oppn parties UPI: Changing How Payments Will Be Made

News Snippets

  • In reply to a question in Parliament, the government says it is empowered to lawfully intercept, monitor or decrpyt information stored in a computer resource in the interest of sovereignty or integrity of India
  • Police stop a 12-year old girl on her way to the Sabarimala shrine
  • In Karnataka, the JD(S) indicates that it might support the BJP government if it falls short of numbers after the bypolls
  • Congress pips the BJP in local body elections in Rajasthan, winning 961 wards to the BJPs 737
  • After Airtel and Vodafone-Idea, Jio also indicates that tariffs will be raised from December
  • Sources in Shiv Sena say that they might revive the alliance with the BJP if it offers the 50:50 deal
  • A miffed Sanjay Rout of the Shiv Sena says that it will take "100 births" to understand Sharad Pawar
  • Mobile operators Vodafone-Idea and Airtel decide to raise tariffs from next month
  • Sharad Pawar meets Sonia Gandhi and says more time needed for government formation in Maharashtra
  • Justice S A Bobde sworn in as the 47th Chief Justice of India
  • Supreme Court holds hotels liable for theft of vehicle from their parking area if parked by valet, says "owner's risk" clause is not a shield from such liability
  • Finance Minister says she is receiving feedback from many sectors that recovery is happening as there is lower stress
  • Sabarimala temple opens, but police bar the entry of women below 50 years
  • Finance Minister Nirmala Sitharaman says Air India and BPCL to be sold off by March
  • Media person Rajat Sharma resigns as DDCA president
Two Muslim litigants in Ayodhya refuse to accept the Supreme Court order, say review petition might be filed
oppn parties
UPI: Changing How Payments Will Be Made

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
India is taking bold steps towards being a cashless society. A major step was taken last week when the Unified Payments Interface (UPI) was started. UPI is an initiative of National Payments Corporation of India, backed by the RBI and a consortium of several frontline commercial banks. It is designed to make payments through digital means easier by using both Aadhar and non-Aadhar based authentication. It has the potential of harnessing the power of the mobile phone to empower millions of Indians.

The idea is simple. Once you download the UPI plugin to your existing bank app (provided your banker is enrolled for UPI, which sooner or later it will be otherwise it will risk being left stranded on the emerging and cutting-edge payments highway) or upgrade to the UPI enabled app and fill in necessary details, a virtual identity will be created for you. After that, you will be able to directly transfer money from your mobile to the account of someone similarly enabled without even knowing their bank account number or IFS code. You will just need to know their virtual identity. The payment limit has been set at Rs 1 lakh per transaction for UPI.

UPI is an advanced version of Immediate Payments Service (IMPS) that required you to log in to the bank website and know the account number and IFS code of the recipient. UPI takes it a step further by creating virtual identities for users and eliminating codes. It does so in a more secured environment, doing away with cards and passwords and making your mobile the centre of authentication. Just remembering a four digit pin will suffice at both ends of the transaction. This will also do away with the need to keep idle (and not earning any interest) cash in digital wallets for making online payments. Although it might take a year for the service to stabilize but once it does, it will make life a lot easy.

The service has the potential of empowering millions by doing away with the need of intermediaries as the identity of the recipient will be authenticated instantly. It will also save millions of man-hours that Indians usually waste standing in queues to make payment of utility bills. Of course there will be a small charge for the service but it will be more than offset by the convenience and ease that it offers. It will change the way the common man pays and receives money.