The National Payment Corporation of India’s technological endeavor Unified Payments Interface (UPI) is going to be a big one among the recently launched financial technologies nationwide. It was launched by Raghuram Rajan who expressed that the UPI along with other technology based payment devices and payment banks is going to revolutionize Indian banking.
UPI is aimed to facilitate retail payments for ecommerce, small ticket money transfer for person to person payment and micropayments, utility bill payments etc. The UPI system is linked to the bank’s payment infrastructure so that bank identifies the customer through his Aadhaar number or a virtual address. Purchase of tickets, payment of school fees, etc. can be easily carried out by the interface rather than submitting the bank details while executing the transaction.
The UPI allows customers to quickly transfer funds across different banks with the use of a single identifier and a virtual address. As critical information like the bank account details are not given, there is more safety under UPI.
Already, the NPCI has developed a number of payment platforms including the Aadhaar Based Payment System. In the beginning, 19 banks will associate with to provide services based on UPI.
The launch of UPI is expected to boost RBI’s effort towards cashless transaction and mobile based payments. Under UPI, mobile and bank connected Aadhaar ID is the anchor for facilitating payments.