Banking terms you need to know for daily use

We Indians are getting digitally savvy, shopping to donation, mails to good wishes everything is done on digital platform.

Our financial habits are also getting the flavour of digital evolution.  We do bankiBanking, investing, transaction with some taps and swipes.
So, I thought of dedicating this post for some terms we often come across specially using banking services.

MICR Code – Magnetic ink character recognition codeThe MICR encoding, called the MICR line, is at the bottom of cheques and other vouchers and typically includes the document-type indicator, bank codebank account number, cheque number, cheque amount, and a control indicator. The technology allows MICR readers to scan and read the information directly into a data-collection device. 


NEFT – NEFT is a facility enabling bank customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one basis. It is done via electronic messages. NEFT settles fund transfers in hourly batches (now 30 minutes batches)with 12 (Now 23 settlements)settlements occurring between 8:00 AM and 7:00 PM on week days. 

RTGS – Real-time gross settlement are specialist funds transfer systems where the transfer of money or securities takes place from one bank to another on a “real time” and on a “gross” basis. RTGS systems are typically used for high-value transactions that require and receive immediate clearing. 

CVV – CVV is an anti-fraud security feature to help verify that you are in possession of your credit card. For Visa/Mastercard, the three-digit CVVnumber is printed on the signature panel on the back of the card immediately after the card’s account number.

IFSCThe Indian Financial System Code (IFS Code or IFSC) is an alphanumeric code that facilitates electronic funds transfer in India. A code uniquely identifies each bank branch participating in the two main Payment and settlement systems in India: the Real Time Gross Settlement (RTGS) and the National Electronic Fund Transfer (NEFT) systems.

mPin – The full form of MPIN is ‘Mobile banking Personal Identification number’. It works as a password when you perform any transaction using mobile. It is a 4 digit (6 digits in some banks) secret code similar to the ATM PIN.

UPI – Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience. 

ECS – Electronic Clearance Service (ECS) scheme provides an alternative method of effecting bulk payment transactions like periodic (monthly/ quarterly/ half-yearly/ yearly) payments of interest/ salary/ pension/ commission/ dividend/ refund by Banks/Companies /Corporations /Government Departments. The transactions under this scheme move from a single User source (i.e. Banks/Companies /Corporations /Government Departments) to a large number of Destination Account Holders (Customers/Investors). This scheme obviates the need for issuing and handling paper instruments and thereby facilitates improved customer service by the Banks and Companies/Corporations/Government Departments effecting bulk payments.

Standing instruction – Standing instructions are a way of making an automatic payment of a fixed amount to a loan, bill, or credit card at the same time every week or month. It can be made from your savings or checking account and is most commonly used to make payments to a mortgage, car loan, or to pay bills


Source – Wikipedia, indiapost

BHIM is here, New UPI app, work in both smartphones and feature phone

How to  use #BHIM App? 

The work is in progress, amidst the demonitisation spree, the e-wallets, credit cards, net banking and all modes of cashless transaction has a new and potent competitor, ruther I would call it a peer. Government with much fanfair, has launched its new UPI app, #BHIM.
I got a glimpse of it. Here you go with the step by step process.
Step 1. download the NPCI APP #BHIM. from your google play store (Android handset)
Step 2. Register your passcode. choose any 4 digit of your choice
Step 3. choose your bank
Step 4. set up account – The app automatically detects your bank account details. You have to just confirm with your debut card details.
Step 5. key in the details and set up your UPI PIN. 
You are good to go.
For people who don’t have a smart phone or don’t want to use the app just yet, your solution is *99#. The USSD code detects your account and gives you 4 options to confirm your bank account. And there on you can’t transact easily, including fetchinh your account balance and seeing mini statement. 
Hold on! there is more information in store about the app, which I want to share with you.
1. It works like your debit card , not credit card. So, using other mode of transactions are not getting obsolete.
2. It has a spending limit of 10 thousand per transaction and daily limit of Rs. 20 thousand.
3. I can see 33 banks are supporting this app, including most of the major banks. 
4. You can even remind for payments using the app
My point – Great initiative by Indian Government towards financial inclusion and penetrating rural India will be swift on #cashless or #lesscash journey. However, savvy users have many more options which are equally or more rewarding as well as convinient. So, BHIM is going to have its peers running paralally with it in this country with immense diverse population. Welcome aboard #BHIM. You will definitely have a good journey with us. 

#CASHLESS #BHIM

Money goes digital – how do I do online transactions

Online transactions are easy, safe and convinient. There is no tension of getting theft or losing money in the crowded market place or in a hospital. It is accepted every established shops, cinema hall, jewellery shops, hospitals even can services.

It wasn’t any different day for Rajiv, he woke up, looked at his mobile, checked the news app, freshenup, got ready and booked an UBER cab, today he had got Paytm offer, so paid by it. He got down right at the office door, he found many people gathered in groups discussing #demonitisation. Though he wanted to share his views too, but he was running late and wanted to have breakfast at office cafeteria, he had a full plate chole nature and paid by his preloaded card and entered his desk. His work was going smooth with occasional interruption with the demonitisation of currency, suddenly a reminder popped up! it was his fiance’s birthday and he had forgotten it. An idea struck his mind, he checked and found an online offer on cake and bouqet, he paid through credit card and ensured a delivery to her office within 1 hour making it a real big surprise for bday!
Day passed by and he managed very well with cards, net banking,credit cards, pre paid card hardly disturbing his daily routine.

But this is not the case with all of us. It’s high time we understand the benefit digitisation of money and ease of using it. 
How do we get at ease with digital transactions
There are atleast 6 broad category available to make most of your money digitally.
1. Net banking – Most of the time it is sheer inertia or misconceptions to create a net banking account attached to your existing savings account more than fear of online money theft. This has become all the more convenient with the launch mobile applications in the same. One can use it for checking balance, create fixed deposits, recurring deposits, transfering money to other accounts, pay utility bills, credit card bills, buy mutual funds, insurance and even apply for #IPO. For transactions, one can opt for #NEFT #RTGS #IMPS options available in the website itself. These secured transactions with password and security check through mobile varification.
Debit card – This is the oldest form of plastic money. Very common yet less used in transactions other than withdrawing money from ATM. With the ATM PIN, one can use it for online transactions as well as at merchant counters i.e. shopping, dining, movie tickets everything. 
Credit card –This mode exist as long as debit cards, but this is a tricky one. This is not your money, this is a short term loan which attracts very high interest on non payment in he stipulated time. This is a good mode if one uses responsibly. 
Online wallets 
This segment is picking up in India. This wallets can be loaded with money using netbanking and can de used in small amounts.The best part about the online wallet is transaction gateways are not exposed to the bank accounts, hence safer. These are like actual wallets and money can be transfered to anyone with the same online wallet. #Paytm #MPesa are some example of e-wallets. There are some charges attached when you transfer the wallet money to your own account.
UPI – It is government’s answer to e-wallet.It is an interface through which account holder of one bank can transfer/receive money to someone having account in same/different bank through smartphone. Multiple bank accounts can be linked to a single cell phone. The transaction takes place through virtual address hence, no requirenent of bank details There would be no need to enter bank details.Transaction can be authorised by entering either Aadhar card number or mobile phone number. It can be used for shopping, Bill payments etc.

Prepaid cards – It is nothing but your own money loaded in the card, can be used like a debit card, howeve unlike your debit card it is not attached to your savings account

Banking simplified with #Unified payment system #Cashless transaction

What is Unified Payment System #UPI
Cashless transactions in India to become more common with UPI, a recently launched smartphone based #payment system that lets money transfer and remittance service between bank accounts, merchant payments without divulging sensitive information like credit card numbers, #netbanking psswords, #IFSC codes. It can be used for bank transfers, bill payments, #merchant payments online and offline.
·         National Payments Corporation of India (NPCI) officially launched the facility for 19 banks.
How to get started
·         UPI app of banks will soon be available on Google Play Store for download
·         You only will need to get the app and install in your phone, set up the login details t create a virtual address
·         Add bank account details, Set M-Pin
·         Start transacting using UPI
·         UPI system will allow you to transfer funds safely and instantly as an SMS.
Use it for –
1. Bank transfer
2. Electricity/ phone/ credit card bill payments
3. Buying movie tickets/ railway/ airline tickets
4. Online shopping
5. Insurance premium payments
6. Donation
7. School fee
And replace many other cash payments
List of banks – #Andhra Bank, #Axis Bank, #Bank of Maharashtra, #Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES Bank

News source: Livemint, BusinessLine
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