Wednesday, January 9, 2019

UPI - Future of payments in India




These days we are very much familiar with One Term…. “UPI or Unified Payments Interface”. UPI changed the way we used to make payments, doing fund transfer of so on and the best part is that we have to pay no fee for such transfer or payment and on the other hand we may earn some cash back too…. That’s sound interesting.. isn’t it..?

But what is UPI and how it works…??


What is 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 also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.
With the above context in mind, NPCI conducted a pilot launch with 21 member banks. The pilot launch was 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.



How are you getting all my bank A/C information?

This is a feature of the UPI payment platform (built by NPCI - an RBI regulated entity). The UPI platform retrieves the accounts details linked with your mobile number in a masked manner i.e. UPI app can't see all the details. This exchange is done over secure banking networks and we don't store or ever use it.

What happens if my mobile phone is lost?

In case of mobile loss, one needs to simply block his mobile number thus no transaction can be initiated from the same mobile number which is a part of device tracking and at the same time UPI pin would be required for any transaction which is not to be shared with anyone.

Again,If you lose your phone, the UPI-PIN is required to authorize all transactions which will not be known to any third person and hence they will not be able to use the UPI app. In addition, please contact our customer support at your bank in the event you lose your phone.


Where do I register a complaint with reference to the UPI transaction?

You can also raise your grievance or check status of UPI transaction through the UPI App of the participating banks.

What is the limit of fund transfer using UPI?

At present, the upper limit per UPI transaction is Rs.1 Lakh.

Can I use more than one UPI application on the same mobile if they are linked to different bank accounts?

Yes, one can use more than one UPI application on the same mobile and link both same as well as different accounts.



UPI - Benefits to the Ecosystem participants

Benefits for banks:
·         Single click Two Factor authentication
·         Universal Application for transaction
·         Leveraging existing infrastructure
·         Safer, Secured and Innovative
·         Payment basis Single/ Unique Identifier
·         Enable seamless merchant transactions

Benefits for end Customers:
·         Round the clock availability
·         Single Application for accessing different bank accounts
·         Use of Virtual ID is more secure, no credential sharing
·         Single click authentication
·         Raise Complaint from Mobile App directly

Benefits for Merchants:
·         Seamless fund collection from customers - single identifiers
·         No risk of storing customer’s virtual address like in Cards
·         Tap customers not having credit/debit cards
·         Suitable for e-Com & m-Com transaction
·         Resolves the COD collection problem
·         Single click 2FA facility to the customer - seamless Pull
·         In-App Payments (IAP)


In a nutshell, with UPI set to or we can say already revolutionized mobile banking in India, the customer can look forward to the various benefits offer by it. What more ? This service is available round the clock 24X7.

Source :
-          https://www.npci.org.in
-          tomorrowmakers.com

1 comment:

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