Payment Interface (UPI) initiative of Digital India by PM Narendra Modi

A Unified Payment Interface (UPI) is a single window mobile payment system launched by the National Payments Corporation of India (NPCI).

A Unified Payment Interface (UPI) is a single window mobile payment system launched by the National Payments Corporation of India (NPCI). The system is designed to provide a simple, secure and convenient “single interface” to enable sending and receiving of money using smartphones through a "single identifier" which can be a virtual address like an email ID, mobile number or Aadhaar number (like the Social Security Number). It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction. 

What does this mean for you?
The UPI can be thought of like an email ID for your money. It will be a single identifier that your bank uses to transfer money and make payments using the Immediate Payments Service (IMPS) - which lets you transfer money immediately and works 24x7. What this could do is make online payments much easier without requiring a digital wallet or credit or debit card.
It's all connected
By simplifying net-banking, the UPI could simplify online transactions - right now, you either have to enter your credit/ debit card number, name, expiry date and verification codes, or sign in with your net-banking account and go through a similarly tedious process, or use a digital wallet such as MobiKwik or Paytm to make a quick payment.

Who is behind UPI?

Unified Payment Interface is an initiative by National Payments Corporation of India’s (NPCI), set up with the support of the Reserve Bank of India and Indian Banks Association (IBA). The NCPI operates the Rupay payments infrastructure that – like Visa and MasterCard – allows different banks to interconnect and transfer funds.

IMPS (Immediate Payments Service) is also an initiative of NCPI. UPI is the advanced version of IMPS.

What I can do with UPI?

UPI will simplify your online payments. Now, we have to use NEFT, IMPS or a digital wallet such as MobiKwik or Paytm to make a quick payment to the service providers. With the UPI, you simply need to enter your details, and get a billing request on your phone – which you can accept or reject right away.

Taxi aggregators like Uber and Ola, food ordering services like Zomato and Food Panda, online grocery shops like Big Basket will be able to take advantage of the UPI system. Going forward, such companies should be able to register its identifier on the UPI system and receive funds from a customer’s bank account through the UPI. Most of the similar tech companies are now banking on mobile wallets.

Apart from this, you can send money to your family and friends instantly.