RBI governor Raghuram Rajan and Infosys co-founder Nandan Nilekani, adviser to the National Payments Corporation of India, have today launched the much-awaited Unified Payments Interface (UPI).
PM Modi’s Digital India vision was all about connecting India using Digital platform so that technology can be the fulcrum using which development & progress can be spread all over the nation.National Payments Corp. of India Ltd (NPCI) powered Unified Payment Interface is all set to introduce a major leap in this decision.
1.What is the Unified Payments Interface?
UPI system will allow anyone with a bank account to transfer money or make payments almost as easily as sending a text message. It is a single interface across all National Payment Corporation Systems (NPCI), allowing customer to instantaneously transfer funds across different banks with the use of single identification and password. Users ac link multiple bank accounts to a single mobile application. Money can both be requested and recieved through the same interface.
2.What is IMPS?
It is expected to make online payments much easier without the need of a digital wallet, credit or debit card. The service will run on the Immediate Payment Service (IMPS) platform. IMPS enables transactions using unique identification and mobile phone numbers without sharing any other bank details.
3.How is different from online/mobile fund transfers?
It is an additional layer of software that connects various components of the payments system. It also brings in new features like identifying a receipt based on nicknames without sharing credentials. Today, online/mobile fund transfers require the receiver to share a lot of personal information with the sender. Also, a bank’s mobile app does not transact with other bank’s apps. UPI will address these shortcomings.
4.How do customers access UPI services?
Banks or other parties will have to create mobile apps to provide services that are currently not possible.