The new version of UPI, which is coming after a long delay, is likely to come with new features
The National Payment Corporation of India (NPCI) is finally rolling out the upgraded version of the UPI (Unified Payment Interface) 2.0 platform this week, after much delay. This is likely to come with new features, reported The Economic Times.
UPI is a payments system that facilitates instant fund transfer between two bank accounts on a mobile. It was launched in August 2016.
Some of the new features that can be expected in the update are:
> The transaction limit set in the earlier version of UPI is set to be doubled to Rs 2 lakh in this version.
> The new update will allow users to link not only saving accounts to their UPI but also overdraft (OD) accounts. This would allow users to continue withdrawing money even if the account does not have sufficient funds.
> The update allows the merchants to block a particular amount in a customer’s account as security and debit it in the future without any authentication
> This makes UPI useful for booking rooms, plane tickets, cab rides, e-commerce deliveries, buying stocks during IPOs and various other transactions
> The proposal to introduce Aadhaar-based payment service was withdrawn because of privacy concerns
> E-wallets can now be a part of UPI, as earlier only bank accounts could be used
> The new UPI will let merchants or users send invoices for their transactions
UPI transactions touched record growth recently, driven by players like Google Tez and Paytm. In June, UPI transactions were nearly 25 crore, seeing an increase of almost 30 percent over 19 crore in May 2018. The value of transactions grew 22 percent in June from March.
