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
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
Incentive Scheme for UPI apps
Incentive scheme for promotion of Rupay Debit Card :
Dated 14.01.2023 : In a recent meeting held under the chairmanship of the Hon’ble Prime Minister Shri Narendra Modi, cabinet has approved an incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (person-to-merchant) for a period of one year from April 2022. :
The approved incentive scheme has a financial outlay of ₹ 2,600 crore. Under the said scheme, acquiring banks will be provided financial incentive by the government of India , for promoting Point-of-Sale (PoS) and e-commerce transactions using RuPay Debit Cards and low-value BHIM-UPI transactions (P2M) for the current financial year FY 2022-23.
To read the Press Release dated 11.01.2023 in this regard ,CLICK HERE
Dated 14.01.2023 : In a recent meeting held under the chairmanship of the Hon’ble Prime Minister Shri Narendra Modi, cabinet has approved an incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (person-to-merchant) for a period of one year from April 2022. :
The approved incentive scheme has a financial outlay of ₹ 2,600 crore. Under the said scheme, acquiring banks will be provided financial incentive by the government of India , for promoting Point-of-Sale (PoS) and e-commerce transactions using RuPay Debit Cards and low-value BHIM-UPI transactions (P2M) for the current financial year FY 2022-23.
To read the Press Release dated 11.01.2023 in this regard ,CLICK HERE
RUPAY CREDIT CARD ON UPI
UPI LAUNCHES NEW THREE INITIATIVES
Dated 22.09.2022 : Reserve Bank of India (RBI) Governor, Mr. Shaktikanta Das in the presence of Mr. Nandan Nilekani, Chairman Infosys and Advisor to NPCI, and Mr. Biswamohan Mahapatra, Chairman NPCI launched on 20.09.2022 , the three key initiatives from the dais of the Global Fintech Fest 2022 held in Mumbai, Maharashtra . They are
a. RuPay Credit Card on UPI,
b. UPI LITE,
c. Bharat BillPay Cross-Border Bill Payments.
RUPAY CREDIT CARD ON UPI : RuPay Credit Cards will be linked to a Virtual Payment Address (VPA) i.e. UPI ID, thus directly enabling safe, and secure payment transactions. The initial phase of operationalisation will be centred on extracting actionable learnings that would be used to fine-tune the proposition in later phases to scale up the usage. Customers of Punjab National Bank, Union Bank of India, and Indian Bank will be the first to be able to use RuPay Credit Card on UPI with BHIM App.
UPI LITE : UPI Lite will provide users with a convenient solution for faster and simpler low-value transactions. At present, India is thriving on low-value UPI payments with 50% of transactions through UPI below ₹200. With UPI Lite enabled on BHIM App, users will be able to make small-value transactions in a near-offline mode. UPI Lite will reduce the debit load on the core banking system, thereby improving the success rate of transactions further, enhancing the user experience, and taking us one step closer to processing a billion transactions a day on the UPI platform. The upper limit of a UPI Lite payment transaction will be ₹200 while the total limit of UPI Lite balance for an on-device wallet will be ₹2,000 at any point in time. Eight banks are live with the feature including Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India Union Bank of India and Utkarsh Small Finance Bank.
BHARATBILLPAY CROSS-BORDER PAYMENTS : Bharat BillPay Cross-Border Bill Payments was also launched on the smae day and it will
make bill payments easier for people residing out of India but also maintaining a house in India. With more than 30 million Indians staying abroad, India is one of the top 5 biggest recipients of inward remittances. Bharat BillPay Cross-Border Bill Payments facility will empower and enable Non-Resident Indians (NRIs) to undertake utility, water, and telephone-related bill payments on behalf of their families in India. Federal Bank with UAE’s Lulu Exchange will be the first to go live with Bharat BillPay Cross-Border Bill Payments
To read NPCI Press release on the event , CLICK HERE
Dated 22.09.2022 : Reserve Bank of India (RBI) Governor, Mr. Shaktikanta Das in the presence of Mr. Nandan Nilekani, Chairman Infosys and Advisor to NPCI, and Mr. Biswamohan Mahapatra, Chairman NPCI launched on 20.09.2022 , the three key initiatives from the dais of the Global Fintech Fest 2022 held in Mumbai, Maharashtra . They are
a. RuPay Credit Card on UPI,
b. UPI LITE,
c. Bharat BillPay Cross-Border Bill Payments.
RUPAY CREDIT CARD ON UPI : RuPay Credit Cards will be linked to a Virtual Payment Address (VPA) i.e. UPI ID, thus directly enabling safe, and secure payment transactions. The initial phase of operationalisation will be centred on extracting actionable learnings that would be used to fine-tune the proposition in later phases to scale up the usage. Customers of Punjab National Bank, Union Bank of India, and Indian Bank will be the first to be able to use RuPay Credit Card on UPI with BHIM App.
UPI LITE : UPI Lite will provide users with a convenient solution for faster and simpler low-value transactions. At present, India is thriving on low-value UPI payments with 50% of transactions through UPI below ₹200. With UPI Lite enabled on BHIM App, users will be able to make small-value transactions in a near-offline mode. UPI Lite will reduce the debit load on the core banking system, thereby improving the success rate of transactions further, enhancing the user experience, and taking us one step closer to processing a billion transactions a day on the UPI platform. The upper limit of a UPI Lite payment transaction will be ₹200 while the total limit of UPI Lite balance for an on-device wallet will be ₹2,000 at any point in time. Eight banks are live with the feature including Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India Union Bank of India and Utkarsh Small Finance Bank.
BHARATBILLPAY CROSS-BORDER PAYMENTS : Bharat BillPay Cross-Border Bill Payments was also launched on the smae day and it will
make bill payments easier for people residing out of India but also maintaining a house in India. With more than 30 million Indians staying abroad, India is one of the top 5 biggest recipients of inward remittances. Bharat BillPay Cross-Border Bill Payments facility will empower and enable Non-Resident Indians (NRIs) to undertake utility, water, and telephone-related bill payments on behalf of their families in India. Federal Bank with UAE’s Lulu Exchange will be the first to go live with Bharat BillPay Cross-Border Bill Payments
To read NPCI Press release on the event , CLICK HERE
NO CHARGES FOR UPI TRANSACTIONS : MINISTRY OF FINANCE
Government has no plans to levy charges on UPI transactions : MOF
Dated 23.08.2022 : Ministry of Finance has clarified , through a tweet , that there is no consideration in Govt to levy any charges for UPI services. It has also advised that the concerns ( costs ) of the service providers for cost recovery have to be met through other means.
Last week Reserve Bank of India ( RBI ) had opened up a discussion on the charges to be levied by banks and intermediaries on various digital payments including UPI transactions . ( For details , CLICK HERE ) . The questions posed on UPI were :
1.In the context of zero charges, is subsidising costs a more effective alternative?
2. If UPI transactions are charged, should MDR for them be a percentage of transaction value or should a fixed amount irrespective of the transaction value be levied?
3. If charges are introduced, should they be administered (say, by RBI) or be market determined?
With the clarification issued by the Ministry of Finance , the matters ends as far as on charges on UPI transactions . However the discussion on other modes of digital payments still remain open .
Dated 23.08.2022 : Ministry of Finance has clarified , through a tweet , that there is no consideration in Govt to levy any charges for UPI services. It has also advised that the concerns ( costs ) of the service providers for cost recovery have to be met through other means.
Last week Reserve Bank of India ( RBI ) had opened up a discussion on the charges to be levied by banks and intermediaries on various digital payments including UPI transactions . ( For details , CLICK HERE ) . The questions posed on UPI were :
1.In the context of zero charges, is subsidising costs a more effective alternative?
2. If UPI transactions are charged, should MDR for them be a percentage of transaction value or should a fixed amount irrespective of the transaction value be levied?
3. If charges are introduced, should they be administered (say, by RBI) or be market determined?
With the clarification issued by the Ministry of Finance , the matters ends as far as on charges on UPI transactions . However the discussion on other modes of digital payments still remain open .
UPI123pay is launched
RBI LAUNCHES UPI FOR FEATURE PHONES
Dated 09.03.2022 : At present, efficient access to UPI is available on smart phones. UPI can be accessed through NUUP (National Unified USSD Platform) using the short code of *99#. But this option is cumbersome and not popular. Considering that there are more than 40 crore feature phone mobile subscribers in the country ( called basic mobile phones ) , the Reserve Bank has launched UPI123Pay – Option to make Unified Payments Interface (UPI) payments for feature phone users . UPI123pay will materially improve the options for the feature phone users to access UPI. UPI123Pay includes four distinct options as below:
It is hoped that the new initiative will help rural persons who are using a feature phone now to use UPI applications .
For RBI CIRCULAR IN THIS REGARD , CLICK HERE
Dated 09.03.2022 : At present, efficient access to UPI is available on smart phones. UPI can be accessed through NUUP (National Unified USSD Platform) using the short code of *99#. But this option is cumbersome and not popular. Considering that there are more than 40 crore feature phone mobile subscribers in the country ( called basic mobile phones ) , the Reserve Bank has launched UPI123Pay – Option to make Unified Payments Interface (UPI) payments for feature phone users . UPI123pay will materially improve the options for the feature phone users to access UPI. UPI123Pay includes four distinct options as below:
- App-based Functionality: An app would be installed on the feature phone through which several UPI functions, available on smartphones, will also be available on feature phones.
- Missed Call: This will allow feature phone users to access their bank account and perform routine transactions such as receiving, transferring funds, regular purchases, bill payments, etc., by giving a missed call on the number displayed at the merchant outlet. The customer will receive an incoming call to authenticate the transaction by entering UPI PIN.
- Interactive Voice Response (IVR): UPI payment through pre-defined IVR numbers would require users to initiate a secured call from their feature phones to a predetermined number and complete UPI on-boarding formalities to be able to start making financial transactions without internet connection.
- Proximity Sound-based Payments: This uses sound waves to enable contactless, offline, and proximity data communication on any device.
It is hoped that the new initiative will help rural persons who are using a feature phone now to use UPI applications .
For RBI CIRCULAR IN THIS REGARD , CLICK HERE
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
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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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
