Unified Payments Interface (UPI)

About Unified Payments Interface (UPI):

• The UPI is a digital and real-time payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI).
• It was launched on April 11, 2016.
• It is designed to enable peer-to-peer inter-bank transfers through a single two-click factor authentication process. 
• Features:
  • Unlike traditional methods, UPI simplifies transfers using the recipient's UPI ID, be it a mobile number, QR code, or Virtual Payment Address, eliminating account numbers.
  • It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction.
  • A consistent UPI transaction PIN across apps enhances cross-operability, enabling 24/7 transactions.
  • UPI operates as a digital public infrastructure, allowing seamless interactions for all players, including merchants and customers, without transaction costs.
  • UPI uses technologies like the Immediate Payment Service (IMPS) and the Aadhaar-Enabled Payment System (AEPS) to ensure that payments between accounts go smoothly.
  • It facilitates push (pay) and pull (receive) transactions and even works for over-the-counter or barcode payments, as well as for multiple recurring payments such as utility bills, school fees, and other subscriptions.
  • It also works with "Peer-to-Peer" requests, which can be scheduled and paid for based on need and convenience.