About 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. 
  • This system enables lightning-fast money transfers between bank accounts through a mobile application, effectively bypassing the need for conventional approaches such as net banking or the manual entry of credit card information.
  • UPI is an initiative of the National Payments Corporation of India (NPCI).
  • NPCI launched the pilot programme of UPI in 2016.

• NPCI was incorporated in 2008 as an umbrella organization for operating retail payments and settlement systems in India. 

• It is an initiative of the RBI and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India. 

• It has been incorporated as a “Not for Profit” Company under the Companies Act 2013. 

How is it unique?

• Immediate money transfer through mobile device round the clock 24*7 and 365 days.
• Single mobile application for accessing different bank accounts.
• Single Click 2 Factor Authentication.
• Raising complaints from mobile app directly.
• It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.

Why in News?

• The Government of India is set to launch Unified Payment Interface (UPI) services in Sri Lanka and Mauritius.