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Friday, 30 December 2016


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. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.


With the above context in mind, NPCI conducted a pilot launch with 21 member banks. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started to upload their UPI enabled Apps on Google Play store from 25th August, 2016 onwards. 
How is it unique?
  • Immediate money transfer through mobile device round the clock 24*7 and 365 days.
  • Single mobile application for accessing different bank accounts
  • Single Click 2 Factor Authentication – Aligned with the Regulatory guidelines, yet provides for a very strong feature of seamless single click payment.
  • Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
  • Bill Sharing with friends.
  • Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
  • Merchant Payment with Single Application or In-App Payments.
  • Scheduling PUSH and PULL Payments for various purposes.
  • Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
  • Donations, Collections, Disbursements Scalable.
  • Raising Complaint from Mobile App directly.
  1. Participants in UPI
    • Payer PSP
    • Payee PSP
    • Remitter Bank
    • Beneficiary Bank
    • NPCI
    • Bank Account holders
    • Merchants

  1. UPI - Benefits to the Ecosystem participants
Benefits for banks:
    1. Single click Two Factor authentication
    2. Universal Application for transaction
    3. Leveraging existing infrastructure
    4. Safer, Secured and Innovative
    5. Payment basis Single/ Unique Identifier
    6. Enable seamless merchant transactions
Benefits for end Customers:
    1. Round the clock availability
    2. Single Application  for accessing different bank accounts
    3. Use of Virtual ID is more secure, no credential sharing
    4. Single click authentication
    5. Raise Complaint from Mobile App directly
Benefits for Merchants:
    • Seamless fund collection from customers - single identifiers
    • No risk of storing customer’s virtual address like in Cards
    • Tap customers not having credit/debit cards
    • Suitable for e-Com & m-Com transaction
    • Resolves the COD collection problem
    • Single click 2FA facility to the customer - seamless Pull
    • In-App Payments (IAP)

  1. Registration in UPI enabled application
Steps for Registration:
    • User downloads the UPI application from the App Store / Banks website
    • User creates his/ her profile by entering details like name, virtual id (payment address), password etc.
    • User goes to “Add/Link/Manage Bank Account” option and links the bank and account number with the virtual id
Generating M – PIN:
    • User selects the bank account from which he/she wants to initiate the transaction
    • User clicks one of the option -

a. Mobile Banking Registration/Generate MPIN

b. Change M-PIN

In the case of 3(a) -

5.      User receives OTP from the Issuer bank on his/her registered mobile number
6.      User now enters last 6 digits of Debit card number and expiry date
7.      User enters OTP and enters his preferred numeric MPIN (MPIN that he would like to set) and clicks on Submit
8.      After clicking submit, customer gets notification (successful or decline) 

In case of 2(b) –

9.      User enters his old MPIN and preferred new MPIN (MPIN that he would like to set) and clicks on Submit
10.  After clicking submit, customer gets notification (successful or failure)

Performing a UPI Transaction:

A. PUSH – sending money using virtual address
11.  User logs in to UPI application
12.  After successful login, user selects the option of Send Money / Payment
13.  User enters beneficiary’s / Payee virtual id, amount and selects account to be debited 
14.  User gets confirmation screen to review the payment details and clicks on Confirm
15.  User now enters MPIN 
16.  User gets successful or failure message

PULL – Requesting money:
17.  User logs in to his bank’s UPI application
18.  After successful login, user selects the option of collect money (request for payment)
19.  User enters remitters / payers virtual id, amount and account to be credited 
20.  User gets confirmation screen to review the payment details and clicks on confirm
21.  The payer will get the notification on his mobile for request money 
22.  Payer now clicks on the notification and opens his banks UPI app where he reviews payment request
23.  Payer then decides to click on accept or decline 
24.  In case of accept payment, payer will enter MPIN to authorize the transaction 
25.  Transaction complete, payer gets successful or decline transaction notification 
26.  Payee / requester gets notification and SMS from bank for credit of his bank account


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