Introduction of new payments system will integrate more people into online or cashless transactions. The Unified Payments System (UPI) is a new way of sending person-to-person money transfers. With mobile numbers as the basis and smart phones as tools payments can be made across banking platforms and across the country.
The key to fast and easy mobile transfers is in the android mobile app and will be launched soon for other phone platforms as well. The app, once downloaded, guides the user to create their virtual ID and feed their bank accounts—which are to be done only once.
Following this, you can make money transfers without requiring bank account details or IFSC codes. It is also easy to use. For real time money transfer, the beneficiary should also have a UPI registration.
Soon, for online payments, an option of paying via UPI will also be included along with other options like debit card and credit card. A mobile PIN number is sent to the initiator via SMS to verify and proceed with the transaction.
The integrity of the online payments system will be protected by the National Payments Corporation of India (NPCI). Subsequent to the launch of the system on Thursday, NPCI has declared that banks have already integrated the new system in their mobile apps.
The new updated banking apps will be available to customers of 19 banks who have already joined the OPI system and acquired the required IT capabilities. These banks are: Andhra bank, Axis Bankk, Bank of Maharashtra, Bharatiya Mahila bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal bank, ICICI Bank, TJSB Sahakari Bank, Oriental bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES bank.
"The updated banking apps are likely to be launched in the next few days before the system is made fully functional by the NPCI," said a finance ministry spokesperson.
Meanwhile, mobile wallet companies like PayTm, Mobikwik and others have welcomed the launch of the UPI system and said they will also update their apps to integrate the new payment system.
"Our two lakh retail touch points which offer real time online payments and transactions are now being connected with a point of sale machine and a UIDAI biometric device. With UPI going live, our agents will be able to accept payments directly from bank’s customers and provide all services. Our online customers, with integration of UPI, will find it as a very reliable and secure wallet loading mechanism from a bank account," said Pramod Saxena, CMD, Oxigen Services, a mobile wallet firm.
"UPI is a unique world-class platform aimed at removing friction faced by customers during merchant payments through the set up of an interoperable platform and is an important step in India's journey of reducing cash and improving inclusion," Vivek Belgavi, Leader - FinTech, PwC India said.