Cashless Transactions - India


Unified Payments Interface (UPI) is a system that powers multiple bank accounts (of participating banks), several banking services features like fund transfer (P2P), and merchant payments in a single mobile application.[2] UPI was launched by National Payments Corporation of India with Reserve Bank of India's (RBI) vision of migrating towards a 'less-cash' and more digital society. UPI has built on the Immediate Payment Service(IMPS) platform.

UPI platform can be used for:

    • Immediate money transfer through mobile device round the clock 24*7 and 365 days.
    • Single mobile application for accessing different bank accounts
    • Single Click 2 Factor Authentication .
    • Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
    • Bill Sharing with friends.
    • Merchant Payment with Single Application or In-App Payments.
    • Scheduling PUSH and PULL Payments for various purposes.
    • Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
    • Donations, Collections, Disbursements Scalable.
    • Raising Complaint from Mobile App directly.

UPI USSD Mobile Banking.jpg

Last edited:


Mobile banking is a service provided by a bank or other financial institution that allows its customers to conductfinancial transactions remotely using a mobile device such as a mobile phone or tablet. It uses software, usually called an app, provided by the financial institution for the purpose. Mobile banking is usually available on a 24-hour basis. Some financial institutions have restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted.

Transactions through mobile banking may include obtaining account balances and lists of latest transactions, electronic bill payments, and funds transfers between a customer's or another's accounts. Some apps also enable copies of statements to be downloaded and sometimes printed at the customer's premises; and some banks charge a fee for mailing hardcopies of bank statements.

From the bank's point of view, mobile banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions. Mobile banking does not handle transactions involving cash, and a customer needs to visit an ATM or bank branch for cash withdrawals or deposits. Many apps now have a remote deposit option; using the device's camera to digitally transmit cheques to their financial institution.

Mobile banking differs from mobile payments, which involves the use of a mobile device to pay for goods or services either at the point of sale or remotely,[1] analogously to the use of a debit or credit card to effect an EFTPOS payment.


NCPI to launch new version of USSD for easier mobile banking on feature phones
After TRAI slashing tariffs for USSD-based mobile banking transactions, NCPI has taken a step further to get simpler version of Unstructured Supplementary Service Data (USSD) on feature mobile phones for making cashless payments easy.
By PTI | Published: December 9, 2016 9:00 AM IST

Amid cash crunch due to demonetization, a more user friendly and simple version of Unstructured Supplementary Service Data (USSD) used on feature mobile phones for making cashless payments will be rolled out in next 15 days. ”NCPI is already working to make USSD (*99#) very simple, convenient, robust and to link it with UPI. So in another 15-20 days, we will have a very new version of USSD with many strong and robust easy to handle features,” NITI Aayog CEO Amitabh Kant told reporters in a press conference here.

At present there are about 400 million feature mobile handset users in the country. The move will push the digital transaction in a big way particularly in rural areas where penetration of smart phone and Internet is skewed. Kant, who is member of a panel with chief ministers of different political parties on board to examine and promote the use of digital payment systems across the country, was talking to the media after the committee members meeting with RBI and heads of various banks in Mumbai.

Besides, the panel is also working out ways to achieve inter-operatibility of unified payment interface of various banks. This will enable account holders to use their banks’ UPI with a subscribers of other banks’ UPI for making and receiving cashless payments. Andhra Pradesh Chief Minister Chandrababu Naidu who is the Convener of the panel said, “There was an issue of inter-operatibiity of UPI of various banks in today’s meeting. We are working on inter-operatibilty of UPI of different banks.”
ALSO READ: How to use USSD-based mobile banking, here’s everything you should know

Naidu also said that Aadhaar enabled payment system is a low hanging fruit for moving toward digital economy. Under the Aadhaar enabled payment system, the consumer can make payment using their 12 digit unique identity number with biometric authentication bypassing debit/credit cards, pins and passwords required for a transaction.

How to use USSD-based mobile banking, here’s everything you should know
USSD-based mobile banking enables you to send money, check account balance, mini statement and more without internet connectivity.
By Ritesh Bendre | Updated: November 29, 2016 4:35 PM IST

India is gradually moving towards becoming a cashless economy, and the recent demonetization of old currency notes is serving as a catalyst in achieving PM Narendra Modi’s dream of Digital India. With the ongoing cash crunch due to shortage of new currency notes, a lot of smartphone users have already moved to digital wallets for paying at food courts, fast-food outlets and petrol pumps, or for making landline and electricity bill payments, mobile, DTH and data card refill, and more. UPI-based apps have also started getting traction where customers can easily pay for services, send and receive funds using their smartphone. But what about people, especially in rural areas, who don’t own a smartphone, nor have access to the internet? Well, USSD-based mobile banking has got them covered.

It’s not just about non-smartphone users. There are times when we don’t have access to internet, and this is exactly when USSD-based mobile banking can be a savior. Here, USSD is the abbreviation for Unstructured Supplementary Service Data. The Interface is built by National Unified USSD Platform (NUUP), and your bank and telecom operator are parties between whom the USSD communication takes place. The technology uses GSM network channels to transmit information. Essentially, it will work on a basic phone with black-and-white display, a feature phone and on smartphones.

Regional language support in USSD mobile banking
The service aims to make mobile banking easier for rural users, especially the non-English speaking ones. It is available in 11 regional languages and can be accessed in the desired language using the following short codes. Hindi (*99*22#), Marathi (*99*28#), Bengali (*99*29#), Punjabi (*99*30#), Kannada (*99*26#), Gujarati (*99*27#), Tamil (*99*23#), Telugu (*99*24#), Malayalam (*99*25#), Oriya (*99*32#) and Assamese (*99*31#). ALSO READ: Unified Payments Interface: UPI-based apps of every bank on Google Play Store

USSD banking daily transaction limit and charges
According to the Reserve Bank of India (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. Coming to charges, you will be charged Rs 0.50 per transaction, which will be added in your mobile bill. The service works 24 hours a day and 7 days a week. However, carriers have waived off the transaction charges till December 31. ALSO READ: Demonetization: How to get started with UPI apps and go cashless to beat the cash crunch

Getting started with USSD banking
First and foremost, you need a phone, a bank account and your mobile number registered for mobile banking. In case your phone number isn’t registered with your bank, you’ll have to visit the branch and fill-up a form to register and link it with your bank account. Once that is done, you’ll have to generate Mobile Money Identifier (MMID) number. It is a random seven-digit number issued by the bank. The MMID is usually sent to you by the bank after you register for mobile banking.

You can also retrieve the MMID by sending an SMS, or by logging into your bank’s internet banking portal. However, the number for sending an SMS differs from one bank-to-the other, and so do the options on internet banking portals. I’d recommend giving a call to your bank’s customer care service as ask them for MMID. Along with the MMID, you’ll also need the MPIN (a four-digit code to authorize transitions). Once you get the default MPIN, you’ll have to change it to any four digits of your choice (more on that below).

How to use USSD codes
To begin with, open the dialer app on your phone, type *99# and dial. In case you want to menu’s in regional language, say in Hindi or in Gujarati, you need to dial *99*22# or *99*27#, respectively.

You will see the welcome screen after which you will have to enter first three letters, or IFSC code or 2-digit bank code followed by send. For State Bank of India (SBI), the three letters will be SBI, for ICICI Bank it will be ICI, whereas for HDFC Bank it will be HDF, and so on. In case of IFSC code, State Bank of India has SBIN, ICICI Bank has ICIC, HDFC Bank has HDFC and so on.

So, if you have your mobile banking registered with HDFC Bank, type HDF or HDFC and tap send. It will verify your phone number and bank details, and open bring up the sub-menu. Here, you will have options to check your account balance, check mini statement, or send money using MMID or IFSC. There is also an option to change the default MPIN that you get from the bank. If you want to check your account balance, enter ‘1’ in numerical and tap send, similarly for mini statement, enter ‘2’ and tap send.

How to transfer money using USSD short codes
In this example, I’ve used HDFC bank account to send money to my colleague using his MMID number. So, let’s see how to go about it.

Step 1: Dial *99#, type bank name, and when the interface opens, enter ‘3’ and tap send.

Step 2: Enter beneficiary mobile number.

Step 3: Enter beneficiary MMID, which you will have to get from the person you are sending money to.

Step 4: Next,you need to enter amount and remarks (separated by space). For instance, I transferred Rs 5 to test how this works, so itlooks like “5 Test”

Step 5: In the final step, you have to enter your MPIN to authorize the transaction and last 4 digits of your account number (separated by space), and tap on send. That’s it, once your transaction is authorized, the money will be instantly credited to the recipients account.

USSD banking limitations
While the service does enable non-smartphone and non-internet users to send money using their phones, it is quite a tedious process. To begin with, once the USSD popup notification arrives, you have to respond within 10 seconds, or the process will get cancelled. When I was testing, I struggled to reach to step five as it would often throw an error saying ‘External application down.’ It gets quite annoying as you have to start over again, and again at such times. Having said that, the service still seems in its nascent stages and improvements could be expected going forward.


Published: November 29, 2016 11:19 AM IST | Updated: November 29, 2016 4:35 PM IST


Feature phones set to get their own mobile banking platform
BUSINESS Updated: Dec 09, 2016 12:54 IST

The National Payments Corp of India (NPCI), the umbrella organisation for all retail payments systems in the country, plans to upgrade USSD, its digital banking service for feature phones, to enable low-end phone users do mobile banking.

Unstructured supplementary service data or USSD-based mobile banking is a messaging platform, which allows you to send money, check account balance, get mini statement and transfer funds up to R5,000, without Internet connectivity.

“Our focus is USSD optimisation. Today, the general public is challenged by the multiple information supply for completing a transaction. In a week’s time, the new USSD platform will be ready,” said AP Hota, managing director and CEO, of NPCI.

The move is expected to push low-end feature phone users, constituting nearly 64% of the Indian mobile market, toward mobile-based banking and payment services.

TRAI chairman RS Sharma recently said that broadband penetration in India was a miniscule 7%, and around 473 million people in the country still use feature phones.

Hence, the opportunity for USSD is huge.

THE NPCI is working to make the USSD platform more user-friendly, given that high rates and complexity of operations had stalled it earlier.

”We are making the system’s memory more powerful so that customers would not be asked their bank’s name and the language each time they do a transaction... The language will be a fixed input as per the customer’s choice,” Hota said

Further, for doing non-financial transactions, including checking account balance or statement, it will not ask for the PIN every time a transaction is done from the same log in.

The Telecom Regulatory Authority of India (TRAI) has waived off initial charges on the short code messages on the USSD platform from R1.50 per transaction to 50 paisa till December 31, 2016, to promote mobile banking. State-owned BSNL has also decided to waive charges on USSD till January 31, 2017.

“We need to work on push USSD, where the burden of pressing keys and pulling codes should move from the payer to the merchant,” telecom secretary JS. Deepak said recently.




MobileBanking App for Android

HDFC Bank MobileBanking App for Android helps you check your account balance, transfer funds, pay your bills and much more. With our MobileBanking App you can access over 75 transactions anywhere, anytime..

The new App for Android is loaded with great features. We are the 1st bank to offer the My Menu feature. You can customize your Menu with 10 of your favorite transactions with this feature.
We are the only bank to have a MobileBanking App in Hindi for Android phones.

What's more our MobileBanking App is secure as no information is stored on your mobile device or SIM card.

Click here to view a demo on MobileBanking App for Android

Why use Android MobileBanking Application?

  • Access your account anywhere, anytime
  • As secure as NetBanking
  • Simple and convenient with 75+transactions at your fingertips
  • Transactions that can be done using your Android phone include
    • Balance Enquiry
    • Funds Transfer
    • Credit Card payment
Click here to view a demo on MobileBanking App for Android

New Features

  • Create personalized menu of 10 favorite transactions through the “My Menu” feature
  • Locate HDFC Bank Branches, ATMs near you through “Locator” feature
  • Use the “Locator” feature to get offers on your Credit and Debit Card in your city.
  • Mail us your queries and complaints using the “Feedback” option on the App.
  • Use the “Contact Us” feature get all PhoneBanking numbers of your city at a touch
Click here to Know More

Android App Demo

Check out the MobileBanking App for Android demo video

Start using MobileBanking App for Android
Give a missed call on Toll Free Number 1800-270-3344 to receive the download link.


Follow the below simple steps to Download the App

  • Go to the Play Store
  • Search for "HDFC Bank"
  • Download and Install "HDFC Bank MobileBanking"
Login using your Cust ID and IPIN(NetBanking password). Click hereto get your IPIN