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Various Means of Digital Payments

This topic provides information about Various Means of Digital Payments.


To achieve expeditious movement into the cashless, digital payments economy across all states and sectors and to promote rapid adoption of digital payment systems, various digital payment systems appropriate to different sectors of the economy and is coordinating efforts to make them accessible and user- friendly. The following digital payment systems are currently being promoted across the country. A step-by-step instructions for usage of the payment options are described below.


Watch Video on Digital Payment.

Bank Cards

Getting a Bank Card

How to issue a card from your account
  • Approach nearest bank branch
  • Multiple cards from one account
  • PIN issued by bank separately

Activate your Card

  • At your Bank’s ATM by even balance checking
  • At your bank branch by any transaction

Types of Cards & Usage

Prepaid Cards

  • Pre-loaded from your bank account
  • Safe to use, limited amount of transaction
  • Can be recharged like mobile recharge

Debit Cards

  • Linked to your bank account
  • Used to pay at shops, ATMs, wallets, micro ATMs, online shopping

Point of Sale (POS) and Card steps

Banks issue various cards for their account holders

  • Prepaid Cards
  • Debit cards
  • Credit Cards

Use your card to shop anywhere

  • At any PoS
  • At ATM
  • Online shopping

Prepaid card can be issued by any bank from account or cash
Following are the benefits

  • Pre-loaded card
  • Equivalent to cash
  • Can be recharged several times
  • Can be used at any PoS, ATM

Unstructured Supplementary Service Data (USSD) based Mobile Banking

*99# - National Unified USSD Platform (NUUP)

Required for Activation

  1. Account in a bank
  2. Any mobile phone on GSM network

Can be used for payments upto Rs 5000 per day per customer


  1. Visit your branch to link mobile number and bank account- Can be done at ATM or online
  2. You will get your Mobile Money Identifier (MMID) and Mobile PIN (MPIN) upon registration
  3. Remember your MMID and MPIN

Note: New changes being brought to simplify user experience; no need for separate MMID

Transfer Funds to another Bank Account


Aadhar enabled payment system (AEPS)

  • AEPS allows bank-to-bank transaction at PoS (MicroATM) with the help of Business Correspondents (BC)
  • Only Aadhar needed

Aadhar enabled Services

  • Balance Enquiry
  • Cash Withdrawal
  • Cash Deposit
  • Aadhaar to Aadhaar Funds Transfer
  • Purchase at Fair Price Shops with AEPS

Aadhaar Enabled Payment System Steps

  • Seed your account with your Aadhar number at bank or with the help of banking Correspondent
  • Now you can do many transactions at any AEPS point without any pin or password(AEPS points –Micro ATMs)

Key steps for AEPS Transaction

  1. Go to a microATM or banking correspondent
  2. Provide your bank name and Aadhaar
  3. Choose which transaction to do
  4. Provide finger print on scanner
  5. On successful transaction, take the print slip
  6. Process completed

MicroATM Transaction

Unified Payment Interface

Requirements for registration on UPI


  • Smartphone with internet facility
  • Bank Account details (only for registration)

Available bank apps

Sl.No. Bank Name App Name
1 Allahabad Bank Allahabad Bank UPI
2 Andhra Bank Andhra Bank ONE
3 Axis Bank Axis Pay
4 Bank of Baroda Baroda MPay
5 Bank of Maharashtra MAHAUPI
6 Canara Bank Canara Bank UPI - Empower
7 Catholic Syrian Bank CSB UPI
8 DCB Bank DCB Bank
9 Federal Bank Lotza
10 HDFC Bank HDFC Bank MobileBanking
11 ICICI Bank Pockets- ICICI Bank
12 Karnataka Bank KBL Smartz
13 Kotak Mahindra Bank KayPay
14 Oriental Bank of Commerce OBCUPI PSP
15 Punjab National Bank PNB UPI
16 South Indian Bank SIB M-Pay (UPI Pay)
17 State Bank of India SBI Pay
18 TJSB Bank TranZapp
20 Union Bank of India Union Bank UPI
21 United Bank of India United UPI
22 Vijaya Bank Vijaya UPI App
23 Yes Bank Yes Pay
For more details, click here.

UPI Registration Process

  • Download any bank’s app or 3rd party app
  • Choose your unique id (Aadhar, mobile no.) as Virtual Payment Address (VPA)
  • Select your bank
  • Give account details for first time
  • Set M-PIN for validating transactions
  • Registration Completed

Registering on UPI

Sending Money on UPI

  • Choose “Send money”
  • Enter payee’s Virtual Payment Address
  • Enter amount
  • Write remarks for transaction
  • Confirm the details
  • Hit “send”

Sending Money

Collecting Money (raise a demand) on UPI

Collecting Money



What are e-wallets?

  • Electronic pre-paid payment system, mobile-first
  • Used in purchasing items on-line with a computer or a smartphone at a store.
  • 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.

Using Wallets

Consumer Wallet Limits: Rs.20,000/month for all. Rs.1 lakh/month with KYC

  • Consumer downloads the app on Smartphone
  • Sign up using mobile
  • Load money using debit card/credit card of net banking
  • Start using wallet to make payments

Merchant Wallet Limits: Rs.50,000/month with Self Declaration. Rs.1 lakh/month with KYC

  • Shopkeeper/service provider downloads the app
  • Sign up using mobile
  • Self declare itself as a merchant
  • Start accepting payment

Point of Sale (PoS)

Types of PoS

Physical Card Swiping – PTSN with landline / GPRS enabled

Phone connected with external POS device through jack / Bluetooth

Virtual E-payment Gateway

Physical PoS

Swipe a debit/credit card on the PoS machine

Enter amount to be paid and pin

Generate Receipt

Installation of Physical PoS Terminal

  1. Open / identify current account for transactions
  2. Fill in the application form (online / at the branch)
  3. Identify type of PoS required (landline / GPRS)
  4. Submit following documents:
    • Proof of business (any one)
      • Shop & establishment registration certificate
      • VAT certificate
      • Sales tax
    • Proof of address
    • Photo identity proof of proprietor / partner
    • Financial details
      • Bank statement
      • Income tax return
  5. Acceptance of MDR by merchant
  6. Execution of Merchant Establishment Agreement

Mobile PoS

Note: mSwipe is used as an example of MPoS here


  • No PoS machine required
  • QR code used for payment to bank account of merchant
  • Complete privacy of merchant bank account

Must Do Practices

  • Register your mobile number at bank for regular information by SMS for every transaction
  • Never share your PIN to anyone
  • Transact at only trusted merchants
  • While at ATM, ensure no one is looking over your shoulders

Source : NITI Aayog

Mobile app on Digital payments

  1. Mobile app - Know about Digital payments

Related resources

  1. List of Banks permitted to provide Mobile Banking Service in India
  2. RBI cautions users of Virtual Currencies.
Henboilen Lhouvum Nov 05, 2019 09:36 PM

Sir,i want to set up POS at my store,the reason being non available of ATM booth.
Sir,Please suggest me in detail.
Thanking you.

vikash Jun 16, 2017 12:37 PM

sir i want to take a pos machine or swipe machine or pin pad please provide me
i have csc center in my village
my contact no is 96*******77

RAVINDRA KUMAR Feb 14, 2017 10:05 AM

Dear sir I need a pos for my csc centre and cbi banking

Sachin Feb 11, 2017 09:36 AM

Foreign payment gateways like Master Card and Visa Card must be banned for using in India. Instead of this, Banks makes compulsory the use of indian payment gateways like RUPAY CARD instead of Master and Visa Card in india. This act will increase the value of Rupees in the world.

SHIV KUMAR SINGH Jan 06, 2017 07:50 AM

Dear sir I need a pos for my csc centre and cbi banking pls call me 99*******35

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