Page 24 - Banking Finance February 2021

ARTICLE

evolving needs and behaviors and have enabled access to a Various calls for using digital payments to reduce social
wide range of banking and financial services through contact and contain Covid-19 outbreak. National Payment
different digital platform. Banks in India are putting in place Corporation of India has also fast-tracked the onboarding
robust foundation for digital infrastructure and are system of UPI/UPI-QR to make it totally contactless and fully
innovating using digital technologies across all channels to online, for both vendors and merchants. With this customers
deliver the power of speed convenience to all segments of can use UPI to pay for essentials and transfer money digitally
customers. without the risk of physical contact.

Banks and financial institutions now require to finally catch The National Payment Corporation of India (NPCI) has come
up to customer's digital expectations during pandemic ! out with a circular urging Indians to use digital payments,
Customer's lifestyle their habits are increasingly motivated especially during the coronavirus (COVID-19) crisis. This is
and directed by the speed and simplicity of online services, to reduce social contact without the exchange of cash notes
the same is true of how they want to bank and this is the and coins, therefore reducing the chance of transmission of
reason how the world is still on the wheel which are moving COVID-19. NPCI, along with banks and ecosystem partners,
yet with the help of mobile banking. will help every citizen during the current lockdown period
through robust digital payment infrastructure.
Today people expect instant access to online banking services
that can help ensure they don't miss out on life changing The transition for banks from routine day to day operations
to remote setups has been so seamless that consumers
movements or ways to improve their life standards. Through
haven't noticed a single operational change. It's a testament
services like mobile check deposit, hands - free - person - to of the bankers that their customers are first and they are
person - payments or just having a banker to assist in
customer centric and that is what is driving their business
customer service issues, financial institutions have been
to new heights. Development of whole eco system of digital/
where their customers have needed them. mobile banking is key to success during the COVID-19
pandemic.
Government has also taken advantage of mobile or cash less
financial services like anytime, anyplace banking regardless To cater to the fast changing expectation of the customers
of what is going on in the world. DBT (Direct Benefit constant development of new products and services
Transfer) is a scheme launched by Government of India to and enhancement, a dedicated focus on digital innovation
transfer the benefits and subsidies of various social welfare is of prime importance. When COVID-19 grabbed the
schemes like LPG subsidy, MNREGA payments, Old Age entire economy and shut the doors of many business, the
Pension, Scholarships etc. directly in the bank account of the self employed found themselves able to work but with the
beneficiary. threat of spread, found little to no interest in contracted
payments.
Apart from less human involvement the primary aim of this
Direct Benefit Transfer program is to bring transparency and A barrier emerged for all those split rent payments,
terminate pilferage from distribution of funds sponsored by handyman work, monthly allowances and more. Cash
suddenly did not work anywhere anymore. At that time it
Central Government of India. Data from RBI site as on July,
20 of mobile banking transactions comprising of 219 banks is felt that only 30% to 35% customers are digital enabled
that too using only digital channels for banking.
are as under ::

National electronic fund transfer (NEFT) - July 2020
Total Outward Debits Received Inward Credits
No. of Outward Amout No. of Inward Amount
Transactions (Rs. Lakh) Transactions (Rs. Lakh)
Total (No. of transactions in lakh and Amount 2401.0 1963113.4 2401.0 1963113.4
in crore)

24 | 2021 | FEBRUARY | BANKING FINANCE