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Unified Payment Interface

                                  Aiming cashless transactions a drastic change is going to be introduced known as ‘Unified Payment Interface (UPI)’. This is developed by National Payment Corporation of India. This brings lot change in Indian Banking.

The managing Director and CEO of Axis Bank has commented that this is a ‘WhatsAppMovement’,

In payment vision document (2012-15) RBI has clearly indicated that its  goal of lower cash-incentive society and financial inclusion using the latest technology will be achieved by using UPI.

To make life more comfortable what RBI is proposing to get through UPI?  Initially we discuss how many cashless transaction being undertaken by an individual in India? As per the statistics  of NPCI, at an average 6 transactions are being done without cash and out of 10million retailers a fraction of retailers have the required infrastructure to accept cashless transactions which is hovering around 6%.  Smart phone market is growing many a fold in the country and it is estimated to grow up to 500million from the current market level of 150million over a period of time. So there is a lot of scope to grow for cash less transaction in the country.

  Key Drivers of UPI :

Simplicity : With a single click money to be paid/received over a mobile phone without revealing bank account details  but with  a payment  address like adhar card/Rupay card etc..

Innovation : The advantages of enhance applications in mobiles should be exploited  to provide integrated payments, take advantages of newer authentications etc..

Adoption : Taking in to consideration  the potential user base, it should not be crashed and be enabled to large scale adoption, should provide ability to work with any other system.

Security : The most important factor is security. The solution had to ensure end to end strong security and data protection.

Cost : As we are all very cost conscious  any device of high cost will vanish from the market soon. There should not be any cost in acquiring or issuing side  while acquiring the virtual address like adhar card, smart phone number etc..


Objective of UPI : Facilitating easy on line payment and easy instant payment through mobiles, web and other applications.

End users of UPI :  Any one who is having a bank account and holding a mobile phone for either to receive or to make payments.

How it differs from existing system :   In the present system IFSC code and bank details are to be revealed but in case of UPI no revelation of bank account details involved, just virtual address is enough to conclude the transaction.

Whether UPI is safe? : As one click and two authentications are there UPI is safe.

Is virtual address is unique : No. One time use address can be provided. Virtual address can be restricted for certain amounts or can be limited to certain payees or time limt also can be fixed.

For more details :



courtesy : Business Standard

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