Brain Booster for UPSC & State PCS Examination (Topic: Unified Payments Interface - UPI)

Why in Broadcast?

  • Punjab National Bank (PNB) has rolled out an IVR-powered digital payment solution “UPI 123PAY” in collaboration with the National Payments Corporation of India.

Aim

  • The introduction of 123PAY UPI is aimed at providing UPI perks to areas without internet connection and people having no smartphones.

Bank Transaction Limit on UPI

  • NPCI has set out guidelines for UPI transactions stating that a person can initiate a maximum payment of Rs.1 lakh per day through UPI.
  • The UPI limit varies from small banks (Canara Bank Rs. 25,000), to big banks (SBI Rs.1 lakh).
  • NPCI has also set a limit on the number of transactions per day which is 20 transactions post per day.

UPI App Limit

  • Google Pay, Paytm, and Amazon Pay UPI have set a limit of Rs.1 lakh per day along with a total of up to ten transaction limits across all UPI apps and bank account.

Unified Payments Interface

  • Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application, 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.
  • The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai.

Uniqueness

  • 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 provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
  • QR Code
  • Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.

UPI - Benefits to the Ecosystem participants

1. 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

2. 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

3. 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
  • In-App Payments (IAP)