Unified Payments Interface (UPI)
Why it Matters?
India’s UPI (Unified Payments Interface) has revolutionized digital finance, emerging as the global leader in real-time payments with over 18 billion transactions monthly, as per the International Monetary Fund.
What You Should Know?
Unified Payments Interface (UPI) was launched in 2016 by the National Payments Corporation of India (NPCI).
It is now the world’s leading real-time digital payment system.
UPI allows linking multiple bank accounts to a single mobile app for seamless fund transfer and merchant payments.
Its foundation pillars include Jan Dhan Yojana, Aadhaar, and 5G internet.
UPI enables secure two-factor authentication and privacy via UPI ID, and there is no need to share bank details.
Grievance redressal is integrated within UPI apps, making issue resolution user-friendly.
UPI is a model of digital public infrastructure, combining inclusion, speed, and innovation.
UPI now accounts for 85% of India’s digital payments and nearly 50% of global real-time digital transactions.
UPI is now live in 7 countries - UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius.
UPI’s entry into France marks its first European expansion, enabling seamless Indian payments abroad.
Unique Features of UPI:
Provides instant 24×7×365 money transfer via mobile.
Allows single app access for multiple bank accounts.
Enables single-click two-factor authentication (2FA) aligned with RBI guidelines.
Uses Virtual Payment Address (VPA) for pull/push transactions without sharing sensitive bank details.
Supports QR code-based payments for quick and contactless transfers.
Solves cash-on-delivery (COD) issues through instant digital payment.
Facilitates in-app payments and merchant transactions.
Allows utility bills, donations, and OTC (over-the-counter) payments.
Users can raise complaints directly from the mobile app.