Banking & Financial Awareness
Unified Payments Interface
Indian instant payment system
Overview
Unified Payments Interface (UPI) is an Indian instant payment system and protocol developed by the National Payments Corporation of India (NPCI) in April 11th 2016. The interface facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used on mobile devices to instantly transfer funds between two bank accounts using only a unique UPI ID. It runs as an open source application programming interface (API) on top of the Immediate Payment Service (IMPS), and is regulated by the Reserve Bank of India (RBI). Major Indian banks started making their UPI-enabled apps available to customers in August 2016, and the system is today supported by almost all Indian banks.
Source: Wikipedia — Unified Payments Interface (CC BY-SA)
Key concepts
How Unified Payments Interface connects to the ideas, people and events around it.
Instant payment is a method of electronic funds transfer, allowing for almost immediate transfer of money between bank accounts. This was in contrast to the previous transfer times of one to three business days that had been in place until the mid-2010s.
A communication protocol is a system of rules that allows two or more entities of a communications system to transmit information. The protocol defines the rules, syntax, semantics, and synchronization of communication and possible error recovery methods.
National Payments Corporation of India (NPCI) is an Indian public sector company that operates retail payments and settlement systems in India.
Peer-to-peer transactions are electronic money transfers made from one person to another through an intermediary, typically referred to as a P2P payment application.
Open source is the practice of publishing digital resources publicly alongside their source code or source files, enabling use, study, modification, and redistribution.
Immediate Payment Service (IMPS) is an instant payment inter-bank electronic funds transfer system in India. National Electronic Funds Transfer (NEFT) was also made available 24/7 from December 2019.
The Reserve Bank of India (RBI) is the central bank of the Republic of India and the regulatory organisation for the Indian banking & financial system and Indian currency.
Visa Inc. is an American multinational payment card services corporation headquartered in San Francisco, California. It facilitates electronic funds transfers worldwide, most commonly through Visa-branded credit cards, debit cards and prepaid cards.
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Questions about Unified Payments Interface
What is Unified Payments Interface?
Unified Payments Interface (UPI) is an Indian instant payment system and protocol developed by the National Payments Corporation of India (NPCI) in April 11th 2016. The interface facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used on mobile devices to instantly transfer funds between two bank accounts using only a unique UPI ID.
What are the key concepts related to Unified Payments Interface?
The main concepts connected to Unified Payments Interface include Instant payment, Communication protocol, National Payments Corporation of India, Peer-to-peer transaction, Open source, Immediate Payment Service, Reserve Bank of India, Visa Inc.. Each is linked on the map above with its own summary.
Which exams cover Unified Payments Interface?
Unified Payments Interface is part of Banking & Financial Awareness, which appears in the syllabus of IBPS PO, IBPS Clerk, IBPS RRB, IBPS SO, SBI PO, SBI Clerk and 4 more exams.