Know these institutions to learn more about UPI
Introduced in the year 2016, UPI has positively altered the payments ecosystem in the country by bringing in a wave of digitization. UPI simplifies transactions by making use of the VPA (virtual payment address). It avoids the complex credential entry while making card transactions. Secondly, with the launch of UPI 2.0, features like QR & Signed Intent and Invoice in the inbox has scaled up the UPI security. Behind the success of UPI lies the efforts of numerous UPI institutions like NPCI, RBI (Central Bank), other banks, etc who manage the seamless functioning of the UPI system.
In the course of the blog, let us learn more about the UPI institutions that ensure a safe and secure transfer of your money.
UPI Institution 1: NPCI (National Payments Corporation of India)
National Payments Corporation of India is an organization dealing with retail payments and settlements in India. It is an initiative of the RBI and the Indian Banks’ Association, set up in 2008. The State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, and Citibank are the ten core promoter banks of NPCI.
The core payment products offered by NPCI are:
- Immediate Payment Service
- Bharat Bill Payment System
UPI is one of the flagship product developed by NPCI. Introduced in 2016, UPI is a safe and secure medium for payment transfers. With UPI 2.0, new security features like Invoice in the inbox and Signed Intent & QR has enhanced the outreach of UPI.
UPI Institution 2: RBI
RBI is the apex bank of India supervising all the public, private, rural and cooperative banks in India. In other words, RBI sets the monetary policy in India in commensuration with the fiscal policy.
Established under the RBI Act, 1964, RBI has its headquarters at Mumbai. The regional centers spread across the four zones are North in New Delhi, West in Mumbai, South in Chennai and East in Kolkata.
The Central Board of Directors is the major decision making of the RBI. The Board is headed by a Governor and not more than four Deputy Governors.
UPI Institution 3: UIDAI
The Unique Identification Authority of India is a statutory body responsible for the implementation of the Aadhaar based payments system in the country. It was established under the provisions of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.
UIDAI issues the Adhaar number to all the residents of the country. Aadhaar number is a 12 digit unique identification number for the Indian residents.
Aadhaar is a multi-purpose card used as an ID card to avail voter’s Id, mobile connection, driving license, etc.
UPI Institution 4: UPI App Service Provider
There are many service providers who have enabled UPI on their app. For example, some of the famous service providers are GooglePay, Phonepe, Paytm, etc. Each service provider offers unique and customized UI features to use UPI services.
On the whole, the successful UPI transaction depends on the successful collaboration and interoperability between all the above-mentioned organizations.
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