The National Payments Corporation of India (NPCI) has announced that Unified Payments Interface (UPI) application has become operational.
The application will allow customers to make easier real-time payments via digital means using smartphones.
- The payment gateway became operational after it received the Reserve Bank of India’s clearance that allowed banks’ UPI applications to go live on Google Play Store.
- Initially, the UPI will be available only on the Android mobile operating system. It will be going live with 21 banks in the first phase.
About Unified Payments Interface (UPI)
- UPI is a flagship product of NPCI that will help India to move towards a cashless economy. It is a set of standard Application Programming Interface (APIs).
- It will provide uniform mobile payment system by leveraging digital trends such as increasing smart phone adoption and deeper penetration of mobile data.
- It will allow customers to send and receive money from their smartphones using virtual payments address without entering bank account details.
- It facilitates ‘virtual address’ as a single payment identifier for sending and collecting money and works on single click 2 factor authentication.
- It works as a single identifier that will eliminate the need to exchange sensitive information such as bank account numbers during a financial transaction.
- It merges several banking features, seamless fund routing and merchant payments into one hood. Thus, it will be a single app for accessing different bank accounts.
- It also provides an option for scheduling push and pull transactions for various purposes like sharing bills among peers.
National Payments Corporation of India (NPCI)
- NPCI is the umbrella organisation for all retail payments system in India. It is being promoted the Reserve Bank of India.
- It was founded in 2008 as a not-for-profit organisation registered under section 25 of the Companies Act, 2013.
- It has successfully played pioneering role in the development of a domestic card payment network called RuPay, reducing the dependency on international card schemes.