Page 32 - Banking Finance February 2024

ARTICLE

I ndia's remarkable digital transformation has been Conceived and launched by the National Payments
Corporation of India (NPCI) in 2016, UPI was a crucial part
driven by innovative financial technologies and a vision
for an inclusive, cashless economy. Two significant
of the Indian government's push for a digital economy. UPI
milestones in this journey are the Unified Payments
making them easy, secure, and instantaneous. Users could
Interface (UPI) and the exploration of Central Bank Digital simplified peer-to-peer and peer-to-merchant transactions,
Currency (CBDC). This article delves into how these link their bank accounts to a mobile app and conduct
developments have shaped India's digital landscape and their transactions using a unique UPI ID, eliminating the need for
potential impact on the nation's financial future. cumbersome account numbers and IFSC codes. In August
2023, UPI transactions aggregated to Rs. 10586/- million,
The Birth of UPI with monthly payments valued at Rs. 15,76,536.56 crore.
In an increasingly digital world, India has emerged as a
pioneer in digital payments through its ground-breaking Key Features and Advantages of UPI
Unified Payments Interface (UPI). UPI has not only Interoperability: UPI stands out for its interoperability,
revolutionized transactions in India but has also set a global allowing users to transact across different banks and
standard for efficient and inclusive digital payment systems. payment service providers seamlessly, fostering healthy
competition and choice.
About the author
Financial Inclusion: UPI has played a pivotal role in bringing
Neha Gaur millions of unbanked and underbanked individuals into the
Chief Manager (Faculty ) formal financial ecosystem, thanks to its user-friendly
Union Bank Of India interface and accessibility through basic smartphones.
Union Learning Academy Digital
Transformation, Powai Security: UPI transactions prioritize security, with multi-

28 | 2024 | FEBRUARY | BANKING FINANCE