All About UPI (Unified Payment Interface)

All About UPI (Unified Payment Interface) Wealthy Era
All About UPI (Unified Payment Interface)

India becomes the cashless economy with the help of Unified Payment Interface (UPI). It is the new payment method which is issued by National Payments Corporation of India (NPCI) on 11 April 2016. UPI is the real-time & Inter Bank payment system which allows the user to Accept money or doing payment. This interface is registered by Reserve Bank Of India and works on the Mobile Platforms. 
For several years, we have been saying that we need a revolution in banking in India. I think we can say with confidence that the revolution is upon us. What we have in India is the newest public payment base in the world.
Since UPI is launched, we consistently get questions like what is UPI, how it works, how it will affect the payment system, Etc. So I had tried to cover all such questions related to the Unified Payment Interface.

Unified Payment Interface

Unified Payment Interface

1) What Is UPI? 

UPI (Unified Payment Interface) is the Payment Method from which we can Accept or pay money with the help of Mobile Phone. It is similar to IMPS (Immediate Payments Service) and RTGS (Real Time Gross Settlement) but much faster. It works 24x7 and is real-time. With this, the online payment method becomes easier without ant need of Mobile Wallets, Debit or Credit Cards. It is also known as the advanced payment system of IMPS.

2) What is UPI Id or VPA (Virtual payment address)?

UPI Id is also known as VPN (Virtual payment address). It is similar to your Email Id. It can be Name@BankName, where name denotes a person's name and bank name denotes the bank account linked with the UPI Id. For Example, jay7@axis or jay123@pnb. 

3) Who is behind UPI?

It is developed by National Payments Corporation of India (NPCI) in 2016, with the help of Reserve Bank Of India and Indian Banks Association (IBA) to encourage the mobile transactions. IMPS (Immediate Payments Service) is also an initiative of NCPI and UPI is also known as the advanced payment system of IMPS.

4) How UPI works?

Nowadays, if you have a bank payment online, you need to enter your number of account, account type, the name of Bank and IFSC code. Even if you have all these details, write them all, especially a phone however, it is a painful process. Most of the banks take 15 hours to add a new payer and then you can transfer.

The owner of the interface can send and receive money to and from the smartphone in an account between banks using only the unique ID number, mobile phone number, or virtual payment address (VPA) without entering the details of the bank account You will be able to.

According to NPCI, 29 banks have started this service, and if your bank has UPI enabled, you can ask the bank to get connected with your account. Suppose your bank gives you a virtual ID similar to your email (name@BankName, for example). with the help of this virtual address, you can send and receive money.

Nandan Nilekani, (Advisor to NPCI) said: "UPI is a layer we have put on IMPS. It (IMPS) didn’t really have the easy debit capability and that has been addressed by this platform. We think with UPI coming, it is going to be an important merchant platform. Once it is adopted by all banks, money can be transferred from a bank to any other bank using a mobile phone".

5) Charges Of UPI.

Initially, the Charge of a transaction was 0.50 INR but now there are no transaction charges. It is FREE of cost.

6) Requirements for UPI.

  • You should have a bank account which provides the UPI service. 
  • You need the Mobile number linked with the bank as well as UPI provider.
  • You need to have a Smartphone.

7) How Safe Are UPI Payments?

According to RBI, the security is fool-proof as the transaction will happen in a highly encrypted format. It completely secure. The UPI Apps implement the UPI SDK provided by the banks and it is as safe as any bank app.

Coming to the security measures taken by the apps which implement the UPI SDK, besides following standard security practices like SSL Secure Connection, they follow the 2 Factor Authentication mandated by the RBI.
Also, each app is approved by the Bank providing the SDK and they are scrutinized for any security flaws.

8) UPI 2.0

UPI 2.0 was launched on 16 Aug,2018 with key features of Linking of overdraft account, UPI for merchandiser, facility of Invoice in the inbox, introduce of Signed intent and QR and many miner updates.

9) List of Banks Provides UPI Facility.

Sr. NoBank NameDetailsName of UPI App
1State Bank of IndiaPSP & IssuerSBI  Pay
2ICICI BankPSP & IssueriMobile
3HDFCPSP & IssuerHDFC Bank MobileBanking
4Andhra BankPSP & IssuerAndhra Bank ONE
5Axis BankPSP & IssuerAxis Pay
6Bank of MaharashtraPSP & IssuerMahaUPI
7Canara BankPSP & IssuerCanara Bank UPI – Empower
8Catholic Syrian BankPSP & IssuerCSB UPI
9DCBPSP & Issuer
10Federal BankPSP & IssuerLotza
11Karnataka BankPSP & IssuerKBL – Smartz
12Punjab National BankPSP & IssuerPNB UPI
13South Indian BankPSP & IssuerSIB M-Pay (UPI Pay)
14United Bank of IndiaPSP & IssuerUnited UPI
15UCO BankPSP & IssuerUCO-UPI
16Union Bank of IndiaPSP & IssuerUnion Bank UPI
17Vijaya BankPSP & IssuerVijaya UPI App
19TJSBPSP & Issuer
20IDBI BankIssuer
21RBL BankIssuer
22Yes BankPSP &IssuerYes Pay Wallet and PhonePe
24Standard Chartered BankIssuer
25Allahabad BankIssuer
27Bank of BarodaIssuer Baroda MPay
28Kotak Mahindra BankIssuer

10) Top UPI enabled Wallets.

11) Growth of UPI over the Year.

Growth of UPI over the Year

Crossed UPI trillion rupee a milestone for the monthly value in December, growing nearly eight times over the previous year. It also achieved a monthly volume of more than 600 million, four times the volume of UPI transactions in December 2017, according to data from the National Payments Corporation of India (NPCI).
The total payments industry saw a 27% rise in volume and a 1% decrease in November 2018 in November 2017, according to data from the Reserve Bank of India. Payment methods include cards, mobile wallets and mobile banking, and data on these forms of payments are only available until Dec 2018.

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