Unified Payments Interface (UPI)

Unified Payments Interface (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. 

It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.

NPCI conducted a pilot launch with 21 member banks. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started to upload their UPI enabled Apps on Google Play store from 25th August, 2016 onwards. 

Features:

• Immediate money transfer through mobile device round the clock 24*7 and 365 days.
• Single mobile application for accessing different bank accounts
• Single Click 2 Factor Authentication – Aligned with the Regulatory guidelines, yet provides for a very strong feature of seamless single click payment.
• 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.
• Bill Sharing with friends.
• Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
• Merchant Payment with Single Application or In-App Payments.
• Scheduling PUSH and PULL Payments for various purposes.
• Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
• Donations, Collections, Disbursements Scalable.
• Raising Complaint from Mobile App directly.

UPI - Benefits to the Ecosystem participants

Benefits for banks:

• Single click Two Factor authentication
• Universal Application for transaction
• Leveraging existing infrastructure
• Safer, Secured and Innovative
• Payment basis Single/ Unique Identifier
• Enable seamless merchant transactions

Benefits for end Customers:

• Round the clock availability
• Single Application  for accessing different bank accounts
• Use of Virtual ID is more secure, no credential sharing
• Single click authentication
• Raise Complaint from Mobile App directly

Benefits for Merchants:

• Seamless fund collection from customers - single identifiers
• No risk of storing customer’s virtual address like in Cards
• Tap customers not having credit/debit cards
• Suitable for e-Com & m-Com transaction
• Resolves the COD collection problem
• Single click 2FA facility to the customer - seamless Pull
• In-App Payments (IAP)

Performing a UPI Transaction:

• PUSH – sending money using virtual address
• PULL – Requesting money:

Details:

• UPI provides for real time reversals for technical declines and amount would be transferred back to the payer account immediately
• The upper limit per UPI transaction is Rs. 1 Lakh.
• Once the payment is initiated, it cannot be stopped.
• Registration of Beneficiary is not required for transferring funds through UPI as the fund would be transferred on the basis of Virtual ID/ Account+IFSC / Mobile No+MMID / Aadhar Number. 
• Customer cannot link a wallet to UPI, only bank accounts can be added.
• One can use more than one UPI application on the same mobile and link both same as well as different accounts.

The different channels for transferring funds using UPI are:

• Transfer through Virtual ID
• Account Number + IFSC
• Mobile Number + MMID
• Aadhar Number
• Collect / Pull money basis Virtual ID

UPI is providing additional benefits to IMPS in the following ways:

• Provides for a P2P Pull functionality
• Simplifies Merchant Payments
• Single APP for money transfer
• Single click two factor authentication.