Aldel Education Trust’s

St. John College of Engineering and Management, Palghar

NAAC Accredited with Grade A (2017-2022)

DEPARTMENT OF COMPUTER ENGINEERING

UPI (Unified Payment Interface)
Dishant Bari (B | 02) [EU1202102]
Yash Chaudhari (B | 05) [EU1202114]
Prathamesh Dhande (B | 08) [EU1202063]
Srinath Gouda (B | 12) [EU1202089]
Nitesh Jadhav (B | 13) [EU1202004]
Chaitanya Mestry (B | 19) [EU1202037]
Sumit Mourya (B | 21) [EU1202013]

Dr. Eknath Patil | Assistant Professor

November 03, 2022

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 Contents

❏ Introduction
❏ Architecture of UPI
❏ Applications Using UPI
❏ Working
❏ How to Use ?
❏ UPI Transactions
❏ Advantages
❏ References
❏ Conclusion

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UPI (Unified Payment Interface)

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 Introduction
• The Unified Payments Interface (UPI) is a revolutionary,
user-friendly, real time payment solution that facilitates inter-bank
transactions, and enables greater digital payments adoption in the
country.
• Developed and launched by the National Payments Corporation of
India in 2016, UPI is now one of the most preferred payment
solutions in India, with over a billion transactions every month.
• UPI’s core function is to support easy and secure money transfers
between bank accounts. It does this by adding multiple bank
accounts into a single mobile application, allowing for seamless fund
transfers and merchant payments from one place.
• It also enables ‘peer to peer’ and ‘peer to merchant’ collection
requests, which can be scheduled and paid as requested. Payments
can be made using a UPI ID, UPI Number, Account number, and an
Indian Financial System Code (IFSC).
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Architecture Of UPI

Fig 1 : Architecture of UPI

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Application Using UPI

Fig 4 : UPI Apps usage Per month

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 Application Using UPI

UPI is an instant real-time payment system developed by National

Payments Corporation of India.
Above graph shows the percentage of users using various UPI based
applications per month.
It can be seen that Google pay is the most widely used application
with around 49.08% users per month and it is based on UPI system.
Next, PhonePe is used by 30.80% users per month. Paytm is used by
10.21%,and BHIM app is used by 4.27% users. Some other UPI based
applications are used by 3.64% users. ICICI by 1.44%,SBI by 0.38%,
Axis by 0.11%, HDFC by 0.06% users per month.

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 Working

Fig 5 : NPCI Repository

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 Working
1. A NPCI repository is used. (see Fig 5)
2. Repository stores credentials about payer and payee.
3. Route payments instructions (Adhaar no. or Mobile no.).
4. Do switching, clearing and settlement of transactions.
5. The Payer/Payee information is sent, via PSP, to NPCI.
6. To identify the details of the second party involved, it either uses
its repository or it contacts the second party PSP.
7. Once both PSPs' information is available to NPCI proceeds with
the debit and credit processes.
8. On successful completion the payer and payee PSPs are notified,
which then notify their customers.

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 How To Use ?
To use UPI, you must have a bank account with a member bank, i.e.,
your bank should allow you to use the UPI facility. Some of the
member banks include State Bank of India (SBI), HDFC Bank,
ICICI Bank, etc.
Once you have checked whether your bank supports UPI payments,
you need to download the UPI supporting app on your smart phone.
Some of the commonly used apps offering payment via UPI method
are BHIM, which is developed by NPCI, and there are some private
players as well such as Paytm, PhonePe, Google Pay, Amazon Pay
etc.
Remember, your mobile number must be registered with your bank
account for purpose of verification.

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 How To Use ?
Once you have downloaded the chosen UPI app, then you will be
required to choose the bank from the given options. To verify that it
is your bank account, your bank will send you a one-time password
(OTP). Once the OTP is verified, your virtual payment address
(VPA) will be created.

Step 1: Download and install BHIM app from Google Play store or
Apple App Store.
Step 2: Select your preferred language.
Step 3: Select the SIM which has your mobile number registered
with your bank account.

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 How To Use ?
Step 4: Set-up a four-digit login password. You need to enter this
four-digit password to access the app.
Step 5: Select and link your bank account. Set your UPI PIN by
providing last six digits and expiry date of your debit card.

Your account is now registered and you can send or request for
money to be transferred to your account.

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 UPI Transactions
Fig 1 : Architecture of UPI
Fig 1 : Architecture of UPI

Fig 2 : Sending Money

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 UPI Transactions
(PUSH) Sending 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.

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UPI Transactions

Fig 3 : Receiving Money

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 UPI Transactions
(PULL) Receiving 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

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 Advantages
1. Trusted common library for credentials (MPIN, PASSWORD,
PIN BIOMETRIC ) is provided by NPCI.
2. Credentials encoded with Base64 encoding and are provided
only during the transaction by UPI.
3. 2 factor authentication is used.
4. Simple and cheap.
5. Pay limit is greater than e-wallets.
6. End user friendly.
7. UPI is easy to access, you can use 24*7 hours a day, at any time
and any place, even on public holidays.
8. UPI is the one that does not need to fill in the various details like
ATM card number, IFSC code, account number.
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 Conclusion
• UPI is growing at exponential rate, because it makes the digital
payment a very easy affair. Also it is still in developing state
which will inculcate new features in future.
• UPI 3.0 would be launched which has more flexibility, easy and
wide reach. It is also very easy to adopt because it also reduces
the black economy.
• In near future most of the payment will be happen digitally, to
come over the restrictions of using plastic money, it may be a
game changer. Also its unique features makes it a easy to adopt
technology.

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 References
[1] RBI Payment System Vision document", RBI, 2012-15.
http://rbi.org.infscnpts/PubltcationVistonDocuments.aspx?lD2664
[2] Asthana, S. (2016). All you need to know about UPI, the Unified
Payment Interface. Business Standard. Re-trieved from
www.business-standard.com
[3] Katre, H. (2016). What is UPI and How It Will Benefit Your
Business. Profit Books. Retrieved from
http://www.profitbooks.net/upi-unified-payment-interface/
[4] "Report of the Task Force on an Aadhaar-Enabled unified
Payment Infrastructure", Finance Ministry, February 2016,
http://finmin.nic.tn/reports/Report_Task_Force_Aadhaar_Paymentln
fra.pdf

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Thank You !!!

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