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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.

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