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.