Step by step guide to go cashless now in India

India is composed of 68% population living in rural areas and as of now only around 30% of India's population have smart phones. 

Smart phone penetration will continue to rise steadily over coming years but even with current growth rate we would still be short of a reasonable number to target a smart phone only solution even after 3 years.

Where as the total phone penetration in India is more than 1 Billion and almost every person has a mobile phone. Though around 70% of them are basic feature phones.

We need to have a solution for these 70% population, then only India can go truly cashless.

Though we can make the cashless solution much easier, We have the technology available with us to bring all of these population on board and start using cashless transaction right now.

Here is how to pay:

A. Situation: You are a smart phone user with internet and the recipient is a basic phone user and basic phone user is not registered with mobile banking but has a bank account.

1. Install the UPI app of your bank. 
2. Register and link your bank account in your app. 
3. Select pay via Account and IFSC code. 
4. Ask for account number and IFSC code from recipient. If he doesn't remember IFSC, ask for bank branch and search on google for IFSC for that bank branch. 
5. Specify account number and IFSC, enter amount to transfer and OK, you might be asked for a PIN, enter the PIN with which you registered the UPI app and you are done .

B. Situation: You are a smart phone user with internet and the recipient is also a smart phone user with internet.

1. Both of you register for UPI as specified in situation A
2. Initiate a transfer from your UPI app and select transfer using vpa.
3. Ask for the vpa of the recipient and enter it in your UPI app.
4. Enter amount to transfer. and OK
5. Enter PIN if asked and you are done

C. Situation: You are a smart phone user with internet and recipient is basic phone user, registered for mobile banking and has a MMID (refer to later section, how to get an MMID)

1. Register for UPI as per situation A.
2. Initiate a transfer from UPI app and select transfer using mobile number and MMID
3. Ask for mobile number and MMID from recipient
4. Enter mobile number and MMID in your app
5. Enter amount to transfer and OK
6. Enter PIN if asked and you are done

D. Situation: You are a basic phone user or smart phone user without internet and the recipient is a basic phone user and not registered with mobile banking

1. You register for mobile banking if not already registered. Many banks allow registering for mobile banking by simply sending an SMS. Refer to NPCI link  to know about how to register for mobile banking and get an MMID for your bank. 
2. Ask for Bank Account and IFSC code from the recipient. IFSC code is mentioned on the check book. 
3. Get the Modal code of your bank and remember it. The link is http://www.npci.org.in/documents/List-of-Banks-with-IFSC-and-short-name.pdf e.g. for HDFC it is *99*43#, for ICICI it is *99*44#
4. Dial this number for your bank.
5. Generate and change MPIN by pressing 7 and clicking send
6. Follow instruction to generate the mpin by providing all the details when asked.
7. Select 4 (Send money using IFSC) and click send
8. Enter IFSC and send
9. Enter Account number and send
10. Enter PIN when asked and you are done.

One you have registered for mobile banking, You only need to perform step 4, 7, 8, 9 and 10.

E. Situation: You are a basic phone user and recipient is register mobile banking user with who has MMID

1. Follow steps in Situation D to register for mobile banking 
2. Dial the the multi-modal code for your bank. The link to get the multi modal code is http://www.npci.org.in/documents/List-of-Banks-with-IFSC-and-short-name.pdf 
3. Select 3 (Pay using MMID)
4. Ask for MMID and mobile number from the recipient
5. Enter MMID when asked and send
6. Enter mobile number when asked and send
7. Enter amount to transfer and send
8. Enter mPIN when asked and you are done