Unified Payment Interface
Banking customers of today are the luckiest lot. No more standing in queues, no more lines in front of Banks at 10 am
for the uninterested Cashiers to doll you out few bundles of cash.
Unified Payment Interface is an initiative by National Payments Corporation of India’s (NPCI), set up with the support of the Reserve Bank of India and Indian Banks Association (IBA).
Banking has literally come to your doorsteps and technology is making your banking experience more enjoyable and safer.
Options now very from Online Payment Gateways, Mobile Banking, Online Wallets, NEFT, RTGS and IPMS to newly added UPI.
Its a mobile first technology. One needs to either use UPI through his or her bank’s app on their android mobiles or download UPI app and register Bank account details in this app.
Advantages of UPI are its safer than any other mode of online payment as in this case payment can be made to another Bank or vendor using “Virtual Payment Address”, so you need not remember your card details, no need of telling your bank account number to anyone. UPI is a variation of IPMS and hence is available 24×7.
Simple example for UPI can be one books a taxi and at the end of the ride just hands over his or her virtual ID to the driver. Driver then demands appropriate amount from this UPI ID, your bank will send you OTP alongwith transaction details on your mobile phone for authentication. You tell this OTP to the driver and transaction is complete. Driver does not know your Bank account number, neither you need to remember any of your passwords. Only thing to remember is “Virtual Payment Address” associated with your Bank account. by prof. Anand Bhide