RBI to extend UPI to feature phone users
The UPI facility will soon be extended to feature phone users. At the moment, the unified payments interface (UPI) — the single largest retail payments system in the country in terms of volume of transactions for small value payments — is available only for smartphones.
It will help to further deepen digital payments and make them more inclusive, ease transactions for consumers, facilitate greater participation of retail customers in various segments of financial markets and to enhance the capacity of service providers.
This will be done by leveraging on innovative products from the RBI’s regulatory sandbox on retail payments.
The regulator has also proposed to make the process flow for small value transactions simpler through an ‘on device’ wallet in UPI applications.
Unified Payment Interface (UPI)
National Payments Corporation of India
National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.
It is a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.
List of other NPCI Products -
RBI Regulatory Sandbox
The Regulatory Sandbox(RS) usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may (or may not) permit certain regulatory relaxations for the limited purpose of the testing. The RS allows the regulator, the innovators, the financial service providers (as potential deployers of the technology) and the customers (as final users) to conduct field tests to collect evidence on the benefits and risks of new financial innovations, while carefully monitoring and containing their risks. It can provide a structured avenue for the regulator to engage with the ecosystem and to develop innovation-enabling or innovation-responsive regulations that facilitate delivery of relevant, low-cost financial products. The RS is an important tool which enables more dynamic, evidence-based regulatory environments which learn from, and evolve with, emerging technologies.
On Device Wallet
On Device Wallet or mobile wallet is a virtual wallet that stores payment card information on a mobile device. These are a convenient way for a user to make in-store payments and can be used at merchants listed with the mobile wallet service provider. Eg - Apple Wallet, Samsung Pay
Current RBI Governor - Shaktikanta Das
Current NPCI Head - Dilip Asbe
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