Unified payment interface
- 1. UNIFIED PAYMENT INTERFACE DONE BY: PRANOY. S B
- 3. National Payments Corporation of India (NPCI),founded in 2008, an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007. It has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems. The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.
- 4. Composition The organisation is owned by a consortium of major banks, and has been promoted by the country’s central bank, the Reserve Bank of India. Presently, there are Ten core promoter banks: In 2016 the shareholding was broad-based to 56 member banks to include more banks representing all sectors. 19- Public Sector Bank 17-Private Sector banks 10-Regional Rural bank 03-Foreign Banks 07-Multi state Co-op banks • State Bank of India • Punjab National Bank • Canara Bank • Bank of Baroda • Union Bank of India • Bank of India • ICICI • HDFC • Citibank • HSBC
- 5. Key Products and Services ■ National Financial Switch (NFS) ATM Network: It connects 1,98,953 ATMs of 449 banks. The service came into effect from October 15, 2009. Over the span of few years, NFS ATM network has grown many folds and is now the leading multilateral ATM network in the country. ■ Cheque Truncation System (CTS): It is Online image-based cheque clearing system. It has fully migrated in 3 grids-southern, western & northern grids from MICR centers. ■ Aadhaar Payments Bridge System (APBS): has more than 358 banks. ■ BharatQR : A common QR code built for ease of payments. NPCI jointly worked with International card Schemes to develop a common standard QR code specifications. BQR is Person to Merchant (P2M) Mobile payment solution. ■ National Automated Clearing House (NACH): NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.
- 6. ■ Immediate Payment Service (IMPS): It is an instant interbank electronic fund transfer system service through mobile phones, Atm and internet banking etc. ■ Aadhaar-Enabled Payment System (AePS): is a bank led model which allows online interoperable financial inclusion transaction at PoS (MicroATM) through the Business correspondent of any bank using the Aadhaar authentication. AePS allows you to do six types of transactions like Cash withdrawal, Cash Deposit, Balance Enquiry,Aadhaar to Aadhaar Fund transfer, Mini Statement, Best Finger Detection ■ RuPay – It is a Domestic Card Scheme to provide an alternative to international card schemes. It has issued over 20 crore cards and enabled 10,70,000 PoS terminals in the country. The benefits of RuPay debit card are the flexibility of the product platform, high levels of acceptance and the strength of the RuPay brand-all of which will contribute to an increased product experience. ■ Unified Payments Interface (UPI) : It is the newest and most advanced addition to the NPCI revolution which was launched on 11 April 2016. it is aimed at providing a single ID to transfer the funds anywhere (reducing the use of IFSC codes). ■ Bharat Interface for Money (BHIM): is an app that lets you make simple, easy and quick payment transactions using Unified Payments Interface (UPI). You can make instant bank-to-bank payments and Pay and collect money using just Mobile number orVirtual Payment Address (UPI ID).
- 8. Unified Payments Interface(UPI): Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payment corporation Of India for facilitating inter-bank transactions. The interface is regulated by the Reserve Bank of India and works by instantly transferring funds between two bank accounts on a Mobile platform. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started to upload their UPI enabled Apps on Google Play store from 25th August, 2016 onwards.
- 9. How UPI Works ? There are several hoops that Payee and Receiver had to jump earlier. With UPI, NPCI streamlined the process and made some changes to the approach of a transaction. There are two major stages of the transaction now, and Payee and Receiver only need to focus on just one of them. PSP (Payment Service Provider) ■ A PSP in the UPI ecosystem is a certified and trusted entity that acts on behalf of a bank. Payee and Receiver may be using different banks or different e-wallets, but for NPCI a PSP is just an endpoint for a transaction. ■ Since anyone can be a payment service provider, NPCI made a standard API for everyone to use and integrate into their system accordingly. ■ Now the API is openly accessible many ventures have started using this protocol.These ventures have integrated this protocol in their respective apps. VPA(Virtual Payment Address) Do you remember the time when Payee and Receiver had to enter long details (account number, bank name, and bank IFSC) of each other to send and receive money? ■ Now when Payee and Receiver register with a PSP, they each get a VPA. This is as easy something of the form of someuniqueidentity@PSP. It is just like an email address. ■ Payee and Receiver can link their bank accounts with a mobile number and multiple accounts with a single id or multiple ids for each account is as easy as the snap of fingers. ■ It is natural to think of UPI as the next big game changer.The introduction of UPI has threatened the existence of major payment wallets like PayPal, and also posed a major challenge to payment gateways like CCAvenue, EBS, Instamojo.
- 10. Benefits of UPI ■ Free Fund Transfer ■ Useful For Small Transaction ■ More Secure ■ Instant Transfer ■ One App, Many Accounts ■ No Loss of Interest ■ Rewards and Cashbacks ■ Low Cost
- 14. Sending Money (Bank details)
- 16. UPI 2.0 ■ LINKING OVER-DRAFT ACCOUNT ON UPI ■ Bill Payment ■ Biometric Authentication ■ Scheduled Payment ■ Pre-AuthorizedTransaction:
- 17. UPI Growth ■ UPI is expected grow phenomenally in the next five years, capturing more than 50% of the payments space. According to a Boston Consulting Group (BCG) UPI will dominate the payments space with 59% payments transactions, followed by mobile and internet-based payments. ■ The three-year old real-time payments system UPI clocked 822.29 million transactions worth ₹1.46 lakh crore in July. There were 754.54 million transactions in June, giving stiff competition to the number of debit card-based transactions at ATMs, which totaled 786.11 million in June. And for the month of January 2020 the total transaction amount was 2,16,242.97Cr ■ Of the total number of UPI-based transactions in 2018-19, Google Pay scored the maximum transactions at 36%, followed by Flipkart-backed PhonePe at 29%, Paytm at 25%, and other banks and payments instruments at 10%. ■ Karnataka has been at the forefront of leading UPI’s popularity. In October, the southern state accounted for 27.72% of total transactions in the country, according to Razorpay data.
- 18. UPI OnWhatsApp The Facebook-owned firm had WhatsApp has started rolling out its payment service in India. WhatsApp uses the Unified Payment Interface (UPI) for its payment service on the messaging app. This payments method enables one to send and money receive through their UPI-linked bank accounts. It ensures a fast and swift transfer of money without having to store balance in a wallet. WhatsApp’s UPI payment service hasn’t officially been rolled out to users. Only select users have been discovering the feature on their iOS and Android devices. And the final stable version may finally reach its millions of users in India this year. UPI live on IPO Now you can use your UPI ID as a payment option while subscribing for IPO on National Stock Exchange(NSE) & Bombay Stock Exchange(BSE). Simply by instructing broker to use UPI ID as the payment option while filling the IPO application.
- 19. Bharat Interface for Money(BHIM) is a mobile payment app developed by the NPCI, based on UPI. Named after B.R. Ambedkar and launched on 30 December 2016, it is intended to facilitate e-payments directly through banks as part of the 2016 Indian Banknote demonetisation and drive towards cashless transactions. The app supports all Indian banks which use UPI. Currently, there is no charge for transactions from ₹1 to ₹100,000. Some banks might, however, levy a nominal fee for UPI or IMPS transfers. The minimum transaction amount is ₹1, and the maximum number of transactions per day is 10. If the 10- transactions-per-day limit has been reached, the user needs to wait for 24 hours from the last transaction before making another transaction. Currently, the fund transfer limit has been set to a maximum of ₹20,000 per transaction and a maximum of ₹40,000 in a 24-hour period.
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