UNIFIED PAYMENT INTERFACE ( UPI )
UNIFIED PAYMENT INTERFACE ( UPI )
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Unified Payment Interface ( UPI )
WHAT IS U P I ? WHO ARE THE MEMBERS OF UPI ? WHAT ARE THE BENEFITS OF UPI SYSTEM ?
Read the Article below
Read the Article below
National Payments Corporation of India (NPCI) ( Who is NPCI ? See below paragraph ) announced on 26.08.2016 that bank applications for the Unified Payment Interface have officially become operational, which means that UPI apps of banks can now be downloaded and used for transactions:
UPI is a payment system that allows money transfer between any two bank accounts of the member banks by using a smartphone up to a limit of Rs 1 Lakh . UPI is actually a platform on which individual members have developed banking applications . The UPI applications / system developed by banks can be used for Merchant Payments , Bill Payments , Remittances etc . However the system cannot be used for making foreign remittances . Please note that for effecting a transfer to a beneficiary ,the beneficiary also needs to download a PSP app and register for a VPA. They need to communicate this VPA to you to initiate a transaction.
Recently NPCI launched a payment app called BHIM on the platform of UPI which has become popular with more than 10 million downloads . For details of BHIM , CLICK HERE
System is presently available only for resident account holders and hence cannot be used by NRI / NRO account holders
Flipkart has developed a wallet application based on UPI Platform called PHONEPE. NCPI itself has recently launched an application called BHIM based on UPI Flatform . Thus UPI has applications developed by member banks as well as Flipkart and NCPI .
UPI is a payment system that allows money transfer between any two bank accounts of the member banks by using a smartphone up to a limit of Rs 1 Lakh . UPI is actually a platform on which individual members have developed banking applications . The UPI applications / system developed by banks can be used for Merchant Payments , Bill Payments , Remittances etc . However the system cannot be used for making foreign remittances . Please note that for effecting a transfer to a beneficiary ,the beneficiary also needs to download a PSP app and register for a VPA. They need to communicate this VPA to you to initiate a transaction.
Recently NPCI launched a payment app called BHIM on the platform of UPI which has become popular with more than 10 million downloads . For details of BHIM , CLICK HERE
System is presently available only for resident account holders and hence cannot be used by NRI / NRO account holders
Flipkart has developed a wallet application based on UPI Platform called PHONEPE. NCPI itself has recently launched an application called BHIM based on UPI Flatform . Thus UPI has applications developed by member banks as well as Flipkart and NCPI .
UPI TO BE LINKED WITH SINGAPORE'S PAYNOW
Dated 16.09.2021 : Reserve Bank of India ( RBI ) has inked up a project with Monetary Authority of Singapore ( MAS ) whereby the two monetary authorities will collaborate to link their payment systems UPI ( United Payment interface ) and Paynow , the Singapore's payment system . The linkage will enable the customers of the two systems to make instant, low-cost fund transfers on a reciprocal basis without a need to get onboarded onto the other payment system.
UPI is India’s mobile based, 'fast payment' system that facilitates customers to make round the clock payments instantly using a Virtual Payment Address (VPA) created by the customer. This eliminates the risk of sharing bank account details by the remitter. UPI supports both Person to Person (P2P) and Person to Merchant (P2M) payments as also it enables a user to send or receive money.
PayNow is the fast payment system of Singapore which enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore. It enables users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore NRIC/FIN, or VPA.
Now with the linkage , funds can be transferred between the two countries in a fast manner with very small fee payable by the customers .
The link is expected to be operationalized by July 2022 .
To read Press release of RBI , click here
Dated 16.09.2021 : Reserve Bank of India ( RBI ) has inked up a project with Monetary Authority of Singapore ( MAS ) whereby the two monetary authorities will collaborate to link their payment systems UPI ( United Payment interface ) and Paynow , the Singapore's payment system . The linkage will enable the customers of the two systems to make instant, low-cost fund transfers on a reciprocal basis without a need to get onboarded onto the other payment system.
UPI is India’s mobile based, 'fast payment' system that facilitates customers to make round the clock payments instantly using a Virtual Payment Address (VPA) created by the customer. This eliminates the risk of sharing bank account details by the remitter. UPI supports both Person to Person (P2P) and Person to Merchant (P2M) payments as also it enables a user to send or receive money.
PayNow is the fast payment system of Singapore which enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore. It enables users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore NRIC/FIN, or VPA.
Now with the linkage , funds can be transferred between the two countries in a fast manner with very small fee payable by the customers .
The link is expected to be operationalized by July 2022 .
To read Press release of RBI , click here
e-RUPI , A cashless Contactless instument
e-RUPI , QR Code and SMS string based Payment Solution :
02.08.2021 : Prime Minister Shri Narendra Modi will launch e-RUPI, a person and purpose specific digital payment solution on 2nd August 2021 at 4:30 pm via video conferencing . It has been developed by National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority.
WHAT IS e-RUPI ? : e-RUPI is a cashless and contactless instrument for digital payment. It is a QR code or SMS string-based e-Voucher, which is delivered to the mobile of the beneficiaries. The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access, at the service provider.
e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface. It also ensures that the payment to the service provider is made only after the transaction is completed. Being pre-paid in nature, it assures timely payment to the service provider without involvement of any intermediary.
The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app or internet banking access, at the merchants accepting e-RUPI. e-RUPI would be shared with the beneficiaries for a specific purpose or activity by organizations or Government via SMS or QR code. No digital or bank presence required - Consumer redeeming the voucher need not have a digital payment app or a bank account
This contactless e-RUPI is easy, safe and secure as it keeps the details of the beneficiaries completely confidential. The entire transaction process through this voucher is relatively faster and at the same time reliable, as the required amount is already stored in the voucher.
Banks live with e-UPI :
1. Axis Bank on Bharat Pe
2 Bank of Baroda on BHIM Baroda Merchant Pay
3 Canara Bank
4 HDFC BanK on HDFC Business App
5 ICICI Bank on Bharat Pe & PineLabs
6 Indusind Bank
7 Indian Bank
8 Kotak Bank
9 Punjab National Ban on PNB Merchant Pay
10 State Bank of India on YONO SBI Merchant
11 Union Bank of India
For the latest list of e-RUPI partners , CLICK HERE
It is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services. It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertilizer subsidies etc. Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes.
Source : PIB of India
NATIONAL PAYMENT CORPORATION OF INDIA (NPCI )
WHO IS NPCI ?
National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.
Considering the utility nature of the objects of NPCI, it has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems. The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.
For further details , CLICK HERE
National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.
Considering the utility nature of the objects of NPCI, it has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems. The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.
For further details , CLICK HERE
NO MDR CHARGES FOR RuPAY , UPI TRANSACTIONS FROM 1ST, JAN20 : FM
Dated 29.12.2019 : Ms Nirmala Sitharaman , Finance Minister , has announced that there will be no MDR Charges ( Merchant Discount Rates ) on Digital transactions of Rupay and UPI platforms from January 1st, 2020 onward . Department of Revenue will shortly notify Rupay and UPI as Platforms without MDR charges for merchants .
Dated 29.12.2019 : Ms Nirmala Sitharaman , Finance Minister , has announced that there will be no MDR Charges ( Merchant Discount Rates ) on Digital transactions of Rupay and UPI platforms from January 1st, 2020 onward . Department of Revenue will shortly notify Rupay and UPI as Platforms without MDR charges for merchants .
BANKS ASKED TO REFUND CHARGES ON UPI TRANSACTIONS
30.08.2020 : Ms Nirmala Sitharaman , Finance Minister , has announced in December 2019 that there will be no MDR Charges ( Merchant Discount Rates ) on Digital transactions of Rupay and UPI platforms from January 1st, 2020 onward . Subsequently IT Department had brought necessary legislation to this effect by way of Section 10A of Payment and settlements Act 2007 , 269SU of IT act and Notification no 105/2019 dated 30.12.2019 of Income Tax department .
Now IT Department has received complaints that some banks are allowing only limited number of transaction free and charging for any additional transactions done on Rupay or UPI . Hence they have asked all banks to refund any charges collected on UPI and Rupay platforms since 01.01.2020 immediately . Further they have asked banks not to collect any charges on transactions on Rupay cards , UPI -BHIM etc till further instructions .
To read today's circular of IT Department , CLICK HERE
Now IT Department has received complaints that some banks are allowing only limited number of transaction free and charging for any additional transactions done on Rupay or UPI . Hence they have asked all banks to refund any charges collected on UPI and Rupay platforms since 01.01.2020 immediately . Further they have asked banks not to collect any charges on transactions on Rupay cards , UPI -BHIM etc till further instructions .
To read today's circular of IT Department , CLICK HERE
LIST OF MEMBER BANKS OF UPI
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1. Allahabad Bank
2. Andhra Bank 3. Axis Bank 4. Bank of Baroda 5. Bank of India 6 Bank of Maharashtra 7. Bhartiya Mahila Bank 8. BNP Paribas 9 Canara Bank 10. Catholic Syrian Bank 11. Central Bank of india 12. Citi bank 13.Corporation Bank 14. Dena Bank 15. DCB Bank 16. Dhanalakshmi Bank 17. Federal Bank 18.HDFC Bank 19. HSBC 20. ICICI Bank 21. IDBI Bank 22. Indian Bank 23.Indian Overseas Bank 24. Indusind bank 25 . Jammu & Kashmir Bank 26.Karnataka Bank 27. Karur Vysya Bank 28. Kotak Mahindra Bank 29. Lakshmi Vilas Bank 30. Oriental Bank of Commerce 31. Punjab & Sind Bank 32. Punjab National Bank 33. Ratnakar bank 34. South Indian Bank 35.Standard Chartered Bank 36. State Bank of Bikaner & Jaipur 37. State Bank of Hyderabad 38. State Bank of india 39. State Bank of Mysore 40.State Bank of Patiala 41. State Bank of Travancore 42. Syndicate Bank 43.Tamilnad Mercantile bank 44. UCO Bank 45. Union Bank of india 46. United Bank of india 47. Vijaya Bank 48. YES Bank 49. Bandhan bank ( To reach websites of the above banks , CLICK HERE ) For the latest list of member banks CLICK HERE |
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PHONEPE - WALLET APPLICATION
Flipkart Group , a leading e-commerce company has launched a wallet application called PHONEPE , run on UPI . As it is built on UPI, transaction up to Rs 1.00 lakh is allowed on the platform .Application , permitted by RBI , allows to be connected to UPI applications of more than 30 banks . The application can be used to transfer from one wallet to another wallet or to make payment to various merchant sites and utility sites . Wallet balance can be returned to account of the holder only free of charge . To visit their site , CLICK HERE
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BENEFITS OF UPI PAYMENT SYSTEM
1. Immediate money transfer through mobile device round the clock 24*7 and 365 days.
2 . Single mobile application for accessing different bank accounts.
3. Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
4 . Bill Sharing with friends.
5. Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
6. Merchant Payment .Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
Donations, Collections, Disbursements Scalable.
Note :
1. UPI allows a customer to pay directly from a bank account to different merchants, both online and offline, without the hassle of typing credit card details, IFSC code, or net banking/wallet passwords.
2. It is safe as the customers only share a virtual address and provide no other sensitive information like account number , credit card details etc .
3. With UPI , you can simply need to enter your details , get billing details on your phone and which you can accept or reject
straight away .
4. The service is instant and available 24X7, even on public/bank holidays.
2 . Single mobile application for accessing different bank accounts.
3. Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
4 . Bill Sharing with friends.
5. Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
6. Merchant Payment .Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
Donations, Collections, Disbursements Scalable.
Note :
1. UPI allows a customer to pay directly from a bank account to different merchants, both online and offline, without the hassle of typing credit card details, IFSC code, or net banking/wallet passwords.
2. It is safe as the customers only share a virtual address and provide no other sensitive information like account number , credit card details etc .
3. With UPI , you can simply need to enter your details , get billing details on your phone and which you can accept or reject
straight away .
4. The service is instant and available 24X7, even on public/bank holidays.
HOW TO GET UPI APPLICATION
The UPI app of member banks are available on the Google Play Store of Android phones and APP STORES for i-phones .
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HOW TO GET STARTED ON UPI ?
1. Download an UPI app of a member bank from Play Store and install in phone;
2. Set app login
3. Create virtual payment address ( "Virtual Payment Address" is an identifier that can be uniquely mapped to an individual account using a translation service.
4. Add your bank account ( you can add multiple accounts with member banks )
5. Set M-Pin
6. Start transacting using UPI
2. Set app login
3. Create virtual payment address ( "Virtual Payment Address" is an identifier that can be uniquely mapped to an individual account using a translation service.
4. Add your bank account ( you can add multiple accounts with member banks )
5. Set M-Pin
6. Start transacting using UPI
Tips for secured use of UPI SYSTEM
The system can be used by any account holders having smart phones . However certain precautions are to be taken for safeguarding the account .
. Here is a list of safety precautions
1. Keep your account number private
2. Make sure your devices and networks are secure
3. Keep your passwords secret
4. While making remittances , note to correctly type the VPA address of the beneficiary . Beneficiary can immediately withdraw the money so received . Hence it may be difficult to recover from a wrong beneficiary
5. Have a tab on your account . Check often
. Here is a list of safety precautions
1. Keep your account number private
2. Make sure your devices and networks are secure
3. Keep your passwords secret
4. While making remittances , note to correctly type the VPA address of the beneficiary . Beneficiary can immediately withdraw the money so received . Hence it may be difficult to recover from a wrong beneficiary
5. Have a tab on your account . Check often
NEWS dated 16.12.2016 : RBI has asked all participating banks and prepaid payment issuers to waive service charges from 01.01.2017 to 31.03.2017 on transactions up to Rs 1000 done on IMPS , USSD based *99# and UPI systems
For RBI Notification , CLICK HERE
Dated 16.12.2016 : Niti Ayog , ( National Institution for Transforming India ) , announced two award schemes, one each for consumers and one for merchants , to give flllip On line payments in line with Govrt of India push up for Digital India . Consumer scheme is called Lucky Grahak Yojna . The scheme for merchants is called Digi - dhan Vyapar yojna . The key features of the schemes are
1. The scheme will run from December , 25 , 2016 to April 14 , 2017
2. 15,000 customers will get Rs 1000 each for 100 days
3. 7,000 weekly draws for a prize of Rs 1.Lakh each for consumers and Rs 50,000 for merchants .
4. On April 14th , 2017 , there will be a mega draw for Rs 1 Crore as first prize , Rs 50 Lakhs as Second prize and Rs 25 Lakhs as third prize for consumers . For merchants , the prizes will be Rs 50 Lakhs , Rs 25 Lakhs and Rs 12 lakhs respectively
5. The scheme is only for the Digital payments between Rs 50 and Rs 3000 only .
6. Transactions using RUPAY , USSD , UPI and AEPS will only be covered under the scheme
7. Payments made through Credit cards and E-walets are not covered under the scheme .
8 . The schemes will be operated by NPCI .
9 . The Draw will be done randomly by Digital transaction IDs to select awardees .
For RBI Notification , CLICK HERE
Dated 16.12.2016 : Niti Ayog , ( National Institution for Transforming India ) , announced two award schemes, one each for consumers and one for merchants , to give flllip On line payments in line with Govrt of India push up for Digital India . Consumer scheme is called Lucky Grahak Yojna . The scheme for merchants is called Digi - dhan Vyapar yojna . The key features of the schemes are
1. The scheme will run from December , 25 , 2016 to April 14 , 2017
2. 15,000 customers will get Rs 1000 each for 100 days
3. 7,000 weekly draws for a prize of Rs 1.Lakh each for consumers and Rs 50,000 for merchants .
4. On April 14th , 2017 , there will be a mega draw for Rs 1 Crore as first prize , Rs 50 Lakhs as Second prize and Rs 25 Lakhs as third prize for consumers . For merchants , the prizes will be Rs 50 Lakhs , Rs 25 Lakhs and Rs 12 lakhs respectively
5. The scheme is only for the Digital payments between Rs 50 and Rs 3000 only .
6. Transactions using RUPAY , USSD , UPI and AEPS will only be covered under the scheme
7. Payments made through Credit cards and E-walets are not covered under the scheme .
8 . The schemes will be operated by NPCI .
9 . The Draw will be done randomly by Digital transaction IDs to select awardees .