Top 10 FAQs about API Banking in India

Top 10 FAQs about API Banking in India

Top 10 FAQs about API Banking in India

API Banking is claimed to be one of the most revolutionary advancements in the banking sector. It makes custom banking services easily accessible to consumers and businesses while ensuring complete efficiency and safety for all. Do you want to know more about API banking meaning and its working? Check out these top 10 FAQs about API Banking.

How does API Banking work?

API Banking India has become highly significant for FinTech bodies and banks over the last few years. With an API Banking portal, one can share data, personalise services, integrate with systems, and make financial services much more efficient and quicker than ever. When it comes to API Banking platform, banks give access to financial services to 3rd party platforms. An API Banking services company can build products revolving around varied banking services. The core banking operations remain the same, but it offers a heightened experience to the customers.

Can you give an example of API Banking?

Yes. Understanding the system can become much easier and straightforward with API Banking examples. Here is an example:

Let’s imagine a situation where HDFC is the bank and the API Banking services company is FidyPay. The bank allows FidyPay to access their banking services, balance enquiry, money transfers, and other functions. Next, HDFC APIs integrate with FidyPay’s products, after which FidyPay extracts essential services from the bank and makes API calls to execute the banking operations.

What are the benefits of API Banking?

With API Banking services, innovators get the power to offer streamlined financial services to their customers. This helps in creating an atmosphere of innovation and competition in the FinTech industry. As a service provider, you get the following benefits with an API Banking platform:

  • Real-time capabilities to enhance cash flow across currencies
  • Reduced administrative work with better management of finances
  • Single platform to view, track, and analyse all your finances 

How does API Banking benefit banks?

The primary benefit of API banking is that it eliminates the need for any unnecessary processes in the banking sector. As a result, it ensures ease of use and speed for routine banking operations. Since customers can now check their balance, transfer funds, and perform other banking services online, manual work for bank staff is reduced significantly.

How does API Banking benefit the customers?

API banking portal transforms a bank’s operations digitally. As a result, they can provide much better and faster services to their customers in a streamlined fashion. Now, customers get access to their banking operations, which they can conduct right from their homes. They no longer need to stand in queues just to check their account balance. Small business owners also get access to a myriad of services like expense management, mass payouts, virtual cards, etc.

Must Read: How API Banking Has Transformed the Indian Financial Services Industry

What are the topmost uses of API Banking?

The topmost use cases for API banking services include:

Lending: Lenders can instantly disburse loans to their borrowers due to reduced dependency on manual systems. 

Gaming: If you deal in online gaming, you need to ensure that the winners get their rewards fast. Instead of depending on manual methods and net banking, API banking can make transfers much faster than before.

E-commerce: An e-commerce company can ensure the best customer service by providing multiple payment modes to their customers.

What kind of payments can be made with API Banking?

Four different types of payments can be done with API Banking India. They are:

  • B2B (Business to Business) Payments: These payments include money going from one business to another, such as a vendor or supplier. Usually, these are high-value payments that involve lakhs, even crores of rupees.
  • B2C (Business to Consumer) Payments: These payments go from a business to the customers, including refunds, insurance claims, legal settlements, employee wages, etc.
  • C2B (Consumer to Business) Payments: These payments include money from consumers to the businesses, such as bill payments, POS payments, recurring subscription payments, etc.
  • P2P (Domestic Peer to Peer) Payments: These payments include money transactions between two individuals, such as parents sending money to son studying abroad.
  • Should I consider integrating an API banking payment gateway into my website or app?

Integrating an API banking platform into your website or app helps you maintain the best user experience. 

  • Interact with your customers through different platforms, like a mobile app or social media
  • Get real-time data about your customers’ buying and paying behaviour
  • Offer multiple payment options to your customers
  • Keep your customers’ data secure and confidential

What are the qualities to look for in API Banking Services company?

Go through this checklist before zeroing down on an API Banking Services company:

  • Modern design as per the latest API standards
  • User-friendly interface to make the transactions easy, fast, and streamlined
  • Security with PCI compliance to keep your customers’ financial details secure
  • Proper documentation and licensing to ensure authentication
  • SDK to make API integration a breeze
  • Ability to work outside of the bank working hours
  • No limitations on the amount and number of payouts
  • Single platform to track, control, view, and analyse your money movement

What is the future of API Banking India?

In 2016, CMA (Competition and Markets Authority) of the UK asked its top banks to give access to their banking data to 3rd party license holders. In India, the Reserve Bank of India launched UPI developed by NPCI during the same year. This step led to a rise in API banking in India. A handful of banks launched API banking services at that time and revolutionised the traditional banking system of the country. At present, many banks offer such services, and thousands of start-ups solely rely on banking APIs to manage their financial operations. So, the prospects of API banking India are only expected to rise over the coming years.

FidyPay is a trusted API Banking Solutions company in India, offering a multitude of API banking services to businesses and customers. 

Send us your query at or call us at +91 731 4986854 to avail our services and for more information.

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