Context:
RBI to expand Unified Payment Interface (UPI) to 20 countries by 2028-28
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
Steps taken for Internationalization of UPI:
- NIPL – Wholly owned subsidiary of National Payments Corporation of India (NPCI), incorporated in 2020, for deployment of RuPay and UPI outside of India.
- UPI One World – Prepaid payment instrument linked to UPI provided to foreign nationals/ NRIs coming from G20 countries.
- India’s Initiatives under G20 –
- Global Digital Public Infrastructure (DPI) Repository
- Social Impact Fund to advance DPI in the Global South
Source: Economic Times
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)
