Devotion Logo

Top Login

Debit cards draw money directly from your checking account when you make the purchase or draw cash. Thus, when you use a debit card, the money is deducted from the account maintained by you. It is spend now and pay now option. A credit card allows you to borrow money from the issuing bank. With a credit card, you’re borrowing money to be repaid later. It is spend now and pay later option. Debit cards have conclusively displaced credit cards as the primary mode of payment in the country following demonetization.

State Bank of India (SBI) and marquee private equity investor Carlyle Group will acquire GE Capital Group’s entire 26 percent stake in SBI Card. SBI Card is a joint-venture between SBI Cards and Payment Services and GE Capital Business Process Management Services, which issue credit cards and process card transactions.

Transactions through debit and credit cards rose by merely seven per cent post demonetisation, as against a surge of over 23 per cent in overall digital transactions. The highest jump was witnessed in transactions through UPI. UPI or Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application for seamless fund routing and merchant payments into one hood.
The Unified Payments Interface (UPI) has grown the fastest among all retail modes of payment since demonetisation. The Unstructured Supplementary Service Data (USSD), an SMS-based money transfer service, has largely seen a decline since January, as cash came back into the system and the usage of the Bharat Interface for Money (BHIM) app took off after December after demonetization. BHIM is available for use on feature phones and, as such, competes directly with the USSD service.
Paytm can also be used to pay at thousands of apps and websites for services like recharges and bill payments, movie tickets, travel bookings, food ordering and shopping. With its focus on mobile payments, the company is inching closer to its aim of making cashless transactions a way of life across India.
National Payments Corporation of India (NPCI), the umbrella organisation for all retail payment systems, has received a final nod from the Reserve Bank of India to function as the Bharat Bill Payment Central Unit (BBPCU) and operate the Bharat Bill Payment System (BBPS). On August 31, 2016, 8 BBPS operating units, which received in-principle approval from RBI, took part in the pilot. Almost after a year of running the pilot, streamlining the technology and business processes, NPCI has now received final clearance from RBI.

A. P. Hota, MD & CEO, NPCI said, “There is a specific direction from RBI to operate the Central Unit as a Strategic Business Unit of NPCI. Nearly 45 crore bills comprising electricity, telecom, DTH, water and gas are permitted under BBPS. This initiative will provide a major push to digital payments as it is a big step forward in formalising the bill payment system in the country.”

The total number of Bharat Bill Payment Operating Units (BBPOU) certified by NPCI now stands at 24. The certified units include three public sector banks (Bank of Baroda, Union Bank of India and Indian Overseas Bank), 10 private banks, five cooperative banks and six non-bank biller aggregators. Major public sector banks including State Bank of India (SBI) are still under certification. The real impact would be visible only when SBI joins.

The Bharat Bill Payment System (BBPS) is an RBI conceptualised system driven by National Payments Corporation of India (NPCI). It is a one-stop payment platform for all bills, providing an interoperable and accessible “Anytime Anywhere” bill payment service to customers across the country with certainty, reliability and safety of transactions.