Project report on –

UPI System in India

Supervisor- Submitted by-

Dr. Deeksha Sharma Mansi Chaurasia

421538

MVOC- BSI

[SEMESTER I]

Department of Banking and Finance

Deen Dayal Upadhyay Kaushal Kendra

National P.G. College, Lucknow

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 DECLARATION:

This is to declare that I Mansi Chaurasia [Roll No. 421538] student of M. Voc
have personally worked on the project entitled “UPI System in India”. The data
mentioned in this report are obtained by secondary data analysis collected from
published resources. The data obtained from the sources have been duly
acknowledged. The result embodied in this report has not been submitted to any
other university or institute.

Date- Mansi Chaurasia

421538

ACKNOWLEDGEMENT:
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Firstly, I would like to thank my mentor and thesis advisor Dr. Deeksha Sharma
for helping me in choosing the right topic for my research work. The door to my
mentor was always open, whenever I ran into trouble spot, or had a question about
my research or writing. She consistently allowed this paper to be my own work,
and she also steered me in the right direction whenever she thought I needed it.
Without her guidance and persistent help this dissertation would not have been
possible. In addition to this I would like to thanks my principal Prof. Devendra
Kumar Singh for introducing dissertation in this semester and giving me this
opportunity and encouragement throughout my research work. Last but not the
least I would also like to thank my family and friends for their constant support
and inspiration. Without them my work could not have completed efficiently.

Table of Contents

Introduction of UPI System:..................................................................................................4

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Benefits of UPI System:..........................................................................................................8

Challenges faced by UPI:........................................................................................................9

Growth Chart of UPI in India from 2016-2021:............................................................10

Banks providing UPI facility:...............................................................................................16

Services Provided by UPI:....................................................................................................19

How to make a UPI Transaction:.......................................................................................19

Push and Pull Money:............................................................................................................21

ROLES AND RESPONSIBILITIES OF NPCI, PSP AND TPAP IN UPI:............................22

Best UPI Apps in India:..........................................................................................................29

Analysis and result:................................................................................................................40

UPI-based banking frauds:...................................................................................................48

Conclusion:...................................................................................................52

Introduction of UPI System:

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Unified Payments Interface (UPI) is an instant real-time payment
system developed by National Payment Corporation of India (NPCI) which
facilitates inter-bank peer to peer (P2P) and person-to-merchant (P2M)
transactions. NPCI is an umbrella organisation for all digital payments. The
interface is regulated by the Reserve Bank of India (RBI) and works by instantly
transferring funds between two bank accounts on a mobile platform.

In April 2009, NPCI was formed with the objective to integrate all the payment
system available in the country. But in 2011 RBI found out that an average user
would have no more than 6 digital transactions in a year while there were 1 crore
Indian merchants who would accept card payments. But for some or other reason
card payments were not the mainstream. Around 145 million families have no
access to any form of banking. There is also the problem to tackle black
money and corruption that happens mostly in cash.

So, under RBI guidance, NPCI became the primary body with the task to develop
a new payment system that is simple, secure, and interoperable and in 2016 UPI
was launched for public use, UPI means unified payment interface. As per CEO
of Netmagic Solutions, UPI became one of the most successful deep-tech
innovation coming out of India.

In December 2019, noting the success of UPI, Google suggested to the

US Federal Reserve Board the development of FedNow, a real-time payment
system for the United States. With exponential growth of UPI, India became the
world's largest real-time payment market.

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From January 1, 2019, UPI became a popular payment option for Initial Public
Offerings (IPOs). The transaction limit was enhanced from ₹100,000 to ₹200,000
in March 2020. From December 2021, RBI again increased the limit to ₹500,000
for Retail Direct Scheme and IPO applications.

UPI 2.0 - On 16 August 2018, UPI 2.0 was launched it is the second version of
the transfer platform. It supersedes the former version which was structured
mainly to facilitate peer to peer transactions with a platform that also
accommodates merchant payments. There’s also a facility to autopay in case of
recurring payments.

Fundamentals of UPI
NPCI developed Unified Payment Interface (UPI) as a common interface or a
platform for all digital payment systems in India. NPCI is the owner, network
operator, service provider, and coordinator of the UPI Network. The Unified
Payment Interface enables architecture and a set of standard Application
Programming Interface (API) specifications to facilitate digital payments using a
mobile phone [17]. UPI leverages high penetration of mobile phones and growing
adoption of smartphones, data and internet to enable mobile based instant
payment system in India. UPI allows users to send or request money instantly
from their

bank accounts using a mobile phone, making mobile phone a primary payment
device for the masses. UPI uses IMPS as the switching mechanism to enable
instant payments and settlement between different financial institutions. With UPI
everyone with a bank account in India can create their Virtual Payment Address
(VPA or UPI ID) and start transacting using a mobile phone. This Virtual
Payment Address for e.g., abc@xyzbank becomes a person’s unique payment
identity and abstracts the need to share bank details while transacting. UPI
considerably simplifies digital payments, instead of issuing cards to a large
population which is costly and time consuming UPI enables mobile phone a
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primary device for authorizing and making payments. Also, a mobile phone
combined with a unique payment ID makes it a low cost payment acceptance
device thus making digital payments universal, easy and low cost.

How is it unique-

 Immediate money transfer through mobile device round the clock 24*7 and
365 days.

 Single mobile application for accessing different bank accounts.

 Single Click 2 Factor Authentication – Aligned with the Regulatory

guidelines, yet provides for a very strong feature of seamless single click
payment.

 Virtual address of the customer for Pull & Push provides for incremental
security with the customer not required to enter the details such as Card no,
Account number; IFSC etc.

 QR Code

 Best answer to Cash on Delivery hassle, running to an ATM or rendering

exact amount.

 Merchant Payment with Single Application or In-App Payments.

 Utility Bill Payments, Over the Counter Payments, QR Code (Scan and
Pay) based payments.

 Donations, Collections, Disbursements Scalable.

Raising Complaint from Mobile App directly.

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Benefits of UPI System:
There is no doubt about the role of UPI in making India a cashless economy. The
increasing use of UPI speaks for the benefits of UPI transactions.

Here are a few of the many benefits of UPI transactions-

 It is a fast, hassle-free and the cheapest way of money transfer, which you can
do from anywhere and at anytime

 It requires just a single click authentication that involves only two factors

 It requires only the UPI ID for carrying out a transaction

 One does not need to share, store, or remember any sensitive information
related to the account

 You can easily link all your accounts to this one ID on the UPI app

 With the UPI app, you need not carry cash. Even use of ATMs is not required
to leave aside getting cheques encashed. Simply use the QR code scan to make
online and offline purchases

 One can also get payments from clients through this app’s collect payment
option

 It allows funds settlement in real-time

 Any complaints that you have can be raised directly from the UPI app

 Merchant-client relationship has improved tremendously. Customers no longer

need to think about storing their payment details on the merchants’ side. It
definitely helps the small businesses for whom the degree of confidence of the
consumer is weak, and the current expense of the payment gateways is
prohibitive.

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Challenges faced by UPI:

 Hack UPI account: One of the challenges faced by UPI System is that it can be
hacked. So, one should not give their personal information like DOB, UPI PIN
and any other information to other person.
 Small fund Transfer: UPI is a deal for smaller fund transfers, when an amount
is high then other modes of online transfer are more preferable.
 Trust Issues: Another issue with UPI is that it is difficult to persuade
customers to download the bank application to their smartphone for a single
payment interface because they are concerned about online fraud.
 Limit: There is a limit of ₹1 lakh in a day, a single transaction cannot be more
than ₹1 lakh and you will need to wait until the next day to send more money.
It also restricts you from sending money more than 10 times in one day across
all UPI apps.
 Low number Pin: You must know that you have to transfer money from the
unified payment interface pin is also known as the UPI pin, and it is a very
small digit, 4 to 6 digits while having a small digit, it is not safe, so make your
payment carefully.
 Not work on slow internet: UPI is a very fast and safe medium, but sometimes
it takes a lot of time to send the payment when the bank’s server down. It does
not work when the speed of internet is slow.
 Mobile hang problem: If you are continuously using UPI App then your
mobile may work slow as these apps use mobile’s RAM too much.

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Growth Chart of UPI in India from
2016-2021:

Since its inception in 2016, UPI has achieved various milestones and has become
the most preferred mode of payments among Indians. 

Blown away by the framework of UPI, even Google had written to the US Federal
Reserve Board about the successful example of NPCI-owned payment railroad to
build faster digital payments service in the country.

While the first fiscal year (FY17) was the testing period, it came into limelight
and picked up pace post demonetization era.

Growing on the back of the government-promoted BHIM and third-party apps

like PhonePe and Paytm, UPI cornered sizeable pie of overall P2P, recharge and
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bill payments market in FY18. In the latter half of FY18, Google Pay became the
first overseas player to join the UPI ecosystem.

In that fiscal, UPI had processed 913.517 million transactions worth Rs

1,09,587.8 crore (or Rs 1.09 trillion). Industry experts tracking this space had
lauded the growth trajectory of UPI, which was set for the next phase of growth.

And then came the big numbers. During FY19, UPI clocked 5.39 billion (5391.52
million) transactions amounting to Rs 8,76,970.72 crore (or Rs 8.76 trillion). The
big takeaway: 490% growth in volume and 700% growth in terms of value.

The FY20 also started on a good note as UPI broke all previous records and
crossed 1 billion transactions in a month for the first time in October 2019. Since
then, it has been doing over a billion transactions for six months in a row now.

Covid-19 pandemic has forced us all to shift towards digital payments as they are
quick, contactless and easy. While there are various ways to make a digital
payment, one of the methods that is used most in our country is the UPI (Unified
Payment Interface). There are several platforms that one can use to make UPI
based payments such as Google Pay, PhonePe, Paytm and others. However, all
these platforms require an active internet connection in order to make a payment.

For FY20, UPI has clocked 12.51 billion (12,519 million) transactions worth Rs 2
1,31,730 crore (Rs 21.31 trillion), a 132% jump in volume and 143% surge in
value as compared to FY19.

This was the period too when India’s central bank and NPCI had collectively
taken some positive steps such as onboarding more banks and enabling recurring
payments to ramp up growth of UPI. Significantly, the growth of UPI in FY19
and FY20 was mainly driven by three payment apps Google Pay, Paytm and
PhonePe while BHIM’s growth remained flat and headed towards saturation.

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As many as 3.5 billion transactions worth Rs 6.3 trillion were recorded through
UPI in the month of October 2021, making a jump of 100%, while transaction
value jumped nearly 103% compared to October 2020.

UPI payment volumes grew by 8.9% in December 2021 over the previous month,
the UPI transaction value went up by 7.6% compared to November 2021.In all of
2021, more than 3,800 crore UPI transactions amounting to Rs 73 lakh crore were
conducted. The volume of transactions on the platform outpaces card payments in
the country by nearly eight times.

PM Narendra Modi launched new digital payment solution e-RUPI on

2nd August 2021:

Besides being a cashless and contactless instrument for digital payment, it is a

QR code or SMS string-based e-voucher, which is delivered to the mobile of the
beneficiaries, the statement said. The government is aiming to take forward the
concept of the electronic voucher with a vision of good governance. e-Rupi is a
type of digital e-voucher. This will be available in the form of SMS and QR code
on the beneficiary phone.

Through this system the amount will not be directly transferred to their bank
account. It will be like a cash voucher which will be encased in the same type of
Centre or shop for which it was issued.

e-RUPI was designed keeping in mind the safety of the beneficiary. It keeps the
details of the beneficiary secure systematically.

By this system not any third person can know about it except the sender and
receiver of money.

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It has been developed by the National Payments Corporation of India on its UPI
platform, in collaboration with the Department of Financial Services, Ministry of
Health & Family Welfare and National Health Authority.

It is a cashless and contactless digital payment system in which the beneficiary

receives an SMS or QR code on his or her phone. It will work similarly to any
other prepaid voucher. It can be redeemed at any place that accepts it without the
use of internet banking, debit or credit cards, or a mobile app. You just need to
have a simple feature phone then you can get the benefit of it easily.

Transactions are done faster and more reliably through e-RUPI. The amount value
of e-RUPI voucher will be already stored in it. It connects the sponsor (an
individual or business organization) of the services with the beneficiary and
service providers in a digital form without any physical interface.

RBI launches UPI for feature phones:

This new service -- UPI 123PAY --will enable over 40 crore feature phone users
to access the popular digital transactions platform, without having an internet
connection.  New Delhi: RBI Governor Shaktikanta Das on 8 March launched the
most awaited Unified Payments Interface (UPI) facility for feature smartphones.
This new service -- UPI 123PAY --will enable over 40 crore feature phone users
to access the popular digital transactions platform, without having an internet
connection.

“The launch of UPI 123PAY makes facilities under UPI accessible to that section
of society which was so far been excluded from the digital payments landscape. In
that way, it is promoting great amount of financial inclusion in our economy,”
Das said at a launch event at the central bank attended by officials from NPCI and
banks.

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Using UPI 123PAY, you will require only three-step process to initiate and
execute a payment. Feature phone users will now be able to undertake a host of
transactions based on four technology alternatives. They include calling an IVR
(interactive voice response) number, app functionality in feature phones, missed
call-based approach and also proximity sound-based payments.

India's UPI digital payments now acceptable in Nepal:

UPI is amongst the most successful real-time payments (RTP) systems globally,
providing – simplicity, safety, and security in person to person (P2P) and person
to merchant (P2M) transactions in India.

New Delhi: The international arm of the National Payments Corporation of India
(NPCI) on Thursday announced to deploy Unified Payments Interface (UPI) in
Nepal to bolster interoperable real-time person-to-person (P2P), person to
merchant (P2M) and potential cross-border P2P remittances between Nepal and
India.

Over the next few months, all three companies --NPCI International Payments
Limited, Gateway Payments and Manam Infotech Private Limited--will work
closely together to deploy UPI in Nepal. along with all the functionalities and
features presently available in India. 5 pointers:

1. NPCI International Payments Ltd (NIPL) to Enable NPCI’s flagship Unified

Payments Interface (UPI) platform in Nepal

2. This partnership will enable creation of real-time payments system in Nepal,

leveraging NPCI’s technology to democratize payments and displace cash

3. It will also enable the way forward for real-time cross-border P2P remittances
between Nepal and India.

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4. Gateway Payment Service Pvt Ltd (GPS) shall run and manage UPI in Nepal as
the Nepal Rastra Bank Authorized Payment System Operators

5. Manam Infotech Pvt Ltd shall provide the UPI Technology and Operations
Support working closely with GPS in Nepal

UPI is amongst the most successful real-time payments (RTP) systems globally,
providing – simplicity, safety, and security in person to person (P2P) and person
to merchant (P2M) transactions in India, said NCPI release.

In 2021, UPI enabled 39 billion financial transactions amounting to commerce

worth USD 940 Billion, which is equivalent to approximately 31% of India’s
GDP. UPI’s real-time payment infrastructure will help catalyse the process of
financial inclusion in Nepal and will also create more opportunities for
businesses.

It will help modernize Nepal’s digital payment infrastructure and bring the
convenience of digital payments to citizens of Nepal, NCPI added.

Banks providing UPI facility:

Types of UPI Enabled Banks –

UPI enabled banks can be categorized under three broad heads depending upon
the platform they choose to adopt in order to provide UPI enabled services to their
customers. They are as follows:

 Banks with UPI apps–

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 This is the broadest category. Almost all major banks fall under this
segment. These banks have either developed a new UPI app or have
integrated the UPI in their existing smartphone applications. Banks like
ICICI Bank, Canara Bank, SBI and PNB fall under this category and
operate their individual mobile banking applications.

 Banks without UPI app–

There are still a few banks who have neither developed their own UPI app
nor have they partnered with a third party application to execute UPI
enabled services.

 Banks with Third-party UPI app–

These types of banks lend their UPI system to other mobile app
developers. These developers, in turn, create a platform such as an e-wallet
where a user can create a virtual account and utilize the services of online
funds transfer. Banks like Yes Bank, Axis Bank and HDFC Bank have
partnered with several apps in this regard.

Here is a list of all the banks that provide customers with the option of
UPI-based fund transfers:

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 Bank Name  
UPI Handle
UPI App Name

State Bank of
SBI Pay Sbi
India

imobile, pockets, ezeepay,

ICICI Bank iMobile
eazypay, icici, okicici

HDFC Bank hdfcbank, payzapp,

HDFC Bank
MobileBanking okhdfcbank, rajgovhdfcbank

BHIM Andhra Bank

Andhra Bank andb
ONE

axisgo, axis, pingpay, lime,

Axis Bank BHIM Axis Pay
axisbank, okaxis, abfspay

Bank of Baroda BHIM Baroda Pay barodampay

Bank of India BHIM BOI UPI Boi

Bank of
BHIM Maha UPI mahb
Maharashtra

BHIM Canara –
Canara Bank cnrb
eMPower

Central Bank of
BHIM Cent UPI centralbank, cbin, cboi
India

Punjab National
BHIM PNB pnb
Bank

Union Bank of BHIM Union Bank unionbankofindia, unionbank,

India UPI App uboi

HSBC HSBC Simple Pay hsbc

BHIM PAyWIZ by
IDBI Bank Idbi, idbibank
IDBI Bank

Kotak Mahindra
BHIM Kotak Pay kotak, kaypay, kmb, kmbl
Bank
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Oriental Bank of
BHIM Oriental Pay obc
Commerce
Services Provided by UPI:
 Financial Services

1. Fund Transfer

2. Send Money

3. Request Money

 Non-financial services

1. Balance Enquiry

2. Change MPIN

3. Obtain mini-statement

How to make a UPI Transaction:

The traditional way of transferring funds online requires the sender to provide the
receiver’s details such as the account number, IFSC, account type, Bank name,
etc. Entering these details will add the receiver as a new payee to your account
within 12 hours. You can make the transfer only after this process is completed.

UPI came into existence only to allow individuals to get away from this time-
consuming and complex process. With this facility, individuals can easily transfer
money to one another, using only the specific UPI ID as allotted by banks to the
account holders. Before you begin to make payments through UPI, you need to
register yourself on the application.

Here’s how you can do that-

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 Download a mobile payment application, like Paytm
 Create your profile by providing information like your name, mobile number
and bank account details
 After entering your details, you will have to verify your account through an
OTP sent to your registered mobile number
 Once this is done, you will have to select your bank from the drop-down list
that appears and enter the last 6 digits of your card number along with its
expiry date
 Post this, you will be asked to give a unique UPI ID from your bank (Your
UPI ID is your virtual address using which, you can send/receive payments
through UPI).

And then you can make the transfer through any of this mode:

 Selecting a contact - Sending money is as simple as sending a message. Just

select a phonebook contact or enter a mobile number, specify the amount to
be transferred and enter your PIN. That’s it! Your payment will be completed
in a few seconds.
 Scanning a UPI QR code – You can also send money through UPI by
scanning the receiver’s QR code. All you need to do is open the mobile
payment application like Paytm on your phone, click on ‘Pay’, and select
‘QR code’. Scan the QR code of the receiver and enter the amount to be paid.
Now enter your PIN and your payment will be completed in a few seconds.
 Entering UPI ID – To send money through UPI ID, all you need to do so is
open the mobile payment application, and enter the receiver’s UPI ID. After
this, you need to enter the amount that needs to be transferred and verify the
transaction by entering your MPIN. Your transaction will be completed in a
few seconds.
 Entering Account Number & IFSC – This the traditional way of payments
and it is also supported on UPI. You may enter the account number & IFSC

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 of the person you want to send money to, specify the amount and enter your
PIN. Your payment will be completed in a few seconds.

Push and Pull Money:

PUSH- Send Money

 User logs in to UPI application

 After successful login, user selects the option of Send Money/Payment
 User enters beneficiary’s/Payee virtual id, amount and selects account to be
debited
 User gets confirmation screen to review the payment details and clicks on
Confirm
 User now enters UPI PIN
 User gets successful or failure message

PULL – Request Money

 User logs in to his bank’s UPI application

 After successful login, user selects the option of collect money (request for
payment)
 User enters remitters/payers virtual id, amount and account to be credited
 User gets confirmation screen to review the payment details and clicks on
confirm
 The payer will get the notification on his mobile for request money
 Payer now clicks on the notification and opens his banks UPI app where he
reviews payment request
 Payer then decides to click on accept or decline

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  In case of accept payment, payer will enter UPI PIN to authorize the
transaction
 Transaction complete, payer gets successful or decline transaction notification
 Payee/requester gets notification and SMS from bank for credit of his bank
account

ROLES AND RESPONSIBILITIES

OF NPCI, PSP AND TPAP IN UPI:

Roles & Responsibilities of NPCI-

 NPCI owns and operates the Unified Payments Interface (UPI).

 NPCI prescribes rules, regulations, guidelines, and the respective roles,
responsibilities and liabilities of the PSPs and TPAP, with respect to UPI. This
also includes transaction processing and settlement, dispute management and
clearing cut-offs for settlement.
 NPCI approves the participation of Customer Banks, PSP, Third Party
Application Providers (TPAP) and Prepaid Payment Instrument issuers (PPIs) in
UPI.
 NPCI provides a safe, secure and efficient UPI system and network.
 NPCI provides online transaction routing, processing and settlement services to
members participating in UPI.
 NPCI can, either directly or through a third party, conduct audit on UPI
participants and call for data, information and records, in relation to their
participation in UPI.

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 NPCI provides the PSP access to the system where they can download reports,
raise chargebacks, update the status of UPI Payment Transactions, etc.

Roles & responsibilities of PSP-

 PSP is banking company that is a member of UPI and connects to the UPI
platform for providing UPI payment facility to the PSP and TPAP which in turn
enables the Users and merchants to complete payment transactions over UPI.
 PSP either through its own app or TPAP’s app, on-boards and registers the User
on UPI and links their Funding Accounts to their respective UPI ID.
 PSP is responsible for authentication of the User at the time of registration of such
customer, either through its own app or TPAP’s app.
 PSP engages and on-boards the TPAPs to make the TPAP’s UPI app available to
the User.
 PSP has to ensure that TPAP and its systems are adequately secured to function
on UPI.
 PSP is responsible to ensure that UPI compliant application and systems of TPAP
are audited to safeguard security and integrity of the data and information of the
User including UPI Transaction Data as well as UPI app security.
 PSP has to store all the payments data including UPI Transaction Data collected
for the purpose of facilitating UPI transactions, only in India.
 PSP is responsible to give all UPI customers an option to choose any bank
account from the list of Customer’s Banks available on UPI platform for linking
with the customer’s UPI ID.
 PSP is responsible to put in place a grievance redressal mechanism for resolving
complaints and disputes raised by the User.

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 Roles & responsibilities of TPAP-

 TPAP is a service provider to the PSP and participates in UPI through PSP.

 TPAP is responsible to comply with all the requirements prescribed by PSP and
NPCI in relation to TPAP’s participation in UPI.
 TPAP is responsible to ensure that its systems are adequately secured to function
on the UPI platform.
 TPAP is responsible to comply with all the applicable laws, rules, regulations and
guidelines etc. prescribed by any statutory or regulatory authority in relation to
UPI and TPAP’s participation on the UPI platform including all circulars and
guidelines issued by NPCI in this regard.
 TPAP has to store all the payments data including UPI Transaction Data collected
by TPAP for the purpose of facilitating UPI transactions, only in India.
 TPAP is responsible to facilitate RBI, NPCI and other agencies nominated by
RBI/ NPCI, to access the data, information, systems of TPAP and carry out audits
of TPAP, as and when required by RBI and NPCI.
 TPAP shall facilitate the User with an option of to raise grievance through the
TPAP’s UPI compliant app, e-mail, messaging platform, IVR etc. for redressal of
customer grievances.

Dispute Redressal Mechanism

o Every end-user customer can raise a complaint with respect to a UPI

transaction, on the PSP app / TPAP app.
o End-user customer can select the relevant transaction and raise a complaint
in relation thereto.
o A complaint shall be first raised with the relevant TPAP in respect to all
UPI related grievances / complaints of the end-user customers on-boarded
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 by the PSP Bank (if the UPI transaction is made through TPAP app). In
case the complaint / grievance remains unresolved, the next level for
escalation will be the PSP Bank, followed by the bank (where the end-user
customer maintains its account) and NPCI, in the same order. After
exercising these options, the end-user customer can approach the Banking
Ombudsman and / or the Ombudsman for Digital Complaints, as the case
may be.
o The complaint can be raised for both the types of transactions i.e. fund
transfer and merchant transactions. The end-user customer shall be kept
communicated by the PSP / TPAP by means of updating the status of such
end-user customer’s complaint on the relevant app itself..

Table showing No. of banks live on UPI and their value:

Month No. of Banks live on Volume (in Mn) Value (in Cr.)
UPI

Feb-22 304 4,527.49 8,26,843.00

Jan-22 297 4,617.15 8,31,993.11

Dec-21 282 4,566.30 8,26,848.22

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Nov-21 274 4,186.48 7,68,436.11

Oct-21 261 4,218.65 7,71,444.98

Sep-21 259 3,654.30 6,54,351.81

Aug-21 249 3,555.55 6,39,116.95

Jul-21 235 3,247.82 6,06,281.14

Jun-21 229 2,807.51 5,47,373.17

May-21 224 2,539.57 4,90,638.65

Apr-21 220 2,641.06 4,93,663.68

Mar-21 216 2,731.68 5,04,886.44

Feb-21 213 2,292.90 4,25,062.76

Jan-21 207 2302.73 4,31,181.89

Dec-20 207 2,234.16 4,16,176.21

Nov-20 200 2,210.23 3,90,999.15

Oct-20 189 2,071.62 3,86,106.74

Sept-20 174 1,800.14 3,29,027.66

Aug-20 168 1618.83 2,98,307.61

July-20 164 1497.36 2,90,537.86

June-20 155 1336.93 2,61,835.00

May-20 155 1,234.50 218,391.60

Apr-20 153 999.57 151,140.66

Mar-20 148 1,246.84 206,462.31

Feb-20 146 1,325.69 222,516.95

Jan-20 144 1,305.02 216,242.97

Dec-19 143 1,308.40 202,520.76

Nov-19 143 1,218.77 189,229.09

Oct-19 141 1,148.36 191,359.94

Sept-19 141 955.02 161,456.56

Page | 25
Aug-19 141 918.35 154,504.89

July-19 143 822.29 146,386.64

June-19 142 754.54 146,566.35

May-19 143 733.54 152,449.29

Apr-19 144 781.79 142,034.39

Mar-19 142 799.54 133,460.72

Feb-19 139 674.19 106,737.12

Jan-19 134 672.75 109,932.43

Dec-18 129 620.17 102,594.82

Nov-18 128 524.94 82,232.21

Oct-18 128 482.36 74,978.27

Sep-18 122 405.87 59,835.36

Aug-18 114 312.02 54,212.26

July-18 114 273.75 51,843.14

June-18 110 246.37 40,834.03

May-18 101 189.48 33,288.51

Apr-18 97 190.08 27,021.85

Mar-18 91 178.05 24,172.6

Feb-18 86 171.40 19,126.2

Jan-18 71 151.83 15,571.2

Dec-17 67 145.64 13,174.24

Nov-17 61 105.02 9,669.33

Oct-17 60 76.96 7057.78

Sep-17 57 30.98 5,325.81

Aug-17 55 16.80 4,156.62

July-17 53 11.63 3,411.35

June-17 52 10.35 3,098.36

Page | 26
May-17 49 9.36 2,797.07

Apr-17 48 7.20 2,271.24

Mar-17 44 6.37 2,425.14

Feb-17 44 4.38 1,937.71

Jan-17 36 4.46 1,696.22

Dec-16 35 1.99 707.93

Nov-16 30 0.29 100.46

Oct-16 26 0.10 48.57

Sep-16 25 0.09 32.64

Aug-16 21 0.09 3.09

Jul-16 21 0.09 0.38

Jun-16 21 0.00 0.00

May-16 21 0.00 0.00

Apr-16 21 0.00 0.00

Best UPI Apps in India:

Page | 27
 PhonePe-

PhonePe stands first in our list of best UPI apps in India. It is a revolutionary app
that made the Indian population start trusting and moreover making online mobile
payments. PhonePe not only helps in making UPI payments but users can also
recharge, make online bill payments, order food, shop, etc. all in just one app.

As of November 2020, PhonePe has 868.40 million transactions in volume with

Rs 1,75,453.85 Cr in transaction value. PhonePe also provides various offers,
rewards, and cashback to its customers. Having one of the simplest interfaces with
the safest and fastest online payment experience in India, PhonePe is definitely

Page | 28
one of the best payment apps in India and better than most of the other UPI

payment apps or internet banking services.

PhonePe most popular and top UPI app in India. Its work Digital wallet and e-
commerce payment system. Flipkart parent company of Phonepe.

This app acquired by now Flipkart and its provides payment system UPI powered
by BHIM UPI, Icici bank and yes bank. (You can use Every bank)

PhonePe founded in December 2015. It provides the fastest quick Money transfer
and payment. So it makes your life easy day by day.

Phonepe provides services are Payment systems, digital wallets, mobile payments
and online shopping. You can send and receive money through phonepe with
recharge DTH mobile, data cards, make utility payments, buy gold and much
more. All payment that phonepe provides through UPI and phonepe have owner
phonepe wallet, so it’s made very fast money transfer.

Phonepe also provides lots of offers, cashback, so you save more money using
Phonepe.

Page | 29
PROS:

 Easy and fast payment

 All in one app (UPI, money transfer, recharge bill payment and more)

 Secure and safe

 Easy to use

 Multi-Language available

CONS:

 Delay in Payment means sometimes payments are processing or pending.

Every problem solved within 5-10 minutes but sometimes take 1-2 days.
But don’t worry phonepe provides support very well so enjoy with phonepe

 Google Pay (Tez) –

A simple and secure payment app Google Pay, formerly known as Tez App,
stands the biggest and best app in our list of best UPI apps in India. This app has
accumulated a huge customer base in India within a small time frame. And
obviously, having a big brand name of ‘Google’ has helped this app to build trust
among the new and existing customers.

As of November 2020, Google pay has 960.02 million transactions in volume

with Rs 1,61,418.19 Cr in transaction value. Using Google Pay, users can send
Page | 30
money to friends, pay their bills, shop online, recharge, or pay at the nearby café,
etc. through secure payment by Google.

Another most enjoyable part of using Google Pay is the “Scratch cards”.
Whenever the users make a new transaction, they are awarded a gift card in the
form of a scratch card. After scratching the card, users can earn a gift in the form
of money which directly gets credited into the registered bank account.

Anyways, you won’t earn a Scratch card on every transaction as there are a
minimum value and number of transactions predefined by the app. However, if
you’re lucky, you may get a reward of up to Rs 1 lakh.

Google provide UPI payment app by Google pay. Everyone knows about Google
Tez but Recently change this app name Google Tez to Google pay. This app most
use UPI app in India. It provides a very fast and easy way to send or receive
payment.

Google pay tied up with four banks (ICICI Bank, State Bank of India, Axis

Bank and HDFC Bank) in India to provide you VPA service. You also use every
bank. Google pay UI very common and easy to use so that everyone can use it

Page | 31
Google pay don’t provide any digital wallet so you can sand and received money
directly through banks. It’s good for you. Also, provides Recharges, bill payment,
and more. 

PROS:

 First UPI app provides NFC technology.

 Highly secure UPI app.

 Chat before money transfer

 Power by Google

CONS:

 At times payment are pending, but Every problem is solved within 5

minutes. My Personal Experience.

 Paytm-

Paytm is a quite well-known mobile payment app in India. Along with Paytm
Mall, it also offers Paytm Wallet and Paytm UPI (which was introduced in the
year 2017). In simple words, we can call it a mega store due to the variety of
products and services provided by this app. Paytm users can perform almost each
and every activity related to online payments on its app. And that’s why it is
certainly the most used payment app.

Page | 32
 As of November 2020, Paytm has 260.09 million transactions in volume with
Rs 28,986.93 Cr in transaction value. From making online Payments to buying
household items, groceries, IRCTC train ticket booking, bus & flight booking,
movie tickets, LIC premium payment, metro card recharge, buying gold,
making loan payments, paying e-challans & more, everything can be done on

this app.

Paytm of most popular, highest download and one of the India biggest digital
wallet. It provides excellent UI and easy to use. Whatever if you want everything
finds on Paytm because Paytm provides everything such as mobile Recharge, Bill
Payment, Tickets booking, now add UPI system and much more. One place you
see everything. First starting Paytm provides an only mobile wallet, day by day
add more and more features.

 Amazon Pay-

Page | 33
As of Nov 2020, Amazon pay is the fourth biggest app used for making UPI
transactions. Amazon pay got 37.15 million transactions in volume with Rs
3,624.51 Cr in transaction value in this month.

Amazon Pay, a payment method that allows Amazon users to pay for goods and

services on your website using the payment methods already stored in
their Amazon accounts.
Having the big brand of Amazon definitely helped Amazon Pay to scale at such a
fast pace in India within a small time frame.
Moreover, having integrated with most shopping and payment gateways, along
with awesome cashback rewards, amazon has become very popular.

How does Amazon Pay work?

If you have an Amazon account, you are ready to start using Amazon Pay
wherever you see the Amazon Pay button. No additional registration is necessary.
Amazon Pay simply uses the information and payment methods stored in your
Amazon account.

Page | 34
 Amazon Pay is now the fourth biggest UPI app in India, using by people. And it
comes from Amazon, so don’t worry about safety. It’s totally fine. Moreover,
Amazon Pay provides lots of Cashbacks, so you get save some money.
Amazon doesn’t provide you dedicated Amazon pay UPI App like other Apps,
which has some advantages and disadvantages. The disadvantage is that they
don’t have a dedicated app for payments, but the advantage is Shopping time
Amazon pay gives you lots of discounts, Cashbacks. And you also make Mobile
Recharge, tickets booking, insurance All types of Bill payments like Electronic,
DTH, and many more. It’s one type of Digital Wallet. One of the biggest
advantages use this Pyramidon pay provides you every Transactions Rewards
through Cashback. It’s Remarkable.
PROS:
 Amazon Pay Balance (Help to Shopping time Discount)
 Highly Secure and safe
 Easy to use
 Easy and Fast payments
 Mobile Recharge, DTH, Electricity Bills, Bills, Travel, Insurance, and many
Mores.
CONS:

Page | 35
 No Dedicated UPI app

 BHIM App-

BHIM app is the fifth most popular UPI apps in India. It is launched and managed
by National Payments Corporation of India (NPCI); BHIM (Bharat Interface for
Money) is a UPI enabled initiative to facilitate safe, easy & instant digital
payments through your mobile phone.

As of November 2020, BHIM App has 0.31 million transactions in volume with
Rs 13.87 Cr in transaction value.

This app comes from an official Indian government, the name of the app Bharat
Interface for Money (BHIM). BHIM app easy to use because it provides beautiful
UI and UX. BHIM app through your payment, recharge, bill payment, check
balance, and more. This app simple and friendly app doesn’t add more features,
but Gov’t app 99.9% safety.

BHIM launched by the Prime Minister of India, Narendra Modi on 30th

December 2016 and developed by NPCI (National Payments Corporation of
India)

Page | 36
  Jio Pay-

Jio Pay UPI comes from India no1 company, Reliance. It’s available in the Myjio
app, not provided a dedicated app for UPI.

Jio Pay provides UPI payments, Recharge, bill payments, QR code scanning, and
many more. And give a passbook option so you can track your transactions
activities.

If you’re jio users, then you can create Jiopay UPI through my jio app. Jio Pay is
something new you can try.

More UPI Apps

Page | 37
At this moment, lots of UPI apps are available on the internet. Not possible to tell
one by one app. Every UPI app works in the same system. I provide 4 UPI app is
best, trusted, most popular and India most use UPI apps. Many UPI apps are
available but not properly work, sometimes failed, or payment pending. If you
want to use more UPI apps, then see this app- BHIM SBI pay, freerechage,
mobikwik, and every bank UPI app you can use.

We recommend you use under these 4 UPI apps. I use personally Phonepe,
Google pay, and sometimes BHIM and Paytm. These apps do not only provide
payment but also give you extra features like recharge, bills payment, Online
shopping, Booking bus flights, and many more features.

So we recommend the best UPI app phonepe because this app helps to your daily
life. Phonepe all in one app, you find everything.

More UPI apps in India

 MobiKwik: Google Play Store Rating: 4.2, total of 1,439,427 reviews

 WhatsApp Pay: Newly Launched with the world most popular App.

 BHIM SBI Pay: Google Play Store Rating: 4.2, and 3,69,819 reviews.

 Kotak – Google Play Store Rating: 4.4, and 4,58,209 reviews.

Analysis and result:

Research Methodology Data Collection-
Page | 38
Primary Data Collected through:

o structured Questionnaire,
o And by the feedback of different users and non-users.

Secondary Data collected through:

o Government Reports,
o Various websites,
o By the help of News.

1. Analysis about Preference of UPI System:

54 Responses

Page | 39
 Prefrence
NO
5%

YES
95%

YES NO

In a total of 54 Responses, 95% of people prefer using UPI Based Payment

System for transfer of money they feel convenient to use it, mainly younger
generation aged between 16-24 prefer this method more. But still there were few
people who didn’t feel safe in using this mode of payment. And there were 2
persons who still don’t use UPI Method.

2. Analysis about difference in the year when people

started adopting UPI based payment system:
Page | 40
 18
16
14
12
10
8
6
4
2
0
2016 2017 2018 2019 2020 2021
USERS No. of Respondents 54

As we can see in the above chart that there is a significant difference in the
adoption of UPI System among different people. When UPI System was
introduced in 2016 very few people adopted this method but gradually it
increased. During the COVID Outbreak [in the year 2020] there was a substantial
growth in the use of UPI Method as online payment were only preferable at that
time and use of cash was low.

3. The UPI app users are categorised based on the use

of Apps for transaction:

Page | 41
 Respondents

25%
30% Bank UPI App

3rd Party UPI Apps

BHIM App

45%

As per chart it is found that the users are mostly using 3rd party App rather than
BHIM App or Bank UPI App for UPI payments. Apps like PhonePe, Paytm,
Amazon Pay, Google Pay, etc are used more frequently. The reason for the
preference of 3rd party app for UPI according to the feedback was- the cashback
and other cashback related offers offered by the 3rd party app providers, the way
of their advertisement and its simplicity.

4. Analysis about the difference in adoption of UPI

Featured App among different users:

Page | 42
 25%

20%

15%

10%

5%

0%
PhonePe Paytm Google Pay Amazon Pay BHIM App Others
Responses

As per chart it is observed that Amazon Pay have the highest numbers of users off
course, having the big brand of Amazon definitely helped Amazon Pay to scale at
such a fast pace in India within a small time frame. Then there is Paytm and
PhonePe according to the survey people prefer these two more due to the facility
of Paytm wallet, quick settlements and also the money transferred doesn’t stuck a
lot as it happens in GPay. Then there are some users who doesn’t use these
methods but prefer Mobile Banking or bank upi app more.

5. Analysis about the difference in choosing the

various methods of payment system by various
users:

Page | 43
 Responses

14% 7%
Internet Banking

18%
Mobile Banking

Debit/Credit Card

37%
24% UPI Based System

Cash Method

As it can be seen by the fig. that in a total of 53 respondents, maximum of them

prefer UPI Based payment system. According to there feedback they find that the
introduction of UPI method was a very convenient way to transfer money without
having much trouble. They say-

 it is a user friendly way, easy to use and make payments

 very fast and convenient
 Helpful in case of no cash in hand available
 Safe and secure type of payment
 It eliminates the need to enter bank details or other sensitive details each
time and makes transaction easy
 Helped a lot in COVID situation when online mode of payment was
preferred.
There are also many people who prefer card payments as they feel it more secure
way of transaction. Then there is mobile banking means using the bank app for
transaction.
Page | 44
Still there are some people who goes for cash payment according to the survey
these are mostly people aged from 35-45 who are still not used to these online
methods and doesn’t feel safe in using them. According to them they believe that
their money can be stolen aur any fraud or theft may occur by these online modes.

6. Problem faced while doing any transaction through

UPI Method:

Page | 45
 Responses
NEVER

SOMETIMES

EVERYTIME
6%

36%
58%

According to the survey most of the people didn’t face any problem while doing
any transaction through UPI method they had a good experience by it and hence
feel it safe and secure method. Also, there are some who faced problem mainly of
stuck payment due to busy server or payment failure. There are 3 to 4 people who
face this problem often and therefore doesn’t feel that it is a very convenient way
of transacting money as it can be lost.

UPI-based banking frauds:

UPI, being one of the foundation stones of the digital economy, needs to be
airtight when it comes to security. With UPI transactions hitting an all-time high

Page | 46
this year, it’s no surprise that UPI is one of the most preferred methods of
payment in recent times.

1. Thiruvananthapuram: Fraudsters have come up with a new way to siphon off

money from bank accounts by taking advantage of the loopholes in the Unified
Payments Interface (UPI) payments system, which allows account holders to send
and receive money from their smartphones without entering bank account details.
As many as 10 cases of UPI-based fraud involving Rs 12 lakh have been reported
in Kerala in the recent time, an investigation by Cyberdome, a hi-tech centre for
cybersecurity and innovations under the Kerala Police, has revealed. A conman
can easily take control of a gullible customer’s account and withdraw money by
using a UPI-supported application linked to Aadhaar, said IG Manoj Abraham,
nodal officer of Cyberdome.

2. Man without smartphone loses Rs. 6.8 lakh in UPI fraud - In a strange case of
UPI fraud, a Noida-based man has lost nearly Rs. 7 lakhs from his bank, without
even owning a smartphone. The victim, Mohan Lal, has claimed his account was
wiped clean over last two months and he didn't even get a single message
regarding the same. The matter has been referred to cyber cell. In his complaint,
Lal has alleged that as many as seven UPI-based transactions were initiated from
his SBI account since September 29. However, despite that, he didn't receive a
single text alert about the money pouring out from his account. "It was on
December 4 when I visited an ATM to withdraw some money that I found out the
fraud," he told. While speaking to Times of India, Lal said he didn't own a
smartphone - a fact that implies he didn't have a UPI account. But, here's the
thing, your number remains linked to your bank, even if you don't own a
smartphone. And, when your number is linked, all hijackers need is access to your
SIM to carry out a UPI-based attack like this. Fraudsters can gain unauthorized
access to your mobile number by employing the infamous SIM Swap technique.
Page | 47
They may call you posing as some company representative and lure you into
authorizing a SIM swap request. Following this, their duplicate SIM would be
activated with your number, which they could use to create a regular UPI account
(with the target's account) and transfer money.
Statement from a cyber cell officer on such attacks-"Hackers can get a duplicate
SIM from a mobile store by blocking the original one," a Cyber Cell officer told
TOI. "They can also clone the SIM card of those who already using the UPI app
and transfer money after downloading the app."

3. Hyderabad: While the city police have breathed a sigh of relief as the number
of cases involving conventional or traditional crimes has decreased, a sharp
increase in cases of cybercrime this year has proven to be a litmus test for the
officers.

In 2021, the city police booked 5,646 counts of cybercrime, compared to 1,379
cases recorded in 2020. “UPI scams account for about 45 percent of all
cybercrime instances, followed by 15 percent OTP frauds, phone customer
service, investment fraud, and other cybercrime cases,” the official stated.

4. Pune cybercrime police see spurt in cases of UPI-based payment frauds Two
such cases were registered in Vishrantwadi when two women, unknown to each
other, received calls in response to their advertisement on the e-commerce
platform for sale of household items. Both women lost Rs 50,000 each as the
caller sent them a payment request disguised as a payment. A woman from
Erandwane, lost Rs 23,999 in the exact same manner on September 29. On
October 9, a woman from Wakad was asked to scan a QR code to receive
payment for a fridge she wanted to sell on the e-commerce platform. She received
a link after scanning the code and lost Rs 49,986.

Page | 48
These cases were registered at various police stations in Pune and Pimpri-
Chinchwad under Section 420 (punishment for cheating) of Indian Penal Code
along with Sections 66(c), 66(d) of Information Technology Act.

Cases registered by Pune cybercrime branch

Cheating fraud

2018: 3,654

2019: 4,573

Cheating business fraud

2018: 561

2019: 1,795

Social media

2018: 824

2019: 814

Hacking

2018: 157

2019: 111

Data theft

2018: 32

2019: 15

Mobile offences

2018: 106

2019: 88

Page | 49
Scamsters aren’t inevitable; they can, of course, be avoided by taking some
essential precautions. These aren’t just to keep you away from fraud; these are
also fundamental things to keep in mind to keep all your information safe in the
era of the Internet.

 Beware of engaging with fraudsters

 Take extra precaution while requesting/accepting requests

 Pay attention to SPAM warnings on your UPI app

 Be wary of malicious apps

 Follow security practices

 Never open emails without checking their authenticity

 Keep a check, every once in a while

 Avoid using open Wi-Fi

 Keep track of all your bank messages

Conclusion:
UPI developed the mobile payment technology by facilitating mobile phone to be
used as a main payment device for giving and accepting payments. In contrast to

Page | 50
all of payment systems it can be said that UPI is the most advanced payment
system in the world. UPI payment system allows money transfer between any two
bank accounts by using a smart phone. It allows a customer to pay directly from a
bank account to different merchants, both online and offline, without the hassle of
typing credit card details, IFSC code, or net banking/wallet passwords. It aims to
simplify and provide a single interface to transfer money- easy, quick and hassle
free. These features of UPI motivate the respondents of service sectors to adopt
the tool and the above study revealed that slowly people are accepting UPI
method for transacting money and making UPI as their daily practise. The study
reveals that most of the respondent have positive attitude towards the UPI
transaction for steering in a less-cash society in India.

Bibliography:

To make this project I have taken help from the following sources:

Page | 51
SITES-

o npci.org.in
o www.wikipedia.org,
o investopedia.com,
o www.bhimupi.org.in
o onmanorama.com and many more

OTHERS-
o Questionnaire
o Feedback form
o Times of India and other news report
o Govt reports

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