FinTech Terms Explained.

A model where licensed banks integrate their digital banking services into non-bank products via APIs. SpacePe is a BaaS platform that provides banking, invoicing, billing, and compliance tools via a unified interface.

India's real-time payment system developed by NPCI enabling instant bank-to-bank transfers via mobile devices. UPI processes over 10 billion transactions monthly and is the backbone of India's digital payment ecosystem.

24/7 instant interbank electronic fund transfer service in India. Unlike NEFT which operates in batches, IMPS provides real-time settlement for amounts up to Rs. 5 lakhs.

Electronic fund transfer system operating in half-hourly batches from 8 AM to 7 PM on working days. Suitable for non-urgent transfers with no minimum or maximum limit.

Real-time fund transfer system for high-value transactions with a minimum of Rs. 2 lakhs. Settlement happens on a transaction-by-transaction basis without netting, providing certainty of payment.

Integrated bill payment system in India providing interoperable bill payment services. Covers utilities, telecom, insurance, loan repayments, and municipal taxes through a single platform.

Umbrella organization for retail payments in India, operating UPI, IMPS, RuPay, BBPS, and other payment systems. NPCI sets standards and guidelines for digital payment infrastructure.

India's comprehensive data privacy law enacted in 2023, governing the processing of digital personal data. Establishes rights of data principals, obligations of data fiduciaries, and penalties for non-compliance.

Access management approach where permissions are assigned based on user roles within an organization. SpacePe implements 3-tier RBAC - User, Manager, Admin - with granular CRUD permissions per module.

Identity verification process required by financial regulators. In India, KYC can be done via Aadhaar (DigiLocker), PAN, video verification, or CKYC registry.

Centralized repository of KYC records maintained by CERSAI. Once KYC is done at one financial institution, the CKYC record can be shared with others, eliminating duplicate verification.

India's digital document wallet linked to Aadhaar. Used for e-KYC verification, allowing instant identity verification without physical document submission. SpacePe integrates DigiLocker for paperless KYC.

India's unified indirect tax replacing multiple central and state taxes (VAT, service tax, excise). GST has four rate slabs - 5%, 12%, 18%, 28% - with CGST (central), SGST (state), and IGST (interstate) components.

Monthly or quarterly return filed by registered taxpayers detailing all outward supplies (sales). Contains invoice-level details including customer GSTIN, HSN codes, tax amounts, and place of supply.

Monthly summary return showing total output tax liability, input tax credit claimed, and net tax payable. Filed by the 20th of following month with actual tax payment.

Internationally standardized system for classifying traded products. In India, HSN codes are used for GST classification - 4-digit for turnover above Rs. 5 crore, 6-digit above Rs. 5 crore.

Classification code for services under GST, similar to HSN for goods. SAC codes are 6-digit numbers used to categorize services for tax rate determination.

Tax collected at the point of income payment. The payer deducts tax before paying the vendor and deposits it with the government. Different sections (194C, 194J, 194H, etc.) apply different rates.

Security mechanism requiring two or more verification factors - something you know (password), something you have (phone/token), something you are (biometric). SpacePe supports TOTP, SMS, Email, and WebAuthn.

Symmetric encryption algorithm used by governments and enterprises worldwide. AES-256 is considered unbreakable with current technology. SpacePe uses AES-256 for all data at rest.

Cryptographic protocol for secure communication over networks. TLS 1.3 (latest version) provides faster handshakes and stronger encryption. SpacePe uses TLS 1.3 for all data in transit.

Set of protocols allowing software applications to communicate. SpacePe provides 80+ bank API management tools with sandbox, health monitoring, and CI/CD capabilities.

Automated HTTP callback triggered by an event. When a payment is received or a transaction status changes, SpacePe sends a webhook notification to your system for real-time updates.

Technology that extracts text from images and scanned documents. SpacePe uses OCR to auto-read vendor bills - extracting amount, GST, vendor name, and due date from uploaded PDFs and images.

Bank deposit for a fixed period at a predetermined interest rate. SpacePe's treasury module tracks FDs across all bank partners with maturity alerts and auto-renewal management.

Banking facility that automatically transfers excess funds from current account to FD when balance exceeds a threshold. SpacePe configures auto-sweep rules across bank partners for optimal yield.

Treasury technique consolidating balances across multiple accounts to optimize interest and liquidity. Can be physical (actual transfers) or notional (virtual offset without transfers).

Request from an individual to exercise their rights under data protection law - access, correction, deletion, or portability of personal data. DPDP Act requires response within specified timelines.

Systematic assessment evaluating how personal data processing may affect individual privacy. Required under DPDP Act for high-risk processing activities. SpacePe provides PIA templates and tracking.

Dual-control process where one person creates a transaction (maker) and another authorizes it (checker). Standard practice in banking for preventing fraud and errors. SpacePe implements configurable maker-checker for all financial operations.

Bank account verification method where a small amount (Re. 1) is transferred to verify account number, IFSC, and account holder name. SpacePe uses penny-drop via Yes Bank and IDFC First for vendor onboarding.