NPI

Dear Aspirants

On February 13, 2016, NPCI organized a workshop in Bengaluru for the successful technical launch of UPI i.e. Unified Payment Interface.

Friends, this topic is crucial for better understanding of Payment and Settlement Systems in India. So here in this post we are providing the Information on UPI.

Now it is important to note that UPI has not been officially launched by NPCI but it is proposed to be launched in the month of April.

So below are the details of UPI to have a rough idea about the topic.

With the PM Modi stressing the need to make India digitally advance, along with the RBI Governor's commitment towards the Cashless Payment System; National Payments Corporation of India has come up with the Unified Payment Interface.

Managing Director and CEO – AP Hota

The Unified Payment Interface (UPI) project was initiated last February by Reserve Bank of India governor Raghuram Rajan, and over the past year, the application program interface (API) has been developed.

This new Payment Interface will facilitate the next generation online immediate payments, taking the advantages of various trends like increased smartphone adoption, increased penetration of mobile data and available Indian language Interface.

The new interface is designed to enable all account holders to send and receive money from their smartphones with a single identifier – Aadhaar number, mobile number, virtual payments address – without entering any bank account information.

It is interesting to note that the NPCI has partnered with Software Product think-tank ISpirit for the technical launch of UPI. And Infosys co-founder Nandan Nilekani is an advisor to the NPCI.

The launch of UPI will promote the new ventures to foray into launch of new innovative payment products, thereby offering a superior customer experience. In addition, its launch would also support the growth of e-commerce. Thus it eventually facilitates people to people transaction from any bank account to another, using a mobile Phone App.

The payments under the UPI can be both sender and receiver initiated and are carried out in a secure, convenient and integrated fashion. This system is also expected to propel easy instant payment via mobile, web and other applications.

Benefits of UPI

a) For Banks: It will facilitate the below things:

Universal App for Payment
Security
Simplified Authentication
Single/Unique Identifier based Payments
Opportunity to tap Customer to Business Segment
Opportunity to tap E-commerce and M-Commerce transactions
b) For the Customers: The launch of UPI would mean:

Privacy: With UPI, there is no need to reveal account details since the transactions are carried out using Virtual Address.
It would be easier and convenient for the customers to authorise transactions by entering only PIN.
Payment can be done by providing only one identifier of the beneficiary.
Payment request can be generated in Web interface (in desktop) and can be authorized in Mobile Interface (in App) in later phases.
It provides multiple utilities and applications
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Thanks!