Search results for how does UPI payment work in India 2026 2026 in India explained explained explained 2026

1. Yyoutube.com › watchEN

   Will you soon have to pay to use UPI? Govt explains new MDR plan

   Will you soon have to pay to use UPI? The government has clarified that UPI transactions for citizens will remain free, while the vast ...
2. Een.wikipedia.org › wiki › Unified_Payments_InterfaceEN

   Unified Payments Interface - Wikipedia

   ## History [ [edit](https://en.wikipedia.org/w/index.php?title=Unified_Payments_Interface&action=edit&section=1)] [[14]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-:1-14) Raghuram G. [[20]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-20)[[21]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-:4-21) UPI works on a four-pillar push-pull interoperable model where there will be a remitter/beneficiary front-end PSP ( [payment service provider](https://en.wikipedia.org/wiki/Payment_service_provider)) and a remitter/beneficiary back-end bank that settles the monetary transaction for the users. [[14]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-:1-14)[[15]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-:2-15) [[23]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-23) With the exponential growth of UPI, India became the world's largest real-time payment market with 25.5 billion annual transactions in 2020 as per data from [ACI Worldwide](https://en.wikipedia.org/wiki/ACI_Worldwide) and [GlobalData](https://en.wikipedia.org/wiki/GlobalData). [[24]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-24) [[27]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-:6-27)[[28]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-28) [[29]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-:7-29) To make UPI economically feasible for payment companies, RBI is considering a [merchant discount rate](https://en.wikipedia.org/wiki/Merchant_discount_rate) (MDR) on future UPI transactions. [[30]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-30) In its first monetary policy for the 2022–23 financial year, RBI proposed a cardless cash withdrawal facility from ATMs using UPI-based QR codes. [[31]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-31) In partnership with the NSDL Payments Bank and NPCI, ToneTag launched VoiceSE, which will enable 40 crores (400 million) feature phone users to make UPI payments using voice in [Hindi](https://en.wikipedia.org/wiki/Hindi), [Telugu](https://en.wikipedia.org/wiki/Telugu_language), [Tamil](https://en.wikipedia.org/wiki/Tamil_language), [Malayalam](https://en.wikipedia.org/wiki/Malayalam), [Kannada](https://en.wikipedia.org/wiki/Kannada), and [Bengali](https://en.wikipedia.org/wiki/Bengali_language) languages. [[32]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-32) Currently, around 70% of UPI users are from places other than Tier-1 cities with over 80% of newly registered users originating from Tier-2 cities. [[33]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-33) On 8 August 2024, RBI suggested raising the UPI tax payment ceiling from ₹1 lakh to ₹5 lakh. [[34]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-34) The expansion of UPI demonstrates that the government is ensuring that the technology it creates for citizens is easy to use, easily accessible, and constantly improved, which accounts for the high rate of UPI acceptance in India. Over 640 million transactions are handled via UPI per day, compared to 639 million by Visa. [[37]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-37) ## Market share | Year | No. of Payment Partners on UPI | Transaction volume (in mn) | INR value (in mn) | USD value (in bn) | |-|-|-|-|-| | **2026** | 684 | | | | ## Internationalization [[132]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-132) On 26 January 2022, UK based fintech startup Transact365 enabled UPI for global merchants with real time currency conversion facility that will help them do business in India independent of local presence. [[133]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-133) As per NPCI and RBI mandate, banks, payment service providers (PSPs) and third-party application providers (TPAPs) in India must enable international acceptance through UPI from 30 September 2022. Users will be able to pay in international currency directly from Indian bank accounts. ## Acceptance ### India (Domestic) [ [edit](https://en.wikipedia.org/w/index.php?title=Unified_Payments_Interface&action=edit&section=27)] United Arab Emirates and Singapore, both of which have sizeable Indian expatriate populations, have begun regarding the operation of UPI in those countries; this would also facilitate ease of payment for Indian tourists traveling there. [[170]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-170) NPCI is planning to link UPI with standalone mobile wallets so that users can transfer money from one provider to another one which until now is restricted due to use of closed source technology. There is also provision for off-line UPI payment through the use of [near field communication](https://en.wikipedia.org/wiki/Near-field_communication) (NFC). [[171]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-171) [[172]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-172) On 20 April 2020, Google added support for UPI payment in India to buy membership of [YouTube Premium](https://en.wikipedia.org/wiki/YouTube_Premium) and [YouTube Music](https://en.wikipedia.org/wiki/YouTube_Music) either directly through a website or on the mobile application. UPI is also enabled for the YouTube SuperChat feature. [[173]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-173) From July 2021, [Apple](https://en.wikipedia.org/wiki/Apple_Inc.) [iPhone](https://en.wikipedia.org/wiki/IPhone), [iPad](https://en.wikipedia.org/wiki/IPad), and [IPod Touch](https://en.wikipedia.org/wiki/IPod_Touch) users in India can use UPI on [App Store](https://en.wikipedia.org/wiki/App_Store_(iOS/iPadOS)) and [iTunes Store](https://en.wikipedia.org/wiki/ITunes_Store). [[175]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-175) On 4 August 2021, [ICICI Prudential Life Insurance](https://en.wikipedia.org/wiki/ICICI_Prudential_Life_Insurance) started supporting UPI AutoPay feature for insurance payment. [[176]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-176)[[177]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-177) [[178]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-178) From 31 August 2021, [Netflix](https://en.wikipedia.org/wiki/Netflix) integrated UPI AutoPay feature for Indian subscribers which was until now limited to credit and debit cards from [Visa](https://en.wikipedia.org/wiki/Visa_Inc.), [Mastercard](https://en.wikipedia.org/wiki/Mastercard), [American Express](https://en.wikipedia.org/wiki/American_Express), and [Diners Club International](https://en.wikipedia.org/wiki/Diners_Club_International). [[179]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-179) As per April 2021 RBI Monetary Policy Committee directive, after 31 March 2022, all the " [know your customer](https://en.wikipedia.org/wiki/Know_your_customer)" (KYC)-compliant [digital wallets](https://en.wikipedia.org/wiki/Digital_wallet) will become interoperable by using UPI system. [[181]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-181) Due to high usage, [Samsung Electronics](https://en.wikipedia.org/wiki/Samsung_Electronics) integrated UPI [barcode scanner](https://en.wikipedia.org/wiki/Barcode_reader) directly into mobile camera application for faster payment. [[183]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-183) NPCI with [Jio](https://en.wikipedia.org/wiki/Jio) introduced UPI AutoPay for prepaid and postpaid mobile subscribers from 6 January 2022. [[186]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-186) [Bangalore Metropolitan Transport Corporation](https://en.wikipedia.org/wiki/Bangalore_Metropolitan_Transport_Corporation) (BMTC) & [Tamil Nadu State Transport Corporation](https://en.wikipedia.org/wiki/Tamil_Nadu_State_Transport_Corporation) (TNSTC) will start UPI based ticketing system from 2023. [[187]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-187) [Lucknow Municipal Corporation](https://en.wikipedia.org/wiki/Lucknow_Municipal_Corporation) (LMC) in collaboration with [Paytm](https://en.wikipedia.org/wiki/Paytm) setting up QR code for housing tax. [[188]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-188) [Kotak Mahindra Bank](https://en.wikipedia.org/wiki/Kotak_Mahindra_Bank) has rolled out the UPI payment facility for the [Goods and Services Tax](https://en.wikipedia.org/wiki/Goods_and_Services_Tax_(India)) Network (GSTN) in the following states: Assam, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, and Odisha. Additionally, the [Karnataka State Road Transport Corporation](https://en.wikipedia.org/wiki/Karnataka_State_Road_Transport_Corporation) (KSRTC), is also planning to accept UPI payments. [[190]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-190) The [Metropolitan Transport Corporation](https://en.wikipedia.org/wiki/Metropolitan_Transport_Corporation_(Chennai)) (MTC) has provided new handheld devices with UPI capability to its bus conductors in [Pallavaram](https://en.wikipedia.org/wiki/Pallavaram). For all MTC buses, the Tamil Nadu Infrastructure Development Board (TNIDB) intends to implement a QR-based ticketing system for UPI payment. [[191]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-191) NPCI has integrated [Kendriya Vidyalaya Sangathan](https://en.wikipedia.org/wiki/Kendriya_Vidyalaya_Sangathan) with the [Bharat Bill Payment System](https://en.wikipedia.org/wiki/Bharat_Bill_Payment_System), allowing pupils to pay their school fees with UPI. [[192]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-192) UPI-based ticketing system made accessible from June 2024 at [Kolkata Metro Blue Line](https://en.wikipedia.org/wiki/Kolkata_Metro_Blue_Line). Additionally, [Kolkata Metro Green Line](https://en.wikipedia.org/wiki/Kolkata_Metro_Green_Line) stations also have UPI facility.[[193]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-193) [Kolkata Metro Orange Line](https://en.wikipedia.org/wiki/Kolkata_Metro_Orange_Line) were made UPI enabled from July 2024. [[194]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-194) With the goal of reducing reliance on third-party apps, minimizing unsuccessful payments, and streamlining the checkout process, [Zomato](https://en.wikipedia.org/wiki/Zomato) and [Swiggy](https://en.wikipedia.org/wiki/Swiggy) launched their own UPI services. Zomato partnered with ICICI Bank, whereas Swiggy is utilizing the UPI Plugin to enable payment, doing away with the need for a TPAP license. UPI payment methods for temple offerings have also been implemented by the [Travancore Devaswom Board](https://en.wikipedia.org/wiki/Travancore_Devaswom_Board). [[197]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-197) Under schemes like Rebate of State and Central Taxes and Levies (RoSCTL) and Remission of Duties and Taxes on Exported Products (RoDTEP), Indian government will permit the payment of customs duties via UPI and expand its use beyond duty payments to include expedited processing of refunds and incentives. [[198]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-198) ## References 9. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-9)[[https://eacpm.gov.in/wp-content/uploads/2026/03/Financial-Inclusion-as-a-Path-to-Equality-Lessons-from-India.pdf](https://eacpm.gov.in/wp-content/uploads/2026/03/Financial-Inclusion-as-a-Path-to-Equality-Lessons-from-India.pdf)](https://eacpm.gov.in/wp-content/uploads/2026/03/Financial-Inclusion-as-a-Path-to-Equality-Lessons-from-India.pdf) UPI transactions hits record high 12. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-12)["India's UPI Revolution"](https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154912&ModuleId=3). _PIB India_. 17. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-17)["10 years of UPI: PM Modi hails India's digital payments milestone and massive reach"](https://timesofindia.indiatimes.com/india/10-years-of-upi-pm-modi-hails-indias-digital-payments-milestone-and-massive-reach/articleshow/133489789.cms). _The Times of India_. 25 August 2026. [ISSN](https://en.wikipedia.org/wiki/ISSN_(identifier)) [0971-8257](https://search.worldcat.org/issn/0971-8257). Retrieved 25 August 2026. 18. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-18)["10 years of UPI: 66 crore transactions a day and other figures that stand out - CNBC TV18"](https://www.cnbctv18.com/photos/india/upi-ten-years-india-digital-payments-transaction-growth-npci-real-time-payments-19976236.htm). _CNBCTV18_. 25 August 2026. Retrieved 25 August 2026. 20. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-20)["UPI Product Overview"](https://www.npci.org.in/what-we-do/upi/product-overview). National Payments Corporation of India. Retrieved 16 March 2026. 83. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-83)["UPI: India built a digital payments miracle. Now comes the bill"](https://www.bbc.com/news/articles/c8xnwqe00v1o). _[www.bbc.com](http://www.bbc.com)_. 16 August 2026. Retrieved 24 August 2026. 84. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-84)["Government may allow fees on UPI payment above Rs 2,000"](https://timesofindia.indiatimes.com/india/government-may-allow-fees-on-upi-payment-above-rs-2k/articleshow/132880274.cms). _The Times of India_. 5 August 2026. [ISSN](https://en.wikipedia.org/wiki/ISSN_(identifier)) [0971-8257](https://search.worldcat.org/issn/0971-8257). Retrieved 24 August 2026. 85. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-85)["Why UPI MDR's Return Could Widen the Gap Between Large and Small Merchants"](https://www.forbesindia.com/article/news/deep-dive/mdr-reintroduction-ignites-small-vs-big-player-debate/2997348/1). _[www.forbesindia.com](http://www.forbesindia.com)_. Retrieved 24 August 2026. 228. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-228)["India launches UPI at department store in France"](https://www.thehindubusinessline.com/money-and-banking/india-launches-upi-at-department-store-in-france/article71111839.ece). _BusinessLine_. 17 June 2026. Retrieved 18 June 2026. 239. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-239)["India signs deal to bring UPI to Israel in major digital payments push"](https://m.economictimes.com/nri/invest/india-signs-deal-to-bring-upi-to-israel-in-major-digital-payments-push-modi-netanyahu/articleshow/128812280.cms). _The Economic Times_. 26 February 2026. Retrieved 26 February 2026. 240. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-240)["India-Israel sign pact to link UPI systems in major digital payments push"](https://www.moneycontrol.com/world/india-israel-sign-pact-to-link-upi-systems-in-major-digital-payments-push-know-where-else-the-platform-works-article-13844648.html). _Moneycontrol_. 26 February 2026. Retrieved 26 February 2026. 242. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-242)["Indian travellers can now use UPI at QR-code merchants in Cambodia"](https://www.thehindubusinessline.com/money-and-banking/upi-acceptance-at-qr-code-merchants-goes-live-in-cambodia/article71058268.ece). _BusinessLine_. 4 June 2026. Retrieved 18 June 2026. 243. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-243)Sarkar, Subhojit (2 June 2026). ["Indian travellers can now make UPI payments in Cambodia via KHQR network"](https://www.fortuneindia.com/business-news/indian-travellers-can-now-make-upi-payments-in-cambodia-via-khqr-network/141020). _Fortune India_. Retrieved 18 June 2026. 244. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-244)Singh, Rohit (6 June 2026). ["UPI Payments Launch in Cambodia for Indian Travellers"](https://www.medianama.com/2026/06/223-india-launches-upi-qr-payments-cambodia/). _medianama.com_. Retrieved 18 June 2026.
3. Bbbc.com › news › articles › c8xnwqe00v1oEN

   UPI: India built a digital payments miracle. Now comes the bill. - BBC

   edigitalsurvey.com # edigitalsurvey.com is blocked  # India built the world's biggest digital payments miracle. Now comes the bill Save For most Indians, paying by Unified Payments Interface (UPI) has become almost absurdly routine. Scan a QR code, tap a few buttons and the money moves instantly. There is no card machine, no cash, and - most importantly - for the user, no visible fee. India has [paved the way](https://thewire.in/banking/lok-sabha-passes-bill-allowing-govt-to-permit-banks-others-to-charge-for-upi-transactions) for banks and payment companies to charge merchants a fee on UPI transactions, potentially ending a decade-long experiment in free digital payments. The government has yet to decide the rate or exactly where it will apply, but proposals under discussion include a merchant discount rate (MDR) of 0.3-0.5% - a small fee paid by a business to the banks and payment companies that process its UPI payments - on larger transactions at big businesses. The government [says](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2296594&reg=48&lang=2) consumers and person-to-person UPI payments will remain free. If merchant fees are introduced, they will apply only to some transactions above a set threshold, at a nominal rate, meaning most UPI payments will remain free. A man stands beside a horse fitted with a payments QR code near its eye, allowing riders to pay digitally after a beach ride According to official data, in July alone, there were 23.6 billion UPI transactions worth 29.87 trillion rupees ($313.5bn; £232.2bn). Fintech apps such as PhonePe and Google Pay account for most UPI payments. In the financial year just ended, the figure was about 241.6 billion transactions - almost 12,000 times the volume in UPI's first full year. UPI is not merely big. The system is run by the National Payments Corporation of India, a non-profit entity, with banks and technology companies providing the consumer-facing services. A vegetable seller, taxi driver or small shopkeeper does not need to buy a card terminal to accept UPI. A printed QR code will do. A woman scans a QR code after buying vegetables at a market in Kolkata "Our study suggests that merchant acceptance is not just a result of UPI growth, but one of its key drivers," Motheram says. But if they reach small and informal merchants, especially in districts where acceptance networks are still developing, they could slow the merchant expansion that has helped UPI scale," he says. One option reportedly under discussion would target transactions above 2,000 rupees at larger merchants, leaving small businesses and low-value payments untouched. Transactions above that threshold account for only about 4% of merchant-payment volumes but roughly 67% of their value, according to brokerage firm Jefferies. That could generate a sizeable new revenue stream - up to a billion dollars, by one [estimate](https://x.com/refsrc/status/2084486790405345404?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E2084486790405345404%7Ctwgr%5E76a20d07d91e080db36c073d97839e992897e0cf%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.medianama.com%2F2026%2F08%2F223-rbi-governor-upi-mdr-premature%2F) - for banks and payment companies while leaving the everyday smaller payment to the neighbourhood grocer effectively unchanged. UPI may feel free, but it is not costless. Even street food vendors accept digitial payments in India Servers have to run, transactions settled, fraud detected and the system protected against cyberattacks. For years, the government has helped compensate banks and payment firms for providing a service that has effectively been treated as public infrastructure. But the economics become trickier the further down the merchant chain a fee travels. "Even a small fee could matter if it changes the incentives of small merchants operating on thin margins," he says. A fee imposed on a large retailer is very different from one imposed on a tiny shop or informal trader. Yet it is the world's [fastest-growing real-time payment system,](https://www.rebill.com/en/blog/pix-your-ticket-to-the-brazilian-market) used by more than 140 million people and 14 million companies, with more than four billion transactions a month averaging about $88 each. The first phase was about creating the network. The second was about getting hundreds of millions of people and millions of merchants onto it.
4. Wweforum.org › videos › this-system-is-transforming-digital-payments-in-indiaEN

   How Unified Payment Interface (UPI) Is Making India Digital

   [Skip navigation](https://www.weforum.org/videos/this-system-is-transforming-digital-payments-in-india/#global-nav_after) [User profile link](https://my.weforum.org/network/people//) 0 seconds of 1 minute, 41 secondsVolume 90% Play/PauseSPACE Increase Volume↑ Decrease Volume↓ Seek Forward→ Mute/Unmutem Decrease Caption Size- Increase Caption Size+ or = Seek %0-9 Live 00:00 01:41 01:41 # How Unified Payment Interface (UPI) Is Making India Digital The Unified Payments Interface (UPI) system is transforming digital payments in India. It allows for real-time, fee-free payments between banks. Since its creation in 2016, UPI has grown exponentially, hitting 8 billion transactions a month in December 2022. Now, India is sharing the Unified Payments Interface technology with other Commonwealth nations and connecting its own digital payment systems with countries like Singapore to lower the cost of cross-border payments. Today, this is the main way small businesses receive payments. The technology is open-source, so other countries could soon start using it. Watch the full video to learn more about India’s Unified Payment Interface. ##### Topics: [Forum in Focus](https://www.weforum.org/stories/forum-institutional/) [Geographies in Depth](https://www.weforum.org/stories/geographies-in-depth/) ##### Share:  ## Forum Storiesnewsletter ### More onForum in Focus [See all](https://www.weforum.org/stories/forum-institutional/) Seham Farouk July 17, 2026 July 14, 2026 June 25, 2026 June 25, 2026 June 25, 2026 Kaiser Kuo June 25, 2026
5. Iinvestopedia.com › terms › u › unified-payment-interface-upi.aspEN

   Unified Payments Interface (UPI): How It Works and Its Benefits

   :max_bytes(150000):strip_icc():format(webp)/Unified-payment-interface-upi_final-76629e7fb7bb4bbca0068eabf39a78ea.png) UPI is used on mobile devices in India to facilitate instant peer-to-peer (P2P) and person-to-merchant (P2M) transactions. Close ### Key Takeaways - The Unified Payments Interface (UPI) is a real-time payment system by the National Payments Corporation of India, facilitating bank transfers via smartphones. - UPI uses Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS) for seamless transactions, regulated by the Reserve Bank of India. - It allows mobile payments without the need for cash, credit, or debit cards, ensuring safety and financial convenience for users. - UPI supports both local and international transactions to India via various banking apps. - UPI contributes to increasing digital transactions in India's economy by reducing the reliance on cash. ## What Is a Unified Payments Interface (UPI)? The Unified Payments Interface (UPI) is a transformative mobile payment system developed by the National Payments Corporation of India (NPCI). It allows users to securely transfer money between bank accounts using just a smartphone app, bypassing the need to enter sensitive bank details each time. This streamlined process is regulated by the Reserve Bank of India (RBI). It has contributed significantly to the growth of digital transactions in India. We'll explore how UPI operates, its benefits, and explain how users can perform transactions. ## How UPI Transactions Work The Unified Payments Interface is a real-time payment system. It is designed to enable peer-to-peer inter-bank transfers through a single two-click factor authentication process. The interface is regulated by the [Reserve Bank of India (RBI)](https://www.investopedia.com/terms/r/rbi.asp), India's central bank. It works by transferring money between two bank accounts along with a mobile platform. The pilot system launched in India on April 11, 2016, and banks began uploading their interfaces in August 2016.1 UPI uses systems like Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS) for smooth account settlements. It facilitates push (pay) and pull (receive) transactions and even works for [over-the-counter](https://www.investopedia.com/terms/o/otc.asp) or barcode payments, as well as for multiple recurring payments such as utility bills, school fees, and other subscriptions. Open a New Account Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. ### Important In 2021, $940 billion was transacted over UPI, and by 2022, monthly transactions averaged over six billion.2 Once a single identifier is established, the system allows mobile payments to be delivered without the use of credit or debit cards, net banking, or any need to enter account details. This would not just ensure greater safety of sensitive information, but connect people who have bank accounts via [smartphones](https://www.investopedia.com/terms/s/smartphone.asp) to carry out hassle-free transactions. Overall, UPI leads to fewer cash transactions and may help reduce the [unbanked](https://www.investopedia.com/terms/u/unbanked.asp) population. ## Services Offered by Unified Payments Interface A number of key features are offered by UPI. Users can access balances and transaction histories, along with sending and receiving money. To send money, users need an account number, the Indian Financial System Code (or IFSC, which is an alphanumeric code that facilitates electronic transfers), the mobile number of the recipient, and a virtual ID or Aadhaar number (which is like a Social Security number). ## Is UPI Available in the U.S.? You are able to send money to India from the U.S. using UPI. ## Which UPI Systems Can You Use in India? The UPI systems that you can use in India consist of many banking/payment apps that allow you to use UPI. These include PhonePe, Google Pay, Axis Pay, and BHIM. ## Is UPI Safe in India? It is regulated by India's central bank, the Reserve Bank of India. ## The Bottom Line The Unified Payments Interface (UPI) in India is a secure and efficient mobile payment system regulated by the Reserve Bank of India. It streamlines transactions by eliminating the need for cash or card details and supports both peer-to-peer and inter-bank transfers. Since its inception in 2016, UPI has transformed financial transactions in India by enabling hassle-free payments and reducing reliance on cash, thus fostering greater economic integration. By using existing systems like IMPS and Aadhaar Enabled Payment System, UPI ensures seamless and secure money transfers, making it a vital tool for the country's digital economy.
6. Yyoutube.com › watchEN

   Explained: New digital payments rules | UPI payment | RBI - YouTube

   # Explained: New digital payments rules | UPI payment | Online payment | Card payment | RBI [](https://www.youtube.com/@businessstandard) [Business Standard](https://www.youtube.com/@businessstandard) Business Standard 706K subscribers Subscribe Subscribed 1.3K Share Save Download Download 80K views5 months ago [#onlinepayment](https://www.youtube.com/hashtag/onlinepayment) [#rbi](https://www.youtube.com/hashtag/rbi) [#digitalpayments](https://www.youtube.com/hashtag/digitalpayments) 80,850 views • Mar 24, 2026 • #onlinepayment #rbi #digitalpayments India’s digital payments system will see tighter security from April 1, 2026, with the Reserve Bank of India (RBI) making two-factor authentication (2FA) compulsory for all transactions. This move aims to curb fraud, widen authentication methods, and fix accountability on banks. …...more ...more [**Intro** **Intro** \ \ 0:00](https://www.youtube.com/watch?v=nbHLflG_Eyc) [**Intro**](https://www.youtube.com/watch?v=nbHLflG_Eyc) 0:00 [**Two Factor Authentication** **Two Factor Authentication** \ \ 0:13](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=13s) [**Two Factor Authentication**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=13s) 0:13 [**Riskbased checks** **Riskbased checks** \ \ 1:26](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=86s) [**Riskbased checks**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=86s) 1:26 [**Security burden** **Security burden** \ \ 1:49](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=109s) [**Security burden**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=109s) 1:49 [**Crossborder payments**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=123s) 2:03 [**Conclusion** **Conclusion** \ \ 2:14](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=134s) [**Conclusion**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=134s) 2:14 Follow along using the transcript. Show transcript [Videos](https://www.youtube.com/channel/UCQsob4fGjHWhYHW0OLb6rew/videos)[About](https://www.youtube.com/channel/UCQsob4fGjHWhYHW0OLb6rew/about)[Facebook](https://www.youtube.com/redirect?event=Watch_SD_EP&redir_token=QUM4Zm9rU29rVDRnY0JRUUFMbnJyUTlRcFBFcnxBTl9pYzRlUHRwZ19jRzFfZUl2MmJ4dS1DV2tmOENmVnhYSjZXNnNsTnNqamNmbW55b0Z2QjVHU28tVGxHR0VkMmkxbkU1anpyeWs5T3pva0RySGhCQUhmam5NWDl5VUhtd0F2&q=http%3A%2F%2Fwww.facebook.com%2Fbsindia)[Twitter](https://www.youtube.com/redirect?event=Watch_SD_EP&redir_token=QUM4Zm9rUW85bEFPaXUxY1AxNTB0Z3hoSjFoNXxBTl9pYzRmcklVV044TU80c3dpUk5nd2FGWDJ6WFhoY0hDWnZBYUdyLWhOX3BvYUY1cGdMcFFPZlFQWTNyVU5GRWlyN3hXc0RCUDRFNEJEOVV1OTNpbHhtbE1XbGNVUFdZNjkx&q=https%3A%2F%2Ftwitter.com%2Fbsindia)[Instagram](https://www.youtube.com/redirect?event=Watch_SD_EP&redir_token=QUM4Zm9rVGM1ajJxdjNDc0s1VkVxRGFuNV9GYXxBTl9pYzRjbVVqR2ZETlppUXd1NnJRSDVCZ21TSFYzRVVNbHdmdU5KdHRCLUpYMjB2MGlCN2NzYy00bFI0U3hKc2VacHhWY1d4QTUwRHdrTTBTM2h5cVJoNEsyOTcwZjNRT0xR&q=https%3A%2F%2Fwww.instagram.com%2Fbusiness.standard)[LinkedIn](https://www.youtube.com/redirect?event=Watch_SD_EP&redir_token=QUM4Zm9rU0c3ZmJGR0g1UlpyTjJPM0lMUXdfZXxBTl9pYzRka0pvenY3QTZ5T2JzTTlZb0lMOF8tT18wcTNfSkhWLWM1bE85bDQ2aG16a3FtUVN3c2FyWlI1NXB4YXhTMjVidm5KVUU4N0YxNDY2ZEVubi1kOGREdjU5RG1ObS1R&q=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fbusiness-standard%2F) Show less [#onlinepayment](https://www.youtube.com/hashtag/onlinepayment) [#rbi](https://www.youtube.com/hashtag/rbi) [#digitalpayments](https://www.youtube.com/hashtag/digitalpayments) 80,850 views80K views Mar 24, 2026 1.3K Share Save Download Download These chapters are auto-generated [**Intro** **Intro** \ \ 0:00](https://www.youtube.com/watch?v=nbHLflG_Eyc&pp=0gcJCSoDDuyUWbzu) [**Intro**](https://www.youtube.com/watch?v=nbHLflG_Eyc&pp=0gcJCSoDDuyUWbzu) 0:00 [**Two Factor Authentication** **Two Factor Authentication** \ \ 0:13](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=13s) [**Two Factor Authentication**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=13s) 0:13 [**Riskbased checks** **Riskbased checks** \ \ 1:26](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=86s) [**Riskbased checks**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=86s) 1:26 [**Security burden** **Security burden** \ \ 1:49](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=109s) [**Security burden**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=109s) 1:49 [**Crossborder payments**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=123s) 2:03 [**Conclusion** **Conclusion** \ \ 2:14](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=134s) [**Conclusion**](https://www.youtube.com/watch?v=nbHLflG_Eyc&t=134s) 2:14 Sync to video time Explained: New digital payments rules | UPI payment | Online payment | Card payment | RBI Business Standard Business Standard 1.3KLikes 80,850Views Mar 242026 India’s digital payments system will see tighter security from April 1, 2026, with the Reserve Bank of India (RBI) making two-factor authentication (2FA) compulsory for all transactions. This move aims to curb fraud, widen authentication methods, and fix accountability on banks. [#digitalpayments](https://www.youtube.com/hashtag/digitalpayments)[#upipayments](https://www.youtube.com/hashtag/upipayments)[#onlinepayment](https://www.youtube.com/hashtag/onlinepayment)[#rbi](https://www.youtube.com/hashtag/rbi) Important Playlists National News: [• Nation](https://www.youtube.com/playlist?list=PLK5e1a2965YXb9Oh62yur4MRCdRLL6gCt) Business News: [• Business](https://www.youtube.com/playlist?list=PLK5e1a2965YVXM88oXiuA1JMLZtODGP1y) World News: [• World](https://www.youtube.com/playlist?list=PLK5e1a2965YW0Swy6-R3i50F5FbtDRiEe) BS Decoded: [• BS Decoded](https://www.youtube.com/playlist?list=PLK5e1a2965YWYuC7DEL8Lxl-rhiElowEE) Want access to Business Standard’s premium insights? 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Show transcript [Videos](https://www.youtube.com/channel/UCQsob4fGjHWhYHW0OLb6rew/videos)[About](https://www.youtube.com/channel/UCQsob4fGjHWhYHW0OLb6rew/about)[Facebook](https://www.youtube.com/redirect?event=Watch_SD_EP&redir_token=QUM4Zm9rU29rVDRnY0JRUUFMbnJyUTlRcFBFcnxBTl9pYzRlUHRwZ19jRzFfZUl2MmJ4dS1DV2tmOENmVnhYSjZXNnNsTnNqamNmbW55b0Z2QjVHU28tVGxHR0VkMmkxbkU1anpyeWs5T3pva0RySGhCQUhmam5NWDl5VUhtd0F2&q=http%3A%2F%2Fwww.facebook.com%2Fbsindia)[Twitter](https://www.youtube.com/redirect?event=Watch_SD_EP&redir_token=QUM4Zm9rUW85bEFPaXUxY1AxNTB0Z3hoSjFoNXxBTl9pYzRmcklVV044TU80c3dpUk5nd2FGWDJ6WFhoY0hDWnZBYUdyLWhOX3BvYUY1cGdMcFFPZlFQWTNyVU5GRWlyN3hXc0RCUDRFNEJEOVV1OTNpbHhtbE1XbGNVUFdZNjkx&q=https%3A%2F%2Ftwitter.com%2Fbsindia)[Instagram](https://www.youtube.com/redirect?event=Watch_SD_EP&redir_token=QUM4Zm9rVGM1ajJxdjNDc0s1VkVxRGFuNV9GYXxBTl9pYzRjbVVqR2ZETlppUXd1NnJRSDVCZ21TSFYzRVVNbHdmdU5KdHRCLUpYMjB2MGlCN2NzYy00bFI0U3hKc2VacHhWY1d4QTUwRHdrTTBTM2h5cVJoNEsyOTcwZjNRT0xR&q=https%3A%2F%2Fwww.instagram.com%2Fbusiness.standard)[LinkedIn](https://www.youtube.com/redirect?event=Watch_SD_EP&redir_token=QUM4Zm9rU0c3ZmJGR0g1UlpyTjJPM0lMUXdfZXxBTl9pYzRka0pvenY3QTZ5T2JzTTlZb0lMOF8tT18wcTNfSkhWLWM1bE85bDQ2aG16a3FtUVN3c2FyWlI1NXB4YXhTMjVidm5KVUU4N0YxNDY2ZEVubi1kOGREdjU5RG1ObS1R&q=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fbusiness-standard%2F) [\ \ 20:53](https://www.youtube.com/watch?v=WcckBmkauBQ&pp=ugUEEgJlbg%3D%3D) ### [New OCI Rules 2026: Passport, Travel, Cancellation & Tax — Full Breakdown](https://www.youtube.com/watch?v=OzNTBZjfoX0) FinNiki New [\ \ 48:46](https://www.youtube.com/watch?v=Jbq4wrZn-DI&pp=ugUEEgJlbg%3D%3D) ### [Russian Fighter Jets For India? 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7. Rreddit.com › r › explainlikeimfive › commentsEN

   ELI5: What is UPI(Unified Payments Interface) used in India and ... - Reddit

   India is developing offline UPI payments, allowing users to pay merchants without internet. · Why indians claim UPI as "innovation" when ...
8. Rredcompasslabs.com › insights › what-is-upi-indias-instant-payment-scheme-explainedEN

   What is UPI? India's instant payment scheme explained

   It is an instant payments system developed by the National Payment Council of India, which facilitates Person to Person (P2P) and Person to business (P2M) ...
9. Sstripe.com › resources › more › unified-payments-interface-upiEN

   What is Unified Payments Interface (UPI)? - Stripe

   Unified Payments Interface (UPI) changed how money moves in India. Below, we’ll explain how UPI works, why it scaled so quickly, and what it can do for businesses. ## What is UPI? Unified Payments Interface is India’s [real-time](https://stripe.com/resources/more/real-time-payments-explained) payment system. UPI moves money instantly between bank accounts via a mobile device. UPI connects hundreds of Indian banks through one interface. With a [UPI app](https://www.npci.org.in/what-we-do/upi/3rd-party-apps) such as PhonePe, Google Pay, Paytm, or Amazon Pay, you can send money from your bank account to another account as long as the owner of the second account has a UPI ID (also called a virtual payment address or VPA). ## How does UPI work? ### How to send and receive payments To get started with UPI payments, you’ll need a VPA, commonly called a UPI ID. This is usually in the format name@bank or mobilenumber@provider. This ID links to your bank account and is used to send and receive money via UPI. UPI supports multiple ways to initiate payments: ### Settlement timing UPI works 24/7, including weekends and holidays. Once a payment is authorized, the UPI switch clears and settles the transaction instantly between the bank accounts. ### Interoperability UPI was designed as an open network. [More than 550 Indian banks](https://www.europeanpaymentscouncil.eu/news-insights/insight/upi-revolutionising-real-time-digital-payments-india) are integrated into one real-time switch operated by the National Payments Corporation of India (NPCI). That switch lets a user with an account at one bank send money to someone with an account at another bank without issue. Whether you use Google Pay, PhonePe, or a bank’s own app, all of them operate on the same UPI infrastructure. Any user can pay any other user, regardless of which app or bank either party uses, and businesses can accept UPI no matter which app the customer uses.
10. Llinkedin.com › pulse › upi-payment-gateway-integration-2026-complete-guide-businesses-nbzkcEN

    UPI Payment Gateway Integration in 2026: A Complete Guide ... - LinkedIn

    UPI enables instant bank-to-bank transfers without requiring card details or lengthy authentication steps. This reduces checkout friction and ...