Maharaja Institute of Technology

Thandavapura
Department of Mechanical Engineering
(Approved by AICTE, New Delhi and Affiliated to VTU, Belagavi)
(Recognized by GoK and Certified by ISO 9001:2015 & ISO
21008:2018)

“DIGITIZED TRANSACTIONS”

A Submission in Fulfillment of the

Requirements for the Award of Activity Points

By

CHANDRASHEKHARA K S
4MN21ME404

Under the Guidance

of
Dr. T Venkategowda

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 TABLE OF CONTENTS

SL.NO CONTENTS PAGE NUMBER

1 INTRODUCTION TO DIGITAL INDIA 3
2 MEANING OF 100% DIGITIZED TRANSACTIONS 4
3 ACTIVITIES CONDUCTED 5-6
4 RESULTS AND FINDINGS 7 - 10
5 OBSERVATIONS AND LEARNINGS 11- 13
6 PICTURES 14 - 15
7 REFERENCES 16

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 INTRODUCTION TO DIGITAL INDIA

Digital India is a Program to transform India into digital empowered society and knowledge
economy. The Digital India is transformational in nature and would ensure that Government
services are available to citizens electronically.

Digital India is a campaign launched by the Government of India in order to ensure the
Government's services are made available to citizens electronically by improved online
infrastructure and by increasing Internet connectivity or making the country digitally
empowered in the field of technology.

The initiative includes plans to connect rural areas with high-speed internet networks. It consists
of three core components: the development of secure and stable digital infrastructure, delivering
government services digitally, and universal digital literacy.

Launched on 1 July 2015, by Indian Prime Minister Narendra Modi as of 31 December 2018,
India had a population of 130 crore people (1.3 billion), 123 crore (1.23 billion) Aadhaar digital
identity cards, 121 crore (1.21 billion) mobile phones, 44.6 crore (446 million) smartphones, 56
crore (560 million) internet users up from 481 million people (35% of the country's total
population) in December 2017, and 51 per cent growth in e-commerce.

The program has been favored by multiple countries including the US, Japan, South Korea, the
UK, Canada, Australia, Malaysia, Singapore, Uzbekistan and Vietnam. At the launch ceremony
of Digital India Week by Prime Minister Narendra Modi in Delhi on 1 July 2015, top CEOs
from India and abroad committed to invest ₹224.5 lakh crore (US$3.0 trillion) towards this
initiative.

The CEOs said the investments would be utilized towards making smartphones and internet
devices at an affordable price in India which would help generate jobs in India. Digital India has
also been influential in promoting the interests of the Indian Railways.

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 MEANING OF 100% DIGITISED TRANSACTIONS

A digital transaction is a seamless system involving one or more participants, where transactions
are affected without the need for cash. The digital transaction involves a constantly evolving
way of doing things where financial technology (fintech) companies collaborate with various
sectors of the economy for the purpose of meeting the increasingly sophisticated demands of the
growing tech savvy users. A digital transaction is a process by which transactions take place
without the use of cash.

A digital transaction involves the collaboration of several parties including large financial firms
and a number of sectors within the economy. Examples include swiping a debit card at a store,
paying for a purchase online, or transferring money from an app to your bank account. These
kinds of transactions have become increasingly prevalent and necessary as consumers move
from a cash- powered economy to a digital one.

As the needs of investors and financial service users become more complex, there is a demand
for effective tools to simplify the processes and transactions carried out by end-users. It is
inevitable that financial institutions would have to increase the number of digitized services and
offerings, given a rise in the use of automated services. Implementing technology in the
financial industry is a necessity for the survival of businesses as customers seek lower-cost
alternatives to traditional financial services. Fintech companies have led the revolution in
transforming the financial sector by digitalizing the end-client’s transactional eco-system.

The e-commerce portal has provided a means by which buyers and sellers can engage in digital
transactions; cloud service platforms have provided a digital process for storing data;
crowdfunding gateways have provided a means by which individuals and start-ups can have
access to funds; peer-to-peer lending forums have provided a way for individuals to lend to and
borrow from each other without the hassles of the traditional banking regulation; rob advising
tools have provided a way for individuals to plan their retirement phase;

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 ACTIVITIES CONDUCTED

Educate Consumers, many consumers are still wary about using digital payments, but if
companies can educate their customers on the security advantages of digital payments, more
consumers will be comfortable with the new form of payment. Consider displaying signage in
your business or using email marketing to explain to customers how digital payments are much
more secure than traditional transactions

Types of Digital Payment Methods in India:

• Banking cards.
• USSD.
• Aadhaar Enabled Payment System (AEPS)
• UPI. • Mobile Wallets.
• Bank pre-paid cards.
• Point of Sale
• Internet Banking.
• Mobile Banking
• Bharat Interface for Money (BHIM) app

Banking Cards: Cards are among the most widely used payment methods and come with
various features and benefits such as security of payments, convenience, etc. The main
advantage of debit/credit or prepaid banking cards is that they can be used to make other types
of digital payments.

UPI: UPI is a type of interoperable payment system through which any customer holding any
bank account can send and receive money through a UPI-based app.

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Mobile Wallets: A mobile wallet is a type of virtual wallet service that can be used by
downloading an app. The digital of mobile wallets stores bank account or debit/credit card
information or bank account information in an encoded format to allow secure payments.

Internet Banking: Internet banking refers to the process of carrying out banking transactions
online. These may include many services such as transferring funds, opening a new fixed or
recurring deposit, closing an account, etc. Internet banking is also referred to as e-banking or
virtual banking.

Mobile Banking: Mobile banking is referred to the process of carrying out financial
transactions/banking transactions through a smartphone. The scope of mobile banking is only
expanding with the introduction of many mobile wallets, digital payment apps and other
services like the UPI.

Bharat Interface for Money (BHIM) app: The BHIM allows users to make payments using
the UPI application. This also works in collaboration with UPI and transactions can be carried
out using a VPA. One can link his/her bank account with the BHIM interface easily. It is also
possible to link multiple bank accounts.

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 RESULTS AND FINDINGS

Increase in transactions being converted into EMIs owing to the slowdown

Increase in usage of DBT rails by governments

Contactless payments, SMS link-based payments and wearables will see an uptick

Increase in customer education initiatives and measures to combat fraud, Increase in virtual card
issuance and usage.

Increased online presence of small and medium businesses

Payment processors will be encouraged to invest in service quality and to increase infrastructure
and capacity

Online, paperless processes to issue products like unsecured loans and credit cards without any
in- person contact

Shift in consumer behavior – greater adoption of digital payments

Consolidation in the payments sector with a view to survive – possible deal activity

Registration is required for making an online transaction. If someone wants to buy goods from a
particular website, then he/she needs to register with the online vendor by filling up a
registration form.

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Transaction History:

1. Open phone Pay.

2. From the bottom of the screen, slide your finger up to show your contacts. To see all
transactions: At the bottom of the screen, tap All transactions. To see transactions with a
specific person: Tap the contact.
3. Click on each transaction to view more details.

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 OBSERVATIONS AND LEARNING

Create complaint and feedback channels: Digital financial transfer recipients sometimes
experience difficulties accessing the complaints and feedback mechanism systems, or having
their problems addressed.

Increase financial and digital literacy: The recipients of government benefits are usually low
income with limited or no exposure to digital payments. Digital transfer programs are typically
rolled out at a fast speed, which means the recipients may find it challenging to understand and
access the digital tools. Governments can partner with business and non-governmental
organizations to create education campaigns targeting specific capacity challenges through
popular media channels among target groups in local languages.

Spread information to increase inclusivity: Lack of identification, living in rural areas,

limited information of eligibility criteria and enrollment information, disabilities, poor
connectivity and limited agent network outreach have all contributed to excluding people from
participating in digital transfer programs.

Learn from transaction failures: Factors that lead to transaction failures include poor
connectivity, the poor performance of a payment partner’s system, or a mismatch in
biometrics/identities due to the poor quality of biometrics captured at enrolment or the matching
algorithm.

Provide details about cash-out points: Given most of the transactions among digital transfer
program recipients may still require cash, it is important to provide Information on cash-in and
cash-out points. There is a need for governments and private sectors to work together to come
up with a common platform that maps cash-in and cash-out points across various service
providers

Observe social distancing: Social distancing still needs to be observed in cash-in and cash-out
points to avoid the health and safety risks of overcrowd

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Form link: https://forms.gle/GbQY8xcrTfK9re9A8

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13
PICTURES:

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 REFERENCES

https://en.wikipedia.org/wiki/Digital_India

Prakash, Amit. "Digital India needs to go

local". The Hindu. Retrieved 26 February

2017.

Mannathukkaren Nissim. "The grand delusion of Digital India". The Hindu. Retrieved 26 February
2017.

https://www.pwc.in/consulting/financial-services/fintech/dp/impact-of-the-covid-19-outbreak-
on-digital-payments.html

https://www.investopedia.com/terms/d/digital-transaction.asp

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