Government sector Regulatory

UPI 2.0 launched; overdraft facility, one-time mandate among new features.

UPI 2.0 overdraft
Followed by multiple delays, an upgraded version of the Unified Payments Interface (UPI), UPI 2.0, was launched today at an event in Mumbai. The launch was attended by RBI governor Urjit Patel, State Bank of India (SBI) chairman Rajnish Kumar and Nandan Nilekani, the non-executive chairman of Infosys who is also the innovation advisor at NPCI.

National Payments Corporation of India (NPCI), is an umbrella organisation for operating retail payments and settlement systems in India is promoted by RBI and 56 banks operating in India. Key member banks include State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank N. A. and HSBC.

Key features of UPI 2.0:

1. Linking of overdraft account: In addition to current and savings accounts, customers can link their overdraft account to UPI. Customers will be able to transact instantly and all benefits associated with overdraft account shall be made available to the users. UPI 2.0 will serve as an additional digital channel to access the overdraft account.

2. One-time mandate: UPI mandate could be used in a scenario where money is to be transferred later by providing commitment at present. UPI 2.0 mandates are created with one-time block functionality for transactions. Customers can pre-authorise a transaction and pay at a later date. This feature is really useful in cases like fare payments of Ola and Uber.

3. Invoice Feature: According to NPCI, this feature is designed for customers to check the invoice sent by merchant prior to making payment. It will help customers to view and verify the credentials and check whether it has come from the right merchant or not. Customers can pay after verifying the amount and other important details mentioned in the invoice.

4. Signed intent and QR: This feature is designed for customers to check the authenticity of merchants while scanning QR or quick response code. It notifies the user with information to ascertain whether the merchant is a verified UPI merchant or not. This provides an additional security. Transactions are processed faster as app passcode is not required in case of signed intent. It also negates the chances of QR tampering. Customers will be informed in case the receiver is not secured by way of notifications.

UPI was launched on 11 April 2016 and in the last two years the platform has emerged as a popular choice among users for sending and receiving money. BHIM UPI recorded transactions worth Rs 45,845 crore and 235 million in terms of value and volume in the month of July 2018.

UPI 2.0 member banks as on date include State Bank of India (SBI), HDFC Bank, Axis Bank, ICICI Bank, IDBI Bank, RBL Bank, YES Bank, Kotak Mahindra Bank, IndusInd Bank, Federal Bank and HSBC, NPCI said in a statement on Thursday.

The other products of UPI include National Financial Switch (NFS), NACH Immediate Payment Service, Cheque Truncation System (CTS), Aadhaar Enabled Payment System (AePS), BHIM Bharat Bill Payment System.

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KP Krishna

Krishna KP is the founder of Preview Tech. He is a marketing geek and helps webmasters to monetize their web properties. When not online he is involved in debates with his friends over the issues that concern the world!

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