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11 Mar 2022 UPI123Pay

Posted at 16:18h in Daily current-affairs by khyati khare 0 Comments

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The Reserve Bank of India (RBI) has launched a new UPI service called UPI123Pay for non-internet users’ phones to make digital payments, as well as a 24×7 helpline for digital payments called ‘DigiSathi’.
DigiSathi has been set up by the National Payments Corporation of India to provide automated feedback to users on information related to digital payment products and services. Currently it is available in English and Hindi language.

It is an improved version of Immediate Payment Service (IMPS) which is a round the clock money transfer service to make cashless payments faster and easier.
UPI is a system that powers multiple banking facilities, seamless fund routing and merchant payments to multiple bank accounts through a single mobile application (of any participating bank).
Presently UPI is the largest among the systems operated by National Payment Corporation of India (NPCI) including National Automated Clearing House (NACH), Immediate Payment Service (IMPS), Aadhaar Enabled Payment System (AePS), Bharat Bill Payment System (BBPS), RuPay etc.
Current top UPI apps include PhonePe, Paytm, Google Pay, Amazon Pay and BHIM App.

It will work on normal phones which do not have internet connection.
As of now the UPI feature is available only on most of the smartphones.
UPI service for feature phones will take advantage of RBI’s regulatory sandbox on retail payments.
A regulatory sandbox usually refers to the live testing of new products or services in a controlled/tested regulatory environment for which certain regulatory exemptions may be allowed for the limited purpose of regulatory testing.
UPI service will enable digital transactions through ‘on-device’ wallet mechanism in UPI applications.
Users will be able to make multiple transactions based on four technology options, including IVR (Interactive Voice Response) numbers, missed call-based approach, app functionality in feature phones and ‘Near Voice’ based payments.

The new service for feature phones will enable individuals to pay directly to others without a smartphone and internet.
Users can make payments to friends and family, pay utility bills, recharge their vehicle’s FASTag, pay mobile bills and users can check their account balance.
It will allow customers to use feature phones for almost all transactions except scans and payments.
UPI123Pay will benefit an estimated 400 million feature phone users and enable them to make digital payments in a secure manner. This will help in connecting non-smartphone users to the digital payment system.