Unified Payments Interface
- Unified Payments Interface (UPI) is India’s mobile based, ‘fast payment’ system that facilitates customers to make round the clock payments instantly using a Virtual Payment Address created by the customer.
- This eliminates the risk of sharing bank account details by the remitter.
- UPI supports both Person to Person and Person to Merchant payments as also it enables a user to send or receive money.
- It was developed by the National Payments Corporation of India (NPCI), an RBI regulated entity.
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 – Aligned with the Regulatory guidelines, yet provides for a very strong feature of seamless single click payment.
- Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
Why in News?
- Prime Minister Narendra Modi and Prime Minister of Singapore, Mr. Lee Hsien Loong are set to launch the cross-border connectivity between the Unified Payments Interface (UPI) of India and PayNow of Singapore.
- PayNow is the fast payment system of Singapore which enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions in Singapore.
- The linkage of these two payment systems would enable residents of both countries in faster and cost-efficient transfer of cross-border remittances.
- It will also help the Indian diaspora in Singapore, especially migrant workers and students through instantaneous and low cost transfer of money from Singapore to India and vice-versa.
- 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.
- It has changed the way payments are made in India through a bouquet of retail payment products such as RuPay card, Immediate Payment Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), BHIM Aadhaar, National Electronic Toll Collection (NETC Fastag) and Bharat BillPay.
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