Unified Payment Interface Launched. How It Will Change Mobile Payments
NDTV Profit Team |
Launching the new platform, RBI Governor Raghuram Rajan (centre) said that it will empower users to perform instant push and pull transactions seamlessly.
The National Payments Corporation of India on Monday launched the Unified Payment Interface (UPI) which may revolutionise mobile banking in the country. The National Payments Corporation of India or NPCI is an umbrella organisation for all retail payments system in India.
“Today a few banks have gone live with UPI out of 29 banks that had concurred to provide UPI service to their customers. We are confident that several banks will join UPI this year and the number will multiply further,” NPCI managing director and CEO A P Hota said.
Launching the new platform, RBI Governor Raghuram Rajan said that it will empower users to perform instant push and pull transactions seamlessly.
The biggest benefit of Unified Payment Interface is that it will be a single app for accessing different bank accounts. Anyone who has an account should be able to send and receive money from their mobile phone with just a virtual address, which will not have any bank account details.
“It facilitates ‘virtual address’ as a payment identifier for sending and collecting money,” NPCI said in a statement.
The interface is the advanced version of NPCI’s Immediate Payment Service (IMPS) which is a 24X7 funds transfer service. UPI will offer a facility to identify a bank customer with an email-like virtual address. It will allow a customer to have multiple virtual addresses for multiple accounts in various banks.
“In order to ensure privacy of customer’s data, there is no account number mapper anywhere other than the customer’s own bank. This allows the customer to freely share the financial address with others,” NPCI said.
For example, “a customer can also decide to use the mobile number as the name instead of the short name for the virtual address like [email protected]”.
If you want to settle a bill with a vendor, you just have to give your virtual address (‘[email protected]’, for example). Once you authenticate the transaction through a secure PIN, the transaction it will be complete. You don’t have to share your bank details with the vendor.
Mobile banking has surged in India in recent months. Experts say that Unified Payment Interface will further boost mobile banking.