On August 16, 2018, a refined variant of the Unified Payments Interface (UPI) known as UPI 2.0 was launched by the National Payments Corporation of India (NPCI). Originally released in April 2016, UPI rapidly became a popular selection amongst users over the past two years for managing monetary transactions. Simplifying money transfer between any two bank accounts through a smartphone, UPI eliminates the trouble of entering credit card details, IFSC codes, or net banking/wallet codes.
Unified Payments Interface
UPI is a revolutionary system that permits seamless transfers of payments between different bank accounts using a smartphone. It streamlines the process of paying a diverse variety of merchants, both online and offline, directly from a user’s bank account without bothering about typing credit card details or using net banking passwords. Additionally, it accommodates ‘Peer to Peer’ collection requests that can be conveniently scheduled and paid as per requirements.
Main Attributes of UPI 2.0
With the introduction of UPI 2.0, customers now have the opportunity to link their overdraft accounts apart from their savings and current ones. The benefits of the overdraft account such as instant transactions are now extended to UPI users.
Additionally, UPI 2.0 introduces the feature of a ‘one-time mandate’. This means merchants and individual users can pre-authorize a transaction which can be paid at a later date. When the actual purchase is made, the amount is automatically deducted and transferred to the concerned party.
Invoice Verification and QR Authentication
‘Invoice in the Inbox’ is a novel feature in UPI 2.0 designed for customers to verify the invoice sent by the merchant before making payment. This enables customers to confirm the sender’s authenticity and cross-verify the amount mentioned along with other vital details.
‘signed intent and QR’ is another safety feature that enables users to verify the validity of merchants while scanning the quick response (QR) code. The system alerts the user with information that establishes whether or not the merchant is a validated UPI merchant.
About National Payments Corporation of India
NPCI is the exceptional organization responsible for managing retail payments and settlement systems in India. Established under the guidelines of the Payment and Settlement Systems Act, 2007, it is an initiative by the Reserve Bank of India (RBI) along with the Indian Banks’ Association (IBA).
Registered as a ‘Not for Profit’ company under the Companies Act, NPCI was initially promoted by ten core banks with State Bank of India, Punjab National Bank, Canara Bank, and ICICI Bank among others. In 2016, its shareholding was expanded to include 56 member banks across various sectors.
