oppn parties UPI: Changing How Payments Will Be Made

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  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
  • India has moved to the 40th spot in the innovation index, up 6 spots from last year
  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
  • At $23.9bn, India's current account deficit widened to 2.8% in Q1, the worst in four years
  • Stocks continue to flounder on Thursday: Sensex sheds 188 points to 56409 and Nifty 40 points to 16818
  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
  • Jasprit Bumrah most likely to miss T20 World Cup due to recurrence of back injury
  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
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UPI: Changing How Payments Will Be Made

By Sunil Garodia
First publised on 2016-04-20 18:09:57

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.
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.