Recently, India took a historic step to demonetize the Rs 500 and Rs 1000 currency notes to fight corruption and black money. There is a struggle to exchange cash or make payments without using the banned currency. Individuals are facing difficulty in making payments or paying bills on time due to a cash crunch.
For individuals who have been reluctant to adopt to new-age banking technology now is the time to go cashless and make hassle free payments.
Here is how you can go cashless by using apps, and wallets:
Individuals, bank customers should be aware that bill payment, premium payments can be made using electronic wallets and one can safely maintain money in e-wallets and use it as and when required.
No need to enter all the details when making payment from e-wallets. Once an E-wallet is downloaded and money is added it can be used at online grocery stores, for mobile recharge and to book railway tickets.
Paytm, MobiKwik, and Freecharge are some of the popular mobile wallets that are available on Apple store for android users.
Banks like HDFC, ICICI Bank, YES Bank and SBI have launched their own bank apps to cater to the needs of customers on the go.
These apps can be downloaded from Appstore and provide one-time bank details. Load cash through a card or using net banking to start making payments. The amount in bank wallet can be used to transfer funds, make mobile, DTH, data card or smart tag recharge or bill payments.
Bank apps are governed by the Reserve Bank of India as per pre paid card guidelines.
HDFC- Payzap, SBI- Buddy, ICICI- Pockets are some of the popular bank apps available.
UPI is a payment solution which allows you to transfer money between two accounts, with just a few clicks. Your smart phone can be used for transferring funds or making payments including person to person, person to an entity, and entity to person.
As of now 29 banks have agreed to provide UPI services to their customers.
Bank customers can use Real Time Gross Settlement (RTGS) for transferring funds on line. The minimum amount to be transferred should be above Rs 2 lakh and maximum amount can be Rs 10 Lakh.
NEFT has no limit either minimum or maximum - on the amount of funds that could be transferred using NEFT.
IMPS basically involves a transfer mechanism using the mobile phone. Now, most of the banks allow the transfer through IMPS including the reputed banks like State Bank of India, ICICI Bank, and Axis Bank.
Note that there are certain limitations such as State Bank of India, which permit only one beneficiary in a day.
Making payments using a debit card, a credit card is one of the best and easy way to make payments. It saves time as you need not withdraw cash from ATM or Bank, and can easily keep track of the payments made.
Debit cards come with a limit on withdrawal or using at PoS, one should check with the bank and know the limitation on your card as it will depend on the type of card and account you have.