How UPI has Transformed
India's Digital Economy? 

If you transfer money from one bank to another, it does not mean that the amount of money deposited during the day, the bank transfers the money in a truck at night to another bank. And UPI also came. So it happened that from Silicon Valley to Australia all over the world it was talked about. 


UPI Reserve Bank Along with the National Payments Corporation of India 29 banks am danish lee updated for UPI.


Launch WhatsApp Payments in India 


  • Whenever we transfer money online, we use NEFT, RTGS, IMPS all these. So the first thing is why are they different? What are the differences in them and what was the lack in them, due to which UPI came and UPI came, it came that from Silicon Valley to Australia, it started talking about it all over the world. Whether it is India's number one coming, in digital transactions or a campaign to advance Digital India, UPI is being talked about in everything. The report of Infact Economic Times even published that because of UPI, the company making toffee has come in loss.

  • Ever since UPI has come, the system of giving toffee to shopkeepers instead of leave money has stopped. The bar codes you see in front of these little stalls made UPI a game changer. You will see day by day that because of whom UPI came and who has made it, there is a competition of those who take credit for it. But why exactly was there a need to bring UPI? And what is UPI doing, due to which India is getting the name, so let's discuss all these things in detail. See if earlier you had to transfer money to someone, then either you used to give cash to him or you used to transfer money by going to the bank and the bank used to maintain big registers.

  • There was a number in it where all the transactions of your bank were maintained and your verification was done by going to three to four counters. Pass book had to be maintained. You also had to maintain minimum account balance. This was the reason that people considered transferring money through the bank as the last option. People who used to stay away from home, because of job or education, they used to send money to someone or they used to use money order etc. There was no track of it. Small payments were fine, but the big payments which were in lakhs, the government wanted it to be from the bank.


This was the reason that to speed up this entire payment system, RBI got the ID developed from RBT. Jesus Payment System Real Time Gross Settlement Think of it as a system where people's money was being transferred instantly. It takes crores to build and maintain such a system without visiting the bank. That's why this system was only for those people who were charged for transfer and instant transfer of more than ₹ 2 lakh and some charges were also taken for the transaction. This is the amount you had to pay. To use the system, this system can be used by any citizen of India and banks can also use it.


In today's date, if you transfer money from one bank to another, it does not mean that the amount of money that has been deposited throughout the day, reaches the other bank in a truck at night. In this, there are simple numbers from here to there. When you transfer money, the number in your account is less and it gets added to another's account. Just like people's accounts are in the bank, similarly all the bank accounts are in RBI. You can understand this whole thing in this way. Just like there is a wallet in the stomach, in it, we can make any payment between ourselves here and there, but the actual money remains with Paytm. Anti-unless you are withdrawing that money.


Transferring here. The time concept also resides between the RBI and the bank. Bikes can digitize among themselves, but in the end, RBI clears it. You question is that let's move around from the number, it is fine but when we withdraw cash from check or from ATM, then see how all that is maintained. For this, RBI maintains currency chests in different areas, in which cash is kept. If the bank has more cash, then the bank deposits it in the currency chest and if the bank needs cash, then it goes from the currency chest and takes it and it sends daily report to the currency chest.


How much money came from which bank and how much went. Now see one thing and there is no understanding in this that be it Axis Bank, HDFC or ICICI, they are all competitors among themselves. These people do not share any data among themselves. Neither does he give any axis to his customer, but even after that, there is a banker. If u sir want to transfer money to u sir of other bank then it happens immediately then how it happens? Consider this an example. Suppose you have an account in HDFC Bank and you want to transfer ₹ 1000 to Axis Bank, then you will request it online or by going to the bank, that request will go. In the system created by RBI, RBI will verify that who is sending money.

He has money in his account. Not UK and on the other hand it will also check whether the money is going to him, his account also exits or not. As soon as RBI verifies everything, it will transfer the payment and for this you have to pay some transaction charges. What you pay for the transaction at the time of doing Nifty RTGS, that is the charge for the same thing. So basically RBI acts as a mediator between all these banks. All these banks are competitive among themselves but RBI Pen is confident that RBI will not transfer any details from here to there. Nifty and Art inside India as before in 1990


  • RBI brought ECS Electronic Clearing Service, in which payment was made in bulk. According to the technology of salary and pension etc. according to that time, it was fine but it was not that advanced. So in 2004, RBI brought RTGS Real Time Gross Settlement for the people but after that RBI realized very quickly that there should be a payment system for less than ₹ 2 lakh transactions and in 2005 itself RBI brought Nifty this payment system. RBI said that there is no limit. The amount of money you want to transfer, even ₹1. If you want to transfer you can. so small now

  • There is a lot of costing in doing the transaction in real time. Therefore, a rule has been put in it that the batch which is the bank will complete the transactions in it. Meaning that there will be a wait for 30 minutes. All the NEFT fund transfer requests will be received by the bank, they will have to be verified and transferred together in a group. Earlier it was an hour but nowadays it gets transferred in 30 minutes. That's why you will see whenever you do NEFT the money reaches after 30 minutes. Transfers money to the account by forming a NEFT group 48 times in a day. By the way, RBI has suggested that transaction charges should not be charged in the savings account.

But this is the amount that has to be paid but on the transaction whether it is NEFT or RTGS. Earlier, all of them used to transact within the working hours of the bank as there was not much trust in the system. If there is any issue then the ban will be resolved from home itself. But as trust came into the system and technology, it was transferred 24 hours a day. But still this payment system was not that much. For the people, the government knew that if people want to connect more, with the digital payment system, then it will have to be made easier. Then in 2010, with the introduction of the Immediate Payment System, now you could transfer money instantly from your mobile without pressing the button.


In this, less than ₹ 2 lakh and the option of immediate transfer was opened. Your mobile phone and MID were required to use IMPS. In the payment system of IMPS, your verification is done by making the base of the SIM card inside your mobile and the SIM card should be the one which is linked to your mobile. That's why you must have seen that if you have someone in your mobile. Do the transaction made very easy by coming