Cashless India

Towards a Cashless India
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Points of this Presentation

1. Background
2. Digital Payments Framework
3. Benefits Short Term & Long Term
4. Road Map
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Background
India - 4th largest user of cash in the world
Government of India has taken measures to promote a
cashless economy through digital payments
In the past, progress had been made, such as:
Electronic banking in the 1990s
In the following decade: Core banking plus use of credit cards
Popularization of digital payments in this decade - electronic
wallets, swipe cards, debit cards etc.
Now we need a leap forward towards a cashless economy
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Background
STPI has embraced a role to act as a change agent to
promote cashless economy by means of digital payments
Its role will be to enable the IT fraternity to adopt a cashless
way of life with support of other stakeholders
Other Stakeholders include State IT Department, Financial
Bodies, IT Industry etc.
About 3.7 million IT professionals in India, who belong to
higher income groups and form a powerful consumer group
IT professionals can lead the way as early adopters of
cashless transactions through digital payments
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Background
Cashless transactions may include (progressively):
Official receipts and payments
Purchase of costlier items (like vehicles, durables, holidays etc.)
Purchase of daily items (groceries, medicines etc.)
IT fraternity needs to motivate their circles: friends, family
members, shop keepers, domestic helps .. to move in a
similar manner
All stakeholders can play a meaningful role to promote
digital payments, as outlined in the next slide
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Background
Stakeholder Role in Promoting Digital Payments
STPI To act as the Change Agent for IT Fraternity to adopt
cashless economy through digital payments
State IT Departments Collaborate in the conduct of Training Programmes to
spread awareness of cashless economy
Financial Bodies Partners of STPI in its endeavours
IT Industry Adopt cashless transactions at office level
Encourage employees to adopt cashless transactions
IT Professionals Adopt cashless transactions at personal level
Encourage others (friends, family, domestic assistants,
shop keepers etc.) to act similarly
STPI + All Other Connect to the lowest level POS (shops, vendors etc.) to
Stakeholders spread awareness about digital payments
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Implementation Strategy
STPI has embraced a role to work as a change agent , with
the aim of enabling the IT fraternity to become early
adopters of cashless and digital transactions
The major implementation steps include:
Formation of IT Teams for Awareness Creation
Preparation & Dissemination of Awareness Materials
Training Programmes for Awareness Creation
Support & Guidance Cells at STPI Centres
The above are briefly presented in the next few slides
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Teams for Awareness Creation

Teams will be formed at the following levels for creating
awareness amongst the IT Industry:
National Level Team
Regional Teams
National Team will include DG-STPI, Senior Director -STPI
and all Jurisdictional Directors; apart from nominees of
Government, Financial Institutions, Academicians & IT
Industry
Regional Teams will be formed at level of STPI Directorate,
with nominations from State Govt., industry etc.
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Materials for Awareness Creation

Following types of materials will be developed to motivate
the adoption of cashless transactions:
Presentations Presentations on Cashless Economy, its
features, benefits, case studies etc.
Social Media Content Promotion of concept of cashless economy
over social media FB, Twitter etc.
Audio Visual Content Content prepared for AV media
Guidebooks In English, Hindi and other languages
regarding digital payments
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Training Programmes for Awareness Creation

The objective of conducting training programmes is to deepen
the awareness of cashless transactions amongst the IT
industry through interactive presentations etc.
Regional Teams will have to prepare a detailed schedule in
consultation with local industry and State IT Department
Training may be held at different places on weekly basis
Trainees will be motivated to spread awareness amongst
friends and family members for adopting digital modes
Feedback from trainees is to be shared with the National
Team
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Support & Guidance Cells

Such Cells will be formed at each STPI Centre
These Cells will provide guidance and answer any query
raised by anyone who visits the Centre
The Cells will aim to support IT Industry as well as anyone
else who walks in
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Why CASH?
HABIT Being used from days of grand-parents and earlier
EASE OF USE Need not be emphasized
NO EXTRA COSTS like cost of POS equipment, service tax
on digital transactions (15%) etc.
INSECURITY - ABOUT SECURITY OF ON-LINE PAYMENTS
TAX EVASION - in Cash based Transactions
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DIMENSIONS OF THE OPPORTUNITY

PARAMETER VALUE REMARKS
Population of India 121.06 crore Census of India 2011
Notes in Circulation on MOS FINANCE IN RAJYA SABHA
8th NOV 2016
(a) Rs. 1000 685.8 crore
(b) Rs. 500 1716.5 crore
BANK BRANCHES 135,263 RBI - ALL SCHEDULED COMMERCIAL
BANKS (2nd Quarter of 2016-17)
ATM 202,801 RBI (AUGUST 2016)
MOBILE PHONES 93.65 crore TRAI March 2016 (ACTIVE NOS.)
INTERNET USERS 46.2 crore Estimates for JUNE 2016 by IAMAI
[37.1 crore mobile Internet users]
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DIMENSIONS (2)
BANK BRANCHES (PER 100,000 PERSONS) 11.17
ATMs (PER 100,000 PERSONS) - 16.75
MOBILE PHONES (PER 100,000 PERSONS) 77,360
INTERNET USERS (PER 100,000 PERSONS) 38,163
RURAL INDIA
BANK BRANCHES (PER 100,000 PERSONS) 5.70
INTERNET USERS (PER 100,000 PERSONS) 13,087
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Methods of Digital Payment

1. BANK CARDS
2. USSD MOBILE BASED BANKING (*99# banking)
3. AADHAR Enabled Payments [NOT AVAILABLE IN ASSAM]
4. E-Wallets
5. Unified Payment Interface (UPI)
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BANK CARDS
Cards issued by Banks may be of following types:
DEBIT CARD Issued by the Bank where you have an account. Any expenditure
made is immediately debited to users account. User can use
this card to withdraw cash up to the limit available in his/her
bank account.
CREDIT CARD These are issued by banks / other entities approved by RBI.
Unlike debit cards, in case of credit cards, a customer can also
withdraw beyond the amount of money present in his bank
account. But there is a limit for each credit card up to which
extra money can be withdrawn
PRE-PAID CARD These are pre-loaded from a customers bank account. Can be
used for limited amount of transaction. These can be recharged
like mobile recharge. Safe to use.
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BANK CARDS
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BANK CARDS
Simple to use at POS - as shown below:
SWIPE CARD ENTER PIN GET RECEIPT
IT IS OVER !!!
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BANK CARDS
Actually the steps are more (but need not concern the user)
Signing is not compulsory
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BANK CARDS
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Unstructured Supplementary Service Data

Unstructured Supplementary Service Data (USSD) aims to
take banking services to the common man or woman
USSD enables a person to access banking services with a
single number
It is offered through a National Unified USSD Platform
(NUUP) on a short code *99#.
Can be used for payments up to Rs. 5000 per day per
customer.
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Needed:
Bank Account
Mobile Phone on GSM Network
Registering mobile phone number against account with the Bank
How to get it
Visit Bank Branch to link Mobile Number with Bank Account can
be done on-line
Get MPIN (Mobile PIN) & MMID (Mobile Money Identifier)
Remember the above MPIN & MMID
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How to Use: EXAMPLE FOR MONEY TRANSFER
Step Screen Message
Dial after typing *99# Welcome to NUUP
TYPE 3 Letters of Bank short name OR first 4 Letters
of Bank IFSC
Type SBI or SBIN Enter your option
(or as per your Bank) 1. Account Balance
2. Mini Statement
3. Send Money using MMID
4. Send Money using IFSC
5. Fund Transfer AADHAR [Not available in Assam]
6. Show MMID
7. MPIN
8. Generate OTP
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How to Use: (Continued)
Step Screen Message
Type 3 Enter Beneficiary Mobile Number
(to send Money using
MMID)
Type 97060 XX908 Enter Beneficiary MMID
Type MMID of Enter Amount separated by space and Remarks
Beneficiary (Optional)
500 RENT Want to transfer Rs 500 to Beneficiary with Mobile
No 97060 XX908 and MMID XXXX For RENT
ENTER YOUR M-PIN (space) last four digits of account
No.
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How to Use: (Continued)
Step Screen Message
ABCD 02577 Your Account No XXXXXXXX02577 is debited for Rs
500 on 12-11-2016 and a/c linked with mobile 97060
XX40908 credited
)IMPS Ref No XXXXXXXXXXXX)
FUND can be transferred by:

Inputting MMID and Mobile Number of Beneficiary (Option 3)
Inputting IFSC and Account Number of Beneficiary (Option 4)
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OTHER SERVICES
BALANCE ENQUIRY of Bank Account linked with Mobile Number
MINI STATEMENT of above Account
KNOW MMID User can know the Mobile Money Identifier
(MMID) allotted by Bank to Account during the mobile banking
registration
GENERATE / CHANGE MPIN
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AADHAR Enabled Payment System

AADHAR Enabled Payment System is a payment service
empowering a bank customer to use AADHAR as his/her
identity to access his/ her respective AADHAR enabled bank
account and perform basic banking transactions.
It allows bank-to-bank transaction at PoS (MicroATM) with
the help of Banking Correspondent (BC)/VLE.
The user has to seed his/her account with their AADHAR
number at bank or with the help of BC/VLE.
User can do as many transactions at any AEPS point without
any PIN or password.
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AADHAR Enabled Payment System

Needed:
IIN (Identifying the Bank to which the customer is associated)
AADHAAR Number
Fingerprint captured during their enrolment
Services:
Balance Enquiry
Cash Withdrawal or Deposit
Purchase at Fair Price Shop
Transfer of Funds to/ from another AADHAR Account
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E-WALLET
E-wallet stands for electronic wallet. It is a type of
electronic card which is used for transactions made online
through a computer or a smart-phone.
The utility of e-wallet is same as a credit or debit card.
An e-wallet needs to be linked with the individual's bank
account to make payments.
The main objective of e-Wallet is to make paperless money
transaction easier.
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E-WALLET
FEATURES OF E-WALLET:
CLICK ON PAYTM WALLET ICON
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E-WALLET
Needed:
BANK ACCOUNT
SMART PHONE
2G / 3G / 4G CONNECTION
E-WALLET APP
ALSO:
Need to register Mobile No. with Bank for SMS on transactions
Never share PIN
Use at trusted Merchants only
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USING E-WALLET
CONSUMER:
DOWNLOAD THE APP
SIGN-UP & RECEIVE PASSWORD
LOAD MONEY USING DEBIT /CREDIT CARD OR NET-BANKING
AFTER ON-LINE SHOPPING; USER INFORMATION IS
AUTOMATICALLY FILLED UP ON PAYMENT FORM
AFTER ON-LINE PAYMENT IS MADE, NO NEED TO FILL UP ANY
OTHER FORM AS INFORMATION IS ON DATABASE AND GETS
UPDATED AUTOMATICALLY
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USING E-WALLET
MERCHANT:
MERCHANT DOWNLOADS THE APP
SIGN-UP & RECEIVE PASSWORD
DECLARE AS MERCHANT
START ACCEPTING PAYMENTS
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E-WALLET
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UNIFIED PAYMENTS INTERFACE (UPI)

UPI is a system for instant, electronic payments through
users smart phone.
It is an advanced version of Immediate Payment Service
(IMPS) which was used to transfer money between bank
accounts. Like IMPS, UPI will facilitate round-the-clock
funds transfer service.
It authenticates the identity of the user like a debit card
does using the phone as a tool instead of a separate card.
It works 24x7, 365 days.
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Needed:
SMART PHONE WITH INTERNET FACILITY
BANK ACCOUNT DETAILS (ONLY FOR REGISTRATION)
UPI APP
AVAILABLE UPI APPS
28 BANK APPS (SBI, PNB, UNION BANK, CANARA BANK, AXIS BANK,
ICICI BANK, UCO BANK etc.)
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UPI eliminates the need to share Users name, bank account number,
IFSC code, or bank branch.
UPI also eliminates the use of physical tools like debit cards.
No need to use multi-step processes like net-banking, which are prone
to phishing due to insecure frameworks.
Very simple application and can be used by anyone.
Instant and secure authentication and can be initiated anywhere.
Opens up the pathway for a completely cashless digital society.
Can be used to send a request for money, like an invoice.
Customers can also use UPI to make online payments of utility bills and
school fees.
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TO SUM UP
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BENEFITS SHORT & MEDIUM TERM

For the CITIZEN: adds the existing liquidity though easy processes
No need for SMART Phones in USSD (*99# BANKING)
Supplements the Bank Branch & ATM especially in Rural India through
AADHAR EPS
24x7 services every day of the year and less risk of cash losses
Government has announced incentives for digital transactions
For BANKS: adds to their offerings and reduces pressure on manpower
and space
For the GOVERNMENT: Improved compliance with tax structures
For IT INDUSTRY: Added services leading to revenues and innovation
For MOBILE SERVICE PROVIDERS: Data usage increases leading to
revenues
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BENEFITS LONG TERM

India utilizes her IT and Mobile infrastructure to provide modern
services to the citizens especially in rural areas and less banked
locations which can be an example to the 3rd World nations
Citizens need not spend time to go to bank branches for each and every
matter
Less usage of cash leading to savings in printing and replacement of
worn-out notes
Optimal usage of bank resources to provide value added services to the
citizens
Better tax compliance leading to improved revenues for Government
which can help in improving the conditions of Indias poor citizens
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ROAD MAP
Regional Team Notified
Regular Meetings to guide the process
Materials for Awareness To be prepared like:
Creation PRESENTATIONS
SOCIAL MEDIA CONTENT
AV CONTENT
HANDBOOK / USER GUIDE
Training Programmes To prepare a schedule of such programmes for
awareness creation in consultation with the
stakeholders
Support & Guidance Cell Under formation
at STPI Guwahati Volunteers may be associated
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ROAD MAP
Be the change you wish to see in

the world
Mahatma Gandhi-ji
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Towards a Cashless India

Points of this Presentation

Teams for Awareness Creation

Materials for Awareness Creation

Training Programmes for Awareness Creation

Support & Guidance Cells

DIMENSIONS OF THE OPPORTUNITY

Methods of Digital Payment

Simple to use at POS - as shown below:

SWIPE CARD ENTER PIN GET RECEIPT

Signing is not compulsory

Unstructured Supplementary Service Data

Unstructured Supplementary Service Data

Unstructured Supplementary Service Data

Unstructured Supplementary Service Data

Unstructured Supplementary Service Data

FUND can be transferred by:

Unstructured Supplementary Service Data

AADHAR Enabled Payment System

AADHAR Enabled Payment System

CLICK ON PAYTM WALLET ICON

UNIFIED PAYMENTS INTERFACE (UPI)

UNIFIED PAYMENTS INTERFACE (UPI)

UNIFIED PAYMENTS INTERFACE (UPI)

BENEFITS SHORT & MEDIUM TERM

BENEFITS LONG TERM

Be the change you wish to see in

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