NPCI → UPI (UNIFIED PAYMENT INTERFACE)

Question 1

What does NPCI stand for, and what major technology did they develop?

Answer 1

NPCI stands for the National Payments Corporation of India. They developed UPI (Unified Payments Interface).

Question 2

Describe the key features that UPI offers.

Answer 2

QR Scan & Pay for merchant transactions.
Links directly to bank accounts, without the need for a separate wallet.
Ability to handle push transactions (like remittances), pull transactions (like bill payments), and bill-sharing between individuals.

Question 3

Describe the key features that UPI offers.

Answer 3

QR Scan & Pay for merchant transactions: This lets you make quick contactless payments at stores and businesses by scanning a QR code with your UPI app.

Links directly to bank accounts, without the need for a separate wallet: UPI connects seamlessly to your existing bank account. You don’t need to load money into a separate digital wallet, simplifying the payment process.

Ability to handle push and pull transactions: This is where UPI offers great flexibility:

Push Transactions: You actively initiate the payment. Examples include:

Remittances: Sending money to family or friends.
Paying at a store: You scan, enter the amount, and confirm the payment from your phone.
Pull Transactions: A merchant or service provider initiates a payment request from your account. Examples include:

Bill Payments: Your electricity company, for instance, can automatically request and deduct your bill amount on the due date.
Subscriptions: Streaming platforms can automatically collect monthly subscriptions.
Bill-sharing between individuals: UPI enables you to easily split costs with friends, such as splitting a dinner bill or shared cab fare.

Question 4

Name three examples of UPI-based apps.

Answer 4

SBI’s SBIBuddy/Yono
Axis Bank’s AxisPay
NPCI’s BHIM

Question 5

What is UPI 2.0, and how is it different from the first version (UPI 1.0)?

Answer 5

UPI 2.0 is an upgraded version of UPI in 2018. (You’ve marked the specific features as “NOTIMP #RAFTAAR” )

Question 6

How is NPCI expanding the use of UPI applications internationally?

Answer 6

NPCI is partnering with organizations in countries like Bhutan, Nepal, Singapore, and Europe. This will allow Indian tourists to use their UPI-based apps to make payments directly from their Indian bank accounts while abroad. (Specifics noted as “NOTIMP #RAFTAAR”, )

Question 7

What’s the fundamental difference between UPI Push and Pull transactions?

Answer 7

Push transactions are initiated by the payer (you), while Pull transactions are initiated by the merchant or payee.

Question 8

Give three examples of use cases where a UPI Push transaction would be ideal.

Answer 8

Sending money to a friend’s UPI ID
Making an online purchase on an e-commerce website.
Paying a utility bill using the biller’s UPI address.

Question 9

In a UPI Pull transaction, how does the payer maintain control over the process?

Answer 9

The payer maintains control by pre-authorizing the merchant to deduct specific amounts at agreed-upon intervals (one-time or recurring).

Question 10

You’re at a store and want to pay with UPI. The cashier shows you a QR code. Is this likely a Push or Pull transaction? Explain.

Answer 10

This is likely a Pull transaction. The QR code contains information that lets the merchant initiate a payment request from your UPI account.