Question

Explain in detail: Unified payments interface

Answer 1

1. Unified Payments Interface (UPI) is a real-time payment system developed by National Payments Corporation of India (NCPI) to facilitate inter-bank transactions.
2. It is simple, secure and instant payment facility. This interface is regulated by the Reserve Bank of India and used for transferring funds instantly between two bank accounts through mobile (platform) devices. http://www. npci.org.in/.
3. Unlike traditional e-wallets, which take a specified amount of money from user and store it in its own account, UPI withdraws and deposits funds directly from the bank account whenever a transaction is requested.
4. It also provides the “peer to peer” collect request which can be scheduled and paid as per requirement and convenience.
5. UPI is developed on the basis of Immediate Payment Service (IMPS). To initiate a transaction, UPI applications use two types of address - global and local.

• Global address includes bank account numbers and IFSC.
• Local address is a virtual payment address.