It's a powerpoint presentation on United Payment Interface (UPI) which I delivered in the electronics department of IIT(ISM) Dhanbad.Along with UPI i have also discussed on topics such as e-wallets, imps, neft, rtgs etc.

1. United Payment Interface
Presented by : Utkarsh Sinh
(15je001127)
IIT(ISM) Dhanbad 1
Department of Electronics Engineering

2. Content
• What is UPI ?
• What are the requirements to use UPI app ?
• What is VPA (Virtual Payment Address) ?
• Who is behind UPI ?
• How does UPI work ?
• How UPI is a better method of fund transfer ?
• How secure is UPI ?
• How to make online payments through UPI ?
• Why UPI is better than E-Wallets ?
2

3. Introduction
• Of late, you've probably been hearing a lot of jargon flying about money transfers
- terms like UPI, NPCI, IMPS, among others. There's been a lot of excitement
about new UPI apps such like “Axis Bank’s Axis Pay”, “ICICI's Pockets” ,“SBI’s
pay” and ”Flipkart‘s PhonePe”, but what do these apps do? I am here to help
and make sense of all these terms.
• Ever since its launched in Jan 2016, we regularly get questions like What is UPI,
How does UPI work, How would it change the way I handle payments in
business, etc. In this presentation, I will try to explain this new payment method
in detail by answering a few questions.
3

4. What is UPI ?
• "Unified Payment Interface" (UPI) enables all bank account holders (of banks
participating in UPI) to send and receive money from their smartphones with a
single identifier (the virtual payments address) – without entering any additional
bank account information.
•
The Unified Payment Interface (UPI) can be thought of like an email ID for your
money. It will be an unique identifier that your bank uses to transfer money and
make payments using the IMPS (Immediate Payments Service)
4

5. i
What are the
Requirements
To Use UPI
App ?
You should
have the
mobile
number.
A mob no.
registered
with the
bank
account.
Smart
Phone with
internet
To have a
bank
account.
i
5

6. What is Virtual Payment Address (VPA) ?
• The Virtual Payment Address or VPA
is an address given to the user of UPI
payment system to transfer fund.
BENEFITS
• You do not give bank account
number to receive money.
• It is easy to remember than the bank
account number and IFSC.
• To be more secure, you can change
the it whenever you suspect.
• You can get VPA of your choice.
RULES
• You can have many virtual payment
addresses
• You can change it whenever you
wish
• No two VPA would be the same
• You can link many accounts with one
VPA but you have to set an account
as the default.
• You can’t choose the suffix of the
VPA. It is fixed by the bank.
6

7. Who is behind UPI ?
• Unified Payment Interface is an initiative by National Payments Corporation of
India’s (NPCI), set up with the support of the Reserve Bank of India and Indian
Banks Association (IBA). The NCPI operates the Rupay payments infrastructure
that – like Visa and MasterCard – allows different banks to interconnect and
transfer funds.
• IMPS (Immediate Payments Service) is also an initiative of NPCI. UPI is the
advanced version of IMPS.
7

8. How does UPI work ?
The receiver of
the payment
makes a
request for
payment to the
UPI through
an application.
&
UPI requests
the
authentication
data from the
payer.
Step 1
The payer
returns the
data requested
by the UPI.
&
The UPI makes
a payment
request to the
bank of the
sender.
Step 2
The sender’s
bank sends a
payment
response to the
UPI.
&
The UPI
returns the
response to the
request for
payment to the
beneficiary’s
bank.
Step 3
The
beneficiary’s
bank returns a
payment
response to the
UPI
&
The UPI
returns it to
the recipient.
Step 4
The receiver
returns a
response to the
application
Step 5

9. How UPI is a
better method of
fund transfer ?
Cheapest
Way of
Money
Transfer
It Makes
you Free
from Cash
Immediate
Registration
of Payee
Instant
Transfer
No Need
to Give
Details
UPI would
Replace
Many
Digital
Wallets
One UPI
App
Many
Accounts
Choose
Any
UPI App
More
Secure
The new way of money transfer,
The UPI has many benefits over
the existing payment methods.
Because of its obvious benefits,
the experts consider it a
revolutionary innovation. In RBI
governor Raghuram Rajan’s
word, The UPI is WhatsApp
moment for banking. UPI is one
of the most advanced method
among all the digital payments.
9

10. How secure is UPI?
• Nilekani said the security is
fool-proof as the transaction
will happen in a highly
encrypted format. Already
NPCI’s IMPS network handles
more than Rs.8,000 crore worth
of transactions a day, which
will exponentially increase
with the use of mobile phones.
• 2 Factor authentication –
similar to OTP will be there as
its mandated by RBI. In this
case, MPIN instead of OTP will
be used.

11. 1 2 3
6 5 4
7 8 9
Download a UPI app
of any bank
Register with your
account details and
create a virtual ID
One time process
Provide only your
virtual ID to the
merchant
Go to payment
options and select
Payment through
UPI
Add the item to be
purchased to your
cart
You will receive a
pop-up window on
your phone’s UPI
app requesting your
online purchase
Enter the secure pin A confirmation of
successful payment
will be sent on your
phone
Registration
Online Purchase
Mobile Authentication
How to make online payments through UPI?

12. Why ‘UPI’ is better than ‘E-Wallets’ ?
E-Wallets
• Transactions limited to Rs 10,000, lot
of people still not sure of its security
and ease of use.
• You need to load funds in the
e-wallets regularly.
• If you have Paytm or FreeCharge in
your phone and want to pay using it
but the merchant or seller does not
have it, you cannot use it.
• Wallets are privately owned
UPI
• Easier way for transactions, one-time
ID creation and good to go, banking
limit goes up to Rs 1 lakh
• It is connected to your bank account,
so it need not be refilled with money.
• On the other hand UPI is centralized.
It can be used across banks and
merchants.
• Whereas UPI is a govt. initiative by
the NPCI controlled by RBI
12

13. Final Thoughts
13
• UPI is a great step in right direction and its is set to become an efficient
alternative to mobile wallets and make cashless payments faster, easier and
smoother for millions of people in India. It is said that UPI will prove to be
milestone in the transformation of modern India.
• It has potential to make micro payments cashless which will benefit both buyers
and sellers.

14. #digitalpayments
• The UPI payment system is
revolutionary. It makes the
non-cash payment a very
easy affair.
• Moreover, the NPCI is also
coming with new features of
UPI which has more
flexibility, easy and wide
reach.
• We should adopt this
method of payment because
it also reduces the black
economy.

15. References
• https://thetechpert.com/upi-unified-payments-interface/
• http://gadgets.ndtv.com/apps/features/what-is-upi-the-apps-charges-and-
everything-else-you-should-know-1452664
• https://myinvestmentideas.com/2016/09/what-is-a-unified-payment-interface-upi-
and-how-it-works/
• https://www.thequint.com/upi-how-will-it-make-life-simpler-for-you
• http://www.npci.org.in/UPI_FAQs.aspx
• http://www.profitbooks.net/upi-unified-payment-interface/
• http://www.livemint.com/The-unified-payments-interface-will-be-available-for-
transac.html
• https://upipayments.co.in/upi-benefits/
15

16. Any Questions ?
16

17. Thank You !
17