Unified Payments Interface (UPI) is a system that powers multiple bank accounts (of participating banks), several banking services features like fund transfer (P2P), and merchant payments in a single mobile application.
- UPI was launched by National Payments Corporation of India with Reserve Bank of India’s (RBI) vision of migrating towards a ‘less-cash’ and more digital society.
- UPI was instroduced on 11 April 2016.
- UPI has built on the Immediate Payment Service(IMPS) platform.
UPI 2.0
On 16 August 2018, UPI 2.0 was launched which enabled users to link their Overdraft accounts to a UPI handle. Users were also able to pre-authorise transactions by issuing a mandate for specific merchant. 2.0 version included a feature to view and store the invoice for the transactions. There’s also an added feature of AutoPay facility for recurring payments.
UPI 123 PAY
Reserve Bank of India (RBI) has launched a new UPI service, 123PAY, that is aimed to help almost 400 million (400 million) feature phone users in the country. The new feature was announced by RBI governor, Shaktikanta Das.
Till now, UPI payments were only possible through payment applications on smartphones and USSD-based service for feature phones. But as per deputy governor T Rabi Shankar the latter has been found to be cumbersome due to the unavailability of the services on several mobile networks.
The system will use Dual Tone Multi-Frequency (DTMF) signaling technology with two-factor authentication (2FA) flow for peer-to-peer (P2P) transaction just as the normal UPI app but works with account number/phone number, whereas QR code is included in the normal system of payment in feature phones.
e-RUPI
e-RUPI or e₹UPI has been developed in collaboration with Department of Financial Services, Ministry of Health and Family Welfare and National Health Authority. It was introduced from 2 August 2021.
e-RUPI is to ensure leak proof delivery of welfare services and bypassing middle man to decrease corruption. Private sector can use the service for their own corporate social responsibility initiative (CSR).
e-RUPI is basically e-voucher based on QR code or SMS string that can be delivered through mobile phone. e-RUPI will act as a precursor for future Central bank digital currency (CBDC) that will be launched by RBI as it will help in highlighting the gaps within the national digital payment infrastructure.
First country to use UPI?
On 13 July 2021, UPI was made available to Bhutan through Royal Monetary Authority of Bhutan. Bhutan became the first country to accept UPI transactions through the BHIM app.
Let’s have a look at the most important questions related to UPI & NPCI. Scroll down to download PDF.
Most Important Questions on UPI
Q)UPI was developed by which company/organisation?
A.NPCI
B.SBI
C.SEBI
D.RBI
Answer – A
Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India (NPCI) facilitating inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions.
Q)UPI is regulated by –
A.NPCI
B.RBI
C.SEBI
D.SBI
Answer – B
UPI is regulated by the Reserve Bank of India (RBI) and works by instantly transferring funds between two bank accounts on a mobile platform.
Q)UPI was introduced in which year?
A.2016
B.2018
C.2019
D.2017
Answer – A
UPI was introduced on 11 April 2016.
Q)On _______, UPI 2.0 was launched which enabled users to link their Overdraft accounts to a UPI handle.
A.16 August 2019
B.16 August 2018
C.16 August 2017
D.16 August 2020
Answer – B
UPI 2.0 was launched on 16 August 2018.
Q)Reserve Bank of India (RBI) has launched a new UPI service, _________, through which feature phones can participate in UPI payments.
A.123PAY
B.132PAY
C.213PAY
D.321PAY
Answer – A
Reserve Bank of India (RBI) has launched a new UPI service, 123PAY, that is aimed to help almost 400 million (400 million) feature phone users in the country. The new feature was announced by RBI governor, Shaktikanta Das. Till now, UPI payments were only possible through payment applications on smartphones and USSD-based service for feature phones.
Q)e-RUPI or e₹UPI was introduced from 2 August _______.
A.2021
B.2020
C.2019
D.2018
Answer – A
e-RUPI or e₹UPI (portmanteau of electronic Rupee and UPI) developed in collaboration with Department of Financial Services, Ministry of Health and Family Welfare and National Health Authority. e-RUPI is to ensure leak proof delivery of welfare services and bypassing middle man to decrease corruption.
Q)Which is the first country to accept UPI transactions through the BHIM app?
A.Nepal
B.Bhutan
C.Sri Lanka
D.Singapore
Answer – B
On 13 July 2021, UPI was made available to Bhutan through Royal Monetary Authority of Bhutan. Bhutan became the first country to accept UPI transactions through the BHIM app.
Q)NPCI was established in which year?
A.2008
B.2009
C.2010
D.2011
Answer – A
The National Payments Corporation of India (NPCI) is the specialised division of Reserve Bank of India which is under the jurisdiction of Ministry of Finance, Government of India. It was created by RBI for operating retail payments and settlement systems in India.
Q) NPCI is headquartered at –
A.Mumbai
B.New Delhi
C.Indore
D.Lucknow
Answer – A
Q)____________ is a USSD channel service for UPI mobile banking launched in November 2012.
A.*95#
B.*97#
C.*99#
D.*98#
Answer – C
Q) ______ is a 24×7 helpline for digital payments.
A.Digihelp
B.E-Saathi
C.MeraSaathi
D.DigiSaathi
Answer – D
It a 24×7 helpline for digital payments. It is launched with UPI Pay123 by RBI on 10 March 2022.
