Unified Payment Interface: Here’s how RBI’s UPI app will turn your smartphone into a bank

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• Unified Payment Interface Heres how RBIs UPI
  app will turn your smartphone into a bank

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• RBI has launched the Unified Payment Interface
  (UPI) that would facilitate direct payment from
  your bank without having to carry cash. Heres
  everything you want to know about the UPI app.
• From Jan Dhaan Yojna to Aadhar-based Direct Cash
  Transfer schemes, the Indian government is taking
  several measures to digitalize the Indian
  economy. An increasing number of people are now
  using the digital payment gateways for services
  such as online shopping, cabs booking and even
  for micro payments such as mobile recharge and
  transfers to friends and families. Thanks to
  wider availability of low-cost smartphones,
  internet connectivity and banking applications,
  the mobile banking volume in India has also grown
  multifold. This has given rise to a number of
  e-wallets that leverage mobile platform for
  cashless payments. The Reserve Bank of India
  (RBI) has also announced its Unified Payment
  Interface (UPI), which could be a game changer in
  the current era of cashless payments.

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• Today, with over 10 million merchants and
  retailers, only six percent have the
  infrastructure for accepting card payments,
  whereas most transactions taking place are in
  cash. Due to this, it becomes difficult for the
  government to track the cash flow, and it is not
  able to collect tax from such cash-based
  transactions. However, with the new Unified
  Payment Interface, the government aims to offer a
  universal electronic payment method that will
  help India in becoming a cashless society. At the
  same time, it will also help the government in
  knowing the cash flow and collect tax
  accordingly.
• A couple of months ago, RBI Governor Raghuram
  Rajan launched UPI, the ambitious payments
  architecture for instant online bank payments.
  The interface has been developed by National
  Payments Corporation of India (NPCI), which is an
  umbrella organization for the countrys retail
  payments. UPI aims to allow users to send and
  receive money, make utility payment and more
  using a single password and identification. Lets
  get a little in-depth to know more about UPI and
  its benefits.

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• How is UPI better than third-party payments?
• The UPI app will greatly impact on the existing
  third-party payments. Today, in order to pay
  someone, you need to add them as a beneficiary.
  You also need their full name, bank account
  number, branch and IFSC code. However, the UPI
  app does away with these procedures, and all you
  need is the unique ID of the receiver.
• While RTGS and NEFT work on specific days and
  have limited working hours, Upi India works 24
  hours a day and seven days a week. Also, as UPI
  is built on top of IMPS, the money transfer takes
  place immediately. Once you have the unique ID,
  simply open the app, enter the amount to be paid,
  the beneficiarys unique ID and hit send it
  is that simple. In order to initiate safe
  transaction, the app will also ask you for a
  mobile pin to authenticate the payment.

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• Which banks are a part of UPI?
• As of now, 29 banks are a part of UPI network,
  out of which 15 major banks have already
  integrated the interface into their smartphone
  apps. These banks include the likes of ICICI
  Bank, HDFC Bank, Canara Bank, SBI, HSBC, Citi
  Bank, Bank of Baroda and Punjab National Bank
  among others. Currently in final testing stages,
  UPI is set to go live by July end with these
  banks.
• What are the transfer limitations and where all
  can you pay?
• The app will allow users to pay for transactions
  as low as Rs 50 and go all the way up to Rs 1
  lakh. For instance, if a group of friends go to
  have lunch or dinner, one can pay for all,
  whereas others can transfer money directly to the
  persons account.

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• Upi India can be used for grocery shopping at the
  supermarket, or online shopping as well. It will
  eliminate the need of entering card details such
  as number, expiry date, CVV code and OTP. All you
  need to do is enter the unique ID and youll
  get a notification to verify the transaction on
  your phone. Thats not all UPI app can also be
  used to make payments after receiving goods. A
  buyer can send money by scanning the company QR
  code or by entering the unique ID of the company.
• Overall, UPI will eliminate the need of having
  and maintaining a mobile wallet. UPI app is
  indeed a significant step to move towards
  cashless economy. As to how it will impact on the
  existing mobile wallets such as MobiKwik, Paytm,
  Oxigen and others remains to be seen. Recently,
  Flipkart acquired a startup, PhonePe that is
  making solutions around Unified Payments
  Interface.
• Source http//bit.ly/2pdT5rx

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