BY NISARG SHAH ROLL NO - 115

What is the Profile of Financial Inclusion Technology ?

 Capture Customer details and facilitate Unique

Identification  Offer Financial products tailored for the target group  Support comprehensive Credit Information System  Work in rural environmental conditions  Support use of multimedia and innovative User Interfaces  Low Capital and Maintenance costs

Card Based Identification

 Choice of Cards 1.

Magstripe Card

2. Contact Smart Card 3. Contactless Smart Card 4. Plain PVC Card 5. Plain Laminated Card

HANDHELD DEVICES

A Typical Architecture

Mobile Banking :y Mobile Banking is the term used for

performing balance check , account transactions , payments etc . Via a mobile device such as mobile phones .

Cost Advantage : y Through branch Rs. 35 y ATM transaction Rs. 15 y Internet

40 / transaction . 20 / transaction .

Rs. 10 15 / transaction . Rs. 2 -5 / transaction .

y Through mobile

How it works : -

RBI Guidelines : y About mPin . y Every bank should provide min 4 digit PIN . y HDFC has already provided 6 digit PIN .

Types of services covered : y For paying 1. Utility Bill payments , 2. Mobile Bills , 3. Insurance Premiums , 4. Credit Cards bills , 5. Getting physical currency 6. Instant Transfers .

24 / 7 Services :Customer Notifications/Alerts Exchange rates Enquiries Account Balance Enquiries Cheque book Request Full statements requests Mini Statement Enquiry Stop Cheque Instructions Bulk SMS to Customers Funds Transfer Person to person payments Person to business payments Business to person payments Stop card instructions

What is an ATM ??
y An

automated teller machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution / bank with access to financial transactions in a public space without the need for a human clerk or bank teller round the clock (24 hrs a day)

ATM Card
y On most modern ATMs, the customer is identified by

inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains a unique card number and some security information. y Security is provided by the customer entering a personal identification number (PIN).

Functions of ATM
y 24-hour access to cash y View Account Balances & Mini-statements y Order a Cheque Book / Account Statement y Transfer Funds between accounts y Refill your Prepaid card y Pay your utility bills y Deposit cash or cheques y Change your PIN y Learn about other products

Structure of ATM
y Card reader y Keypad y Speaker y Display screen y Receipt printer y Cash dispenser

Precautions while using ATM / ATM Cards

y Don't write down your PIN. If you must write it down,

do not store it in your wallet or purse. y Store your ATM card in your purse or wallet, in an area where it won't get scratched or bent. y After your transaction, take your receipt, card and money away. Do not stand in front of the machine and count your money. y Stand directly in front of the ATM keypad when typing in your PIN. This prevents anyone waiting to use the machine from seeing your personal information.

ATM

Credit Cards : y WHAT IS A CREDIT CARD ? y A credit card is part of a system of payments named

after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services . The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.

Benefits to customers : y The main benefit to each customer is convenience.

Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card. Credit cards also provide more fraud protection than debit cards.

Parties involved : y Cardholder: The holder of the card used to make a purchase; the

consumer. y
Card-issuing bank: The financial institution or other organization that issued the credit card to the card Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder.
y
Acquiring bank: The financial institution accepting payment for the

products or services on behalf of the merchant. y
Independent sales organization: Resellers (to merchants) of the services of the acquiring bank. y
Merchant account: This could refer to the acquiring bank or the independent sales organization, but in general is the organization that the merchant deals with. y
Credit Card association: An association of card-issuing banks such as Visa, MasterCard, Discover, American Express, etc

CREDIT CARDS & DEBIT CARDS

Debit Cards
y What are Debit Cards?
y A debit card is much different than a credit card. You do not have to apply for credit

when you get one, which means that your credit history has no bearing on your acceptance.
y This is not a short-term loan like you get with a credit card since it is linked directly

to your bank account and is treated the same way as cash.

y If you do not have the money in the bank, then you cannot make your

purchase.

What are the Benefits of a Debit Card?

 Able to reduce the risk of getting in to credit card debt, by ensuring you re

spending your own money, and not over-extending yourself by getting a credit card balance you may not be able to repay. Zero Liability policy

 Any purchase that you make on your card is covered and protected by VISAs  It s a lot more convenient, easier and safer than carrying cash or using your

EFTPOS card. banking.

 Access your transaction records for your card online instantly through internet  You don t need a good credit history. When applying for a VISA Debit Card, the

banks don t do a credit check, making the application process fast (and painless!).

E BANKING
y What is E-Banking ? y The provision of banking service through electronic channels and the customers can access the data without time and geographical limitations .

Development of E-Banking : In may 1995 Wells Fargo the 1st bank to offer customer access to their accounts over internet . 2. ICICI was the 1st bank in India to initiate the internet banking revolution as early as 1997 under the brand name INFINITY .
1.

Different services provided bt ebanking : 1. 2. 3. 4. 5. 6.

Online Bill Payment Mobile Recharge Ticket Booking Shopping Market Watch Investment services

What are the new payment technologies ?

y Cash and cheques are starting to look like ghosts of

payments past. y Credit and debit cards are the popular ways to pay right now, but some new technologies are showing up to the party, both offline and online. y In one of the more interesting developments, Pay By Touch has had success in rolling out a biometric system that lets customers pay with a swipe of their finger and PayPal recently introduced PayPal Mobile, which lets users send and receive money via cell phone text messaging and is already being used by MTV, the NBA Store and other for-profit and nonprofit companies .

How the New Technologies Effect the Financial Inclusion ?

y Increases the buying capacity of common man y Increases the standard of living y Helps increasing the growth of country due to

increasing special facilities of banking sector s . y Due to special banking facilities common man can enjoy unlimited privileges .