This document discusses digital transactions in India. It defines digital transactions as seamless, non-cash systems involving multiple participants. The objectives of digital transactions are outlined as reducing corruption, costs of printing currency, and transaction burdens while improving tracking of money flows and reviving the banking sector. Common digital payment methods in India like UPI apps, AEPS, USSD, debit/credit cards, e-wallets are described. Advantages include convenience, discounts and records while disadvantages are technical challenges and security/spending risks.

1. BY:
RASHMI MS
RAYAGOND S B

2. Meaning
Digital Transaction'
A seamless and non-traditional system involving one
or more participants, where transactions are effected
without the need for cash.

3. Objectives
 To reduce the corruption which takes place mostly through the
cash medium
 To reduce the burden of the cost of printing currency and also
handling them.
 The transfer of money from one place to another is also
gruesome.
 To track the movement of money which is not possible
completely in cash medium.
 To revive the banking sector which is high on NPA and bad
loans.
 To make loans cheaper and affordable for everyone.
 In short, cashless is better in all aspects. But there are certain
challenges for India to go completely this way. Otherwise, it's
good for a growing economy like India.

4. PROCESS

6. TYPES
 UPI APPS
 UNIFIED PAYMENTS INTERFACE Is a payment mode which is used to
make fund transfers through the mobile app. You can transfer funds
between two accounts using UPI apps . You will have to register for
mobile banking to use UPI apps. Currently, this service is only available
for android phone users.
 EX: BHIM
AEPS
 Is an Aadhaar based digital payment mode. The term AEPS stands for
Aadhaar Enabled Payment Service. Customer needs only his or her
Aadhaar number to pay to any merchant. AEPS allows bank to bank
transactions. It means the money you pay will be deducted from your
account and credited to the payee’s account directly.

7.  USSD
 Unstructured Supplementary Service Data is a
mobile banking based digital payment mode. You do not need
to have a smartphone or internet connection to use USSD
banking. You can easily use it with any normal feature phone.
USSD banking is as easy as checking your mobile balance. You
can use this service for many financial and non-financial
operations such as checking balance, sending money, changing
MPIN and getting MMID.

8.  Credit cards
 are issued by banks and some other entities authorized by RBI.
These cards give you the ability to withdraw or use extra money.
Credit cards are used for domestic as well as international
payments.
 Debit cards
 are issued by the bank where you have your account. You can
use these cards for the money in your account. The payments
you make with these cards debit from your account and credit
immediately to the payee’s account. You can use these cards to
make payments to one bank account to another.
 Prepaid cards
 are another type of cards which you use to pay digitally. You
must have to recharge these cards before using just like prepaid
SIM cards.

9.  E-Wallets
 E-wallet or mobile wallet is the digital version of
your physical wallet with more functionality. You
can keep your money in an E-wallet and use it when
needed. Use the E-wallets to recharge your phone,
pay at various places and send money to your
friends. If you have a smartphone and a stable
internet connection, you can use E-wallets to make
payments. These E-Wallets also give additional
cashback offers. Some of the most used E-wallets
are State bank buddy, ICICI Pockets,Paytm etc.

10. Advantages
Easy and convenient.
Pay or send money from anywhere.
Discounts from taxes.
Written record.
Less Risk

11. Disadvantages
 Difficult for a non-technical person.
 The risk of data theft.
 Overspending.