Source: FE
Context:
The International Monetary Fund (IMF) has officially recognised India’s Unified Payments Interface (UPI) as the world’s largest real-time retail payment system by transaction volume, highlighting India’s leadership in digital payments.
About UPI
- What It Is:
- India’s instant, real-time, interoperable payments system enabling bank-to-bank transfers via mobile phones.
- Operator & Regulator:
- Operated by NPCI (National Payments Corporation of India)
- Regulated by RBI (Reserve Bank of India)
- Origin:
- Conceptualised to unify fragmented payment systems into a single platform.
- Launched as a pilot in April 2016 under RBI Governor Raghuram Rajan.
Key Features of UPI
- Real-time Payments: Transfers completed in under 5 seconds, 24×7.
- Interoperability: Works across banks, apps, QR codes, and merchants.
- Low-cost / Zero MDR: Encourages mass adoption among consumers and small businesses.
- Scalable Architecture: Handles billions of transactions per month.
- Versatility: Supports P2P, P2M, autopay, credit lines, RuPay linkage, and international acceptance.
