The whole nation was stunned on our PM's announcement of withdrawal of the legal tender, now SBNs (specified Bank notes ) of Rs. 500/- & 1000/- denominations from 09th Nov'16. The subsequent caps on drawing out money from Banks & ATMs running out of lower denominations left the common man to find new avenues for spending /purchasing basic necessities. However, there may be some difficulties for a couple of months. But this inconvenience shall be temporary and definitely for short-term.
POST DEMONISIATION the next BIG question which the nation faced was :
1. WHICH DIGITAL PAYMENT OPTION SHOULD BE USED?
2. WILL IT BE USER FRIENDLY?
3. WILL IT BE SAFE ?
4. WILL IT BE CONVENIENT?
So here’s a list of Digital Payments which you can opt for making a transaction without cash:
1. Debit Cards
2. Credit Cards
5. E WALLETS
1. Debit Cards: They are popularly known as Plastic money. Banks provide customers with debit cards for every savings, current or overseas accounts they open. It’s used for accessing your Savings account in any Bank through any ATMs.You can even deposit and withdraw as per your convenience without standing in long queues.
When a debit card swipe happens, the money comes directly out of the customer’s bank account and is immediately transferred to the merchant. Instant payments with instantly available cash in customers account. Debit card users receive monthly statements which give them an idea about their card spends and ATM transactions, helping them track and plan their expenses.
2. Credit cards : You can apply for credit card through any Bank. The Bank you apply carefully screens your application and then a credit limit is set based on your financial capability and other parameters like income levels, educational qualifications, age etc. Credit cards act as a help to manage short term cash flow by allowing you to make purchases without using your own money. A credit card may be used for purchases in person or over the phone or online.Credit cards incur interest on daily outstanding balances on purchases & cash advance transactions.
3.RTGS/NEFT :RTGS and NEFT are fund transfers for the benefit of the customers which allow accounts holders in the banks to electronically transfer the funds intra-bank. In the case of RTGS, settlement in on 'Real Time' basis whereas in case of NEFT the settlement in on batch basis and net basis. The minimum limit for RTGS is Rs. 2 lacs whereas NEFT doesn’t have any minimum limit. The charges applicable are bare minimum Inward transactions no charges & outward transactions say for 02 to 05 lakhs it should be around Rs. 30/- per transaction & for NEFT outward transactions cost upto 02 lacs should be 15 +service tax.
*Please note that the timings of both RTGS and NEFT at the bank can vary depending on the customer timings of the bank branches.
3. UPI : UPI is a payment system that allows money transfer between any two bank accounts by using a smartphone without the hassle of typing credit card details, IFSC code, or net banking passwords. You can download the app from Play Store and create a virtual address. Further add your bank account details set M-Pin. The per transaction limit is Rs.1 lakh.
4. USSD : USSD (Unstructured Supplementary Service Data) There are times when we don’t have access to internet, and this is exactly when USSD-based mobile banking can be used . Essentially, it will work on a basic phone with black-and-white display and on smartphones. According to the RBI, the USSD payment method can be used for sending money as low as Re 1, and as much as Rs 5,000 per transaction.
5. E-WALLETS :E-wallet is a type of pre-paid account wherein you can store your money for any future online transaction. An E-wallet is protected with a password. With the help of an E-wallet,one can make payments for groceries, online purchases, and flight tickets etc.
6. IMPS : Immediate Payment Service (IMPS) is an instant real time inter-bank electronic fund transfer i.e it works 24 X 7 using mobiles. Using this you will now be able to receive or send money even on Sundays and Bank Holidays or late at night. For fund transfer facility both the sender & beneficiary must be registered under IMPS. There is no minimum limit for IMPS. The maximum limit is set based on your bank.
THERE IS NO SINGLE 'BEST' PAYMENT OPTION FOR EVERYONE AND FOR ALL TRANSACTIONS. HOWEVER, YOU COULD TRY TO PICK A PAYMENT OPTION SUITABLE FOR YOUR PURPOSE DEPENDING ON THE COST & TIME FACTOR !!!
!!!! Go Cashless Go Digital !!!!