NPCI launches a new update of UPI: UPI 2.0
The most awaited updated version of Unified Payment Interface (UPI), UPI 2.0, is finally launched by National Payment Corporation of India (NPCI). The Reserve Bank of India Governor Urjit Patel along with the State Bank of India Chairman Rajnish Kumar and Nandan Nilkani, the Non-executive Chairman of Infosys formally presented the UPI 2.0 version in Mumbai. The Updated version comes up with certain new features regarding Person-to-Merchant (P2M) payment, QR security, and one-time mandate. The recurring payment service feature that people were expecting the most in the update is not included in the UPI 2.0 due to the security concerns.
The latest UPI 2.0 version comes up with a new feature called overdraft facility which will allow users to add his/ her overdraft (OD) account in addition to its current and savings accounts. Customers will be able to transact money easily and all the benefits associated with the OD account will be available for them. Another feature of UPI 2.0 is One-time mandate; it allows people to make a pre-authorized transaction which will be completed in a scheduled time. The Transaction amount is blocked from the bank account until the transaction is completed by the merchant, allowing the user to earn interest till that time. After completing the transaction the particular amount is debited from the user's bank account.
In UPI 2.0 version, people will be able to get an invoice with the payment from a merchant so that the user gets authentication of the merchant before payment. A security feature is added to QR scanner of the UPI 2.0 by which the user could check the authenticity of merchants while scanning QR code. It helps users to verify the merchant whether it is a verified UPI merchant or not.
Many banks have already signed up with UPI services and other banks are looking forward to it. The banks which will be using the UPI service from the beginning are SBI, HDFC Bank, Axis Bank, ICICI Bank, IDBI Bank, RBL Bank, Yes Bank, Kotak Mahindra Bank, IndusInd Bank, Federal Bank and HSBC. The UPI 2.0 version will be available in the apps from September.