identifier)

- For Transfer money – need Authentication i.e. MPIN(Mobile Banking Identification number)

How to send Money Using USSID

1- Dial *99#

2- Enter Bank Name

3- Select Transaction Type

4- Enter receiver Mob. No.

5- Amount

6- MPIN

7- Transaction Completed

e-Wallet

An e-wallet, or digital wallet, is a software-based system that stores payment

information and allows users to make electronic transactions online or in

person.

It's essentially a digital version of your physical wallet, storing payment

methods like credit cards, debit cards, and bank accounts within a mobile app or other device.

How it works:

1. Create an account:

You register with an e-wallet provider (like Google Pay, Apple Pay, or Paytm) and link your payment

information.

2. Add funds (optional):

You can add funds to your e-wallet from your bank account or through other methods.

3. Make payments:

When you shop online or at a physical store, you can use your e-wallet app to make payments instead of

using your physical card or cash.

Card (Debit and Credit Card)

A debit card is a payment card linked directly to your bank account, allowing you to spend money you already

have.

A credit card, on the other hand, provides a line of credit, allowing you to borrow money to make purchases and

pay it back later.

Debit Card:

1. Linked to bank account: You spend money directly from your checking or savings account.

2. No credit limit: You can only spend the amount of money you have available in your account.

3. No interest charges: Unlike credit cards, debit cards don't charge interest on purchases.

4. Daily limits: Banks often set daily spending and withdrawal limits for debit cards.

5. Overdraft protection: If you don't have sufficient funds in your account, you might be charged an

overdraft fee.

Credit Card:

1. Line of credit:

You borrow money from a bank or financial institution, up to a pre-set credit limit.

2. Pay back later:

You don't need to pay back the borrowed money immediately; you can pay the bill within a

certain timeframe.

3. Interest charges:

If you don't pay your balance in full each month, you'll be charged interest.

4. Rewards and benefits:

Some credit cards offer rewards programs, cashback, or other benefits for spending.

5. Credit building:

Using a credit card responsibly can help you build a positive credit history.

Point of Sale (POS)

In retail and banking, "POS" stands for Point of Sale, referring to the physical or virtual

location where customers complete a purchase and make a payment.

It's the moment and place where a transaction occurs, involving the exchange of goods or

services for payment.

A point of sale (POS) system includes the hardware and software to process payments

and complete purchases.

Common types of POS hardware

POS (point-of-sale) software is a digital application that manages sales transactions,

including billing, payment processing, and inventory tracking. It's the "brain" of a POS

system, often working with hardware like barcode scanners and printers.

The three different methods by which money can be transferred online are mentioned

below:

 Immediate Payment Service (IMPS )

 National Electronic Funds Transfer (NEFT)

 Real Time Gross Settlement (RTGS)

IMPS

The transfer of funds is completed immediately via IMPS. You can transfer money 24x7 by

using this method. IMPS can be completed by using internet banking or mobile banking.

Various digital banks in India use IMPS services to transfer money, Depending on the bank, the

transaction charges may vary.

NEFT

Under NEFT, you can transfer funds from one bank branch to another bank branch that is under

the scheme. However, NEFT transactions take longer when compared to IMPS.

RTGS

Another payment mode that occurs in real-time and on a gross basis is RTGS. RTGS is mainly

used for higher value transfers that require immediate clearance. RTGS transactions can be

completed only during banking hours.