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Unified Payments Interface (UPI)

Facts for Prelims (FFP) 

Context : The Reserve Bank of India (RBI) in collaboration with NPCI International Payments Ltd. (NIPL) has planned to take the Unified Payments Interface (UPI) to over 20 nations by financial year 2029.

  • RBI also aims to explore collaboration on the Fast Payment System with groups of countries such as the European Union and SAARC, along with multilateral linkages.

 

About Unified Payments Interface (UPI):

  • UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
  • It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.
  • Currently, several countries, including Bhutan, Nepal, UAE, France, Mauritius, etc., support UPI payments.

 

Measures for Internationalization of UPI:

  • NIPL: A wholly owned subsidiary of the National Payments Corporation of India (NPCI), incorporated in 2020, for the deployment of RuPay and UPI outside of India.
  • UPI One World: Prepaid payment instrument linked to UPI provided to foreign nationals/ NRIs coming from G20 countries.
Unified Payments Interface (UPI)
Unified Payments Interface (UPI)

Source: Outlook