With the improvement and inclusion of digital technology in our daily lives, the banking sector in India has also benefitted. As the Government of India promotes its "Digital India" campaign, digital banking continues to touch the lives of urban and rural India.
Digital banking definition describes banking done via digital platforms instead of traditional banks. It has made banking easier for people, with cashless transactions, digital account opening, and 24x7 banking services.
Here are the top digital banking examples that have improved the lives of countless people and changed the banking sector.
Banking cards have long existed, even before digitisation. But a recent development in the digital payment sector has made things more convenient. From debit cards to credit cards, digital banking has made everything virtual.
While banks generally issue debit cards, non-banking organisations (NBFCs) can issue credit cards. These cards today get issued and verified through digital KYC and delivered to the user's address.
Bank prepaid and virtual debit cards are other digital banking examples not directly linked to bank accounts. But they can make online transactions while purchasing a lot easier.
This is perhaps the oldest form of digital banking ever to exist. Bank account holders can access their account details via this facility by providing their unique customer ID and other login credentials.
The best part is this facility is encrypted and provides additional security. This is quite assuring for those who fear getting their account details hacked due to third-party involvement.
Just as users can access their bank accounts via the Internet, mobile banking offers a similar facility via official banking apps. These types of digital banking are becoming increasingly popular due to their convenience.
You can now check your bank balance and last transactions and generate email statements through these apps. Changing your bank branches and opening fixed and recurring deposits using mobile banking is also possible.
Unified Payment Interface, or UPI, has probably been the most significant transformation in the digital banking landscape in India in recent times. It has made transferring money from one bank account to another or paying small vendors extremely convenient.
The digital banking method gained maximum popularity during the COVID pandemic. However, now everyone realises its true potential. Nowadays, linking several bank accounts and even credit cards to a single UPI ID is possible.
This type of digital banking is done via the Bharat Interface for Money (BHIM) app. It allows you to make payment transactions in a more straightforward way through digital banking. BHIM works like UPI but acts as a standalone app.
Also, BHIM is much simpler to use without you needing to integrate it across several banking apps.
Fi Money offers zero-balance online savings accounts without hidden charges or paperwork. We allow working professionals in India to sign up with Fi and experience secured digital banking. We have partnered with the RBI-licensed Federal Bank to make saving exciting.
We also provide a complete analysis of your expenses, making our online banking solution smart and simple.
Net banking, or Internet banking, is one of the first and the most obvious types of digital banking. UPI payment and mobile banking are also some good examples of digital banking.
Unified Payment Interface (UPI) and BHIM (Bharat Interface for Money) are some popular types of digital payments.
