Unified Payments Interface(UPI)

 

UPI stands for Unified Payments Interface, which is a real-time payment system developed by the National Payments Corporation of India (NPCI) in 2016. UPI allows users to instantly transfer money between bank accounts using a mobile phone, without the need to enter bank details or other personal information.

To use UPI, a user must link their bank account to a UPI-enabled mobile app and create a unique Virtual Payment Address (VPA). The VPA serves as a payment identifier and eliminates the need to provide sensitive bank account information during transactions. UPI also allows users to make payments to merchants, pay bills, and transfer money to other mobile wallets.

UPI has been widely adopted in India and has helped to drive the country's transition to a cashless economy. It has also been credited with promoting financial inclusion by making digital payments accessible to people without access to traditional banking services. UPI transactions have grown rapidly since its launch, with over 2 billion transactions recorded in December 2021.