Updated: August 17, 2018 6:22:29 pm
UPI 2.0, an upgraded version of National Payments Corporation of India (NPCI)’s Unified Payment Interface, has been announced with several new features. Reserve Bank of India (RBI) Governor Urjit Patel formally launched UPI 2.0 in the presence of select members from banks and the NPCI in Mumbai today.
UPI 2.0 let’s customers link their overdraft (OD) account with UPI. With the initial version of UPI, customers could only connect their saving and current accounts to the payment interface. The upgraded UPI 2.0 allows scheduling payment transfers at a later date. For this feature to work, pre-authorisation over transaction is required.
Customers can now receive invoices from merchants directly in the inbox to verify the authenticity of credentials. It will also let users verify UPI credentials using a QR code.
Commenting on UPI 2.0, Suresh Rajagopalan, president of Software Business at FSS, said UPI has transformed the digital payments landscape in India and provided a “simple, robust platform” for immediate payments. “New features built into UPI 2.0 such as merchant one-time mandates, foreign inward remittances, Bill-in-a-box, block funds, online refund and merchant signed indents will help PSPs grow their merchant base and launch innovative, revenue-generating services,” he said.
Mahesh Makhija, Partner Advisory – Financial Services at EY, said UPI 2.0 has expanded the potential of UPI to a plethora of new use-cases. “One-time mandate can potentially digitise all COD transactions. Signed intent and signed QR will ensure that transactions are more secure and enhance the customer confidence,” he said. While there was a common perception that UPI is only an instrument to link a savings account, he said:”With OD accounts that can now be linked to UPI, in future we may see even credit card transactions moving to UPI rails.”
Makhija predicted that since UPI operates like a platform allowing banks and PSPs to develop new propositions, there could be several indigenous innovations in the near future.
Sangram Singh, CEO of Freecharge, called it a “great example of how the synergy between technology and financial services is creating a major disruption in the traditional payments and other financial services model”. He said the new features will not only bring about a vast improvement in customer experience “but will also make the transaction processing smoother and smarter for the merchants.” Singh added: “The move by NPCI will encourage a healthy and secure financial ecosystem by replacing redundant processes and managing fund requirements.”
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