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In this post we will discuss about the various payment systems managed by NPCI like UPI, BHIM, RuPay, BBPS, CTS, NACH, AEPS etc
Unified Payments Interface (UPI)
- Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application.
- UPI is built over the IMPS infrastructure and is available 24 * 7 *365.
- Virtual Payment Address or VPA (UPI ID) – A Virtual Payment Address (VPA) is a unique identifier which you can use to send and receive money on UPI. Think of it as an email ID which you can use to transfer money. Example: abc@sbi
BHIM app of NPCI– Bharat Interface for Money (BHIM) is an app that lets you make simple, easy and quick payment transactions using Unified Payments Interface (UPI).
- You can make instant bank-to-bank payments and Pay and collect money using just Mobile number or Virtual Payment Address (UPI ID).
UPI 2.0– The key features of UPI 2.0 are:
- Overdraft facility: In addition to current and savings accounts, customers can link their overdraft account to UPI. UPI 2.0 will serve as an additional digital channel to access OD account.
- One Time Mandate: UPI mandate could be used in a scenario where money is to be transferred later by providing commitment at present. On the date of actual purchase, the amount will be deducted and received by the merchant / individual user.
- Invoice in the inbox: This feature is designed for customers to check the invoice sent by merchant prior to making payment.
- Signed intent & QR: This feature is designed for customers to check the authenticity of merchants while scanning QR code. It notifies the user with information to ascertain whether the merchant is verified UPI merchant or not. This provides an additional security to the QR as well as intent. Transactions are processed faster as app passcode is not required in case of signed intent. It also negates the chances of QR tampering. Customers will be informed in case the receiver is not secured by way of notifications.
With the release of UPI v2.0 a major change has been made in the per transaction cap that was earlier Rs 1 lakh. It has been increased to Rs 2 lakhs.
RuPay
- RuPay is the first-of-its-kind domestic Debit and Credit Card payment network of India, with wide acceptance at ATMs, POS devices and e-commerce websites across India. It is a product of NPCI.
- “RuPay” is the coinage of two terms Rupee and Payment.
- Transaction and customer data related to RuPay card transactions will reside in India.
- CVD (Card Validation Data)– It’s a three digit number printed on the back of the RuPay card same as CVV as referred to by other international schemes.
- RuPay Contactless– RuPay Contactless is an open loop EMV based payment product from NPCI. The customers can simply tap their card and the transactions are processed without the need of 2FA (Second Factor Authentication). [EMV- Europay, Mastercard and Visa]
- Maximum limit of Rupay Contacless– Rs.2,000
Bharat Bill Payment System (BBPS)
- Bharat Bill Payment System (BBPS) is an integrated bill payment system which will offer interoperable bill payment service to customers.
- Bharat Bill Payment Central Unit (BBPCU) will be a single authorized entity operating the BBPS. National Payment Corporation (NPCI) has been identified to act as BBPCU.
- Bharat Bill Payment Operating Units (BBPOUs) will be authorised operational entities, adhering to the standards set by the BBPCU for facilitating bill payments online as well as through a network of agents, on the ground. Example: Banks.
- Different Payment Channels- Bharat BillPay transaction can be initiated through multiple payment channels like Internet, Internet Banking, Mobile, Mobile-Banking, POS (Point of Sale terminal), Mobile Wallets, MPOS (Mobile Point of Sale terminal), Kiosk, ATM, Bank Branch, Agents and Business Correspondents
National Electronic Toll Collection (NETC)
- National Electronic Toll Collection (NETC) program is developed by NPCI for enabling moving vehicle to pay the toll tax without using the cash.
- FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly while the vehicle is in motion.
- FASTag (RFID Tag) is affixed on the windscreen of the vehicle and enables a customer to make the toll payments directly from the account which is linked to FASTag.
National Automated Clearing House (NACH)
- National Automated Clearing House (NACH) is a centralised system, launched with an aim to consolidate multiple ECS systems. Two types:
- NACH Credit- Single Debit Multiple Credit
- NACH Debit- Single Credit Multiple Debit
- NACH (Debit) & NACH (Credit) aims at facilitating interbank high volume, low value debit/credit transactions, which are repetitive in nature, electronically using the NPCI service.
Cheque Truncation System (CTS)
- Cheque Truncation is the process of stopping the physical movement of cheques. In this the image of the Cheque is moved for the purpose of clearing of the Cheque.
- RBI continues to classify paper clearings as a System-Wide Important Payment System (SWIPS) due to the high volumes of transactions. Cheque Truncation speeds up collection of cheques and therefore enhances customer service, reduces the scope for clearing related frauds, minimizes cost of collection of cheques, reduces reconciliation problems, eliminates logistics problems etc.
- Speed Clearing- Speed Clearing refers to collection of outstation cheques (a cheque drawn on non-local bank branch) through the local clearing.
- Grid Clearing– For CTS implementation, there are 3 grids that cover the whole of India. New Delhi Grid, Mumbai Grid and Chennai Grid
Extra Info:
- New Delhi Grid: National Captial Region of New Delhi, Haryana, Punjab, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Rajasthan and the Union Territory of Chandigarh.
- Mumbai Grid: Maharashtra, Goa, Gujarat, Madhya Pradesh and Chattisgarh.
- Chennai Grid: Andhra Pradesh, Telangana, Karnataka, Kerala, Tamilnadu, Odisha, West Bengal, Assam and the Union Territory of Puducherry.
National Financial Switch (NFS)
- National Financial Switch (NFS) is the largest network of shared automated teller machines (ATMs) in India.
- It was taken over by NPCI from Institute for Development and Research in Banking Technology (IDRBT), Hyderabad on December 14, 2009.
Aadhaar Enabled Payment System (AEPS)
Aadhaar Enabled Payment System is a payment service empowering a bank customer to use Aadhaar as his/her identity to access his/ her respective Aadhaar enabled bank account and perform basic banking transactions.
Under AePS currently following services are present:
- Balance Enquiry
- Aadhaar to Aadhaar Fund Transfer
- Cash Withdrawal
- Cash Deposit
- BFD- Best finger detection
IIN – Issuer Identification Number – It is a six digit number which acts as an identification of a bank providing the AEPS service.
Receiver Registration Number (RNN)– RRN number is a 12 digit number generated to record the transaction and to identify a transaction uniquely.
Bharat QR
- QR stands for Quick Response Code.
- A QR code consists of black squares arranged in a square grid on a white background, which can be read by an imaging device such as a camera. It contains information about the item to which it is attached.
- Bharat QR is Person to Merchant (P2M) Mobile payment solution. This solution is mutually derived among NPCI, Visa and Mastercard payment networks.
Are Bharat QR & BHIM QR Same?
- BHIM QR is UPI Based QR. It is preferably used for P2P or P2M dynamic Transaction using Virtual Payment Address.
- Bharat QR is specifically used for P2M transaction wherein payment is done via cards i.e., Debit card/Credit Card/Pre-paid Card.