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

Context: Recently, the prime ministers of both countries announced that India has discussed the early launch of the UPI payment system with Sri Lanka and reiterated its support in the cash-strapped island nation’s debt restructuring process.

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

oSingle click Two Factor authentication

oUniversal Application for transaction

oNo risk of storing customer’s virtual address like in Cards.

oSafer, Secured and Innovative