Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
From UPSC perspective, the following things are important:
Prelims level: UPI 2.0
Mains level: Measures for facilitating cashless transactions.
Unified Payments Interface (UPI) 2.0
- National Payments Corporation of India (NPCI) has upgraded unified payments interface (UPI) with enhanced security features and overdraft facilities.
- In addition to current and savings accounts, customers can link their overdraft account to UPI.
- The UPI mandate could be used in a scenario where money is to be transferred later by providing commitment at present.
National Payments Corporation of India (NPCI)
- NPCI is the umbrella organisation for all retail payment systems in India which aims to allow all Indian citizens to have unrestricted access to e-payment services.
- Founded in 2008, NPCI is a not-for-profit organisation registered under section 8 of the Companies Act 2013.
- The organisation is owned by a consortium of major banks, and has been promoted by the country’s central bank, the Reserve Bank of India.
- Its recent work of developing Unified Payments Interface aims to move India to a cashless society with only digital transactions.
- It has successfully completed the development of a domestic card payment network called RuPay, reducing the dependency on international card schemes.
- The RuPay card is now accepted at all the ATMs, Point-of-Sale terminals and most of the online merchants in the country.
- UPI is a path breaking innovation that is unprecedented globally. Its high volume, low cost and highly scalable architecture built on an open source platform is key to India’s transformation to a digital payment economy.
- The first version of UPI was launched on April 11, 2016 and in the last two years the platform has emerged as a popular choice among users for sending and receiving money.