NPCI launches NextGen online payments solution

NPCI on Monday launched next generation online payments solution - Unified Payments Interface (UPI) which will leverage trends such as increasing smartphone adoption and deeper penetration of mobile data. UPI is a channel that powers multiple bank accounts into a single mobile application (of any bank) of a participating bank, merging several banking features, seamless fund routing and merchant payments into one hood.

It will empower users to perform instant push and pull transactions and transform the way people make payments today. "Our focus is in line with RBI's vision of migrating towards a 'less-cash' and more digital society. NPCI has always been at the forefront to innovate and introduce new products and services at par with global standards," National Payments Corporation of India (NPCI) managing director and CEO A P Hota said.

UPI was today launched by Reserve Bank Governor Raghuram Rajan along with Nandan Nilekani, advisor to NPCI. Hota said a few banks have gone live with UPI out of 29 and other banks will join this year.

Speaking about UPI, Nilekani said: "This is a leapfrog. It is been made possible because NPCI had built Immediate Payment Service (IMPS) platform and this is a layer we have put on IMPS."  "IMPS didn't really have the easy debit capability and that is addressed by this platform. We think with UPI coming, it is going to be an important merchant platform," he added.