RBI Governor, who has just 10 days left in his tenure, has probably given us the best gift yet. National Payments Corporation of India (NPCI) launched Unified Payments Interface (UPI), a mobile payment solution which has the potential to revolutionise the payment system in the country. It is part of the Reserve Bank’s initiative to promote a cashless society. Currently, customers of 21 banks can use the new payment solution. More banks are expected to join the UPI platform later.
Reserve Bank of India Governor Raghuram Rajan brainchild UPI offers the facility to identify a bank customer with an email-like virtual address. Since bank account details are not given in this virtual address, the customer can freely share the UPI financial address with others. Users need to download the app and register before using it. A customer, for example, can also decide to use a mobile number or a short name for the virtual address such as XYZ@icici or 123456789@axis .UPI allows a customer to have multiple virtual addresses for multiple accounts in various banks. For making payment, the transaction will be complete once the customer authenticates the transaction through a secure PIN.
The other benefits of this mobile payment mechanism include its round-the-clock availability and faster checkout. One can use the UPI app instead of paying cash on delivery (COD) on receipt of product from online shopping websites, and can pay for miscellaneous expenses like utility bills, over the counter payments and school fees. The Unified Payments Interface is an advanced version of the existing payment system IMPS, which offers instant 24X7 interbank electronic fund transfers across India through mobile, internet and ATMs. National Payments Corporation of India said the UPI app will be available in next two to three working days for the customers to download and start using.
Andhra Bank, Axis Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Federal Bank, ICICI Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank are some of the banks that have joined the UPI platform. Even if 5% people opted out UPI instead of cash, Govt. would easily save around millions of rupee production cost, hope our next RBI Governor Urjit Patel have some creative ideas like his predecessor RaghuRam Rajan had.