Importance of UPI
- By using the collect payment option, make Person to Business (P2B) interactions easier. This would improve commerce and the Indian economy as a whole.
- UPI will reduce the amount of cash used in the economy, which is now 12% of GDP.
- The annual cost of cash transfers will decrease thanks to UPI (currently around Rs. 20000 crores)
Unified Payments Interface (UPI) and its Challenges
A system called the Unified Payments Interface (UPI) combines several bank accounts. It makes easy fund routing, and merchant payments into a single mobile application (of any participating bank). Additionally, it supports “Peer to Peer” collect requests that may be planned and paid for according to need and convenience. It is an immediate real-time payment system that enables customers to transfer money between different bank accounts in real-time without disclosing personal information to the other party. The National Payments Corporation of India (NPCI), which is governed by the Reserve Bank of India (RBI) and IBA (Indian Bank Association), established the concept of UPI.
Contact Us