In news– Recently, the National Payments Corporation of India (NPCI) has said that Nepal will be the first country to adopt India’s UPI system.
- NPCI International Payments Ltd (NIPL), the international arm of NPCI (subsidiary of NPCI), has joined hands with Gateway Payments Service (GPS) and Manam Infotech to provide the services in Nepal.
- GPS is the authorized payment system operator in Nepal and Manam Infotech will deploy Unified Payments Interface (UPI) in that country.
- The collaboration will serve the larger digital public good in Nepal and bolster interoperable real-time person-to-person (P2P) and person-to-merchant (P2M) transactions.
- It will also enable the way forward for real-time cross-border P2P remittances between Nepal and India.
About UPI system-
- Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
- It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.
- UPI is amongst the most successful real-time payments (RTP) systems globally, providing – simplicity, safety, and security in P2P and P2M transactions in India.
- The interface is regulated by the Reserve Bank of India (RBI) and works by instantly transferring funds between two bank accounts on a mobile platform.
- In India, it is owned and developed by National Payments Corporation of India (NPCI).
- Bharat Interface for Money (BHIM) is a payment app that lets you make simple, easy and quick transactions using Unified Payments Interface (UPI).
- Other examples of UPI app are Paytm, Phonepe, Google pay and Amazon pay etc..
- One can make direct bank payments to anyone on UPI using their UPI ID or scanning their QR with the BHIM app.
Extra reading – BHIM UPI launched in Bhutan – JournalsOfIndia