Contemporary Banking,

Payment and Insurance

 • Unit-I: Introduction to

Financial Institutions
COURSE
CONTENT • Unit-II: BankingTech

• Unit-III: PayTech

• Unit-IV: LendingTech

• Unit-V: InsurTech
 Unit-III
PayTech
 Overview of PayTech

 Various modes of payments (Cash, Cheques, Credit Cards, Bhim UPI, BNPL)

 India’s changing payment dynamics

 Evolution of PayTech Market

 India’s Prominent Paytech firms and their business model

 PayTech regulators and regulations

  Paytech is the intersection of
payment and technology, a sub-
industry within fintech that focuses
solely on payments and transactions.

 Paytech companies range from

Meaning of payment facilitators and payment

service providers (PSPs) to networks

PayTech creating new payment propositions

and payment technology suppliers.

 The digital payments market is the

largest fintech product segment,
accounting for more than 80% of
global fintech revenues.
Total Number Of Digital Payments Across India From
Financial Year 2018 To 2024 (in Billions)
Pre-Digital :
Not too long ago, cash transactions were the norm in India, posing challenges
such as tax evasion, corruption, and a lack of financial transparency. This era
witnessed the introduction of Electronic Funds Transfer (EFT) systems like NEFT
and RTGS, marking the initial steps towards a more digitized financial ecosystem.

Rise of Plastic Money:

The mid-2000s saw a surge in the usage of debit and credit cards, providing
consumers with convenient alternatives to cash transactions. This shift not only
encouraged consumer spending but also laid the groundwork for a more
organized and formalized economy.

Mobile Payments and Digital Wallets:

The advent of smartphones and increased internet penetration paved the way for
mobile payments and digital wallets. Platforms like Paytm, Google Pay, and
PhonePe emerged, offering users the convenience of making transactions,
recharging phones, and paying bills at their fingertips. This era witnessed a
significant leap towards financial inclusion, especially in rural areas.
Unified Payments Interface (UPI) Revolution:
The introduction of UPI by the National Payments Corporation of India
(NPCI) revolutionized the digital payments landscape. UPI enabled
seamless, real-time transactions between bank accounts through
smartphones, fostering a more connected and efficient payment ecosystem.
The simplicity and interoperability of UPI played a pivotal role in
encouraging widespread adoption.

Bharat Bill Payment System (BBPS) and Contactless Payments:

BBPS streamlined bill payments, providing a unified platform for various
services. Contactless payments using Near Field Communication (NFC)
technology gained popularity, offering users a secure and swift mode of
Share of Payment System across India in Financial
Year 2024(by Volume)
IMPS Debit Card

NEFT Credit Card

Mobile
RTGS Banking
Various
Internet
UPI Payment Banking

Methods in PPI
NETC
India
NACH AEPS

BNPL BBPS

SWIFT PWP USSD

 Immediate Payment Services (IMPS)

 IMPS is based on National Financial Switch (NFS), owned by NPCI (National

Payments Corporation of India), and has been approved by the Reserve Bank of
India (RBI).
 In 2010, it was launched only by 4 banks, which are Union Bank of India, State
Bank of India, Bank of India and ICICI Bank, but now this facility has been
implemented by more than 150 banks across the country.
 Initially, the Reserve Bank of India restricted the IMPS limit per day to ₹2 lakh.
However, considering the increasing demand for this payment system, the RBI
increased the daily limit for IMPS to ₹5 lakh to meet the growing demand of
users and businesses.
 The following are the charges applicable for IMPS, excluding applicable
 National Electronic Fund Transfer (NEFT)

 It is an online system for transferring funds from one account in one bank to
another account in another bank. It was started in 2005. It was made
mandatory for all banks on SEFT (Special Economic Fund Transfer system) to
migrate to the NEFT system.
 There is no minimum and no maximum limit assigned to NEFT transactions
from RBI. However, every bank can set a limit for NEFT transactions. E.g., ICICI
bank has a maximum limit of up to ₹10 lakhs.
 NEFT Charges:
[Link] to ₹10,000: Typically, there is a nominal fee, often around ₹2 to ₹5 per
transaction.
2.₹10,001 to ₹1 lakh: Fees generally range from ₹5 to ₹15 per transaction.
[Link] ₹1 lakh: Fees usually range from ₹15 to ₹25 per transaction, but
some banks might charge more for larger amounts
 Real Time Gross Settlement (RTGS)

 Real-time gross settlement (RTGS) was launched in the year 2004 by the
Reserve Bank of India. It is a system that performs continuous real-time fund
transfers.
 Here, ‘real-time’ means that the instructions are processed at the very moment
when they are received rather than any sort of delay. Similarly, gross settlement
means the fund transfer instructions will be handled on an instruction by
instruction basis.
 The minimum amount you can transfer via RGS is Rs.2 lakh. When it comes to
the upper limit, there is no associated cap when you transfer through the bank
branch. Instead, if you choose to do the transfer via internet banking, there may
be a limit. It is generally Rs 25 lakh, it may vary across banks.

 Unifi ed Payments Interface (UPI)

 It is a system that allows instant and seamless money transfers between

different bank accounts using mobile devices. UPI is developed by the National
Payments Corporation of India (NPCI), which is regulated by the Reserve Bank
of India (RBI).
 The UPI transaction limit per day is Rs.1 lakh as per NPCI. However, the limit is
Rs.5 lakh for payments to educational institutions and
healthcare. The maximum UPI daily transfer limit can change from bank to
bank between Rs.25,000 to Rs.1 lakh. A few banks have also set UPI transfer
limits per week or per month instead of a day.
 Bank UPI apps allow a total of 20 UPI transactions each day.
 NPCI clarified that bank-to-bank account transfers via UPI will continue to be
UPI E v ol uti on
 UPI LITE and UPI Tap & Pay

 It's just like the familiar Scan & Pay, Pay to Contact, and more, but with a twist.
Instead of using the camera, Tap & Pay captures the Payee UPI ID/VPA through
NFC. It's a novel way to make your UPI transactions, keeping things easy, safe,
and instant.
 Only mobiles and devices with NFC capability have access to UPI Tap & Pay
 Look for the Tap & Pay button on your UPI App. The transaction happens when
you tap your device on the UPI Smart Tag or UPI Smart QR
 For amounts up to ₹500, UPI LITE takes the lead (if you've got it enabled), or
through your bank account UPI PIN
 UPI LITE Tap & Pay is available on both Android and iOS devices. It's time to
 UPI 123Pay: Call Karo. Pay Karo.

 Through UPI 123PAY, feature phone users will now be able to undertake a host of
transactions based on four technology alternatives. They include calling an IVR
(interactive voice response) number, app functionality in feature phones, missed
call-based approach and also proximity sound-based payments
 UPI payment through pre-defined IVR numbers (080 4516 3666 & 080 4516 3581
& 6366 200 200) would require users to initiate a secured call from their feature
phones to a predetermined number and complete UPI on-boarding formalities to be
able to start making financial transactions without internet connection.
 With the IVR providing multiple language options, customers can avail this service
in their preferred languages.
 IDFC First Bank, City Union Bank & NSDL Payments bank have gone live on IVR
payments. Solutions are supported by Ultracash & Tonetag.
 Debit Card

 A debit card is a payment card that deducts money directly from a consumer's
checking account to pay for a purchase.
 The physical elements of a traditional card include the 16-digit card number,
cardholder's name, CVV code, issue and expiry date, signature bar, debit network
logo, issuing bank logo, and an electronic chip.
 Some debit cards offer rewards, similar to credit card rewards, such as 1% back on
purchases.
 Types of Debit Cards
1. Visa Debit Card
2. RuPay Debit Card
3. MasterCard Debit Card
4. Maestro Debit Card
 Debit Card

Visa Debit Card: VISA Cards by banks are actually in partnership with Visa Inc., an
American finance MNC. It is one of the most popular and widely used cards; hence, is
accepted globally. VISA provides several types of ATM cards like Classic, Gold,
Platinum, etc. in association with the banks. These cards come with an Overdraft
facility and use the VISA payment gateway which is safe and secure. VISA also
provides the VISA Electron Card that does not have an overdraft facility. It is usually
given to younger customers or those with poor credit scores.

RuPay Debit Card: RuPay is an Indian multinational financial service provider and
payment service system. It is the first of its kind global card payment network from
India. It was RBI’s vision and conceived as well as launched by the National Payments
Corporation of India in 2012. Since then, Rupay debit cards have been widely
accepted at ATMs, shops, and online payments.

MasterCard Debit Card: Mastercard is also an American service provider and is

globally accepted like VISA. It is a highly safe payment gateway with 24×7 customer
service. It is a global bank card payment transaction processor that partners with
 Debit Card

Maestro Debit Card: Maestro Debit cards are similar to the MasterCard
debit card. These cards are accepted globally. You can use this card to
withdraw cash in ATMs across the world. Payment for online purchases, and for
transactions at domestic and international PoS outlets can be done through this
card. Except ICICI Bank, this card is a popular choice for most banks including
State Bank of India, Oriental Bank of Commerce, Bank of Rajasthan and
Syndicate Bank.

Contactless Debit Card: Contactless debit cards allow the payments to be

made without swiping the card. Simply wave this card over the payment
machine. The transaction is automatically processed. These debit cards offer a
faster method of cashless transaction. These debit cards work on the (Near
Field Communications) or RFID (Radio Frequency Identification) principle.
Through these technologies, the card is connected to the PoS terminal. Such
types of debit cards are a very safe way of making electronic payments. You
don’t have to hand over the card to the cashier. Major banks in India such as
 Credit Card

 A credit card is a type of credit facility, provided by banks that allow customers to
borrow funds within a pre-approved credit limit. It enables customers to make
purchase transactions on goods and services.
 The credit card limit is determined by the credit card issuer based on factors such
as income and credit score, which also decides the credit limit.
 The credit card information includes credit card number, cardholder’s name,
expiration date, signature, CVC code, etc.
 The best part about a credit card is that it is not linked to a bank account. So,
whenever you swipe your credit card, the amount is deducted from your
credit card limit, not your bank account. You can use it to pay for food, clothes,
take care of medical expenses, travel expenses, and other lifestyle products and
 Credit Card

Types of Credit cards

• Balance Transfer Credit Card • Entertainment Card
• Reward Credit Card • Gold Credit Card
• Charged Credit Card • Lifestyle Credit card
• Auto/Fuel Credit Card • Platinum Credit card
• Business Credit Card • Premium/ Signature Credit card
• Cashback Credit Card • Prepaid Credit Card
• Classic Credit Card • Silver Credit Card
• Co-branded Credit Card • Titanium Credit Card
• Contactless Credit Card • Travel Credit Card
• Credit card for women
 Difference Between Mobile Banking and Internet Banking

Basis for Mobile Banking Internet Banking

Comparison
Services Offers basic banking services such as Provides a wider range of services,
checking account balances, including applying for loans,
transferring funds, and bill payments investment management, and
accessing detailed financial
statements
User Interface Utilizes mobile apps or mobile- Relies on internet browsers with
optimized websites for a user- various banking websites, which
friendly interface may have different interfaces
Security Requires secure authentication Relies on usernames, passwords,
methods such as PIN, biometrics, or and additional security measures
two-factor authentication like one-time passwords or security
tokens
Transaction May have lower transaction limits Typically offers higher transaction
Limits compared to internet banking limits, depending on the bank's
policies
Additional May include additional features like Offers features like online shopping,
Features contactless payments, QR code payment gateways, and integration
 National Electronic Toll Collection (NETC)

 National Payments Corporation of India (NPCI) has developed the National

Electronic Toll Collection (NETC) program to meet the electronic tolling
requirements of the Indian market.
 It offers an interoperable nationwide toll payment solution including clearing
house services for settlement and dispute management.
 Interoperability, as it applies to the National Electronic Toll Collection (NETC)
system, encompasses a common set of processes, business rules and technical
specifications that enable a customer to use their FASTag as payment mode on
any of the toll plazas irrespective of who has acquired the toll plaza.
 FASTag is a device that employs Radio Frequency Identification (RFID)
technology to make toll payments directly while the vehicle is in motion.
 FASTag (RFID Tag) is affixed on the vehicle's windscreen and enables a
customer to make toll payments directly from the account linked to FASTag.
 FASTag offers the convenience of cashless payment along with benefits like -
savings on fuel and time as the customer does not have to stop at the toll plaza.
Revenue Of National Electronic Toll Collection (NETC) Across
India From Financial Year 2019 To 2023, With Estimates
Until 2027 (in Billion Indian Rupees)
 Prepaid Payment Instrument (PPI)

 RBI as per the guidelines provided under the Payment and Settlement Act, 2005
defined Prepaid Payment Instruments (PPIs) as instruments of payment that
facilitate buying of goods and services, including the transfer of funds, financial
service and remittances, against the value stored within or on the instrument.
 The value stored in the instrument is represented by the value that has already
been paid for by the holder or the instrument by any method such as, by cash,
by debit from a bank account, credit card or even from other PPIs.
 PPIs can come in the form of payment wallets, smart cards, magnetic chips,
vouchers, mobile wallets etc. any instrument that can be used to access a
prepaid amount is a PPI.
 With regards to non-banking entities such as companies, the requirements to be
met by them to be eligible to issue PPIs are as follows- – The company must be
incorporated in India. – The minimum paid-up capital of the company must be
more than Rs 5 crore. – Minimum positive net worth must be Rs 1 crore at all
times.
 Prepaid Payment Instrument (PPI)

Types of PPI
 Closed System PPIs: These are issued to facilitate the purchase of goods and
services only from the issuing entity. They also do not allow withdrawal of cash.
Hence, these kinds of PPIs do not require any authorization from the RBI.
 Semi-closed System PPIs: They also do not permit cash withdrawal but can be
used at a group of merchant establishments that are contracted by the issuer
entity, for purchases including financial services.
 Open System PPIs: Issued by only banks, these can be used at any merchant
establishment irrespective of the issuer and permit cash withdrawal for purchases
including financial services. Such withdrawals can be made at ATMs or Point of
Sale (PoS), like debit cards.
 Volume of payments made through Prepaid Payment
Instruments in India from Financial Year 2014 to 2022 (In
Billions)
 National Automated Clearing House (NACH)

 Indian payment industry entered the next level with the National Automated
Clearing House (NACH). Launched by the National Payments Corporation
of India (NPCI), NAHT is a better option for facilitating clearing services than
the existing Electronic Clearing Service (ECS) system.
 The nation has now been prepared for another NPCI order i.e. ACH
(Automatic Clearing Home). Its primary purpose is to high-volume
transactions, manage low-value based on electronic files. Ideally, this
domination implementation allows clearing transactions in real-time mode
instead of batch mode. In this real-time mode this paradigm will be a milestone
for the country's payment landscape and the mirror of international standards.
 NACH is a central, web-based clearing service that can integrate all regional
ECS systems through a one-time payment system to ease the work of banks,
financial institutions, government and corporate, thereby eliminating any
geographical barriers to efficient banking.
 NACH, NACH Credit, NACH Debit

 NACH is a web-based payment solution for bulk payments. It helps banks,

NBFCs, corporations, and government offices to make interbank transactions
with ease.
 NACH Credit allows corporates and organizations to make bulk payments in a
number of bank accounts directly from their own bank accounts. Government
social welfare scheme subsidies, savings account interest, etc. are commonly
credited to customers’ accounts through NACH Credit.
 Just like NACH Credit, NACH Debit allows the banks and NBFC to receive bulk
payments from the customers without interference from third-parties or
unnecessary verifications, etc.
 Both NACH Credit and NACH Debit offer a number of features such as online
 Buy Now Pay Later (BNPL)

 BNPL is a type of online credit payment that lets a customer make a purchase
and either defers payment for 14–30 days or split the payment into smaller
portions that may be reimbursed over numerous payments.
 BNPL is a no-interest, short-term microcredit that may be used to buy food,
clothing, and travel online.
 The growth of BNPL has been propelled in India after the pandemic.
 Indians across all age groups use BNPL services, but the BNPL adoption is
primarily led by Gen Z and Millennials.
 According to Industry Tracker Transaction, There are 41 BNPL-Focused
Startups in India.
 BUT NOW PAY LATER APPLICATIONS

Amazon Pay Later Flipkart Pay Later Mobikwik Pay Later Lazy Pay Later
BNPL Statistical Data

• According to Statistics from YouGov “The

Future of Financial Services Report”, India
leads the globe in its desire to utilize "Buy
Now Pay Later" services in the future.
• According to Global Payment Report (GPR
2022), BNPL has already captured 3% of the
market share in the online e-commerce
payments segment in the India.
• According to India Brand Equity Foundation
(IBEF) report on ‘India e-commerce
Industry’, India’s e-commerce market is
poised to reach a $200 billion by 2026.
 Diff erence Between BNPL And Credit Card

Sr. Parameter Buy Now Pay Later Credit Card

No.
1. Interest The interest free period of The interest free period of
Free mostly up to 15 days. mostly up to 45 days.
Period
2. Credit Amount Cannot exceeds Rs. Credit Card limits depend on
Limits 60,000. credit scores and annual
Income.
3. Reach BNPL are limited to the Credit Cards are accepted
merchants who have tie-ups everywhere worldwide.
with Fintech/ e-commerce
companies.
4. Eligibility BNPL schemes have a Credit cards have stringent
Criteria straightforward quick process eligibility criteria, including
with no strict criteria. credit history, score, minimum
income, and income proof, non-
fulfilment of which might get
 Aadhar Enabled Payments System (AEPS)

 AePS full form is Aadhaar Enabled Payment Service, developed by National

Payments Corporation of India (NPCI) aims to facilitate financial transaction
using Aadhaar number. Aadhaar number is an extensively used instrument of
identification in India and introduction of a digital payment system using the
same is intended to have better reach in tier-3 & 4 cities.
 The RBI establishes a standard limit for AEPS transactions, although banks are
free to set their own limits for all of these transactions. Few banks have
established transaction limits to avoid misuse or fraudulent activities. Many
banks have imposed a daily restriction of INR 50,000 on total transactions made
by everyone. However, the maximum withdrawal limit set by NPCI for AEPS
cash withdrawal is Rs. 10,000.
 AEPS also offers the following services:
 eKYC
 Tokenization
 Aadhaar Seeding Status
Value of AePs transactions across India in Financial Year
2019 and 2020, with estimates until 2025 (In billion INR)
 Bharat Bill Payment System (BBPS)

 The Bharat Bill payment system is a Reserve Bank of India (RBI) conceptualized
system driven by National Payments Corporation of India (NPCI).
 It is a one-stop ecosystem for payment of all bills providing an interoperable and
accessible “Anytime Anywhere” Bill payment service to all customers across
India with certainty, reliability and safety of transactions.
 It offers interoperable bill payment service to customers online as well as
through a network of agents on the ground.
 It was piloted in 2016 and went live a year later. By 2019, BBPS onboarded all
recurring payments.
 Bharat Bill Payment System is offering one-stop bill payment solution for all
recurring payments with 200+ Billers in the categories Viz. Electricity, Gas,
Water, Telecom, DTH, Loan Repayments, Insurance, FASTag Recharge, Cable
etc. across India.
 The payments solution is aimed at making bill payments a round-the-clock
option and in any mode .
Value of BBPS transactions across India from Financial Year
2019 to 2023, with estimates until 2027 (In millions)
 Unstructured Supplementary Service Data (USSD)

 Another type of digital payment method, *99#, can be used to carry out mobile
transactions without downloading any app.
 These types of payments can also be made with no mobile data facility.
 This facility is backed by the USSD along with the National Payments
Corporation of India (NPCI).
 The main aim of this type of digital payment service is to create an environment
of inclusion among the underserved sections of society and integrate them into
mainstream banking.
 This service can be used to initiate fund transfers, get a look at bank
statements, and make balance queries.
 Another advantage of this type of payment system is that it is also available in
Hindi.
 This payment method can be used only for small-value transactions up to Rs
 S o c i e t y f o r Wo r l d w i d e I n t e r b a n k F i n a n c i a l Te l e c o m m u n i c a t i o n ( S W I F T )

 SWIFT payments are transactions made through an intermediary bank that

allows you to send/receive electronic payments internationally. The SWIFT
network doesn’t actually transfer funds, nor is it a banking system, Rather, it
sends payment orders between banks using SWIFT codes.
 SWIFT codes are unique identifiers that SWIFT assigns to each financial
institution using the network. Also known as SWIFT IDs or ISO 9362 codes,
SWIFT codes have either 8 or 11 characters. Here’s a breakdown of what the
characters represent:
• First four characters: This is the code for the financial institution itself.
• Fifth and sixth characters: These denote the country where the institution is
based.
• Seventh and eighth characters: The seventh and eighth characters are the city
code and denote the institution’s location.
• Ninth, tenth, and eleventh characters: These final characters are optional and
 S o c i e t y f o r Wo r l d w i d e I n t e r b a n k F i n a n c i a l Te l e c o m m u n i c a t i o n ( S W I F T )

 The financial service creates a global level of connectivity that speeds up

international business and brings the world a little closer together. In November
2022, SWIFT recorded an average of 44.8 million FIN messages per day. Traffic
grew by over 7.1% versus the same period of the previous year.
 The SWIFT payment network allows individuals and businesses to accept/send
international money via electronic or credit card payments. This can be done
even if the customer or vendor uses a different bank than the payee. The
network is a place for secure financial messaging. In a sense, it’s nothing more
than a messenger between banks.
 SWIFT isn’t owned by any single entity. Rather, it is a member-owned
cooperative whose shareholders represent around 3,500 member organizations.
Headquartered in La Hulpe, Belgium, the system is overseen by the central
banks of the G10 countries, the European Central Bank, and the National Bank
of Belgium. SWIFT shareholders elect a board of 25 directors who govern the
organization and oversee the management of the SWIFT system.
Average Number Of SWIFT Messages Per Day
From January 2014 To December 2022
 Pay With Points (PWP)

 The term ‘pay with points’ implies that a customer can burn loyalty points or
miles at a point of sale as the method of payment. That means the points have
economic value, and can be used to cover the entire purchase amount, or
combined with cash to settle the payment obligation.
 It also implies that the customer can do this quite easily and freely, across a
large proportion of a brand’s inventory, in its primary commerce channels.
That’s in contrast to being offered a restricted set of inventory items for
redemptions via a members’ portal (i.e., the modest number of reward seats
that an airline makes available on a flight, or the items curated in a redemption
catalog).
Payments Channels
 National Payment Corporation of India (NPCI)

 NPCI has been incorporated as a "Not for Profit" Company under the
provisions of Section 25 of the Companies Act 1956 (now Section 8 of
Companies Act 2013), and its utility is to provide infrastructure for
operating settlement and electronic payment systems in India.
 It was formed through collaboration between the Reserve Bank of India
(RBI) and the Indian Banks' Association (IBA) under the Payment and
Settlement Systems Act, 2007. Its main goal is to strengthen India's
payment and settlement infrastructure, covering both physical and
electronic transactions within the banking sector.
 National Payments Corporation of India (NPCI) has been leading the
proliferation of digital payments in the country from the front and
manages a bunch of payment systems including IMPS, UPI, BHIM,
NACH, RuPay, AePs, FASTag and BBPS among others.
 Objectives of NPCI

Infrastructure for
Integrated System
Banking

Merger Payment Innovations in

System Banking

Improved
Improved Retail
Turnaround Time
Payment System
and Save Cost
NPCI Cyber Security Framework
 Internet and Mobile Association of India (IAMAI)

 Established in 2004, the IAMAI is a not-for-profit industry body registered under

the Societies Registration Act, 1860.
 It is the country's only organization representing the digital services industry, with
over 500 Indian and multinational corporations as its members, which include
established companies in diverse sectors of the digital ecosystem as well as start-
ups.
 Mandate: To expand and enhance the online and mobile value-added services
sectors.
 It is dedicated to presenting the unified voice of the businesses it represents to the
government, investors, consumers, and other stakeholders.
 IAMAI represents varied sectors such as digital advertising, digital entertainment,
traveltech, online gaming, digital payments, fintech, digital commerce, edtech,
healthtech, agritech, big data, ML, AI & IoT, AR/VR, logistics-tech, and so on.
 The association’s activities include promoting the inherent strengths of the digital
economy, evaluating and recommending standards and practices to the industry,
 IAMAI Initiatives
The IAMAI Governing Council, supported by the EC (Executive Council), has
undertaken several key initiatives in collaboration with the IAMAI Secretariat. Here
are some of the top level initiatives:
 Cybersecurity: IAMAI, in partnership with the National Security Council
Secretariat, is leading the ICAMPS (Indian Citizen Assistance for Mobile Privacy &
Security) initiative. IAMAI’s role is to garner industry support for this national-
level project and ensure its execution aligns with the vision of enhancing mobile
privacy and security for Indian citizens.
 Digital Divide: To address the digital divide and ensure that digital empowerment
reaches all citizens, IAMAI has initiated the Digital Responsibility Awards. These
awards recognize organizations, both national and international, that have
contributed to bridging the digital divide. This initiative promotes social
responsibility in the digital industry and celebrates those who champion digital
inclusion.
 Founders’ Club: IAMAI is developing the Founders’ Club, which will serve as a
platform for India’s top peer community to network and support funded startups in
their journey toward profitability. This program aims to provide Indian
 IAMAI Events

IAMAI has successfully organized several notable events, even amidst the challenges
posed by the global pandemic. Here are some noteworthy events from the past year:

 Global Fintech Fest: This event, the first of its kind in India, exceeded expectations
to become one of the largest and most vibrant fintech events in the global
calendar.
 India Digital Summit: IAMAI’s flagship conference, IDS’23, returned to its physical
format with over 2000 participants attending the two-day event in New Delhi. The
conference witnessed the coming together of major stakeholders in the digital
ecosystem and was addressed by Shri Piyush Goyal, Union Minister of Commerce
& Industry.
 India Affiliate Summit: The well-known conference, IAS, also returned as a
physical event with over 3200 delegates, 70 exhibitors, and participation from
global participants.
 D2C Founders Meet: The second iteration of the D2C Founders’ Meet took place,
 Digital Payment Regulations in India

Payment and
Reserve Bank of
Settlement Systems
India
Act, 2007

Ministry of
Electronics and Pradhan Mantri Jan
Information Dhan Yojana
Technology
 Digital Payment Regulations in India

 Reserve Bank of India

The RBI regulates and supervises digital payment systems in India, such as
electronic cash transfers, prepaid payment instruments, and card payments. It offers
rules and regulations concerning digital payment system security, risk management,
client protection, and other factors. It is in charge of the creation and operation of
these systems, as well as assuring their efficiency and security and resolving any
payment-related issues.

 Payment and Settlement Systems Act, 2007

All digital payments in India, including those made using mobile wallets, prepaid
cards, and online platforms, are governed under the
Payment and Settlement Systems Act, 2007. The act creates a framework for
oversight and monitoring of digital payment service providers, as well as standards
for client protection and dispute resolution. It also authorizes and supervises
payment system operators, as well as issues regulations to ensure the safety and
 Digital Payment Regulations in India

 Ministry of Electronics and Information Technology

MeitY is in charge of developing the country’s digital infrastructure, which includes e-
governance, digital literacy, and digital payments. It collaborates with other regulatory
bodies and industry stakeholders to promote digital payment system adoption in India.

 Pradhan Mantri Jan Dhan Yojana

With the introduction of new payment systems and the execution of various initiatives
to promote digital payments, India’s legislative framework for digital payments has
undergone considerable changes in recent years. To improve financial inclusion and
promote the usage of digital payments, the government has established many projects,
including Digital India and the Pradhan Mantri Jan Dhan Yojana (“PMJDY”).
The Indian government’s implementation of e-RUPI, a cashless and contactless digital
payment option, is intended to improve the effectiveness of Direct Benefit Transfer
(“DBT”) in the country. These initiatives have built a solid ecosystem for digital finance,
paving the way for a cashless economy.