what is UPI?

UPI or Unified Payments interface is the easiest and the fastest way to transfer money between banks(participating banks) because it’s so convenient that in just 2 to 3 seconds you can transfer money no matter where you are except that country needs to support UPI like Singapore, Bhutan, United Arab Emirates, and Nepal have accepted UPI.

It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.

when was UPI launched?

NPCI conducted a pilot launch with 21 member banks. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started to upload their UPI-enabled Apps on the Google Play store from 25th August 2016 onwards.

who created UPI?

Unified Payments Interface (UPI) is an instant real-time payment system developed by the National Payments Corporation of India (NPCI) facilitating inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions.

The interface is regulated by the Reserve Bank of India (RBI) and works by instantly transferring funds between two bank accounts on a mobile platform.

why THE UPI WAS created?

In April 2009 with the objective to integrate all the payment mechanisms available in the country and make them uniform for retail payments, the National Payment Corporation of India(NPCI) was formed.

By March 2011, RBI found out that in India only six non-cash transactions happen every year per individual citizen while 10 million (10 million) retailers accept card-based payment. Around 145 million (145 million) families have no access to any form of banking. There is also the problem to tackle black money and corruption that happens mostly in cash.

RBI in 2012 released a vision statement for a period of four years that indicated commitment toward building a safe, efficient, accessible, inclusive, interoperable, and authorized payment and settlement system in India. It is part of the Green Initiative to decrease the usage of paper in the domestic payments market.

UPI was officially launched in 2016 for public use. Under RBI guidance, NPCI became the primary body with the task to develop a new payment system that is simple, secure, and interoperable.

what’s the performance of UPI since its launch?

The above graph shows us the money transfer amount using upi since its launch to till date which is quite impressive as we can see the growth of the upi account for over 50 percent of retail payments in India in just five years.

is upi available in other countries?

Country UPI launch
Bhutan 13 July 2021
Malaysia 2021
Nepal February 2022
UAE 21 April 2022
Singapore July 2022

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