ANSWER: Unified Payments Interface
Explanation:
Following demonetisation, to promote digital transactions, an upgraded Unified Payments Interface for banks is about to be launched. It aims to provide a cost effective and secured option, according to the finance ministry.
A single UPI platform is being developed for all banks as against the existing system of individual platform, according to the official.
Currently, about 30 banks including SBI, PNB and Canara Bank have their individual platforms.
The new platform will be easy to use and data secured.
With this new payment method, mobile phones will be used as virtual debit cards and a customer will be able to send or receive money instantly along with other features.
Provided there is a high mobile phone penetration in the country and the government is pushing digital banking, UPI is set to gain traction.
It has the potential to provide tough competition to mobile wallet players.
Post demonetisation of high value currency notes, more people have used e-payment including digital wallets for payments for various transactions.
There are about 40 crore smartphones while e-wallets have risen to 23 crore in less than one and a half years.
UPI
- Indigenously developed platform led by NPCI/ National Payment Corporation of India.
- Set up with support of RBI and IBA.
- NCPI operates Rupay payment infrastructure such as: Visa, MasterCard
- Different banks can interconnect and transfer funds domestically currently.
- UPI based technology solutions help merchants reduce set up costs.
- This will lead to greater reduction in transaction costs for consumers.
