wordpress blog stats
Connect with us

Hi, what are you looking for?

The Unified Payments Interface (UPI) is now live with 21 banks

NPCI

The National Payments Corporation of India (NPCI) announced that it’s ambitious payments architecture the Unified Payments Interface is now live for customers with 21 banks launching their apps on the Google Play Store.

The NPCI added that RBL Bank and IDBI Bank have been on boarded as issuers  which enables their customers to download any UPI enabled-apps mentioned above and link their account. The list of banks who have a UPI-enabled mobile app on the play store:

  • Andhra Bank
  •  Axis Bank
  • Bank of Maharashtra
  • Bhartiya Mahila Bank
  • Canara Bank
  • Catholic Syrian Bank
  • DCB Bank
  • Federal Bank
  • ICICI Bank
  • TJSB Sahakari Bank
  • Oriental Bank of Commerce
  • Karnataka Bank
  • UCO Bank
  • Union Bank of India
  • United Bank of India
  • Punjab National Bank
  • South Indian Bank
  • Vijaya Bank
  • YES Bank.

UPI is a payments architecture that will allow users to make a transaction without divulging their account details via aliases (such as shashidhar@hdfcbank) and make pull-based payments. The payments architecture was built upon the IMPS mobile payments system which let customers to transfer money across different banks with the use of a single identification and password. Through this, multiple bank accounts can be be linked to a single mobile banking application and money can be both received and requested through the same interface. More on that here.

Wallets not on the UPI

The draft paper on the UPI also said that it would provide interoperability between different payment systems including mobile wallets. However, AP Hota, CEO of the NPCI, said that wallets were not allowed to be a part of the UPI as banks needed time to catch up to them in terms of services. However, they could sign on with banks as merchants.

Last month, FreeCharge and Axis Bank  partnered to allow its users to make payments through the Unified Payments Interface (UPI). Through this, FreeCharge users will be allowed to load money into their wallets through the UPI option which will be powered by Axis Bank’s SDK.

Advertisement. Scroll to continue reading.

Many people had reported during the launch that wallets’ business would be hit with the UPI’s launch as it would effectively turn a bank account into wallet. However, others argue that it depends on what kind of wallet is being run. If a wallet has a pure digital play, then it would be affected. Wallets which look to convert cash to digital and look at remittance services would not see such a threat.

Read more: How the Unified Payments Interface will (actually) affect digital wallets

Impact on payment gateways

Payment gateways currently have to maintain an individual relationship with each bank to route and settle payments. With the UPI, it would eliminate this. “So the UPI is a boon for payment gateways. Right now, we as a payment gateway are a facilitator for payments for merchants. Our relationship with the merchant is to help them with different payments instruments,” Harshil Mathur, CEO of RazorPay told MediaNama.

Netbanking and domestic card usage is also set to decline with the UPI taking root.

Read more: How the Unified Payments Interface will affect payment gateways

Advertisement. Scroll to continue reading.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

News

By Anand Venkatanarayanan                         There has been enough commentary about the Indian IT...

News

By Rahul Rai and Shruti Aji Murali The Indian antitrust regulator, the Competition Commission of India (CCI) has a little more than a decade...

News

By Stella Joseph, Prakhil Mishra, and Surabhi Prabhudesai The recent difference of opinions between the Government and Twitter brings to fore the increasing scrutiny...

News

This article is being posted here courtesy of The Wire, where it was originally published on June 17.  By Saksham Singh The St Petersburg paradox,...

You May Also Like

News

Speaking at a webinar, the RBI deputy governor examined key issues related to bank-backed digital currencies and spoke about why they were important given...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ