Unified Payments Interface (UPI) is a smartphone application developed by the National Payments Corporation of India (NPCI) that allows users to transfer money between bank accounts. It is a single-window mobile payment system that eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction. UPI is an instant payment system that facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used on mobile devices to instantly transfer funds between two bank accounts, and the mobile number of the device is required to be registered with the bank. The UPI ID of the recipient can be used to transfer money. UPI runs as an open-source application programming interface (API) on top of the Immediate Payment Service (IMPS) and is regulated by the Reserve Bank of India (RBI) .
Key features of UPI include:
- UPI is a real-time payment system that enables peer-to-peer inter-bank transfers through a single two-click factor authentication process.
- UPI is a highly secure, layered architecture with multiple levels of encryption, ensuring the confidentiality and integrity of data during transactions.
- UPI is widely used in India and is regulated by the RBI.
- UPI is planned to be introduced internationally in 2022.
In summary, UPI is a mobile payment system developed by NPCI that allows users to transfer money between bank accounts instantly and securely. It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction, making it a safe way to bank.
