Digital Reforms in India – Payment & Governance – Major Computer Terminologies YouTube Lecture Handouts

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Watch Video Lecture on YouTube: Digital Reforms in India: Payment & Governance – Major Computer Terminologies

Digital Reforms in India: Payment & Governance – Major Computer Terminologies

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Data Analytics

  • Explore facts

  • Give specific answer to specific questions

  • Has test hypothesis framework

  • Data visualization tools are required

  • Requires languages like Python & R

  • Rooted in business analytics & business intelligence models

Data Mining

Generate new information & unlock insights

  • Descriptive: Information about existing data

  • Predictive: Forecast based on the data

Explore new trends

Requires classical and advanced artificial intelligence, pattern distribution and traditional statistics

Done without any preconceived hypothesis - information from the data is not used to answer specific questions of organisation.

Is close to machine learning & use scientific and mathematical techniques

Prepaid Instruments

  • Spend amount of money stored in the instrument to purchase goods and services including money transfer

  • These can be - smart cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers

  • Maximum value of pre-paid instrument cannot be more than Rs. 50,000

  • Consumer Wallet Limits: Rs.20, 000 month for all. Rs.1 lakh/month with KYC

  • Merchant Wallet Limits: Rs.50,000 month with Self Declaration. Rs.1 lakh/month with KYC

Image of Prepaid Instruments

Image of Prepaid Instruments


  • Closed System Payment Instruments: To facilitate purchase of goods and services from him/her/it – issued to buy goods exclusively from that company - Amazon Wallet, Cleartrip Wallet

  • Semi-Closed System Payment Instruments: Redeemable at merchants with whom the contract is signed but no cash withdrawal or redemption by the holder – Mobikwik, PayU

  • Semi-open System Payment Instruments: To purchase goods and services at any card-accepting merchant locations (Point of sale terminals) but no cash withdrawal or redemption by the holder. Transaction more than Rs. 10,000 requires KYC

  • Open System Payment Instruments: Purchase of goods and services + cash withdrawal at ATMs, Merchant Local Locations, and automated business correspondents - Visa, Mastercard, RuPay – issued only by Banks like M-Pesa by Vodafone with ICICI

  • Mobile Prepaid Instruments: Prepaid talk time instruments issued by mobile service providers & purchase “value added service” from the mobile service provider or third-party service providers.


Watch Video Lecture on YouTube: Bitcoin: Creation, Circulation, Usage, Problems & Advantages - Currency of Internet

Bitcoin: Creation, Circulation, Usage, Problems & Advantages - Currency of Internet

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(Part – 2)

Worldwide Payment Systems

  • KFTC – Korea

  • SEPA, BACS Payment system, UK Payments Administration Ltd, British Banker's Association – UK

  • China Union Pay – China

  • Zengin Payment System – Japan

  • Australian Payments Clearing Association -Australia

  • Electronic Payments Network (EPN), NACHA, The American Banker's Association, Federal Reserve - Board of Governors of the Federal Reserve System, Federal Reserve - Financial Services -US

  • RPS- Germany

  • PASA-South Africa

  • IPSO- Ireland

  • The Canadian Banker's Association, Canadian Payments Association-Canada

  • NETS -Singapore


  • National Payments Corporation of India (NPCI) was incorporated in December 2008

  • Certificate of Commencement of Business was issued in April 2009

  • Incorporated as a Section 8 company under Companies Act, 2013 and is aimed to operate for the benefit of all the member banks and their customers.


  • National Financial Switch (NFS) - largest network of shared automated teller machines (ATMs) in India.

  • Designed, developed and deployed by the Institute for Development and Research in Banking Technology (IDRBT) in 2004

  • Run by NPCI


  • Unified Payment Interface – single window mobile payment

  • Powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood

  • Caters “peer to peer” collect request

  • Immediate money transfer through mobile device round the clock 24*7 and 365 days

  • Schedule Push and Pull payments

  • Advanced version of NPCI's Immediate Payment Service (IMPS)

  • Virtual address can be used or mobile number like 1234567890@sbi

  • Implemented by hyperlink or QR code


  • Mobile App

  • Developed by National Payments Corporation of India (NPCI)

  • Based on Unified Payment Interface (UPI)

  • Facilitate e-payment after demonetization

  • Schemes include referral payments and cashback for merchants

  • Instantaneous transfer – 24/7 including weekends & bank holidays


  • Real time remittance service available anytime, anywhere across India

  • Services: fund transfer and merchant payments

  • Initially launched in 2010

AEPS (Aadhar Enabled Payment System)

Bank led model - allows online interoperable financial inclusion transaction at PoS (Micro ATM) through Business correspondent of any bank using Aadhaar authentication.

4 Aadhaar enabled basic types of banking transactions:

  • Balance Enquiry

  • Cash Withdrawal

  • Cash Deposit

  • Aadhaar to Aadhaar Funds Transfer

(Part – 3)

What is Required for Transaction?

  • IIN (Identifying the Bank to which the customer is associated)

  • Aadhaar Number

  • Fingerprint captured during their enrollment


  • Works on Unstructured Supplementary Service Data (USSD) channel

  • Immediate low value remittance & mobile banking

  • “Common number across all Telecom Service Providers (TSPs)” on their mobile phone and transact through an interactive menu displayed on the mobile screen.

  • Works without internet

  • Works across all GSM providers

  • *99*99# is a USSD based value added service – to check status of Aadhaar number seeding/linking in the bank account.

Less Cash Townships

A less-cash township is one where

  • Deployment of payment acceptance infrastructure is complete

  • All the families in the township are covered under training programs

  • More than 80% of the total number of transactions in the township being done through digital modes

Bharat Bill Payment System (BBPS)

  • RBI driven NPCI model

  • Bharat Bill Payment Operating Unit (BBPOU): Entity (bank or non-bank) that is authorized by Reserve Bank of India.

  • one-stop payment platform for all bills providing an interoperable and accessible “Anytime Anywhere” bill payment service to all customers across India with certainty, reliability and safety of transactions

  • Categories are electricity, gas, water, DTH and telecom

  • Future biller categories - insurance premium, mutual funds, school fees, and institution fees, credit cards, local taxes, invoice payments, etc.

Bharat QR

  • World’s first interoperable Quick Response (QR) code acceptance solution developed by the payments industry to expedite India’s transition to a less - cash society.

  • Developed by NPCI

  • Devised based on direction by RBI in 2016

  • Outlines innovation, interoperability, and security


  • Card by NPCI

  • Flexibility of the product platform, high levels of acceptance and the strength of the RuPay brand

  • Domestic, open loop and multilateral system of payments

  • Launched in 2012

Micro ATM

  • Point of Sale (PoS) devices that work with minimal power, connect to central banking servers through GPRS

  • Reduces operational costs

  • Threats include data vulnerabilities, skimming (theft), PoS malwares and social engineering

Digital India

  • Aims at digital infrastructure, digital empowerment and governance and services on demand

  • IT (Indian Talent) + IT (Information Technology) = IT (India Tomorrow)

9 Pillars

  • Broadband Highways - 3 sub components- Broadband for All Rural, Broadband for All Urban and National Information Infrastructure

  • Universal Access to Mobile Connectivity

  • Public Internet Access Program - Common Service Centers and Post Offices as multi-service centers

  • e-Governance: Reforming Government through Technology – electronic database, workflow automation and public grievance redressal

  • e-Kranti - Electronic Delivery of Services – 31 mission mode projects like health, education, farmers and security

  • Information for All – Open Data Platform, social media and online messaging

  • Electronics Manufacturing – Target NET ZERO imports

  • IT for Jobs – DeiTy is the nodal department

  • Early Harvest Programs – IT platform for messages, Biometric attendance, Wi-Fi in all Universities, Secure email in Government, National Portal for Lost and Found Children, school books to be e-books

E-Sign: Online Digital Signature Service

  • Digital signature has same function as that of a handwritten signature.

  • Non-repudiation, integrity and authenticity

  • Information Technology Act 2000 provides legal sanctity to digital signatures based on asymmetric crypto systems (one key can be made public without compromising secrecy of other key).

  • Key challenge is authentication of user & trusted method of signing

  • C-DAC by e-Hastakshar initiative enables citizens with valid Aadhaar ID and registered mobile number to carryout digital signing of their documents on-line

Image of e-Sign (Online Digital Signature Service)

Image of E-Sign (Online Digital Signature Service)

(Part – 4)


  • Personal Storage space linked to Aadhar number

  • Includes –

  • My certificate – includes digital documents and uploaded documents

  • Profile, Issuer, Requester and Directories


With Aadhar number enrol for appointment in hospitals for OPD, lab report and blood availability

Digitize India Platform (DIP)

  • To provide digitization services for scanned document images or physical documents for any organization

  • Aim is to digitize and make usable all the existing content in different formats and media, languages, digitize and create data extracts for document management, IT applications and records management.

  • Innovative solution by combining machine intelligence and a cost effective crowd sourcing model

  • Process and extract relevant data from document images in a format usable for meta-data tagging, IT application processing and analysis.


  • Pro-Active Governance and Timely Implementation

  • Address common man’s grievances, and simultaneously monitor and review important programs

  • At 3 levels: PMO, Union Government Secretaries, and Chief Secretaries of the States

National Cloud – MeghRaj

Cloud computing in governance

Optimum use of infrastructure for eGov

Services Offered:

  • Infrastructure as a Service (IaaS)

  • Platform as a Services (PaaS)

  • Software as a Services (SaaS)

  • Storage as a Service (STaaS)

Public Wi-Fi Hotspots

  • Certification provided by Wireless Broadband Alliance 1 (WBA), which owns and controls the “Wi - Fi Certified” logo that can be applied to products that satisfy certain interoperability criteria.

  • WLANs created using Wi - Fi technology can be used to connect personal computers, mobile phones, tablets and other appliances to a local network, which in turn provides connectivity to the Internet.

  • WLAN can be operated as hotspots – at railway stations and cities

National Optical Fibre Network (NOFN)

  • Information super-highway

  • Creation of a robust middle-mile infrastructure for reaching broadband connectivity to Gram Panchayats

  • Connect 2.5 Lakh Gram Panchayats

  • Provides 100 Mbps connectivity in Gram Panchayats


  • To provide on demand, affordable broadband connectivity of 2 Mbps to 20 Mbps for all households and on demand capacity to all institutions

  • Funded by Universal service Obligation Fund (USOF)

  • Phase 1: Connect 1 lakh gram panchayats by March 2017

  • Phase 2: Connect 2, 50,500 gram panchayats by Dec 2018

  • Phase 3: state-of-the-art, future-proof network - fibre between districts and blocks, with ring topology to provide redundancy by 2018 -23

Computer Malware

Watch Video Lecture on YouTube: Computer Malware & Types of Malware - Weapons of 21st Century!

Computer Malware & Types of Malware - Weapons of 21st Century!

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Endpoint Security Solutions – by C-DAC

  • Browser JSGuard (Secure browser add-on) – browser addon that detects and defends malicious HTML & JS attacks made through the web browser based on Heuristics

  • AppSamvid (Application Whitelisting Solution) - allows only approved applications to execute on end system. Whitelisting requires less frequent updates compared to blacklisting as in antivirus software

  • USB Pratirodh - Controls unauthorized usage of portable USB mass storage devices like pen drive, only authorized users can access it

  • Application and Device Control (ADC) - indigenous antimalware security solution to prevent unauthorized access of USB mass storage device and prevent execution of unauthorized application on endpoint systems

  • M-Kavach - Comprehensive mobile device security solution for Android devices - addresses threats like stealing personal data & credentials, misuse of Wi-Fi and Bluetooth resources, lost or stolen mobile device, spam SMSs, premium-rate SMS and unwanted incoming calls.

Secure E-Mail

Includes 2 aspects – authentication & encryption

Rely on public-key cryptography where users can each publish a public key that others can use to encrypt messages to them, while keeping secret a private key they can use to decrypt such messages or to digitally encrypt and sign messages they send.

Protocols for email encryption/authentication include:

  • SMTP (Secure Mail Transfer Protocol)

  • TLS (Transport Layer Security)

  • SSL (Secure Sockets Layer)

Developed by: