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Changes in UPI

Posted on December 9, 2022 by admin1  61

In Context

  • RBI governor recently announced an additional function for Unified Payments Interface (UPI) platforms.

More about the new changes to UPI

  • The current function:
    • The UPI currently includes functionality to undertake recurring payments and single-block payments. 
  • Changes:
    • It is now being enhanced to allow customers to block funds in their accounts for multiple payments of specific nature.
  • Significance:
    • This is expected to improve the ease of making payments for online shopping and investments in securities. 
    • With the new feature, the merchant can make multiple debits up to a permitted amount.
    • The feature will also be helpful in the purchase of government securities using the RBI’s retail direct scheme. 
  • Implementation:
    • Separate instructions will be issued to the National Payments Corporation of India (NPCI) to implement the enhancement.
    • RBI governor also announced an expansion in the scope of Bharat Bill Payment System (BBPS) to include all payments and collections.

About Unified Payments Interface (UPI)

  • About:
    • Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India (NPCI). 
    • The interface facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions.
  • Transfer of funds:
    • It is used on mobile devices to instantly transfer funds between two bank accounts. The mobile number on the device is required to be registered with the bank. 
      • The UPI ID of the recipient can be used to transfer money. 
  • Function & regulation:

It runs as an open-source application programming interface (API) on top of Immediate Payment Service (IMPS) and is regulated by the Reserve Bank of India (RBI).


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