It is a presentation made on digital payment method on basis of data collected from RBI website

1. DIGITAL PAYMENT SYSTEM IN
BANKING: AN INNOVATIVE ETHICAL
PRACTICE
CHAUDHARY SAKET KUMAR DR. RAVI VYAS
RESEARCH SCHOLAR ASSISTANT PROFESSOR
SCHOOL OF COMMERCE, DAVV SPIPS

2. INTRODUCTION
o Traditional banking started in 18th century and matured in 20th.
o Data processing and data transmission became easier with the advancement in ICT Tools.
o Core (CBS) banking-a wide network of banks.
o Banks’ customers to customers’ banks’-The Customers became the king.
o National Payment Corporations of India (NPCI) - an umbrella organization

3. NEFT
M-BANKING
M-WALLET

4. LITERATURE REVIEW
Various common inferences drawn :
o Move towards cashless economy will take much time to have completely cashless economy.
o Biggest challenge in front of government is the lack of knowledge and awareness among people
and fear of loss of money by use of digital payment method.
o Many people actually agree with the government on the usefulness of cashless economy as it
helps to fight against terrorism, corruption and money laundering.
o The ability to carry out banking transactions through the internet has empowered customers to
execute their financial transactions within the comfort of their homes.

5. RESEARCH OBJECTIVES
I. To illustrate the digital transformation in banking payment system.
II. To study the trend in digital payments through NEFT, M-Wallet and M-Banking.
III. To understand the trend in online payments before and after demonetization.

6. RESEARCH METHODOLOGY
• Descriptive paper
• Secondary data
• RBI website and other source
• Organization & classification of data
• Indexing and graphical technique

7. RESULT AND DISCUSSION
oDigital transactions over seven years.
oYear 2012-13 taken as base year
oEffect of demonetization

8. Figure-1.1 -Trend showing NEFT transactions in value
and volume
0
100
200
300
400
500
600
700
800
900
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
NEFT Transactions In India
NEFT-Volume NEFT-Value

9. Figure-1.2 -Trend showing M-WALLET transactions in
value and volume
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
m-WALLET Transactions In India
m-Wallet-Volume m-Wallet-Value

10. Figure-1.3 -Trend showing M-BANKING transactions in
value and volume
0
10000
20000
30000
40000
50000
60000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
M-Banking Transactions in India
Mobile Banking-Volume Mobile Banking-Value

11. Figure 1.4 Showing pre and post effect of
demonetization in digital payment (2 years)
2506.54
1209.08
941.38
0 1000 2000 3000 4000 5000 6000 7000 8000
NEFT
M-Wallet
M-Banking
Effect of Demonetisation
Post Demonetisation Pre Demonetisation

12. KEY FINDINGS
• Remarkable growth in use of NEFT, m-banking and m-wallet mode of payment in the last seven years.
• M-Banking –Highest Exponential growth
• People used these payment modes frequently but of smaller denominations (values)
• Demonetization has considerably increased digital payment in the country.

13. SUGGESTIONS
• To increase digital literacy
• Minimize digital frauds
• Development of robust digital payment system
• Minimize transactions charges on digital payment
• Development of user friendly environment in digital payment mode.
• Promote awareness by banks among their customers about digital mode of payment.

14. CONCLUSION
• NEFT, m-banking and m-wallet -innovative digital payment
• Exponential trend in digital payments through NEFT, m-wallet and m-banking.
• Ethical because of less paper wastages and increased transparency in payment.
• Paytm, phonePe etc offering various discounts and cash-back offers to encourage customers to pay
digitally.
• Banks reduced various transactions charges & increased digital circulations of money.
• Demonetization affected payment habit of customers.
• India progressing towards cashless economy at an remarkable pace.

15. LIST OF TABLES-1
FIGURE 1.1 TREND SHOWING NEFT TRANSACTIONS IN VALUE AND VOLUME, DATA SOURCE RBI
FIGURE 1.2 TREND SHOWING M-WALLET TRANSACTIONS IN VALUE AND VOLUME, DATA SOURCE RBI
Year
2012-
13
2013-
14
2014-
15
2015-
16
2016-
17
2017-
18
2018-
19
NEFT-
Volume 100 168 235 318 412 494 588
NEFT-Value 100 151 206 287 414 593 785
Year
2012-
13
2013-
14
2014-
15
2015-
16
2016-
17
2017-
18 2018-19
m-Wallet-
Volume 100 329 780 1847 4983 9251 12654
m-Wallet-Value 100 291 818 2058 5324 10868 18365

16. LIST OF TABLES-2
FIGURE 1.3 TREND SHOWING M-BANKING TRANSACTIONS IN VALUE AND VOLUME
FIGURE 1.4 SHOWING PRE AND POST EFFECT OF DEMONETIZATION IN DIGITAL PAYMENT (2 YEARS)
Year
2012-
13
2013-
14
2014-
15
2015-
16
2016-
17
2017-
18
2018-
19
Mobile Banking-
Volume 100 178 323 731 1832 3512 11619
Mobile Banking-Value 100 374 1728 6745 21874 24601 49357
Method NEFT M-Wallet M-Banking
Pre Demonetization 2506.54 1209.08 941.38
Post
Demonetization 4087.24 6675.67 5513.39

17. REFERENCES
1.HTTPS://RBI.ORG.IN/SCRIPTS/NEFTVIEW.ASPX
2.HTTPS://DBIE.RBI.ORG.IN/DBIE/DBIE.RBI?SITE=HOME
3.BAGHLA , A(2018); A STUDY ON THE FUTURE OF DIGITAL PAYMENTS IN INDIA ;IJRAR ,VOL 5 ISSUE 4 , OCT. – DEC. 2018;85-89
4.SAGAYARANI D.( E-ISSN: 2278-487X) JOURNAL OF BUSINESS AND MANAGEMENT ; PP 28-33
5.SINGH, P. (2013). AN EXPLORATORY STUDY ON INTERNET BANKING USAGE IN SEMI - URBAN AREAS IN INDIA. INTERNATIONAL JOURNAL OF
SCIENTIFIC AND RESEARCH PUBLICATIONS, 1-5
6. SINGH S. AND RANA R, STUDY OF CONSUMER PERCEPTION OF DIGITAL PAYMENT MODE; JOURNAL OF INTERNET BANKING AND
COMMERCE, DECEMBER 2017, VOL. 22, NO. 3.
7.MATTHEW NO SADIKU, MAHAMADOU TEMBELY, SARHAN M MUSA: DIGITAL MONEY: JOURNAL OF SCIENTIFIC AND ENGINEERING
RESEARCH, 2016, 3(6):113-115
8.SAINI. B. M, DEMONETIZATION – METAMORPHOSIS FOR CASHLESS INDIA, INTERNATIONAL JOURNAL OF SCIENCE AND RESEARCH, 2015.

18. THANK YOU