The problem statement

Cooperative banks in India cater to rural and small-town consumers who mainly rely on cash, making transactions risky and inconvenient.

It necessitates regular bank or ATM trips. Dealing with physical cheques entails printing and shipping costs for banks, as well as consumer fees.

Online transactions are costly, demand the disclosure of sensitive information, and involve a time-consuming process of adding beneficiary account details and two-factor authentication.

Card-based transactions are subject to fraud and financial losses.

Client name and details

Gayatri Bank, established in 2000, is a cooperative urban bank in Jagtial district, Telangana. It has 23 branches and is the 2nd largest cooperative urban bank in Telangana. They deliver economic support and hassle-free digital financial services to the country's underbanked and unbanked population.

Process:

The Unified Payments Interface (UPI) is an instant real-time payment system controlled by the Reserve Bank of India through the National Payments Corporation of India (NPCI).

Customers can use a UPI ID (Virtual Payment Address or VPA) and UPI PIN to transfer payments between bank accounts.

UPI offers secure online transfers without the need to share sensitive banking information. UPI has become a user-friendly, contactless payment solution widely adopted by street sellers, small businesses, and retail giants, especially during the pandemic, thanks to the convenience of QR Code integration.

Solution incorporated

Gayatri Bank partnered with BSG's UPI switch for digital payments, boosting inclusion and reducing costs. With our cutting-edge technology, UPI transactions are completed in under 10 milliseconds, ensuring speed and security.

The bank's rural customers benefit from a high daily UPI transaction volume. This cost-effective solution led to a significant reduction in physical footprint, increasing efficiency.

We enabled customers to perform the following transactions using just their UPI ID (VPA) and UPI PIN on internet-enabled smartphones:

• Bill payments
• Everyday transactions
• E-commerce
• Dining
• Retail
• Balance inquiries
• Mandate registrations for scheduled payment

Results

Gayatri Bank's UPI launch attracted 5,000 remote customers on the first day, resulting in improved income and transaction volumes. They efficiently served more consumers without opening branches or ATMs. The adoption of digital and UPI services increased daily transactions from 20,000 to 100,000.

Highlights/stats

Facilitated quick and secure transactions for day-to-day needs

Delivered 5X improvement in transaction efficiency

Reduced execution time by 1/5th of the usual timing

Financially empowered senior citizens, the masses, and the differently-abled

Increased volumes of Digital transactions by 3 times

Eliminated the need to carry cash, cheques or cards

Abolished the need to remember Passcodes, CVV numbers or enter OTP numbers for all transactions

Enabled secure transactions at remote locations without bank branches or ATMs