RBI launches UPI-based payments service, ‘123PAY’.

RBI launches UPI for Feature Phones (UPI123pay) and (b) 24×7 Helpline for Digital Payments (DigiSaathi)

What is the news :

• The Reserve Bank has launched two key initiatives –
  • UPI123Pay – Option to make Unified Payments Interface (UPI) payments for feature phone users
  • DigiSaathi – a 24×7 Helpline to address the queries of digital payment users across products.
• These two initiatives will help in in enhancing the diversity, utility and transformational power of digital innovations in the country.
• These initiatives will further deepen the digital ecosystem and financial inclusion.
• RBI stands committed to providing an enabling environment for this.

About UPI123:

At present, efficient access to UPI is available on smart phones. UPI can be accessed through NUUP (National Unified USSD Platform) using the short code of *99#.

But this option is cumbersome and not popular.

Considering that there are more than 40 crore feature phone mobile subscribers in the country, UPI123pay will materially improve the options for such users to access UPI.

UPI123Pay includes four distinct options as below:

• App-based Functionality: An app would be installed on the feature phone through which several UPI functions, available on smartphones, will also be available on feature phones.
• Missed Call: This will allow feature phone users to access their bank account and perform routine transactions such as receiving, transferring funds, regular purchases, bill payments, etc., by giving a missed call on the number displayed at the merchant outlet. The customer will receive an incoming call to authenticate the transaction by entering UPI PIN.
• Interactive Voice Response (IVR): UPI payment through pre-defined IVR numbers would require users to initiate a secured call from their feature phones to a predetermined number and complete UPI on-boarding formalities to be able to start making financial transactions without internet connection.
• Proximity Sound-based Payments: This uses sound waves to enable contactless, offline, and proximity data communication on any device.

About DigiSaathi:

• The 24×7 Helpline – ‘DigiSaathi’ – provides a channel to obtain help on the entire gamut of digital payments.
• Automated responses on information related to digital payment products and services are available in Hindi and English through multiple options like –
• toll-free number (1800-891-3333), (b) a short code (14431), (c) website – www.digisaathi.info, and chatbots.
• DigiSaathi will assist users with their queries on digital payments via website & chatbot facility and through toll-free calls where user can dial or call out the options / products for which the information is required.
• More interactive options and language choices shall be enabled going forward.
• The above initiatives are envisioned to accelerate the process of digital adoption in India, by creating a richer and inclusive ecosystem that can accommodate larger sections of population.
• UPIor Unified Payments Interface is an immediate real-time payment system that helps in instantly transferring the funds between the two bank accounts through a mobile platform.Hence, UPI is a concept that allows multiple bank accounts to get into a single mobile application. This idea was developed by the National Payments Corporation of India and is controlled by the RBI and IB ..

What is UPI?

• UPI is a single platform that merges various banking services and features under one umbrella. A UPI ID and PIN are sufficient to send and receive money. Real-time bank-to-bank payments can be made using a mobile number or virtual payment address (UPI ID).

Who initiated UPI?

• UPI is an initiative taken by the National Payments Corporation of India (NPCI) together with the Reserve Bank of India and Indian Banks Association (IBA).
• NPCI is the firm that handles RuPay payments infrastructure, i.e. similar to Visa and MasterCard. It allows different banks to interconnect and transfer funds. Immediate Payments Service (IMPS) is also an initiative of NPCI. UPI is considered as the advanced version of IMPS.

Features and benefits of using UPI:

• Online payments are simplified.
• Pay for your hailing services, food delivery services, and shopping sites with UPI payments for instant fund transfer.
• Pay at the nearest restaurants, grocery stores, and departmental stores online.
• Rent, mobile recharge, and utility bill payments can be done online instantly.