NPCI today launched next generation online payments solution — Unified Payments Interface (UPI) which will leverage trends such as increasing smartphone adoption and deeper penetration of mobile data. UPI is a channel that powers multiple bank accounts into a single mobile application (of any bank) of a participating bank, merging several banking features, seamless fund routing and merchant payments into one hood. It will empower users to perform instant push and pull transactions and transform the way people make payments today. Also Read - FASTag Update: How to recharge FASTag account for Electronic Toll CollectionAlso Read - FASTag Latest Update: How to get FASTag wallet ID and activate it
“Our focus is in line with RBI’s vision of migrating towards a ‘less-cash’ and more digital society. NPCI has always been at the forefront to innovate and introduce new products and services at par with global standards,” National Payments Corporation of India (NPCI) managing director and CEO A P Hota said.
UPI was today launched by Reserve Bank Governor Raghuram Rajan along with Nandan Nilekani, advisor to NPCI. Hota said a few banks have gone live with UPI out of 29 and other banks will join this year. Speaking about UPI, Nilekani said: “This is a leapfrog. It is been made possible because NPCI had built Immediate Payment Service (IMPS) platform and this is a layer we have put on IMPS.”
“IMPS didn’t really have the easy debit capability and that is addressed by this platform. We think with UPI coming, it is going to be an important merchant platform,” he added.
UPI facilitates ‘virtual address’ as a payment identifier for sending and collecting money and works on single click 2 factor authentication. It also provides an option for scheduling push and pull transactions for various purposes like sharing bills among peers. One can use UPI app instead of paying cash on delivery on receipt of product from online shopping websites and can perform expenses like paying utility bills, over the counter payments, barcode (scan and pay) based payments, donations, school fees and other such unique and innovative use cases.