Digital payments: Single UPI platform in offing for banks

  • 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.