Innovation in Retail Payments : UPI 2.0

(Urjit R. Patel, Governor, Reserve Bank of India, August 16, 2018 – Address at the Launch of Unified Payments Interface(UPI) Version 2)

I am pleased that with a view to widen the scope and to increase digital payments in India, an enhanced version of UPI is being launched today. It will open new areas such as retail applications for Initial Public Offerings of companies, which can now be processed through UPI. I am certain that UPI 2.0 will take simplicity,
security and seamlessness to the next level which will serve as a benchmark for other products in the eco-system. I am informed that this new version of the UPI has enhanced features such as:

i. Invoice in the Inbox: This allows a person who has used UPI to make a payment to view the document pertaining to the payment such as a bill or an invoice before authorising the payment, so the payer is fully aware of the purpose of his payment.

ii. Signed Intent/QR: This enables a person to authorise payment for transactions initiated on a compatible application on the same mobile device without separately opening the UPI application, thereby resulting in ease of
use, but without compromising on security.

iii. UPI Mandate with Blocking of Funds: This permits the registration of a debit mandate for repetitive/periodic payments automatically and would be akin to standing instructions in a manual account-based operational scenario. And,

v. UPI for Overdraft Account: This facilitates transactions on such loan accounts that hitherto were not provided for, thus making UPI even more ubiquitous.

Another noteworthy feature is the increase of the “Per-Transaction” cap from the existing level of Rs 1.0 lakh to Rs 2.0 lakh. This will support large-value real-time transactions on a mobile phone.

In all of the above, it is worthy of mention that the enhanced capabilities will ride on the safe backbone of UPI which has not only stabilised well, but has also become the trusted channel of choice.

I am told that UPI has the potential for further facilitations. Some of the possibilities include integration with newer payment systems of the future in view of its standardised formats & structures; capability to integrate with many home grown e-commerce applications that hold substantial potential; emerging innovative delivery channels using the digital mode; and, so on, thus underscoring its (relatively low cost) versatility.

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