unified payments interface (upi) - easy way to transfer money through banks
TRANSCRIPT
Black Money
‘Income illegally obtained or not declared for tax purposes’
Declare every Indian Rupee as null and void and swap the existing money with new currency ?
Amend laws for legal requirement for paying everything through bank payments ?
Solution for Black Money ?
Currently, if you want to make a bank payment online, you have to enter their account number, account type, Bank name and IFSC code. Even if you have all these details, typing it all in, particularly on a phone, is a painful process. Most banks take upto 12 hours to add a new payee and only then you can make the transfer
What is the solution ?
Unified Payments Interface(UPI)
Unified Payments Interface(UPI)
– Janardhana Gouda
– a new Initiative for cashless & more digital society
Janardhana GoudaBank ID: 973103 2014@icici [email protected] +91 9731 03 2014
Automated Teller Machine (ATM) Internet
BankingRTGS & NEFT
CMS
Existing CBS Interfaces
ATM cards - Disadvantages
Internet Banking - Disadvantages
NEFT/RTGS - Disadvantages
Bank Branch
The UPI is a system for instant, online bank payments.
Unified Payments Interface(UPI)
A new project of NPCI
Unified Payments Interface(UPI)
Uses Virtual payment address : This could be your name, or your
phone number or your Aadhar number, so for example, if your phone number is 9731032014, then your virtual address could be 9731032014@yesbank (if your bank is yes bank) or 9731032014@axis (if you're an Axis bank customer), and so on.
What is Special in UPI?
UPI also works on mobile app
All you need to remember is your Mobile App Password.
Transfer money with just few clicks by just entering virtual ID of payee
Real time transfers.
Universal App for all banks
What is Special in UPI?
Transfer money or make payments using IMPS (Immediate Payment Service) technology.
UPI –what it uses ?
UPI is immediate works 24x7 unlike
NEFT or RTGS services, which have specific working hours
Very less charges
Money Transfer – Process Flow
UPI eliminates the need of knowing the recipient's
NameBank account number and IFSC code (or bank branch).
UPI main Advantage
The Reserve Bank of India had formally launched the system in April this year.
According to Mr. A.P. Hota, Managing Director & CEO of National Payments Corporation of India UPI would become operational from the month of October of this year.
29 banks have already agreed to provide UPI services, and he
expects the number to increase further this year.
Operational now?
Anyone can also use the UPI to send a request for money, like an invoice. This means that anyone could become a merchant, and take payment for any goods or services from your account to their account.
Send a Request for money
Single click 2-Factor Authentication for transactions
Universal app for transactions
Leveraging existing infrastructure
Security (on other bank app), it uses the NPCI library to capture credentials.
Enable seamless merchant transactions
UPI- Benefits for Banks
Round-the-clock Availability
Single app for accessing different bank accounts
Use of Virtual ID is more secure, no credentials sharing
Faster checkout
No time-out scenario
Shopping online easily
UPI- Benefits for end customers
Seamless fund collection from customers – single identifiers
No risk of storing customer’s virtual address like in cards
Suitable for e-com & m-com
Resolves the COD collection problem
Single click 2FA facility to the customers – seamless pull
In-App Payments (IAP)
UPI- Benefits for merchants
Because it's using the phone (since mobile number is bounded to the device) to verify transactions, UPI is secure - someone else can't just enter your ID and spend your money
2-Factor Authentication is enabled i.e Mobile app, MPIN and Biometric which may include fingerprint security.
Security:
An initiative for cashless and more digital society.
Every transaction could be through bank payment.
Save printing cost of currency. Legal requirement for cashless transactions Solution for Black Money in future ?
So ?
Summary:Seriously, what is this UPI thing?
So it's like NEFT/RTGS/IMPS?
That's cool but how does it affect me?
Does it skip the OTP prompt I get?
I have never heard of an MPIN.
How is it better than just using my Card?
But won't the merchant get my Bank Account Details?
What if I switch banks?
What is a Payment Service Provider?
How does this affect wallets?
How does it show up in my bank account statement?
What about refunds?
Another abbreviation? What is NPCI?
OK, I'm hooked. How do I use this?
