Source: Yojana Magazine
Recently the National Payments Corporation of India(NPCI) has launched an upgraded version of the Unified Payments Interface (UPI), UPI 2.0, it has four new features that aim to make it attractive and safer for more and more users.
Four new key features of UPI 2.0 and their benefits
Linking of overdraft account on UPI:
- In addition to current and savings accounts, customers can link their overdraft account to UPI.
- Customers will be able to transact instantly and all benefits associated with an overdraft account shall be made available to the users. UPI 2.0 will serve as an additional digital channel to access the overdraft account.
- UPI mandate could be used in a scenario where the money is to be transferred later by providing commitment at present.
- UPI 2.0 mandates are created with one-time block functionality for transactions. Customers can pre-authorise a transaction and pay at a later date.
- It works seamlessly for merchants as well as for individual users. Mandates can be created and executed instantly.
- On the date of the actual purchase, the amount will be deducted and received by the merchant/individual user.
- In the case of merchant payments/service, it acts as an assurance to both the customer as well as the merchant.
- In other words, the customer’s account shall get debited when the mandate is executed. UPI mandate can be executed one time only.
Invoice in the Inbox(View & Pay):
- According to NPCI, this feature is designed for customers to check the invoice sent by merchant prior to making payment.
- It will help customers to view and verify the credentials and check whether it has come from the right merchant or not.
- Customers can pay after verifying the amount and other important details mentioned in the invoice.
- This functionality is only available for the invoices of verified merchants.
Signed Intent and QR:
- This feature is designed for customers to check the authenticity of merchants while scanning QR or quick response code.
- With this option, while making payment using the intent or through scanning QR, the user will get additional security in the form of signed QR / intent.
- It notifies the user with information to ascertain whether the merchant is a verified UPI merchant or not.
- With the signed QR , issues related to tampering QR as well as having non-verified entities shall be reduced.
- Customer Will be assured of the authenticity of the receiver and will be informed if the QR is not secured.
- Under this transaction shall be done faster as app passcode will not be required in case of signed intent.
UPI 2.0 members
BHIM UPI 2.0, operated by the National Payments Corporation of India, has State Bank of India, HDFC Bank, Axis Bank, ICICI Bank, IDBI Bank, RBL Bank, YES Bank, Kotak Mahindra Bank, IndusInd Bank, Federal Bank and HSBC as its members
National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.
Considering the utility nature of the objects of NPCI, it has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems. The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.