Context:
RBI introduces two new UPI Features.
2 new features:
- Customers will now be able to deposit cash at cash deposit machines (CDMs) through the UPI app.
- Currently, cash deposits at CDMs primarily require the use of a debit card, whether at banks or ATMs.
- It is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI (Prepaid Payment Instruments) wallets.
- At present, UPI payments from PPIs can be made only by using the web or mobile app provided by the PPI issuer.
- This will allow PPI wallet holders such as PhonePe to link their wallets with third-party UPI apps for transactions.
UPI:
- UPI – It is the indigenous digital payment system in India
- Launched in – 2016
- Operated by – National Payments Corporation of India (NPCI)
- Significance – Powers multiple bank accounts into a single mobile application
- Other countries that have accepted UPI payments – Bhutan, Nepal, France, UAE, Mauritius, Sri Lanka, and Singapore
- Transaction Limit – 1 Lakh per transaction
- However, for certain sectors like health and education the cap has been raised to Rs 5 Lakhs per transaction.
- Top UPI Apps – PhonePe, Paytm, Google Pay, Amazon Pay and BHIM
Source: Times of India
Previous Year Question
Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?
[UPSC Civil Service Exam – 2017 Prelims]
(a) Mobile wallets will not be necessary for online payments.
(b) Digital currency will totally replace physical currency in about two decades.
(c) FDI inflows will drastically increase.
(d) Direct transfer of subsidies to poor people will become very effective
Answer: (a)
