Digital Payments
Banking · डिजिटल भुगतान
📋Quick Overview
India has witnessed a digital payments revolution, especially after demonetization in November 2016. Key payment systems include UPI (Unified Payments Interface, launched 2016 by NPCI), NEFT (now 24x7), RTGS (real-time, minimum ₹2 lakh), IMPS (24x7, up to ₹5 lakh), and Aadhaar Enabled Payment System (AePS). The BHIM app (Bharat Interface for Money) was launched on 30 December 2016 by PM Modi. India's digital payment ecosystem is managed primarily by NPCI (National Payments Corporation of India) under the guidance of RBI.
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UPI launched: 11 April 2016 | BHIM app: 30 Dec 2016 | NEFT: 24x7 since Dec 2019 | RTGS: min ₹2 lakh, 24x7 since Dec 2020 | IMPS: 24x7, up to ₹5 lakh
📖Major Digital Payment Systems
| System | Full Form | Key Features | Managed By |
|---|---|---|---|
| UPI | Unified Payments Interface | Instant transfer via VPA/mobile, 24x7, free, launched 2016 | NPCI |
| NEFT | National Electronic Funds Transfer | Batch-wise transfer → now 24x7 (since Dec 2019), no minimum amount | RBI |
| RTGS | Real Time Gross Settlement | Real-time, minimum ₹2 lakh, 24x7 since Dec 2020, for large value | RBI |
| IMPS | Immediate Payment Service | 24x7, instant, up to ₹5 lakh, via mobile/internet | NPCI |
| AePS | Aadhaar Enabled Payment System | Bank transactions using Aadhaar + biometrics at micro-ATM | NPCI |
| USSD | Unstructured Supplementary Service Data | Banking via *99# on any phone (even non-smartphone) | NPCI |
| e-RUPI | Electronic Rupee Voucher | Digital voucher for specific purpose payments, launched Aug 2021 | NPCI |
| BHIM | Bharat Interface for Money | UPI-based payment app, launched 30 Dec 2016 by PM Modi | NPCI |
📖NEFT vs RTGS vs IMPS
| Feature | NEFT | RTGS | IMPS |
|---|---|---|---|
| Settlement | Batch-wise (now continuous 24x7) | Real-time, individual | Instant, real-time |
| Minimum Amount | No minimum | ₹2 lakh | ₹1 |
| Maximum Amount | No limit (₹10 lakh for online) | No maximum limit | ₹5 lakh |
| Availability | 24x7 (since Dec 2019) | 24x7 (since Dec 2020) | 24x7 (always) |
| Managed By | RBI | RBI | NPCI |
| Charges | Free (since Jan 2020) | Free (since July 2019) | Bank may charge small fee |
📝Key Facts — Digital Payments
- •Demonetization (8 Nov 2016) gave major push to digital payments in India
- •Digital India initiative launched on 1 July 2015 by PM Modi
- •UPI processes billions of transactions monthly — India leads globally in real-time payments
- •e-RUPI launched on 2 August 2021 — person-specific, purpose-specific digital voucher
- •CBDC (Central Bank Digital Currency) = Digital Rupee, launched as pilot by RBI in Dec 2022
- •UPI available internationally: Singapore, UAE, France, Sri Lanka, Mauritius, Nepal, Bhutan