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

National Strategy for Financial Inclusion (NSFI) 2025-30

Reserve Bank of India (RBI) has published National Strategy for Financial Inclusion (NSFI) 2025-30. Financial Inclusion The Committee on Financial Inclusion (Chairman: Dr C Rangarajan, RBI, 2008) defined financial inclusion as “the process of ensuring access to financial services, timely and adequate credit for vulnerable groups such as weaker sections and low-income groups at an affordable cost”. The Committee on Medium-Term Path to Financial Inclusion (Chairman: Shri Deepak Mohanty, RBI, 2015) viewed financial inclusion as, “convenient access to a basket of basic formal financial products and services that should include savings, remittance, credit, government-supported insurance and pension products to small and marginal farmers and low income households at reasonable cost with adequate protection progressively supplemented by social cash transfers, besides increasing the access of small and marginal enterprises to formal finance with a greater reliance on technology to cut costs an...
Post a Comment
Read more

Rupee Interest Rate Derivatives

Reserve Bank of India (RBI) has issued directions on rupee interest rate derivatives. What is Interest Rate Derivative (IRD)? Interest Rate Derivative (IRD) means a financial derivative contract whose value is derived from one or more Rupee interest rates, prices of Rupee interest rate instruments, or Rupee interest rate indices. To which transactions shall the directions be applicable? The directions shall be applicable to Rupee IRD transactions undertaken in the over-the-counter (OTC) market and on recognised stock exchanges in India. Forward Contracts in Government Securities shall be undertaken in the OTC market in terms of the Reserve Bank of India (Forward Contracts in Government Securities) Directions, 2025, dated February 21, 2025. Who are eligible participants in IRD markets? Resident Non-resident, through its central treasury or its group entity, where applicable.  What are the directions on trading of IRDs on recognised stock exchanges? A recognised stock exchange is per...
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-X – Section 58B to 58G

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 tenth and last article in the series.  Chapter V – Penalties Section 58B – Penalties Section Offense Punishment 58B(1) Whoever in any application / declaration / return / statement / information furnished or in any prospectus / advertisement issued for the invitation of deposits of money from the public, willfully makes a false statement or willfully omits to make a material statement. Imprisonment for up to 3 years with fine. 58B(2) Any person fails to produce any book / account / document / statement / information. Fine of up to Rs.1 lakh in respect of each offence. Further fine of up to Rs.5000 for every day till the offense continues. 58B(3) Any person contravenes the ...
Post a Comment
Read more

Export / Import of Currency and Possession / Retention of Foreign Currency

Reserve Bank of India (RBI) has updated the guidelines on export and import of currency. What are the guidelines on export and import of Indian currency? Transferor Transfer from Transfer to Nature of currency Maximum limit Person resident in India India Countries other than Nepal and Bhutan Currency notes of Government of India (GoI) and RBI notes ₹25000 per person Commemorative coins 2 coins Person resident in India gone out of India on temporary visit, on his return Countries other than Nepal and Bhutan India Currency notes of GoI and RBI notes ₹25000 per person Person resident outside India (not citizen of Pakistan / Bangladesh) visiting India India Any country Currency notes of GoI and RBI notes ₹25000 per person Any country India Person (not citizen of Pakist...
Post a Comment
Read more