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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. Unified Payment Interface: Will it be a game changer in the micro payment transaction process?
Apr 20, 2016 Related to : GS Paper-3

Ans :

In news-

Recently National Payments Corporation of India (NPCI), an umbrella organisation set up by the Reserve Bank of India and commercial banks has launched the unified payments interface.


Unified Payment Interface (UPI) is a simple smart phone app, anyone with a smart phone, an Aadhaar number and a bank account can download the UPI app and create an account with a unique "virtual UPI ID" associated with that bank account. That virtual ID could be used to transfer or receive cash from any other UPI ID.

In this system no other information other than virtual UPI ID is needed and all necessary details will managed by NCPI only. As all commercial banks are member of NPCI, it will accelerate the speed of transactions involving accounts in two different banks.


  • As only virtual UPI ID is used under this system for any transaction without sharing any personal details, hence it is very safe and provides comport to users.

  • Transaction up to a limit of 1 lack can be done instantly with just a text message and payment portal will be available for 24*7 for any transaction. Hence it is very easy to operate and also it will speed up the process.

  • It can be used for all transactions like paying on delivery for e-commerce deals, paying an auto rickshaw or a taxi for a ride, a road toll payment etc. It can be managed easily and instantly without carrying large sum of cash.

  • It will also helps to other actors like e-commerce players, tax authorities, as it creates ease in their activities.

  • It also reduces the need of physical cash in market. Hence it is both economical as well as environment friendly.


  • NPCI should ensure the safety with standard encryption. There must be end-to-end encryption to prevent messages being read in transit by any. Database must be effectively defended against any mischief.

  • NPCI must ensure proper authentication and UPI should confirm each transaction with standard process.

  • Also there must be proper safety mechanism in case of theft of cell phone.


UPI is a radical step in the payment transaction process, which will help users, merchants and also to government authorities. If is implemented efficiently as envisaged, then it will be a game changer and it will radically simplify micro-payments.

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