UPI to reinforce digital payments

Payment systems foster economic development and financial stability for ensuring safe, secure, reliable, accessible, affordable and efficient payment systems has been one of the important strategic objectives and goals of the Reserve Bank of India. Unified Payments Interface (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.

India has developed one of the most modern payment systems in the world, be it large value, retail or fast. Payments Vision 2025 leverages India’s efforts and builds on the focus of G-20 to enhance cross-border payments by addressing the four key challenges of cost, speed, access and transparency.

Given the dynamic space of payment systems in the financial services space, efforts shall be conditioned by developments and readiness of the ecosystem to accept and further these initiatives.

Unified Payments Interface is an instant real-time payment system developed by National Payments Corporation of India. The interface facilitates inter-bank peer-to-peer and person-to-merchant transactions. It is regulated by the Reserve Bank of India and works by instantly transferring funds between two bank accounts on a mobile platform. This will enable the last-mile consumers to reap the benefits of an open interoperable payments system driving immediate payment transfers between bank accounts and merchant payments in real-time.

With this magnificent growth, BFSI leaders are positive about the development, and they say, UPI will stand in the next five years and it will further help in building a cashless economy. The transactions through Unified Payment Interface have crossed one trillion US dollar mark in financial year 2022 and today India is first in global digital transactions.

After Singapore, UAE, Nepal and Bhutan, France will be the next country to accept payments using the Unified Payments Interface and RuPay Cards. BFSI leaders are positive about the development, and they share their views on where UPI will stand in the next five years and how it will further help in building a cashless economy.

UPI has turned out to be one of the best fintech innovations in India, making the country one of the fastest-growing digital economies in the world. The recent announcements of linking credit cards on the UPI platform and the MoU signed for the UPI, RuPay launch in France are significant achievements adding to the might for the UPI in taking India well ahead of the rest of the globe.

Experts feel that increasing global acceptance of UPI will help in reinforcing the digital payments alliance between India and the partner countries. We can believe that India will continue to be a global leader in the payment ecosystem as UPI penetrates into more countries.