Post demonetisation of high-value currency notes, more and more people have started using e-payment means including digital wallets for making payments for various transactions.
A single unified payments interface (UPI) platform is being developed for all banks as against the existing system of an individual platform in order to promote digital transactions.
With this new payment method, mobile phones will be used as virtual debit cards & the customer will be able to send or receive money instantly.
UPI is being developed by National Payments Corporation of India (NPCI)which operates the Rupay payments infrastructure, like Visa and MasterCard & supported by the Reserve Bank of India and Indian Banks Association (IBA).
UPI will be an open and interoperable technology stack that will work by allocating a unique identification or address (not bank account/card details) for each user.
It will have both ‘push (pay)’ and ‘pull (collect)’ transaction facilities.
It will not only help merchants reduce set-up costs at their ends, but also lead to greater reduction in transaction costs for consumers.
