Digital Banking
Digital banking is the process of accessing banking services through digital platforms instead of visiting a physical bank branch. It allows customers to manage their money using the internet or mobile devices. This includes two main parts: Internet Banking and Mobile Banking. Internet banking, also known as Online Banking, allows users to perform financial transactions on a secure website. On the other hand, Mobile Banking uses apps on smartphones to provide these services.
Concepts (3)
Two-Factor Authentication is a security layer used to protect bank accounts. It requires two pieces of evidence to prove a person's identity. The first factor is usually a password or PIN (something you know).
Two-Factor Authentication is a security layer used to protect bank accounts. It requires two pieces of evidence to prove a person's identity. The first factor is usually a password or PIN (something you know). The second factor is usually an OTP sent to a mobile phone (something you have). For example, when you log into net banking, the bank sends a code to your phone to ensure it is really you.
UPI is a system that powers multiple bank accounts into a single mobile application. It allows instant money transfers between two bank accounts on a mobile platform. Users do not need to share bank account details.
UPI is a system that powers multiple bank accounts into a single mobile application. It allows instant money transfers between two bank accounts on a mobile platform. Users do not need to share bank account details. They use a unique ID called a Virtual Payment Address (VPA). For example, a customer can pay for groceries by scanning a QR code and entering a 4-digit or 6-digit PIN on their phone.
Financial Inclusion means providing affordable financial services to all sections of society. Digital banking is the primary tool for this. It allows people in rural areas to access banking without a physical branch nearby.
Financial Inclusion means providing affordable financial services to all sections of society. Digital banking is the primary tool for this. It allows people in rural areas to access banking without a physical branch nearby. By using basic mobile phones, they can receive government money or save their earnings safely. An example is the PM Jan Dhan Yojana, which uses digital tools to manage millions of bank accounts.
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Start Lesson: Two-Factor Authentication (2FA)