Abstract: The Present Invention focuses on performing banking operation at kiosk unit (an ATM) without the use of conventional physical smart cards. A special type of card called a Virtual Smart Card (V.S.C) is deployed by the bank authority which is portable on any smart device which a user possesses and this V.S.C is such that it can be only accessed in the presence of an interface provided by the bank authority. We later depict as of how a V.S.C can emulate normal physical smart cards for performing banking operation and also as of how this V.S.C can be used for making payment to merchants or on the websites when user desires. A special type of V.S.C and interface called merchant V.S.C and S-interface is provided to merchants by the bank authority such that it can be deployed easily on multiple devices such that multiple agents working under a merchant can use it for collecting payment.