Unified Payment Interface All Set To Be Launched Today; 3 Ways It Will Revolutionize #DigitalIndia
PM Modi’s Digital India vision was all about connecting India using Digital platform so that technology can be the fulcrum using which development & progress can be spread all over the nation.
And, National Payments Corp. of India Ltd (NPCI) powered Unified Payment Interface is all set to introduce a major leap in this decision, as the massive project will be launched today.
As per reports emerging, Reserve Bank of India (RBI) will formally launch this platform today, wherein 29 banks would be enabled with this interface under the 1st phase; and then gradually other banks would be brought into the system.
We had earlier shared how Unified Payment Interface (UPI) has the power to disrupt the existing mobile wallets platform in India; but there is much more to it.
Find out three ways UPI will revolutionize mobile banking and Digital India with a single stroke:
Dawn of the Cashless World
Using UPI’s powerful platform, which uses a single identifier to transfer money from one end to the other, would signal a new dawn of cashless world in India. As less cash would be transacted and exchange, experts claim that corruption will decrease, and more people would be included within the banking and tax net.
As of now, almost 95% of all transactions in volume, and 65% of all transactions in value terms are held in cash; which is almost 30% more than what other developed countries are doing. UPI is all set to change that.
Small Amounts Would Be Now Very Easy To Transfer
When it comes to mobile banking, the biggest challenge was to enable transfer of small amounts of money from one end to the other. And UPI’s instant transfer mechanism will seamlessly enable that. Just like small sachets of shampoo enabled deep penetration of FMCG products in rural hinterland of India, the ability to transfer small amounts of money will encourage mobile, digital and usage of technology in rural India.
For a country like India, where an average citizen spends only $1.8 per day, UPI can be a masterstroke to encourage micro-spending using mobile.
Platform Independent Mobile Banking
UPI’s biggest advantage is that, it is independent from any platform – users of SBI can easily send money to an HDFC Bank account holder; as soon as you complete an auto-ride, you can instantly transfer the fare using auto-driver’s mobile/Aadhar Card number.
Hence, dependency on a particular mobile wallet or a bank account will vanish with UPI, and every citizen of India would be able to use and utilize the wonders of mobile banking, Digital India and technology using either Aadhar Card or their mobile number.
As per Nandan Nilekani, “The robust system (of UPI) will help India leapfrog the desktop and the credit-card economy to become a mobile-first economy, accelerating e-commerce and driving a host of financial services,”
Using UNI, Govt. wants to make payment transfers as simple as making a call or sending an email; and the first steps have already been taken.
You can find complete details about UPI here.