A new option is provided to banks which is very cost effective and most secure option till now, to increase the uses of digital transactions. This new option is upgraded Unified Payments Interface according to the senior finance ministry official has said. In against to the existing system of all the banks in India, a single UPI platform is being developed.
In the present time, banks like SBI, PNB and Canara Banks and other large banks are using their own individual platforms. This new single UPI platform has many qualities including, it is easy to you and secure all the data.
According to the officials, “With this new payment method, mobile phones will be used as virtual debit cards and a customer will be able to send or receive money instantly along with other features”. This step is taken by the government to push the digital banking and provide worth to their smartphones. According to the higher officials with all these features, this platform can beat the mobile wallet players.
"Unlike the standard payment infrastructure, which, by and large, facilitates only the 'pushing' of transactions, UPI, with both 'push (pay)' and 'pull (collect)' facilities, is a game-changer," Anshuman Verma, founder and managing partner of M1L said.
"UPI is an open and interoperable technology stack that works by allocating a unique identification or address (not bank account/card details) for each user, resulting in more secure transactions.
"The decoupling of account details with transaction process could lead to the injection of more trust in digital transactions, lending higher credence to Indian digital world, in general," Verma said.
According to the surveys, there is around 40 crores of smartphone users are present in India and in last two years e-wallet are used by 23 crore users only.
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