UPI will bring about a shift in how mobile transactions are conducted by using a single identifier instead of account numbers and IIFC codes used to make payments today.
Think mobile e-wallet but instead of maintaining a separate wallet, all payments are processed straight from your account. That’s UPI – The National Payments Corp. of India Ltd’s most ambitious project- for you. The system will allow customers to transfer funds across different banks using a single identifier which will act a virtual address and eliminate the need to exchange sensitive information such as bank account numbers.
Mobile banking has been seeing a phenomenal rise in the last one year with banks pushing customers to access their services using specially built mobile apps. The last Sep-Dec quarter saw the value of mobile banking transactions rise by almost 82% of the value same time the year before. UPI wants to further this growth by making transactions smoother and easier for customers.
UPI was launched by the Reserve Bank of India Governor, Mr. Rajan along with Nandan Nilekani, advisor to NPCl. “UPI is one of many innovations taking place in the financial sector that will benefit the the customers” said Mr. Rajan. He added that the improved payment infrastructure along with the launch of differentiated banking models such as payment banks are a part of a “revolution” in India.
Possible uses of UPI range from paying using your phone for CoD orders, to over the counter payments at stores, to person to person transaction between friends.
Will you shift from mobile wallets such as Paytm and start using UPI for transactions?
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