Why in news
- The Unified Payments Interface marked ten years of operation since its launch on August 25, 2016.
What is UPI?
- A real-time payment system developed by the National Payments Corporation of India (NPCI) for inter-bank peer-to-peer and person-to-merchant transactions.
- Operates on top of the Immediate Payment Service (IMPS) infrastructure under RBI oversight.
Architectural and functional reach
- Consolidates multiple bank accounts into a single mobile application, enabling instant money transfers without sharing sensitive account details.
- Expanded internationally to enable cross-border remittances and merchant payments across multiple partner nations.
Why it matters
- Forms the core transaction layer of the India Stack, facilitating financial inclusion and reducing cash velocity in the economy.
- Serves as a global public infrastructure model for real-time retail digital payments.
Key terms
NPCI
An umbrella organization for operating retail payments and settlement systems in India, set up by RBI and IBA under the Payment and Settlement Systems Act, 2007.
India Stack
A set of open APIs and digital public infrastructure enabling identity, payment, and data governance solutions.
Prelims facts
- NPCI was established under the provisions of the Payment and Settlement Systems Act, 2007, as an initiative of RBI and IBA.
Mains discussion
- Evaluate the role of open-architecture Digital Public Infrastructure like UPI in accelerating financial inclusion in India.
Source: Business Standard
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2026 · Q90 · General Studies · 2 marks
Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is NOT correct? -
2017 · Q43 · General Studies · 2 marks
Which of the following is a most likely consequence of implementing the 'Unified Payments Interface (UPI)'? -
2022 · Q33 · General Studies · 2 marks
With reference to "Software as a Service (SaaS)", consider the following statements: 1. SaaS buyers can customise the user interface and can change data fields. 2. SaaS users can access their data through their mobile devices. 3. Outlook, Hotmail and Yahoo! Mail are forms of SaaS. Which of the statements given above are correct? -
2024 · Q78 · General Studies · 2 marks
Operations undertaken by the Army towards upliftment of the local population in remote areas to include addressing of their basic needs is called : -
2024 · Q82 · General Studies · 2 marks
Which of the following statements about 'Exercise Mitra Shakti- 2023' are correct? 1. This was a joint military exercise between India and Bangladesh. 2. It commenced in Aundh (Pune). 3. Joint response during counter- terrorism operations was a goal of this operation. 4. Indian Air Force was a part of this exercise. Select the correct answer using the code given below :