Unified Payment Interface launched by RBI
Raghuram Rajan Govener of Reserve Bank of India (RBI) projected the Unified Payments Interface (UPI) system on Monday, as its latest offering in boosting digital money transfers.
The interface has been developed by National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments in the country. The UPI seeks to make money transfers easy, quick and hassle free.
Ten major banks like SBI, Canara Bank, BOI, ICICI Bank, HDFC Bank, Punjab National Bank, Bank of Baroda, HSBC, and Citi Bank are coming together with their mobile apps,29 banks had also agreed to provide UPI service to their customers. A. P. Hota, MD & CEO, NPCI said “We are confident that several banks will join UPI this year and the number will multiply further,”
How does UPI system work
Imagine buying goods from a shop by paying cash. You exchange cash with commodity, the biller hands you a receipt and the goods becom yours.
UPI is also the same and simple.its just, you have to tell your virtual identity to the cashier despite changing the cash, Then cashier generates an invoice through UPI, you will approve it using your mobile phone and the payment is done!
To enjoy the UPI service you need to have an smartphone.As soon as you register it with your bank, a virtual address will be created.this is summarized with your mobile phone.
To commence the payment, UPI help this virtual identity of the beneficiary and transfers money in real-time. It works on single-click 2-factor authentication.
While using UPI every coustomer has an option of multiple virtual address in different banks. To assist the privacy of customer’s data,there will be no account number mapper anywhere,except cutomer’s own bank. It will aid customer to freely share financial address with others.
For the virtual address,despite using short name Customer can manage to use their moble number or Aadhar number as the name for the identity.
UPI will help individuals to spend less on their mobile wallet, by using this RBI will be able to maintain cashless economy and mark it as a healthy move towards the Easy Modern Economy.