oppn parties UPI: Changing How Payments Will Be Made

News Snippets

  • 84 NDRF teams have been despatched to 23 states to tackle the flood situation
  • Three persons lynched in Bihar after being accused of cattle theft
  • Delhi police seize a consignment of 1500 kgs of heroin and busts a cartel of Afghanistan-Pakistan narcotics dealers with links to the Taliban
  • Supreme Court gives 9 more months to complete the Babri Masjid demolition case trial
  • Priyanka Gandhi not allowed to meet the families of the dead in the Sonabhadra firing, arrested
  • ICC inducts Sachin Tendulkar in [email protected]@@s Hall of Fame
  • Stock markets bleed for the second day. Sensex crashes 560 points
  • S Jaishankar, Minister of External Affairs, says Pakistan should release and repatriate Kulbhushan Jadhav immediately
  • Karnataka Governor Vajubhai Vala asks the Speaker to hold the trust vote latest by 1.30 pm today
  • The Government sends a list of 24 questions to mobile app company that runs video app TikTok seeking answers for anti-national and obscene content carried on the platform
  • Sarvana Bhawan founder P Rajagopal, serving a life term for murder, dies in a Chennai hospital
  • SC allows time till July 31 to the Ayodhya mediation panel
  • IT department attaches "benami" plot worth Rs 400cr in Noida. The plot allegedly belongs to BSP leader [email protected]@@s brother and his wife
  • Dawood [email protected]@@s nephew, Md. Rizwan Iqbal, was arrested from Mumbai airport as he was waiting to board a flight to Dubai
  • Trouble brews in Bihar JD(U)-BJP alliance as Bihar police asks special branch officers to keep tabs on RSS activities
Even after indicating that the trust vote will be held today (he said he cannot delay as he had to face the world), the Karnataka Speaker adjourns the assembly until Monday. Voting is likely to take place on Monday
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.