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Unified Payment Interface to debut today: All about Unified Payment Interface

All about Unified Payment Interface
  • In what can prove to be a game-changing move, the Reserve Bank of India will launch the Unified Payment Interface (UPI) on 11 April.
  • It is a system that will make transferring and receiving money as simple as exchanging text messages.
  • It has the potential to bring hundreds of millions of people in the country under the ambit of banking and financial services.
About

What is UPI?

  • Unified Payment Interface (UPI) is a digital payment system that allows people to send and receive money through mobile phones.
  • It's one of the most ambitious projects of National Payment Corporation of India (NPCI) that aims to bring a significant change in the way mobile banking transactions are done.
  • UPI will be inter-operable across 29 banks and makes sending and receiving of payments instant.

 

FACT

NPCI: a profile

  • National Payment Corporation of India (NPCI), founded in 2008 through the support of RBI and the Indian Banks Asociation, is an umbrella organisation dealing with retail payments in India. Headquartered in Mumbai, NPCI became famous after the Rupay debit cards.

 

How

How does UPI work?

  • UPI simply requires a mobile and a virtual address or Aadhaar number to send and receive money.
  • UPI eliminates the need for details of receiver's bank account, IFSC code, etc. for transactions.
  • “Unlike the Immediate Payments Service (IMPS) which allows people to only send money, it (UPI) will allow people to receive money and initiate requests, too." -AP Hota, MD and CEO, NPCI.

 

FACT

UPI aims to replicate M-pesa's success

  • A similar digital payment scheme to send and receive money using mobiles, M-pesa, was introduced in Kenya by Safaricom in 2007 and became a huge success, with over half of Kenyan population using the system.

 

11 Apr 2016

Unified Payment Interface to debut today

  • In what can prove to be a game-changing move, the Reserve Bank of India will launch the Unified Payment Interface (UPI) on 11 April.
  • It is a system that will make transferring and receiving money as simple as exchanging text messages.
  • It has the potential to bring hundreds of millions of people in the country under the ambit of banking and financial services.

 

FACT

UPI a game changer

  • Almost half of Indians do not have a bank account whereas there are over 1 billion mobile phones. UPI, by using technology, can provide banking facilities to a larger mass of citizens.

 

11 Apr 2016

UPI receives enthusiastic reactions

  • "UPI has the potential of transforming the entire payments ecosystem in the country,”- Binny Bansal, CEO, Flipkart.
  • “The interface will bring banking to the unbanked,” -Vinod Khosla, co-founder of Sun Microsystems.
  • "The robust system will help India leapfrog the desktop and the credit-card economy to become a mobile-first economy, accelerating e-commerce and driving a host of financial services,” -Nandan Nilekani, first boss of Aadhaar.

Source : Newsbyte

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