What is United Payment Interface - UPI?

What is  United Payment Interface - UPI?

This Unified Payment Interface document provides a payments architecture that is directly linked to achieving the goals of universal electronic payments, a less cash society, and financial inclusion, using the latest technology trends, laid down in the RBI Payment System Vision Document (2012-15).

India’s 10 prominent banks, in co-ordination to Reserve Bank of India (RBI), have launched the United Payment Interface (UPI) App. 

It is expected to cut the costs involved in making payments and users will be able to complete the transactions in lesser time. 

You may use this app for making any payment for the denomination below Rs. 1 lakh.

At present, if you want to transfer money online, you need to first register the beneficiary &  then feed in details such as the account number and IFSC code. 

However, with this new App, you will be able to complete the transaction by using the unique ID of the beneficiary and you can authenticate the deal by using a mobile pin.

UPI will be a solitary interface throughout the National Payment Corporation Systems (NPCI). This will function on the Immediate Payment Service (IMPS) platform. 

UPI is expected to run as an alternative to debit cards, credit cards, and e-wallets. 

This App may take Indian banking system to a next level as it will use e-KYC, thanks to the high penetration of AADHAAR and would also make the use of digital lockers for keeping records. 

It will take customers’ affirmations through a digital platform and will also allow the use of digital signatures. 

 However, it is still unclear that how the legal framework would be put in place for the new App. 

Currently, the card-base system has a well-established framework supported by agreements among merchants, fraud analytics, and grievance re-dressal agencies. We will have to wait for more clarity in case of UPI on this front.

Using UPI is a 5 step process. 

Here are the directions..

1. Download the App from the Playstore 

2. Link the bank account to the App 

3. Create a Unique ID 

4. Link the Aadhaar to it

5. Set a PIN

For more details http://www.npci.org.in/UPI_Documents.aspx

http://www.npci.org.in/documents/Int_API.pdf

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