Skip to main content

What is UPI and UPI123Pay?

UPI, which is one of the popular methods of payments through smartphones, has now been made available for feature phones users by way of UPI123Pay. But what is UPI and UPI123Pay?

What is UPI?

UPI (Unified Payment Interface) is an initiative by National Payments Corporation of India (NPCI) together with Reserve Bank of India (RBI) and Indian Banks Association (IBA). UPI allows linking of multiple bank accounts in a single mobile application for real-time bank-to-bank payments using mobile number, virtual payment address (UPI ID) or by scanning a QR code.

What are the benefits of UPI?

  1. Single application for accessing different bank accounts.
  2. Offers peer-to-peer fund transfer, merchant payments and utility bill payments.
  3. Allows payments using mobile number, virtual payment address (UPI ID) or scanning QR code, without having to share the account number or card details.
  4. Secured payment with Two Factor authentication.
  5. Available round the clock i.e. 24*365.
  6. Available to customers without credit / debit cards as well.
  7. Allows both sending (making) payments and requesting (receiving) payments.

Who are offering UPI?

  • 304 banks are live with UPI as of February 2022. 
  • 23 Third Party Application Providers (TPAP) including Google Pay, Amazon Pay, MobiKwik, Phonepe, WhatsApp, etc. are providing UPI services through its partner banks.

What is grievance redressal mechanism for UPI transactions?

  • If the transaction is made through TPAP app, the complaint shall be first raised with the relevant TPAP. 
  • In case the complaint remains unresolved, it can be escalated to PSP (Payment Service Provider) bank, followed by the bank (where the customer maintains its account) and NPCI, in the same order. 
  • If the complaint is still unresolved, the customer can approach Ombudsman under the Integrated Ombudsman Scheme, 2021 of RBI.

UPI123Pay 

Presently, UPI is available on smartphones and through NUUP (National Unified USSD Platform) using the short code of *99#. However, the NUUP option is not much popular.

RBI, on March 08, 2022, has launched UPI123Pay to facilitate UPI payments for feature phone users in 3 steps (call, choose, pay) without the need for an internet. The feature phone user needs to first link his / her bank account to the feature phone and set UPI PIN using his / her debit card details. The users can access UPI services on feature phones through 4 options – an app, by giving a missed call (incoming call received to authenticate the transaction by entering UPI PIN), by initiating a secured call to a pre-determined IVR number or proximity sound-based devices. The move will benefit more than 40 crore feature phone users in the country.

“UPI Chalega”

‘UPI Chalega’ is an awareness campaign of NPCI in association with PSP banks and TPAPs wherein the videos featuring the character, Mrs. Rao guides the users on right and safe usage of UPI.

Follow at - Telegram   Instagram   LinkedIn   Twitter
Labels:

Comments

Post a Comment

Popular Posts

Framework for recognition of Self-Regulatory Organisation (SRO) for Payment System Operators (PSOs)

Reserve Bank of India (RBI) had released the framework for recognition of Self-Regulatory Organisation (SRO) for Payment System Operators (PSOs). What is the need of Self-Regulatory Organisation (SRO) for Payment System Operators (PSOs)? Industry self-governance helps in industry-wide smooth operations and ecosystem development. RBI’s Payment and Settlement Systems Vision 2019-21 had, therefore, envisaged the setting up of an SRO for PSOs. Accordingly, the framework for recognition of SRO for PSOs was released in October 2020. What shall be the role of SRO for PSOs? An SRO is a non-governmental organisation that sets and enforces rules and standards relating to the conduct of member entities in the industry, with the aim of protecting the customer and promoting ethical and professional standards.  The SRO is expected to resolve disputes among its members internally through mutually accepted processes to ensure that members operate in a disciplined environment and even accept penal ...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-V – Section 45B to 45JA

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the fifth article in the series.  Chapter IIIA - Collection and Furnishing of Credit Information Section 45B – Power of Bank to collect credit information RBI may collect credit information from banking companies and furnish it to any banking company in accordance with section 45D. Section 45C – Power to call for returns containing credit information RBI may direct any banking company to submit statements relating to credit information. Section 45D – Procedure for furnishing credit information to banking companies A banking company may apply to RBI to provide credit information. RBI shall furnish the requested credit information without disclosing the names of the banking companies which have submitted the information. RBI may levy fees of up to Rs.25 for furnishing credit...
Post a Comment
Read more

RBI’s Monetary Policy (December 05, 2025): In A Nutshell

The bi-monthly monetary policy of Reserve Bank of India (RBI) was announced on December 05, 2025. Here are some of the highlights of the monetary policy announcement. Rates   Change Rate Policy repo rate Reduced by 25 bps 5.25% Standing deposit facility (SDF) rate 5.00% Marginal standing facility (MSF) rate 5.50% Bank rate 5.50% Monetary policy stance Monetary policy stance unchanged as ‘neutral’. Domestic Economy  Real Gross Domestic Product (GDP) growth accelerated to 8.2% in Q2, buoyed by strong spending during the festive season which was further facilitated by the rationalisation of the goods and services tax (GST) rates.  Real GDP growth for 2025-26 is projected at 7.3%. For the first time since the adoption of flexible inflation targeting (FIT), average headline inflation for a quarter at 1.7% in Q2, breached the lower tolerance threshold (2%) of the inflation target (4%). It dipped further to an all-time low of 0.3% in October 2025. The underlying inflation pressu...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-II – Section 17 to 19

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the second article in the series.  Section 17 – Business which the Bank may transact RBI shall be authorized to carry on and transact the several kinds of business hereinafter specified, namely – 17(1) – Accept deposit without interest from the Central / State Government, local authorities, banks and any other persons. 17(1A) – Accept deposit, repayable with interest, from banks or any other person under the Standing Deposit Facility Scheme, as approved by the Central Board, for the purposes of liquidity management.   Bills of Exchange (B/E) & Promissory Note (PN) Bearing 2 or more good signatures, one of which shall be of B/E & PN arising out of Maturing within 17(2)(a) Purchase, sale and rediscou...
Post a Comment
Read more

Systematically Important Banks (SIBs)

Some banks are identified as systematically important and are subjected to higher capital requirements. When are banks termed as systematically important? What are the additional capital requirements for such banks? And which are the systematically important banks in India? What are Systematically Important Banks (SIBs)? Systematically Important Banks (SIBs) are perceived as banks that are ‘Too Big To Fail (TBTF)’.  Why additional policy measures are required for SIBs? The perception of TBTF creates an expectation of government support for these banks at the time of distress. Due to this perception, these banks enjoy certain advantages in the funding markets. However, the perceived expectation of government support amplifies risk-taking, reduces market discipline, creates competitive distortions, and increases the probability of distress in the future. These considerations require that SIBs should be subjected to additional policy measures to deal with the systemic risks and moral ...
Post a Comment
Read more