Unified Payments Interface (UPI)

 

·       Unified Payments Interface (UPI) 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 caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.

·       NPCI conducted a pilot launch was on 11th April 2016 with 21 member banks. Banks have started to upload their UPI enabled Apps on Google Play store from 25th August, 2016 onwards.


How is it 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.

·       Merchant Payment with Single Application or In-App Payments.

·       Utility Bill Payments, Over the Counter Payments, Barcode based payments.

·       Raising Complaint from Mobile App directly.


Participants in UPI

·       Payer PSP

·       Payee PSP

·       Remitter Bank

·       Beneficiary Bank

·       NPCI

·       Bank Account holders

·       Merchants


UPI - Benefits to the Ecosystem participants

·       Benefits for banks:

Ø  Single click Two Factor authentication.

Ø  Universal Application for transaction.

Ø  Leveraging existing infrastructure

Ø  Safer, Secured and Innovative.

Ø  Payment basis Single/ Unique Identifier.

Ø  Enable seamless merchant transactions.

·       Benefits for end Customers:

Ø  Round the clock availability

Ø  Single Application for accessing different bank accounts

Ø  Use of Virtual ID is more secure, no credential sharing

Ø  Single click authentication

Ø  Raise Complaint from Mobile App directly

·       Benefits for Merchants:

Ø  Seamless fund collection from customers - single identifiers

Ø  No risk of storing customer’s virtual address like in Cards

Ø  Tap customers not having credit/debit cards

Ø  Suitable for e-Com & m-Com transaction

Ø  Resolves the COD collection problem

Ø  Single click 2FA facility to the customer - seamless Pull

 

National Payments Corporation of India (NPCI)

·       National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments system in India.

·       It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA). 

·       This organisation was founded in the year 2008 under the Payment and Settlement Systems Act, 2007.

·       NPCI has been incorporated as a ‘not for profit’ company under section 8 of Companies Act 2013.

·       It has successfully played pioneering role in development of a domestic card payment network called RuPay, reducing the dependency on international card schemes.

 

 

Comments

Post a Comment

Popular posts from this blog

Fundamental Rights of Indian Constitution

Image
  Introduction  Fundamental rights are the basic human rights enshrined in the Constitution of India which are guaranteed to all citizens. They are applied without discrimination on the basis of race, religion, gender, etc. Articles 12-35 (Part III) of the Indian Constitution deal with Fundamental Rights. Fundamental Rights are largely inspired by the Bill of Rights in the American Constitution. Part III of the Constitution is rightly described as the Magna Carta of India. The Fundamental Rights are meant for promoting the ideal of political democracy. They prevent the establishment of an authoritarian and despotic rule in the country, and protect the liberties and freedoms of the people against the invasion by the State. Types of Fundamental right Originally, the Constitution provided for seven Fundamental Rights viz, 1.       Right to equality (Articles 14–18) 2.       Right to freedom (Articles 19–22) 3.    ...
Read more