4 new UPI features you must know about
13 September, 2023
The National Payments Corporation of India (NPCI) recently introduced new UPI features. How exactly will they help you in your daily payments? Here's everything you need to know about these new initiatives.
The NPCI is a non-profit company operating in the country's retail payments and settlement systems. It is an initiative by the Reserve Bank of India (RBI) in collaboration with the Indian Banks' Association (IBA).
The NPCI developed the broadly accepted payment method - the Unified Payments Interface (UPI). The organisation also developed and owns the Bharat Interface for Money (BHIM). By now, we all know the significance of these innovations and how these two developments have revolutionised the way we transact on a day-to-day basis. Let us take a look at the new developments in this sector.
What’s new?
The NPCI recently introduced a new set of features backed by UPI payments, further revolutionising the landscape of digital payments in India. These groundbreaking features aim to bring in a new era of convenience, accessibility and security for all UPI users. Let’s dive into the details -
1. Credit line on UPI
Using this feature, the payment systems will allow you to conduct transactions on credit by connecting existing digital credit lines from banks. The payment flow, however, will remain the same as the current UPI transactions for the new feature.
This feature will benefit both banks and users. It makes it easier for you to avail of and utilise credit lines. It also allows banks and other financial institutions to provide easy credit to their customers without having to rely on credit platforms.
This feature will hit the markets with an initial launch on four apps: HDFC Bank PayZapp, BHIM, PayTM, and GPay.
HDFC Bank PayZapp can be your go-to payment platform as it is a complete payment solution that gives you the power to pay in a single click. With HDFC Bank PayZapp, you can shop at partner apps, purchase items like movie tickets and groceries, send money to people in your contact list, pay your bills, and soon, avail of credit via UPI.
2. UPI Lite X
This feature will allow you to conduct offline transactions using mobile devices that support near-field communication (NFC) features. You will be able to send and receive money even when your phone is entirely offline. This will enable peer-to-peer transactions without an active network or internet connection. This will be a significant boon for situations like flights, underground metros, or merchants in remote / poor network areas.
3. UPI Tap & Pay
Another interesting and helpful feature coming up is the UPI Tap & Pay facility. This will also use the NFC feature to make payments. It comes in the form of tiny NFC-enabled cards, which can be linked to your UPI ID and QR code.
Follow these steps to get this card -
Visit your nearest partner bank, which has a contactless UPI card-generating kiosk.
Choose a design for your card from the available variety.
Scan your QR code to verify your UPI ID and link it to your card.
Once you complete the above steps, you will immediately receive the card and can use the easy Tap & Pay system for your daily transactions.
4. Hello! UPI
This innovative feature will enable conversational payments. It will allow you to make payments using voice commands on UPI apps, telecom services and other IoT-enabled devices and services. This system will support both English and Hindi conversations. It has enabled us to understand speech and silence, convert text into numbers, and support text-to-speech efficiently.
Alongside this, Bharat BillPay introduced BillPay Connect. This provides a nationalised number for bill payments across the country. It will allow you to fetch details and pay your bills using the messaging app. If you are a non-smartphone user, you can use this facility to pay your bills with just a missed call.
Currently, the user base for UPI stands at 35 crores, as per the NPCI. In August, the UPI system achieved a new milestone, crossing a historical mark of 1,000 crore transactions for the first time. These transactions amounted to ₹15.76 lakh crores.
These new features are expected to bring these numbers to significantly higher levels, with a target transaction volume of 10,000 crores a month.
Potential Impact
The introduction of these new features will boost the nation’s goal to promote digital transactions and formalise systems. It benefits both individuals and businesses, creating more ground for them to prosper.
These innovations will further support the country’s progression towards a cashless economy. This transition reduces reliance on physical currency and combats issues related to counterfeit money and money laundering.
This will also broaden the scope of financial inclusion by increasing the adoption of digital payments. This will allow people in remote areas to reap the benefits of digital payments, giving them access to a broader range of financial services. This has the potential to improve economic empowerment and create opportunities for millions of people across the country.
The release of these new features by the NPCI is expected to give a boost to the UPI system and overall digital payments in India. These enhancements will revolutionise the Indian markets in terms of digital payments, opening gates to newer and more significant milestones for the future.
As the nation progresses on its path to rapid digitalization, UPI is set to play a central role in shaping the financial landscape of the country. The target of 10,000 crore monthly transactions demonstrates the immense potential of digital payments in India. With these new features, the NPCI is not only propelling UPI towards this ambitious goal but also driving economic growth, financial inclusion, and innovation in the Indian financial sector.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
