This Article is From Aug 26, 2016

UPI Goes Live: Here Is Your 10-Point Guide To Get Started

UPI Goes Live: Here Is Your 10-Point Guide To Get Started

Highlights

  • The payment mechanism offers the facility to have virtual address
  • Bank account details are not given in this virtual address
  • So customers can freely share the UPI financial address with others
National Payments Corporation of India (NPCI) today rolled out Unified Payments Interface (UPI), a mobile payment solution which, experts say, has the potential to revolutionise the payment system in the country. The UPI app is part of the Reserve Bank's initiative to promote a cashless society. Currently, customers of 21 banks can use the new payment solution. More banks are expected to join the UPI app platform later.

Here Is A 10-Point Cheat-Sheet

  1. The UPI app offers the facility to identify a bank customer with an email-like virtual address. Since bank account details are not given in this virtual address, the customer can freely share the UPI financial address with others. Users need to download the app and register before using it.

  2. A customer, for example, can also decide to use a mobile number or a short name for the virtual address such as XYZ@icici or 123456789@axis 

  3. The UPI app allows a customer to have multiple virtual addresses for multiple accounts in various banks.

  4. For making payment, the transaction will be complete once the customer authenticates the transaction through a secure PIN.

  5. The other benefits of this mobile payment mechanism include its round-the-clock availability and faster checkout.

  6. One can use the UPI app instead of paying cash on delivery (COD) on receipt of product from online shopping websites, and can pay for miscellaneous expenses like utility bills, over the counter payments and school fees.

  7. The Unified Payments Interface is an advanced version of the existing payment system IMPS, which offers instant 24X7 interbank electronic fund transfers across India through mobile, internet and ATMs.

  8. National Payments Corporation of India said the UPI app will be available in next two to three working days for the customers to download and start using.

  9. Andhra Bank, Axis Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Federal Bank, ICICI Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank are some of the banks that have joined the UPI platform. 

  10. Infosys co-founder Nandan Nilekani has been an adviser to NPCI on the UPI project. Reserve Bank of India Governor Raghuram Rajan in April this year had soft-launched the new payment mechanism and  it has been on a pilot run since then.



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