UNIFIED PAYMENTS INTERFACE (Syllabus: GS Paper 3 – Economy)

Context: Recently, the Prime Minister of India encouraged citizens to abandon cash transactions and embrace digital payments as part of the government's ongoing push towards a digital economy.

• UPI transactions are gradually becoming more widespread across the country, and cash in circulation is finally seeing a decline.

Unified Payments Interface UPI

• About: UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. 
• Developed by: National Payments Corporation of India in 2016.
• Participants in UPI: Payer Payment Service Provider (PSP), Payee PSP, Remitter Bank, Beneficiary Bank, NPCI, Bank Account holders, and Merchants.
• Global Recognition of UPI: UPI had already established itself in countries like Singapore, Bhutan, Nepal, and the UAE.
• International Adoption of Indian Payment Systems: France, UAE, Saudi Arabia, Bahrain, Singapore, Maldives, Bhutan, and Oman.

Benefits of UPI

• Single-click Two Factor authentication
• Universal Application for transaction
• No risk of storing customer’s virtual address like in Cards.
• Safer, Secured and Innovative