PROJECT REPORT ON

A STUDY ON HOW THE USAGE OF UPI HAS CREATED AN IMPACT ON

STUDENTS
A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION DEGREE OF
M.COM (BANKING& FINANCE)
SEMESTER III (2022-2023)

BY:

NASREEN SHAIKH

ROLL NO.:25

UNDER THE GUIDANCE OF PROF

Mr. ABHIJIT BOSALE

SIES COLLEGE OF COMMERCE AND ECONOMICS

OCTOBER 2022

SIES COLLEGE OF COMMERCE AND ECONOMICS,

PLOT NO. 71/72, SION MATUNGA ESTATE

T.V. CHIDAMBARAM MARG,

SION (EAST), MUMBAI – 400022

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 CERTIFICATE

This is to certify that Nasreen Shaikh of M. Com (Banking &Finance)

Semester 3 (Academic year 2022-2023) has successfully completed a research project on “A

STUDY ON HOW THE USAGE OF UPI HAS CREATED AN IMPACT ON STUDENTS ” under the
Guidance of Mr. Abhijit Bhosale.

Project Guide name Ms Reema Castelino

Mr. Abhijit Bhosale.

(Project Guide) (Course Co-ordinator)

(External Examiner) (Dr Mrs Nina Roy Choudhury)

(Principal)

Place:

Date:

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 DECLARATION

I, NASREEN SHAIKH studying in Second Year of Masters of Banking & Finance course in
the academic year 2022-23 at S.I.E.S College of Commerce & Economics, Sion (East)
hereby declare that I have completed the project titled " A STUDY ON HOW THE USAGE OF
UPI HAS CREATED AN IMPACT ON STUDENTS I further declare that the information
presented in this project is true and original to the best of my knowledge.

NASREEN SHAIKH

Roll No.:25

Date: ___________________

Place: ___________________

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 ACKNOWLEDGEMENT
I would like to thank the University of Mumbai, for introducing M.Com (Banking and
Finance) course, thereby giving its students a platform to be abreast with changing business
scenario, with the help of theory as a base and practical as a solution.

I am indebted to our Principal Dr Nina Roy Choudhury for providing necessary

facilities required for completion of the Project.

I take this opportunity to thank our co-ordinator Ms. Payal Bhatia for her support and
guidance. I would sincerely like to thank her for all her efforts.

I would like to express my sincere gratitude towards my project guide _ Mr. Abhijit
Bhosale whose guidance and care made the project successful.

I would like to thank my College library for having provided various reference books
and magazines related to my project.

Last but not the least; I would like to thank my parents for giving the best education
and for their support and contribution without which this project would not have been
possible.

______________________

(Nasreen Shaikh)

ROLL NO._25_

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 Index

Sr.no Particulars Page no

1. Introduction 6
2. Objective of the study 28
3. Scope and limitations of the study 29
4. Research and Methodology 29
5. Review of Literature 30
6. Data Analysis and Interpretation 32
7. Findings, Suggestions and Recommendations and 39
Conclusions
8. Bibliography 41
9. Appendix 42

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 CHAPTER 1
INTRODUCTION
Unified Payments Interface (UPI) is an instant real-time payment system developed
by National Payments Corporation of India (NPCI). The interface facilitates inter-bank peer-
to-peer (P2P) and person-to-merchant (P2M) transactions. It is used on mobile devices to
instantly transfer funds between two bank accounts. It runs as an open source application
programming interface (API) on top of Immediate Payment Service (IMPS) and is regulated
by the Reserve Bank of India (RBI).
As of February 2022, there were 304 banks available on the platform with a monthly volume
of 4.52 billion transactions amounting to ₹8.26 lakh crore (US$100 billion). UPI witnessed
68 billion transactions until November 2021. The mobile-only payment system helped
transact a total of ₹34.95 lakh crore (US$440 billion) during the 67 months of operation
starting from 2016.
As of May 2021, the platform has over 10 crore (100 million) monthly active users in India.
The proportion of UPI transactions in total volume of digital transactions grew from 23% in
2018–19 to 55% in 2020–21 with an average value of ₹1,849 per transaction. Digital
transactions worth ₹8.31 lakh crore were made via the platform in January 2022. In FY
2021–22, the value of transactions crossed $1 trillion.
UPI payments require registered mobile numbers with the Nationalised bank. The user needs
to enter debit card details. The user can create UPI ID for account details. The UPI ID can be
used to do the transaction with user to whom money to be sent.
Money can be received and sent on this UPI ID with the phone number.
Registration requires SMS confirmation with self-phone number for the bank selected.
Payment fees would be deducted based on the money transferred to the account holder.

History
In April 2009, National Payment Corporation of India was formed with the objective to
integrate all the payment mechanisms in the country and make them uniform for retail
payments. By March 2011, RBI found out that in India only six non-cash transactions
happen every year per individual citizen while 10 million (1 crore) retailers accept card-
based payment. Around 145 million (14.5 crore) families have no access to any form of
banking. There is also the problem of tackling black money and corruption that happens
mostly in cash.[14]
RBI in 2012 released a vision statement for a period of four years that indicated commitment
towards building a safe, efficient, accessible, inclusive, interoperable and authorized
payment and settlement system in India. It is part of the Green Initiative to decrease the
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usage of paper in domestic payments market. UPI was officially launched in 2016 for public
use.
Under RBI guidance, NPCI became the primary body tasked with developing a new payment
system that is simple, secure, and interoperable. UPI works on four pillar push-pull
interoperable model where there will be remitter/beneficiary front end PSP (payment service
provider) and remitter/beneficiary back end bank that settles the monetary transaction for the
users. According to CEO of Net magic 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 Federal Reserve Board to
follow UPI as example in developing Fed Now, a real-time payment system for United
States.
With exponential growth of UPI, India became the world's largest real-time payment market
with 25.50 billion (25.5 billion) annual transactions in 2020 per data from ACI
Worldwide and Global Data, ahead of China and United States.
As per the Economist Intelligence Unit Report 2021, UPI made India a leader in global real-
time payment market followed by China and South Korea. After the decision of Ministry of
Finance to nullify merchant discount rate (MDR) in 2019 from UPI, the number of low value
transactions skyrocketed making huge gains on real-time transaction volume data. Nations
such as Brazil, Bahrain, Saudi Arabia, Singapore, United States and European Union are
now trying to emulate the success of UPI in their own market.
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. To make UPI economically feasible for payment companies,
RBI is considering merchant discount rate (MDR) on future UPI transactions. In its first
monetary policy for financial year 2022–23, RBI proposed cordless cash withdrawal facility
from ATM using UPI based QR code. In partnership with NSDL Payments Bank and NPCI,
Tone Tag launched Voices which will enable 40 crore feature phone users to make UPI
payment using voice in Hindi, Tamil, Telugu, Malayalam, Kannada, and Bengali languages.

How Does UPI Work

The user will only have to use a virtual address, known as a Virtual Payment Address (VPA)
to carry out any transaction. UPI has been developed by the National Payments Corporation
of India (NPCI) and is regulated by the Reserve Bank of India (RBI). UPI is slowly
becoming the most preferred form of digital payment. The below-mentioned things are
required to transfer funds via UPI:
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  A smartphone
 An active bank account
 The mobile number must be active and linked to the bank account
 Internet connection

UPI is slowly becoming the most preferred form of digital payment. The UPI interface is
compatible with most banks and many digital wallets, and payment applications are
embracing UPI. Some of the apps include Google Tez, Paytm, PhonePe and the like.

Participants in UPI:

1. Remitter bank
2. Beneficiary bank
3. NPCI
4. Merchants
5. Bank account holder
6. Payer PSP
7. Payee PSP

UPI - Benefits to the Ecosystem participants

Benefits of UPI for Banks:

 There is a universal application for one transaction

 This is a single click Two Factor authentication
 It is safer and more secure
 It enables easy transactions
 Unique Identifier
 Payment basis Single

Benefits of UPI for Merchants:

 Easier fund collection

 There is no risk of storing the customer's virtual address
 This is suitable for e-Com and m-Com transaction
 Tap customers do not need credit/debit cards
 In-App Payments (IAP)
 It resolves the hassle of cash on delivery

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Benefits for UPI for Customers:

 It is a single application for accessing various bank accounts

 There is round the clock availability
 You can easily raise a complaint from the mobile app directly
 The use of Virtual ID is secure

Registration in UPI enabled application

Steps to Register:

 You need to download the UPI app from the App Store.
 You can also create your profile by typing in details like your virtual id (payment
address), name, and password.
 You can go to 'Add/Link/Manage Bank Account' option and then link the bank and
account number with the virtual ID.

Generating UPI - PIN:

 You can select the bank account from which you want to initiate the payment, and
follow with any of these options:

Generate and Change M-PIN

 You will get an OTP from the bank on your registered mobile number
 You can enter last 6 digits of your debit card number and the expiry date
 You should enter the OTP and your preferred numeric UPI PIN and click 'Submit'
 Once you click Submit, you will get a notification
 You should enter your old UPI PIN and new UPI PIN and click 'Submit'

What Makes Unified Payments Interface Unique

These features make UPI a very unique platform:

 There is just one singe mobile app to access various bank accounts.
 It facilitates the immediate transfer of money via mobile devices 24*7.
 The virtual address of the customer for any kind of 'Pull & Push' offers security. The
customer does not have to enter information like card number, IFSC code or account
number.
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  With one click, there is a two-factor Authentication - Aligned with the Regulatory
guidelines, and also provides a seamless single click payment.
 Negates the hassle of cash on delivery, or even going to an ATM.
 You can easily share your bills with friends.
 Over the Counter Payments, Barcode (Scan and Pay) based payments, and Utility Bill
Payments can be made.
 You can make merchant payment with a single app or in-app payments.
 You can raise complaints directly from the mobile app.
 You can make donations, disbursements, and collections easily.

Performing a UPI Transaction

PUSH

This is when you send money using a virtual address:

 You should log into the UPI application

 Once you login, you can select 'Send Money/Payment'
 Key in the beneficiary's/payee virtual id, account to be debited, and amount
 You will see a confirmation on the screen
 Enter the UPI PIN
 You will get a message on the same.

PULL

This is when you request money:

 You should log into the UPI application

 Once you login, you can select 'Request Money/Payment'
 Key in the beneficiary's/payee virtual id, account to be credited, and amount
 You will see a confirmation on the screen
 Enter the UPI PIN
 You will get a message on the same.
 The payer will also get a notification for the request of money
 The payer will click on the notification and review the payment
 He/she can decide to accept or decline
 If the payment is accepted, the payer will enter the UPI PIN and authorise the
transaction
 The payer will get a 'successful or decline' notification
 You will get a notification and SMS from the bank.

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UPI Fees and Charges

There are no fees and charges applicable to the UPI platform. The UPI programme was
launched with the aim to promote digital transactions. The NCPI had earlier marked the
transaction charges to be 50 paise per transaction. However, the Government of India had
later cancelled these charges to make sure that more and more people started using the
platform.

UPI vs. Cards and Cash

The main aim of the UPI applications is to promote digital transactions and paving way for a
cashless economy. With UPI, users can avail the benefit of not carrying physical cash or any
form of plastic money. All transactions can be taken care of using their smartphones.

How secure are UPI transactions

UPI transactions are secured using UPI PINs which is a 4-6 digit numerical combination. In
addition to that, the applications are highly encrypted and have heavy bandwidth capacity.

Banks Which Offer the UPI Facility

The main banks that offer the UPI facility are given below:

Banks Offering The UPI Facility

1. Airtel Payments Bank 2. HSBC

3. Andhra Bank 4. Indian Bank

5. Bank of Baroda 6. ICICI Bank

7. Allahabad Bank 8. IndusInd Bank

9. Bank of India 10.State Bank of India

11.Canara Bank 12.Kotak Mahindra Bank

13.City Union Bank 14.Union Bank of India

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 15.DBS Digi bank 16.Paytm Payments Bank

17.Federal Bank 18.YES Bank

19.HDFC Bank 20.Punjab Nation Bank

Apps with UPI Feature in India

Below is the list of App that provides UPI Feature:

 PhonePe
 Paytm
 BHIM app
 MobiKwik
 Uber
 Paytm Payments Bank
 SBI Pay
 Google Pay
 Bharat Pe
 Axis Pay
 BOB UPI

Who initiated UPI?

UPI is an initiative that was taken by the National Payments Corporation of India (NPCI) as they partnered
with the Reserve Bank of India and Indian Banks Association (IBA).

NPCI is a firm that handles the RuPay payments infrastructure and is similar to MasterCard and Visa. It
enables various banks to interconnect and also transfer funds.

Immediate Payments Service (IMPS) is another initiative by the NPCI. UPI is now considered as an
advanced version of the IMPS facility.

What is UPI ID and PIN?

The UPI ID is identification for a bank account which can be used for sending and receiving funds. The UPI
PIN is a 4-digit personal identification number has to be entered for authorising the transfer of money via
UPI. This PIN can be chosen by the account holder.

What is UPI 2.0?

UPI 2.0 is a new and upcoming version of UPI payment system with improved features and
benefits. It is being touted as a more secure and comprehensive service with easier
authentication process.
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Upcoming Features of UPI 2.0

Although UPI app is chock full of features, UPI 2.0 promises to be a better tool than its
predecessor. Here are some of the new features set to be introduced in UPI 2.0:

 Bill Payment:

Currently, users can transfer funds via the UPI system to someone who has a bank account.
But UPI 2.0 promises to add the facility of payment of utility bills via UPI app. Bills for
electricity, telephone, insurance, mobile, credit cards, even EMI collection. It can be paid
off using this app at any time and place. Recent reports indicate that 2 banks are set to launch
the feature very soon. UPI will integrate Bharat Bill payment system to facilitate bill
payments with it.

 Pre-Authorized Transaction:

UPI 2.0 resolves the problem of forgetting pending bill payments by adding the feature of
pre-authorized transaction. For bill payments that has to be made regularly, the user can
authorize those billers to automatically withdraw the bill amount before the bill due date,
thus, facilitating stress-free bill payments. The number of automatic payments can also be
limited with an option to set the maximum amount limit and applicable date. Pre-Authorized
Transaction will also work for EMIs.

 Biometric Authentication:

UPI based payments are set to become more secure with the introduction of fingerprint
mapping technology and iris scanner in UPI 2.0. The facility of biometric payment
authentication would be introduced with the help of the Aadhar service. As biometric
identification of most Indian citizens have already been collected by UIDAI, that database
can be used to authenticate the identity of a user. Phones with fingerprint scanners and high-
quality cameras for capturing iris image can be used for biometric authentication, thus
bringing an end to the less secure MPIN.

 Check on Speed of Transaction:

UPI 2.0 is looking to add velocity checks for UPI transactions. These checks are there to
make sure that fraudulent transactions can be detected and hopefully prevented from
completing. Velocity checks are already used by some banks across India to provide better
security. Adding this feature in UPI 2.0 would greatly increase its reliability. A suspicious
transaction can be reported to the bank and the customer by the UPI app.

 Error Resolution:
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If your mobile number is linked to other people's bank accounts, for example the accounts of
your family members, the current UPI app shows an error. For UPI to work, the phone
number needs to be unique to a person. UPI 2.0 is trying to resolve this issue.

 Scheduled Payment:

Currently scheduling payments is not a feature available in UPI payment system. But UPI
2.0 is set to add this facility adding a much needed flexibility to the current system.

 Aadhaar Based Payments:

UPI 2.0 would introduce payments using Aadhaar numbers. Aadhaar number is unique to an
individual, more so than mobile numbers which multiple people could have owned before
you. Also, various banks have started linking the accounts to the holder's Aadhar, making it
easier to facilitate transaction directly from bank accounts.

Is UPI Secure
UPI transactions use a very high-secure encryption format and this is not easy to tamper
with. NPCI's IMPS network now handles around Rs.8000 crore worth transactions on a daily
basis. This has been expected to increase with UPI technology. This also uses a two-factor
authentication method, like an OTP, and verifies every transaction.

Pros or Advantages of UPI:

1. Using the UPI pin, you will be able to make the most secure payment. This is a very safe
medium, it just gives you a single PI, through which you can transfer money.
2. If you make payment from UPI, you will not have to pay any charges as this is completely
free by the Indian government.
3. UPI that you can also send any payment at one time or ask for it in your account. It either
deposits money into your account or transfers money to another account in a matter of
seconds.
4. UPI offer access to all your bank account through a single mobile application
5. You can send payment to any unified payments interface support bank, which is very
easily without any charge, the State bank of Panjab national bank, and all other banks.
6. UPI is easy to access, you can use24*7 hours a day, at any time and any place, even on
public holidays.
7. UPI is the one that does not need to fill in the various details like ATM card number, IFSC
code, and account number.
8. The UPI payment is very simple, with the help of this; you can send money quickly and
easily to another account.
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9. If you send any money to another account holder, then if you send the same payment
through the UPI, they are given some cashback in it. You can get a lot of benefits from it.

Cons or Disadvantages of UPI:

1. UPI is a deal for smaller fund transfers, when an amount is high then other modes of
online transfer are preferable.
2. 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.
3. Do not tell your personal information such as the date of birth, The UPI pin, and other
information to any other person, so that your account will be safe.
4. If you want to transfer payment in the UPI, then you can transfer up to Rs 10,000 as much
as possible. You should send it one at a time if you need to send it more than once.
5. 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 digit while having a small
digit, it is not safe, so make your payment carefully and its information does not let
anyone else know.
6. It does not work on the slow of the internet.
7. UPI is a very fast and safe medium, but sometimes it takes a lot of time to send the
payment after the bank’s server down.
8. If you want to pay using the UPA, you won’t need the UTI support app, which you’ll need
to install on your Android smartphone and use regularly take your mobile RAM too much.
So that your mobile hangs or uses too much internet to avoid it, you can clear app cache
and background data to the user can also shut down.
9. Anyone with your UPI credentials can easily perform these transfers and cause theft as
there is no real-time identification technology.
10.Technology unaware people find it difficult to use UPI payment apps and can be taken
advantage of by hacker

PhonePe App
PhonePe or PhonePe Private Limited it is an Indian e-commerce payment service and digital
wallet company. PhonePe was founded in the year 2015 by its founders, Mr. Sameer Nigam
and Rahul Chari and it was the first payment app in India which was built on Unified
Payments Interface i.e (UPI). PhonePe is now available in 11 Languages.
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Phone Pe offers various services such as:-

 User can send or receive money through Phone Pe app.

 User can make various payment- mobile recharges, DTH recharges; users can also make
payments of shopping online on various apps.
 . Phone Pe even allows users to book tickets through various apps such as Redbus,
Goibibo, Ola etc. Phone Pe app has more than 100 million users and it has crossed more
than 5 billion transactions. Latest development of Phone Pe app is that it allows its
customers to withdraw cash through its in app UPI feature which is also known as Phone
Pe ATM, which means that transferring the said amount which has to be withdrawn to a
nearby Phone Pe enabled merchant/ seller

Paytm App
Paytm UPI money transfer allows users to make digital payments in real-time. You can
perform direct bank-to-bank transfers in a completely safe manner by using UPI on Paytm.
All you need to have is the receiver’s contact number and you will be ready to make instant
payments. On top of this, you can also link more than one bank account and select one
primary account to make UPI transfers. The primary account will be used as the default
account for all Paytm UPI money transfers for sending and/or receiving money.

How to Make Paytm UPI Money Transfer to Send Money?

You can use Paytm UPI to send money in the following simple steps-

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  Login to your Paytm app
 Click on the option of ‘To Mobile’ under the ‘UPI & Wallet’ section
 Now, you can either enter the recipient’s mobile number or select the recipient’s
contact from your phone’s contact list
 Alternatively, you can also use the ‘Scan & Pay’ option to send money by scanning
the receiver’s QR code (This feature is more often used to make payments at retail
shops and other merchants)
 After selecting the contact number, click on the ‘Pay’ option visible on the next screen
that appears
 Enter the amount that you wish to transfer and confirm the bank account from which
you want to send the money (It will be displayed above the ‘Pay’ option on the screen)
 The amount will be transferred to the receiver within a few seconds

Making UPI money transfers through Paytm is the easiest and the simplest way to make
direct bank to bank transfers. Moreover, you can transfer as much as Rs. 1 lakh per day via
UPI

How to Receive Payment using UPI on Paytm?

To receive money through UPI on your Paytm app-

 All you need to do is share your UPI-linked mobile number with the sender
 You can also copy and share the UPI ID that you can find under your profile name in
your Paytm profile
 Alternatively, you can share your personal UPI QR code with the sender through
WhatsApp, Messenger, or other modes

Wrapping it up:

Paytm UPI money transfer has definitely eliminated the old-school ways of transferring
money online. Gone are the days when senders needed to wait for days to add the receivers
as beneficiaries to their accounts and then transfer the money through long, hectic methods.
Paytm UPI money transfer allows you to directly transfer as much as Rs. 1 lakh in a day to
any bank account, and that too in a few, simple steps. All you need to do is enter the
receiver’s contact number and you’ll be good to go!

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MobiKwik App

MobiKwik is also another Indian company app which acts as a digital wallet, as a mobile
payments system. MobiKwik is an app founded by Bipin Singh and Upasana Taku in the
year 2009. Initially MobiKwik was just a website with closed wallet facility but later started
with mobile apps. In the year 2016 MobiKwik launched -Mobikwik Lite app which was for
older 2G mobile networks and those with poor network connectivity. MobiKwik launched its
first ever Mobile Wallet system in the year 2012. Mobikwik also launched the feature of
sending and receiving money through a mobile app. Mobikwik also provides financial
services such as providing loans, various insurances such as life insurance, accident
insurance, fire insurance as well as mutual funds. In the year 2017, MobiKwiks biggest
competitor was Paytm. According to Forbes India Magazine, in the year 2015 MobiKwik
was used by more than 15million users for its unique features and was also claiming of
increase of one million users every month. In the year 2016, India had Demonetization
during this time Mobikwik had a 400% increase in Financial Transactions

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BHIM App

BHIM stands for Bharat Interface for Money. BHIM App is developed by National
Payments Corporation of India i.e. (NPCI) and it is based on Unifies Payment Interface i.e.
(UPI). Our Prime Minister Shri Narendra Modiji had launched this app. BHIM App was
launched on 30th December 2016 and is currently available in 20 languages. BHIM App
accepts all Indian banks which works on UPI system and which is built over IMPS i.e
Immediate Payment System which allows the user to transfer money to Bank accounts of
any two parties.

Using UPI system user can make transactions in an easy, quick and simple manner. Through
BHIM App users can do the various services:-

 User can Request money, for this it is mandatory that the users mobile number be
linked with the bank account using.
 For quick transactions users can Scan and Pay.
 Additional feature of BHIM App is that it allows the customers to check their
transactions history.
 There is a report tab in BHIM App for the customers if they have any complaint to
raise they can use this tab to do the same.
 Next option in the BHIM App is the Bank account option, so through this option user
can view the bank account that is linked with his/her BHIM App. A customer can also
change the bank account by just clicking Change Account‟ in the BHIM App.
 Through BHIM App it is easy to transfer money as BHIM App allows a customer to
transfer money to more than one payment address.

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Google Pay (Tez) App
As the name suggests, this UPI payment app is developed by the world-renowned
corporation Google. This app utilises Near-field Communication (NFC) technology to relay
card information and transfer money to the retailer.

This app distinctly offers many features in numerous Indian languages like Hindi, Marathi,
Gujarati, Telugu, Tamil, Kannada and Bengali.

Amazon Pay App

Backed by the business giant Amazon, it is the fourth largest UPI payment app in India.
Initially introduced to make shopping payments to merchants and sellers smoother for the
users, this app has now introduced the options for paying bills and making recharges through
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UPI. Amazon Pay is a service offered to Amazon customers, and we are enabled to use it
wherever we see it whether that is clicking the Amazon Pay button when checking out on
your favourite online stores, managing your payment methods in your account
on Amazon.com or using Amazon Pay on Alexa. There are no additional sign-ups or sign-
ins. Our transactions are safe and secure, and everything can be tracked in our Amazon
account.

SBI Pay App

This SBI payment app is solely developed for UPI transactions. It allows its users (i.e., the
SBI account holders) to send and receive money to all the bank accounts, shopping bills,
recharges and other payments.

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CRED App
It is a credit card bill payment platform with a members-only policy. It permits its consumers
to earn rewards for making their credit card bill transactions in time.

Axis Pay App

This app facilitates interoperability among numerous banks. It is similar to other apps and
allows the consumers to transact with the assistance of their smartphones as a single
identifier, UPI ID or technically called VPA, without asking for any bank account credentials

IMobile App

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This is among the top UPI apps in India and is the official banking application of ICICI Bank
for smartphone users. It is designed to be a secure and easily comprehensive banking
application, and the user can enjoy over 170 types of services through UPI transactions

Chillr App
It is one of the best UPI apps with an enhanced secure, simple and quick online transfer of
funds directly between the bank accounts via a mobile number. Chillr is a multi-bank mobile
banking app that lets users send and receive money to/from anyone in their phone book.
Chillr differentiates from online wallets as all fund transactions are between bank accounts.
It was listed in the “App Store Best of 2015” on the IOS platform in India. Chillr is the only
Financial/Banking app to be listed in this category.

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BOB UPI App

This is one of the most used UPI apps in India launched by the Bank of Baroda offers its
consumers additional unique features that we do not find in the other apps. This app, like its
counterparts, enables its users to perform UPI transactions with the help of a Virtual
Payment Address.

24
Free charge App
This UPI payment app is developed by the Indian financial service company, Freecharge. It
has a range of exclusive features. One of its unique characteristics is the scheme 'Buy now,
Pay later.' It enables the users to obtain credit scores.

Yes Bank App

Also known as YES mobile application, this UPI payment app is YES bank's mobile
application for banking. To prove the motto of 'On-the-go', this app extends fast logins
through fingerprints, pattern locks and one-go transactions to pay all your bills. This bank
also presents you with the opportunity to view nearby ATMs and bank branches. Customers
can carry our more than 100 banking transactions on the app. They can also link all their
YES Bank relations under a single login. They can access their bank account, credit cards,
Demat account, Bill Payment & Recharge and a host of non-financial transactions on the
app.

25
WhatsApp Pay
WhatsApp Pay is an in-chat payment feature that allows users to make transactions via
WhatsApp to their contact list. It is UPI-based payments service that allows you to both send
and receive money. It was developed by the National Payments Corporation of India (NPCI).

When was WhatsApp Pay introduced?

WhatsApp Pay was launched in February 2018 in India as part of a trial run. Payments
through WhatsApp were introduced to a million users under a partnership with ICICI Bank.
On February 7, 2020, the messaging app received NPCI's approval to roll out its digital
payment service in a phased manner. In the first phase, WhatsApp will offer payment
services to 10 million users in the country.

How to enable WhatsApp Pay?

To use WhatsApp Pay, a user must initiate a payment to a contact. Once the request is
received, the user can set up their UPI account on WhatsApp.

How to use WhatsApp Pay?

Users can send money directly through chat by tapping on the share file icon and selecting
‘payment’. The ‘payment’ section is available on the shortcut menu. Users can check their
26
transaction history and account details in that section. The payment system works on the
Unified Payments Interface (UPI) method, where fund transfers can be initiated without
having to provide bank account numbers and IFSC codes of recipients.

WhatsApp Pay: Modes of transaction

WhatsApp Pay allows users to send money only to their contacts after which it enables UPI
ID. WhatsApp Pay users could enter the UPI ID and send money. Through QR code,
WhatsApp users can also send money to people who are not in their contact list.

27
 CHAPTER 2
OBJECTIVE OF THE STUDY

1. To study about the level of students awareness towards UPI payment application.
2. To study about the factors that affects the students’ perception towards UPI.
3. To find out the major problems faced by the students while using UPI.
4. To analyse the factors motivating use of UPI over other modes of payment
5. To study the purpose for which UPI has been used by students

NEED FOR THE STUDY

Due to various reasons the online payments have become an important kind of transaction in
trade. So, it is imperative that to find the various sources of online sources towards money
transaction. By this study we are trying to find out what are the various modes of online
payment terms related to UPI.

This study is to analyse the awareness and satisfaction level of the customers in UPI and the
security and privacy concerns influencing customers in adoption of UPI. The study analyses
the consumer perception towards UPI. It highlights that the differences in risk perceptions
between bank customers using UPI and those not using. It shows that risk perceptions in
terms of financial, psychological and safety risks among customer using UPI payments.

28
 CHAPTER 3
SCOPE AND LIMITATIONS OF THE STUDY

The scope of the study is to extend the knowledge about the UPI services provided by
banks and other payment apps

Limitations of the study

1. The study is geographically limited. The results may vary with an expansion in the
geographical scope of the study
2. The research is time bound as it was conducted as a college project and has to be
completed within the semester
3. The inference made in this study are applicable only to this sample study which cannot
be generalized

CHAPTER 4
RESEARCH &METHODOLOGY

In order to conduct the research an appropriate methodology became necessary. In this

direction both primary as well as secondary data were attempted to be collected. The
methodology for collecting data with reference to the secondary data was taken from the
different published articles, books, journals, and the relevant websites. The library of the
college was of great help .The questionnaire was initially prepared in tough sketch at the first
instance. These questions were discussed with our internal guides and our teaching faculty.
They have provided valuable suggestions, additions deletions and modification of the rough
questionnaire Methodology became a preplanned strategy in collecting, editing, tabulating
and in interpreting the required information for the research. Thus methodology relied on
both primary and secondary data with the help of questionnaires, discussions, observations
as well as published work and unpublished work

29
 CHAPTER 5
REVIEW OF LITERATURE

Radhika Basavaraj Kakade1, Prof. Nupur A. Veshne, 2019, In their study reported that
the UPI has made digital transaction for individuals as easy as sending text messages.
Service is available 24X7, not like RTGS or NEFT which don’t work on holidays or
during non-banking hours. This will bring enormous efficiency in the system and help
India become a truly cashless economy.

In the study of (Dr.Virshree Tungare 2018), “A Study on Customer Insight Towards

UPI (Unified Payment Interface) - An Advancement of Mobile Payment System” states
that cashless transaction has become important component after the demonetization. The
researcher conducted a study in Indore about the UPI payments and related E-payments
modes. The findings of the study states that most of the respondents find UPI payments
are convenient way of using and it provides various rewards and incentives.

The study concluded that it is enhance with the help of smart phones. Atul Gupta 2018,
in his study titled “UPI- Redefining Digital Payments - A Critical Review” states the
statistical data about the usage of UPI mobile interfaces. The data was extracted from the
government websites like RBI and NPCI. This article discussed the various challenges
and opportunities of UPI

Suma Valley and Hema Divya, 2018, in their study on consumer adoption of digital
payments in India had indicates that the deployment of technology for digital payments
have improved the performance of banking sector and able to achieve the motive cash
less country. The study gives emphasis to the percentage of awareness on maximum
utilization of technology. Banks should take effective measures in creating awareness
towards the effective usage of technology and security.

Shamsher singh & Ravish Rana (2017), In their study reported that adoption of digital
payment is influenced by the education level of the customer. If a person has studied
beyond matriculation and internet savvy, he or she will be inclined to use the digital
payment mode. It was also found that in the areas/region where education level is high
such as Delhi NCR and other metropolitan area, the possibility of acceptance of digital
payment is much higher. The growth of users of Smartphone and internet penetration in
such area also facilitated the adoption of digital payment.

Shivani Maheswari 2019, in the study titled “UPI (Unified Payments Interface) - The
futuristic Payment Method” discusses the architecture of UPI and states the month wise
30
income features. From the study it is found that 105 million income till Nov 17, as
reported by National Corporation of India (NPCI). It is concluded from the study that UPI
payment is not only creating peer to peer transactions but also peer to merchant
transactions

J.Sivasubramanian, M. Velavan, S.Arunkumar, P.Abirami, C.Therasa and

G.Abirami(2017) ,”Preference Towards Digital Payment Among Gen X-ERS”,
International Journal Of Economic .

CHAPTER 6
DATA ANALYSIS AND INTERPRETATION
31
The Primary data for this study was collected through questionnaire and responses collected
through google form which was circulated in college groups and other groups through
WhatsApp

Secondary data was collected from external sources like websites, journals in form of
review literature with references

1. GENDER

INTERPRETATION

The above diagram is a Pie-chart. A pie-chart is a statistical graphic which is divided into
pieces that demonstrate the proportion of our data A pie-chart is used to demonstrate the data
collected by the respondents. The above question is the gender of the respondents and the
two options are Male and Female. Total Male respondents are 54 Total Female respondents
are 57 in count. Total male respondents are 48% of the whole number of respondents and
total female respondents are 51.35 % out of 100%. This shows that that are more female
respondents as compared to male respondents in our study

1. Have you ever used online payment application for making payments?

32
INTERPRETATION

The above diagram is a pie-chart diagram showing the results of the question asked to the
respondents that have they ever used online payment applications such as amazon pay or
google pay or paytm etc. The two options were yes and No and the data received are as
follows:-

The total number of respondents who have used online payment applications is 108
respondents. The total number of respondents who have never used online payment
application is 3 respondents. 2 respondents didn’t answer this question. Out of 100%,
97.30% of respondents are familiar with the usage of online payment applications and 2.70%
of respondents are not familiar with the usage of online payment applications. This means
that majority of our respondents have a good knowledge and experience about how to use
various online payment applications.

33
2. What is your biggest concern while using UPI payment apps?

INTERPRETATION

The above pie-chart represents the responses on the question what is the biggest concern
while using e-payments and the respondents have answered to the question with various
options an d they are:-

 Total 17 respondents feel transaction failure is their biggest concern while using
epayments and the percentage for the same is 15.60

 Total 32 respondents feel Fraud or theft is their biggest concern while using e-payments
and the percentage for the same is 29.36 %.

 Total 25 respondents feel Security issues are their biggest concern while using e-payments
and the percentage for the same is 22.94 %.

 Total 23 respondents feel Privacy concerns are their biggest concern while using
epayments and the percentage for the same is 21.10 %.

 Total 12 respondents feel Transaction charges are their biggest concern while using
epayments and the percentage for the same is 11.01 %.

3. Why would you adopt online payment option over physical payments?
34
INTERPRETATION

The above diagram is a pie-chart which is being used to demonstrate the data received from
the respondents, the question is why you would adopt online payments option over physical
payments. There are various options which the respondents have used and those are:-

 Total 22 respondents felt that online payments are easy payment option as compared to
physical payments and the percentage for the same is 20.18 % out

of 100%.

 Total 29 respondents agreed that online payments are time saving and convenient as
compared to physical payments and the percentage for the same is 26.61%.

 Total 35 respondents used online payments to avail various cashback offers and discounts
on their transactions and the percentage for the same is 32.11 %.

 Total 13 respondents felt that online payments are better as it helps to keep a track of their
expenses as compared to physical payments and the percentage for the same is 11.93%.

 Total 10 respondents use online payment as it is available 24*7 and the transfers can be
done anytime as compared to physical payments and the percentage for the same is 9.17%.
out of 100 %. Through the above interpretation it can be stated that respondents have various
benefits that they receive when they use online payment over physical payments

35
4. What are the types of purchase you do while using UPI payment applications?

INTERPRETATION

The above pie-chart shows the responses given by the respondents to the question
asked to them and here is the analysis of the same:-

 Total 27 respondents use online payments for mobile recharges

 Total 23 respondents use online payments for payments of bills.

 Total 25 respondents use online payments for online shopping.

 Total 12 respondents use online payments for food/beverages

 Total 15 respondents use online payments for online ticket booking

 Total 7 respondents use online payments for transfer of money

36
5. Do you think going cashless is beneficial for the economic growth of India?

INTERPRETATION

The above pie-chart shows the responses of the respondents on the question that
going cashless has helped the economic growth of India. The responses for the
same are as follows:-

 Total 39 respondents strongly agree that going cashless is beneficial for

the economic growth of India i. 35.78%.
 Total 35 respondents agree that going cashless is beneficial for the
economic growth of India i.e. 32.11%.
 Total 22 respondents are neutral that going cashless is beneficial for the
economic growth of India i.e. 20.18%.
 Total 12 respondents disagree that going cashless is beneficial for the
economic growth of India i.e. 11.01%.
 1 respondent strongly disagree that going cashless is beneficial for the
economic growth of India i.e. 0.92%.

This states that various respondents have various view point on

online payment applications.

6. Do you think after demonetization the use of e-wallets has increased?

37
 INTERPRETATION

The above pie-chart represents the data received from the respondents to the
question asked to them that do they think after demonetization the use of e-
wallets have increased. And the responses are as follows:-

 Total 34 respondents strongly agree that after demonetization the use of

e-wallets have increased and the percentage for the same is 31.19%.

 Total 48 respondents agree that after demonetization the use of e-wallets

have increased and the percentage for the same is 44.04%
.
 Total 17 respondents are neutral that after demonetization the use of e-
wallets has increased and the percentage for the same is 15.60%.

 Total 9 respondents disagree that after demonetization the use of e-wallets

have increased and the percentage for the same is 8.26%.

 Total 1 respondent strongly disagree that after demonetization the use of e-

wallets have increased and the percentage for the same is 0.92%.

38
 CHAPTER 7

7.1 FINDINGS OF THE STUDY

An online survey was conducted through structured questionnaire and in total we collected
111 responses out of which:-

1) From the total respondents of 111, there were 51% female respondents.

2) From the total respondents of 111, Majority of the respondents were from age group 17-
25 years

3) 97.30% of the total respondents had used online payments applications for making
payments.

4) 32% of the total respondents adopt online mode of payment to avail cashback offers and
get discounts as compared to physical payments and 27% of the respondents feel online
payments are time saving and convenient.

5) 24% of the total respondents use net banking as a payment gateway while making online
payments and only 8.26% of respondents’ use COD i.e. cash on delivery.

6) 29.36% of the total respondents have the concern of fraud or theft while using epayments
and 11.01% of respondents feel that transaction charges will be a concern while using e-
payments.

7) 46.79% of the total respondents agree that e-payment systems like google pay are a secure
mode of payment and use various e-payments modes.

8) Around 44.04% of respondents agree that after demonetization the use of e-wallets have
increased and around 31.19% of the total respondents strongly agree that demonetization has
increased the use of online payment application in India.is high and around 38.53% of the
total respondents feel that the contribution is very high on banks

9) Around 35.78% of the total respondents strongly agree that going cashless is beneficial for
the economic growth of India and around 32.11% of the respondents agree that going
cashless has helped the economy. Around 11.01% of the respondents disagree that going
cashless has helped the economy.

7.2 CONCLUSION AND SUGGESTIONS

This paper is focused on various digital wallets or online payment application in India like
Google pays, PayTm, Phonepe, Mobikwik, etc., then complete. An online survey was
39
conducted through structured questionnaire which received 111 responses some of the
respondents did not answered the questions accurately which proved to be the limitation of
the study. From the survey conducted it can be seen that many people are adopting cashless
mode of payment as it has its own pros like it :- reduces time and is convenient to use as well
as various online payment apps offers various cashback offers and discounts as well for
encouraging people to use digital mode of payment. A consumer can track all their expenses
with online payment. The concern that consumers have is their security, their privacy being
hacked or leaked, high transaction charges etc. With the increase in the usage of smartphones
the world has come closer and with a single touch any payment can be done. In our study it
can be seen that the consumers or the respondents are satisfied with the use for making
various payments and that online modes of payments are increasing day –by-day with the
increase in various technologies which facilitate the entire process of a transaction. As it can
be seen that cashless economy or the use of online payment application has its various
advantages and disadvantages so if any government is planning to adopt cashless economy
should carefully analyse the situation of the country. The government of India is taking
efforts to encourage the people of India to use digital modes of payments along with the
private sector companies

Many respondents felt that the hindrance in adopting cashless economy is the digital and
technological illiteracy among the people of India, so to overcome this problem government
need to take initiatives in educating the people about the same.

 As majority of the crowd in our country belong to the rural areas it is very important to
educate the people about cashless transactions and about e-wallets.

 Many of the respondents felt that cashless mode of transactions in India is not safe so the
government should make electronic payments infrastructure completely safe and secure.

 To increase more digital payments the government should bring transparency and
efficiency in the

 The government should conduct a financial literacy campaign to educate the population
about the digital modes of payment.

 Government should make the infrastructure capable and secure so that there are minimum
fraud and thefts. These are some of the suggestions which can help better implementation of
cashless society in India

40
 CHAPTER 8
BIBLIOGRAPHY
https://www.bankbazaar.com/ifsc/unified-payment-interface-upi.html
http://way2benefits.com
https://khatabook.com/blog/upi-payment-app
https://fedai.org.in
https://www.yourarticlelibrary.com
https://www.investopedia.com
https://www.wallstreetmojo.com/derivatives-contracts
https://cleartax.in
https://www.ncbi.nlm.nih.gov

41
 CHAPTER 9
APPENDIX
1. Name:
2. Gender:
 Male
 Female
3. Age
4. Have you ever used online payments applications for making payments?
 Yes
 No
5. What is your biggest concern while using UPI payments application
Transaction failure
 Fraud theft
 Security Issues
 Privacy concerns
6. Why would you adopt online payment option over physical payments?
 Easy payment option
 Time saving and convenient
 Cash back offers and discounts
 Easy to track expenses
 24*7 transfers
7. What are the types of purchase you do while using UPI payment applications?
 Mobile recharges
 Online ticket booking
 Payments of bills
 Online shopping
 Food Beverages
 Transfer money
8. Do you think going cashless is beneficial for the economic growth of India?
 Strongly agree
 Strongly disagree
 Agree
 Neutral
 Disagree
9. Do you think after demonetization the use of e-wallets has increased?
 Strongly agree
 Strongly disagree

42
 Agree
 Neutral
 Disagree

43