What is UPI? Benefits of UPI
UPI stands for “Unified Payments Interface” is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.
NPCI conducted a pilot launch with 21 member banks on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started to upload their UPI enabled Apps on Google Play store from 25th August, 2016 onwards.
Unified Payments Interface (UPI) has been termed as the revolutionary product in the payment system.
What makes UPI unique?
- Immediate money transfer through mobile device round the clock 24*7 and 365 days.
- Single mobile application for accessing different bank accounts.
- Single Click 2 Factor Authentication – Aligned with the Regulatory guidelines, yet provides for a very strong feature of seamless single click payment.
- Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
- QR Code.
- Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
- Merchant Payment with Single Application or In-App Payments.
- Utility Bill Payments, Over the Counter Payments, QR Code (Scan and Pay) based payments.
- Donations, Collections, Disbursements Scalable.
- Raising Complaint from Mobile App directly.
Participants in UPI
- Payer PSP
- Payee PSP
- Remitter Bank
- Beneficiary Bank
- NPCI
- Bank Account holders
- Merchants
Benefits to the Ecosystem Participants
Banks Customers Merchants Single click Two Factor authentication Round the clock availability Seamless fund collection from customers - single identifiers Universal Application for transaction Single Application for accessing different bank accounts No risk of storing customer’s virtual address like in Cards Leveraging existing infrastructure Use of Virtual ID is more secure, no credential sharing Tap customers not having credit/debit cards Safer, Secured and Innovative Single click authentication Suitable for e-Com & m-Com transaction Payment basis Single/ Unique Identifier Raise Complaint from Mobile App directly Resolves the COD collection problem Enable seamless merchant transactions - Single click 2FA facility to the customer - seamless Pull - - In-App Payments (IAP)
See also….
What is GDP?
What is Mutual Fund