Open Banking means executing banking transactions through server to server Requests. Means sending request from your server to your bank server to carry out financial transactions or retrieving financial information of your account or your client account from Banks Server.

Take example of a Telecom company. They have million of subscribers. So it is very time consuming to reconcile the payment manually. The Telecom Company by integrating open banking API, can create virtual account for each subscriber by sending API request to the Bank Server, Upon receiving the virtual account request from the telecom company server, the bank server create the specified virtual account and respond with success message to the telecom server request. Telecom company print payment QR Code with virtual account/ virtual ID / UPI ID on the bill of the customer. Bill payer scan the QR Code printed on the bill and make the payment. The payment get credited in the virtual account created for the customer. Upon payment credit, the bank sends payment status response to the telecom company server. On getting the response from Bank Server, the telecom company update the customer payment. Creating of Virtual Accounts & Receiving of the response from bank server are through banking APIs.

Telecom Company have many vendors to whom they have to make payment. Telecom Company Server, send API request to bank Server to transfer some amount to a vendor account, on receiving the API request from Telecom Company Server, Bank Server, debit the amount from telecom company account and transfer the amount to the vendor's Bank Account and send the transaction information to Telecom Company Server.