Digital Reforms in India – Payment & Governance – Major Computer Terminologies YouTube Lecture Handouts
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Digital Reforms in India: Payment & Governance – Major Computer Terminologies
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 ₹ 50,000
- Consumer Wallet Limits: ₹ 20,000 month for all. ₹ 1 lakh/month with KYC
- Merchant Wallet Limits: ₹ 50,000 month with Self Declaration. ₹ 1 lakh/month with KYC
Types
- 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 ₹ 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.
Bitcoin
Bitcoin: Creation, Circulation, Usage, Problems & Advantages - Currency of Internet
(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
NPCI
- 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.
NFS
- 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
UPI
- 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 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
BHIM
- 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
IMPS
- 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
⚹99#
- 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
RuPay
- 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
(Part – 4)
DigiLocker
- Personal Storage space linked to Aadhar number
- Includes –
- My certificate – includes digital documents and uploaded documents
- Profile, Issuer, Requester and Directories
E-Hospital
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.
PRAGATI
- 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
BharatNet
- 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
Computer Malware & Types of Malware - Weapons of 21st Century!
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)
✍ Mayank