Unified Payments Interface (UPI)

13.02.2024

Unified Payments Interface (UPI) , Daily Current Affairs , RACE IAS : Best IAS Coaching in Lucknow 

   Why in the news?

Recently, India's Unified Payment Interface (UPI) services  rolled out in Sri Lanka and Mauritius at a virtual ceremony.     

About Unified Payments Interface (UPI):

• It is a digital and real-time payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI).
• It was launched on April 11, 2016.
• It is designed to enable peer-to-peer inter-bank transfers through a single two-click factor authentication process.

Features:

○Unlike traditional methods, UPI simplifies transfers using the recipient's UPI ID, be it a mobile number, QR code, or Virtual Payment Address, eliminating account numbers.

○It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction.

○A consistent UPI transaction PIN across apps enhances cross-operability, enabling 24/7 transactions.

○UPI operates as a digital public infrastructure, allowing seamless interactions for all players, including merchants and customers, without transaction costs.

○UPI uses technologies like the Immediate Payment Service (IMPS) and the Aadhaar-Enabled Payment System (AEPS) to ensure that payments between accounts go smoothly.

○It facilitates push (pay) and pull (receive) transactions and even works for over-the-counter or barcode payments, as well as for multiple recurring payments such as utility bills, school fees, and other subscriptions.

○It also works with "Peer-to-Peer" requests, which can be scheduled and paid for based on need and convenience.                 

                                                           Source:New Indian Express