Study Material | Test Series
Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
mains Test Series 2018
DRISHTI INDEPENDENCE DAY OFFER FOR DLP PROGRAMME

Offer Details

Get 1 Year FREE Magazine (Current Affairs Today) Subscription
(*On a Minimum order value of Rs. 15,000 and above)

Get 6 Months FREE Magazine (Current Affairs Today) Subscription
(*On an order value between Rs. 10, 000 and Rs. 14,999)

Get 3 Months FREE Magazine (Current Affairs Today) Subscription
(*On an order value between Rs.5,000 and Rs. 9,999)

Offer period 11th - 18th August, 2018

Unified Payments Interface Goes Live with 21 Banks
Oct 25, 2016

The use of a smartphone for payments has become a reality with the National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments system in India, announcing that the Unified Payments Interface (UPI) is going live for customers with 21 banks.

  • UPI had a soft launch on April 11 which was announced by the then RBI Governor Raghuram Rajan.
  • For the past few months, it was under pilot run mainly with employee-customers.
  • This is a success of enormous significance. Real-time sending and receiving money through a mobile application at such a scale on interoperable basis had not been attempted anywhere else in the world. Now the UPI App will be made available on Google Play Store by banks.
  • The list of banks which are going live with UPI include PNB, Oriental Bank of Commerce, Axis Bank, Canara Bank, ICICI Bank, UCO Bank, Union Bank of India, Vijaya Bank and YES Bank.
  • UPI is a unique payment solution which empowers a recipient to initiate the payment request from a smartphone.
  • It facilitates ‘virtual payment address’ as a payment identifier for sending and collecting money.
  • One can use UPI app instead of paying cash on delivery on receipt of product from online shopping websites and can pay for miscellaneous expenses like paying utility bills, over the counter payments, barcode (scan and pay) based payments, donations, school fees among others.
  • After assessing the success of pilot run, RBI had accorded its final approval for public launch of the product.
  • NPCI had decided that only the banks with 1,000 pilot customers, 5,000 transactions and success rate of around 80% would be permitted to go live.
  • Such a threshold criteria helped banks to refine their systems and procedure.
  • The UPI app of 19 banks will be available on the Google Play Store in next two to three working days for the customers to download and start using.

The Reserve Bank of India (RBI) in its Payment System Vision Document (2012-2015) had mentioned the use of UPI for achieving its goal of a lower cash-intensive society and financial inclusion using the latest technology.

NPCI has ten promoter banks namely, State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC. During the last five years, the organization has grown multi-fold from 2 million transactions a day to 20 million transactions now.

sFrom a single service of switching of inter-bank ATM transactions, the range of services has grown to Cheque Clearing, Immediate Payments Service (24x7x365), Automated Clearing House, Electronic Benefit Transfer and a domestic card payment network named RuPay to provide an alternative to international card schemes. As on end-October 2015 over 220 Million Indians own RuPay cards.


Helpline Number : 87501 87501
To Subscribe Newsletter and Get Updates.

http://www.drishtiias.com/upsc-current-affairs-article-Unified-Payments-Interface-Goes-Live-with-21-Banks