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New Payment System - Unified Payments Interface (UPI)


New Payment System - Unified Payments Interface (UPI)

Last updated: February 23 2020
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  • #31


    Re : New Payment System - Unified Payments Interface (UPI)

    UPI Payments
    Attached Files
    Last edited June 12 2016, 01:18 AM.


    • #32


      Re : New Payment System - Unified Payments Interface (UPI)

      RBI's Bharat Bill Payment System (BBPS) will be another revolution in the way of paying the bills. It may start from July'16


      • #33


        Re : New Payment System - Unified Payments Interface (UPI)

        RBI's Bharat Bill Payment System (BBPS)


        • #34


          Re : New Payment System - Unified Payments Interface (UPI)

          Mobile Payment
          Attached Files


          • #35


            Re : New Payment System - Unified Payments Interface (UPI)

            Banking Technology Gets a Rajan Reboot


            • #36


              Re : New Payment System - Unified Payments Interface (UPI)

              Itz Cash Gets RBI Nod for Bharat Bill Payments


              • #37


                Re : New Payment System - Unified Payments Interface (UPI)

                Banks' New Mantra: Dump Plastic Cards, Go Virtual

                TECH-SAVVY Banks, wallet cos are issuing virtual cards that allow customers to make payments from their smartphones

                As physical wallets are going the digital way, can plastic credit and debit cards be far behind? Banks and wallet companies are issuing virtual cards for users to make payments from their smartphones instead of carrying a piece of plastic around.The country's largest lender ICICI Bank was the first to launch contactless payments and is expected to benefit over 30 million credit and debit card users. Other leading private sector lenders such as HDFC Bank and Axis Bank are set to launch virtual cards for both debit and credit card customers that will sit inside your mobile phone.

                “Axis Bank app will allow you to create virtual tokens on your NFCenabled phone with one card that is sitting inside your phone,“ Sangram Singh, head-cards & merchant acquiring, Axis Bank, told ET. “This is an emulation of your plastic card on to your phone.“

                With the application of host card emulation technology (HCE), a bank can create a virtual card which will sit in the users' mobile phone. Instead of carrying the plastic card, the user can authenticate the transaction through his mobile phone which needs to have near field communication (NFC) abilities.

                HDFC Bank, the largest issuer of cards, is also expected to launch its virtual card soon. The bank said that use of new technology will help to increase its card base. “We are right now testing out with three different merchants,“ a se three different merchants,“ a senior HDFC Bank official said. “As a leader unless we use new technology, it will be difficult for us to expand the market and grow.“ While banks are trying innova tive mechanisms to promote digital payments, even wallet companies have started offering virtual prepaid cards for simple payments.Wallet companies such as Zeta and Udio have tied up with RBL Bank and payment gateways like Visa and MasterCard to create virtual cards that are programmed inside the mobile phone.

                The virtual co-branded card comes with a unique 16-digit number and sits on the wallet application. Whenever the customer needs to make a payment, he can do so through his virtual card by entering card details and CVV , which works exactly like a debit, or credit card.

                While the technology of virtual cards is available with payment gateways, the problem in India is with the dismal card acceptance infrastructure. India has less than 13 lakh PoS terminals for more than 60 crore debit and credit cards.Even the PoS terminals that are present are mostly outdated. Further, there are only a handful of smartphones that are enabled with the NFC technology. “Tomorrow if all the terminals in the country are NFC-enabled, then I may not need a plastic card at that point of time,“ said Singh. “For some time, multiple things will co-exist.“

                Similarly, even the wallet companies believe that going plastic-less is still some time away, but then technology is taking the system that way only.

                “We are still providing the users with a plastic card,“ Bhavin Turakhia, co-founder, Zeta, told ET.


                • #38


                  Re : New Payment System - Unified Payments Interface (UPI)

                  NPCI to Audit Fin Inclusion Tech for Jan Dhan Accounts

                  80% of interbank transactions failed for ac opened under the government's scheme

                  National Payments Corporation of India (NPCI) will audit the financial inclusion (FI) technology platform of all banks after it was discovered that 80% of interbank transactions failed for accounts opened under the government's Jan Dhan scheme.“During a review it came to notice that the FI switch of some banks was not working, leading to such a high failure rate,“ said a NPCI official, who did not wish to be named.

                  The government has also asked NPCI to look into the issue as it looks to push various social sector schemes through the Jan Dhan, the government's flagship scheme for financial inclusion rolled out across India to take banking facilities to the poorest.

                  “We are in discussion with banks to work out the issues. Also an audit is being done to ascertain which banks are lagging,“ said the NPCI official quoted above, adding that in some cases, including that of country's largest bank State Bank of India, the failure rate has been brought down considerably.

                  “The aim is to bring this failure rate to as low as 20%,“ he said.

                  Finance Minister Arun Jaitley had earlier said that the next phase of the financial inclusion scheme will be focused on mobilisation of financial savings to reverse the decline in the savings rate.
                  According to latest government data, there are 1.25 lakh bank mitras, operating 1.05 lakh hand-held machines. In a week, at least 54,000 machines are active, which means they make at least one transaction.

                  Most of these transactions either happen on the Aadhaar Enable Payment System (AEPS) or Rupay Card. AEPS is a bank-led model which allows online interoperable financial inclusion transaction at any point of sale, through the business correspondent of any bank using the Aadhaar authentication.
                  “The whole idea is that a customer should be able to transact irrespective of which bank device the bank mitra operates on. Since this was not happening, we have decided to do an audit,“ the above quoted NPCI official said.

                  Another official said that loading of other social security schemes including direct benefit of transfer will only work if the inter-operability issue is resolved.

                  “You have to provide customers cash-in and cash-out points. This will also provide more business to bank mitras and make them viable,“ he said. “Banks will be asked to ensure that their systems are able to deal with high volume and low ticket size payments and the performance matches with real time payment channels like ATMs.“


                  • #39


                    Re : New Payment System - Unified Payments Interface (UPI)

                    UPI to Go Live this Month with 15 Banks

                    RBI's brainchild, Unified Payments Interface (UPI), launched in April this year, will finally go live by the end of this month with all the 15 participating banks.UPI allows users to send any amount of money below `1lakh instantly without having to add beneficiary as in the case of IMPS. It can be used for settling bills among friends, making payments to merchants in the offline world, and as a replacement for cash on delivery as well. UPI will be based in an app on the smartphone and the user can use any of the banks' UPI apps for payments from any of his bank accounts.

                    National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments system in India that developed the backend technology for all transactions on UPI, said it is in the final stages of testing the integration with banks and rectifying operational errors. It has even finali sed the fees that need to be paid to NPCI and the beneficiary bank.

                    “We will be going live on all the 15 bank apps within the end of this month. The banks have already developed the applications and we are in the final stages of testing,“ said Dilip Asbe, chief operating officer, NPCI.“For peer-to-peer payments, we have fixed `1 for transactions up to `25,000 and `5 for transactions between `25,000 and `2,00,000.“

                    While these are the rates to be paid by the remitter banks, users will not have to pay anything extra. In case of merchant transactions it has been fixed at 0.4% up to 2,000 and 0.65% beyond that. Asbe, however, added that after the app goes live and the banks get a few merchants on board who start using it for payments, it will take another 3-6 months to iron out the operational glitches till it attains a stage of smooth functioning.

                    Unified Payments Interface was officially launched by the RBI Governor Raghuram Rajan on April 11. While the backend technology was ready and a few merchants were on board, banks were still in the process of developing their UPI apps.

                    Now with the banks also ready and the integration with NPCI being in its final stages, the apps would be available for download in the Android app store.

                    “Once the app goes live, banks will need to integrate their systems with the leading ecommerce firms and thereby channel payments through the UPI app. Our main target is also peer-to-peer payments other than consumer spending,“ said Asbe.

                    Even banks have started their process of integrating with various genres of merchants, who would accept payments via UPI. “Currently, we are integrating with about 10 merchants. More merchants are expected to be on-boarded in the next couple of weeks. We will release the names once the app goes live,“ said Ritesh Pai, country head, Digital Banking, Yes Bank.

                    However, only people with debit cards can use UPI as NPCI is keeping the 16-digit card number and its expiry date as the second factor of authentication. “The first factor is the mobile number, which will get verified through the One-Time Password, but for second factor we chose the debit card because it has the highest reach in the country,“ said Asbe.

                    NPCI is also experimenting further with QR code based payments so merchants would not need to invest in bulky POS terminals to accept digital payments from customers.

                    However, in the initial stages, the payments will be done through a virtual payment address. “Even if four banks come up with excellent UPI apps that would be enough for UPI to scale up, unlike mobile banking, a customer will not need numerous applications to access his different bank accounts,“ explained Asbe.


                    • #40


                      Re : New Payment System - Unified Payments Interface (UPI)

                      NPCI Plans Negative Database to Check Wallet-based Frauds

                      Once NPCI gets RBI nod, it can set up back-end infra to detect fraud

                      The National Payments Corporation of India (NPCI) may build a risk-based negative database on wallet-based frauds, which will help wallet companies detect fraudulent transactions early and stop them from going through.Several wallet companies have been facing issues around money that is siphoned off from bank accounts by fraudulent means and loaded into mobile wallets. The money then gets credited into the fraudster's bank account, thereby causing a break in the digital trail. This makes it difficult for law enforcers to track the money .

                      “We have been approached by the wallet companies for developing this risk-based negative database, but it is still in the early stages of discussions. We are yet to approach the regulator and decide on the modalities,“ said Dilip Asbe, chief operating officer at NPCI.

                      NPCI, which is the umbrella organisation for payments in the country, needs to approach RBI for regulatory clearance.Once it receives the go-ahead from RBI, it can develop the back-end infrastructure, which will red flag fraudulent walletbased transactions.

                      Once a wallet company receives a complaint or finds a transaction suspicious, it may alert the database with pointers like the bank account used or the location from which it was initiated.If these details are present with NPCI, then it can alert other wallets, block the bank account concerned and stop further transactions from similar points.

                      “We are trying to build a risk alert database, working with NPCI, as they have the technology to be able to help us as an industry body ,“ said Gaurav Chopra, executive director at Payments Council of India (PCI). “Since PCI is a self-regulatory body and is a common platform for all payments and wallet companies, we are trying to do this at an industry level.“

                      Industry insiders say while banks can do more to create customer awareness, wallet companies are also to be blamed. “They are not putting in strict checks and measures, because it helps them inflate the number of mobile wallets created and since the individual amounts are usually less, even customers do not report the matter to the authorities concerned,“ one of these people said, requesting anonymity.

                      “Though the wallet-based frauds are still in their early stages, we, as an association, took this step to approach NPCI for a solution. Since this industry is still growing, such steps would only help boost customer confidence regarding the safety of wallets,“ said Chopra.


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