A presentation on

Unified Payments Interface

Prepared by-
Pranjal Jyoti Hazarika
GET- Instrumentation
Assam Gas Company limited
List of contents

 Introduction
 Objective
 How UPI works
 Benefits of UPI
 Is it safe ??
 The field where improvement needed
 Future of UPI
 Conclusion
 Introduction

 UPI (Unified payment interface) is a concept that allows multiple

bank accounts to get into a single mobile application.

 This idea was developed by the National Payments Corporation of

India and is controlled by the RBI and IBA (Indian Bank Association).

 It enables all bank account holders to send and receive money

from their smartphones without the need to enter bank account
information or net banking user id/ password.
Objective of UPI
 To develop a bridge between different standard payment methods .
 The Unified Payment Interface is expected to further propel easy instant
payments via mobile, web, and other applications.
 The payments can be both sender (payer) and receiver (payee) initiated
and are carried out in a secure, convenient, and integrated fashion.
 This design provides an ecosystem driven scalable architecture and a set of
AP Is taking full advantage of mass adoption of smartphone.
 Virtual payment addresses, 1-click 2-factor authentication, Aadhaar
integration, use of payer’s smartphone for secure credential capture, etc.
are some of the core
 It allows banks and other players to innovate and offer a superior customer
experience to make electronic payments convenient and secure.
How UPI works

 Currently, if you want to make a bank payment online, you need-

• account number.
• account type.
• Bank name and IFSC code.
• Most banks take up to 12 hours to add a new payee and only then one can
make the transfer.
 The idea behind the UPI is to do away with all of this within a seconds using
IMPS and mobile application.
 The interface allows transection on smartphones using just Aadhaar unique
identity number, mobile phone number or virtual payments address without
entering bank account details.
 Yes…UPI is safe…!!! ☺

 UPI creates and uses a virtual address and hence you’re not required to share
your confidential account number/card details.
 Every debit UPI transaction processing requires a 2 factor authentication i.e.
user’s device information and user generated 4 to 6 digits BHIM UPI PIN.
 Mobile verification is done by sending an SMS from your mobile instead of a
conventional OTP device binding.
 Your UPI PIN is not accessible/stored to the APP you’re using. It is securely
encrypted in NPCI library.
 Users can change or reset their UPI PIN anytime using their BHIM UPI app.
 As prescribed by NPCI, users shouldn’t be allowed to create UPI ID with another
user’s mobile number
Yes…UPI is safe…!!! ☺

 Any collect/money request coming from a verified merchant will have a

‘verified merchant tag’ thus confirming that amount will be paid to the right
merchant.
 Your UPI transactions are monitored under real time Fraud and Risk
Management system of NPCI
 A negative list of mobile numbers is maintained at NPCI’s end as per requests
from its member banks and all transactions to and from such mobile numbers
are blocked.
 All the rooted or jailbroken devices are restricted from accessing UPI payment
options
 Every UPI enabled APP has to undergo a third party App Security audit before
going live which essentially tests the defenses built against unauthorized attacks
and identifies potential vulnerabilities.
Dis-advantages of UPI

 Multiple VPA by Multiple banks(Handles)

 Low transaction limit .

 Requires good internet connectivity.

 Not a profitable scenario for Banks as it hurts their plastic card

business
Conclusion

 UPI is a great step in right direction and its is set to become an efficient
alternative to mobile wallets.

 UPI cashless payments faster, easier and smoother for millions of people in
India.

 It has potential to make micro payments cashless which will benefit both
buyers and sellers.

 UPI let us to imagine a cashless India

Reference

 National Payments Corporation of India

 Wikipedia
 www.profitbooks.net
 cashlessindia.gov.in
 www.investopedia.com
 upipayments.co.in