Unified Payments Interface

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UPI

Beginner Level India Banking & Finance 2 views

Definition

A real-time payment system developed by NPCI enabling instant money transfers between bank accounts via mobile.

Detailed Explanation

Launched in 2016, UPI uses VPA (Virtual Payment Address) for transactions. Apps like PhonePe, Google Pay, Paytm use UPI. It's free for most transactions and available 24/7.

Example

Paying a vegetable vendor by scanning their QR code using UPI completes the transaction instantly.

Local Context (India)

UPI has revolutionized digital payments in India, processing over 10 billion transactions monthly.

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