In the midst of Virus scare, Reserve Bank of India, has advised the general public that non cash digital payment options like NEFT, IMPS, UPI AND BBPS will all be made available round the clock to facilitate fund transfers, purchase of goods and services, payment of bills etc.,
- NEFT is National Electronic Funds Transfer
- IMPS is Immediate Payment Service
- UPI is Unified Payments Interface and
- BBPS is Bharat Bill Payment System.
The RBI notification further adds that the owing to the fallout of the corona virus pandemic, to enable people to avoid social contact and to visit public places, these modes of digital payment would provide convenience of their homes through online channels like mobile banking, internet banking, cards, etc. They can avoid using cash which may require going to crowded places for sending money or paying bills.
Also, the RBI governor added that it encourages banks and customers to use digital banking facilities as far as possible while many people curb social contacts.
In September 2019, RBI has allowed the interoperable platform to accept all repetitive bill payments, which includes school fees, insurance premiums and municipal taxes.
- NEFT is a payment system facilitating funds transfers from one bank account to another. In 2019, RBI announced the removal of charges for payments via NEFT and RTGS, which came into effect from January 2020.
- UPI is an immediate real-time payment system that helps in instantly transferring the funds between the two bank accounts through a mobile platform. It also allows multiple bank accounts to get into a single mobile application.