Dr Satyawan Saurabh
It is advised not to be a “Mother Theresa” and use your UPI payment system wisely along with your bank. Always keep in mind that the revenue department is keen to extract more money from you than they are paid for and your kindness or sympathy can land you in trouble. Your greed to get cash rebates/discounts/incentives by using UPI excessively can land you in trouble which will cost you dearly in the future. Unified Payments Interface (UPI) is a technology that consolidates various bank accounts into a single mobile app (of any participating bank) – providing an instant real-time payment system; Allows users to transfer money to multiple bank accounts without revealing their bank account details to the other party. It is an advanced version of Tatkal Payment Service, a round-the-clock money transfer service that enables faster, easier, and more seamless cashless payments. It was launched by NPCL in 2016 in association with the Reserve Bank of India and the Indian Banks’ Association. From April 1, more payments are made on this platform using prepaid payment instruments, which form a small part. Its use will no longer be free. On these, the merchant’s bank accepting payment has to pay an interchange fee of 0.5 per cent-1.1 per cent to the payer’s bank. BHIM UPI has emerged as the preferred payment mode of citizens and recorded 803.6 crore digital payment transactions in January 2023 with a value of Rs 12.98 lakh crore. Unlike cash, money can be transferred instantly to the beneficiary’s account using digital. In addition, using the BHIM-UPI mode, digital transactions can be effected through a mobile phone using a mobile number or an easy-to-remember virtual payment address (email-like address). UPI has enabled access to multiple bank accounts in a single mobile app, thereby facilitating payments. Digital payments provide access to accounts anywhere, anytime, thus making it easier for citizens to receive payments in their accounts and also make payments using their phones. People who may have been constrained by the time, and travel cost involved in physically reaching a bank outlet for transactions can now easily access a bank account digitally and be part of the formal banking system, and be financially included. You can get various benefits. The recently launched UPI 123 enables feature phone users to perform digital transactions through UPI in assisted voice mode, thereby facilitating digital transactions and financial inclusion in rural areas. Increased transparency in the government system: Cash payments were previously subject to ‘leakage’ (payments that do not fully reach the recipient) and (fake) recipients, especially in the context of social security benefits through government transfers. Now, the benefits are directly transferred to the intended beneficiary (Direct Benefit Transfer) account through digital modes of payment. Unlike cash payments which are delayed, digital payments can be virtually instantaneous, even if the sender and receiver are in the same city, district, or country. The National Electronic Toll Collection System enables the customer to make electronic payments at NETC-enabled toll plazas without stopping at tolls using Radio Frequency Identification technology. Bharat Bill Payment System (BBPS) provides an interoperable and easily accessible bill payment service to consumers through multiple channels such as Internet Banking, Mobile Banking, Mobile Apps, BHIM-UPI, etc. Citizens can make easy bill payments anytime, anywhere through BBPS. Unlike cash payments, digital payments automatically establish a user’s financial footprint, thereby increasing access to formal financial services, including credit. Banks and other lending institutions can use digital transaction history to make cash flow-based lending decisions for retail lending and lending to businesses, including small businesses that need to be funded in the absence of verifiable cash flow. Getting credit can be difficult. Recipients of cash payments not only often have to travel great distances to receive their payments, but are also particularly vulnerable to theft. Digital payments across India are secure as multiple levels of authentication are required to make transactions. The threat of cybercrime in the global banking and financial services industry has increased amid the coronavirus pandemic. Malicious software Cerberus is emerging as a challenge for fraudulent claims, charge-backs, fake buyer accounts, promotional/coupon abuse, account takeover, identity theft, card statement theft, and tri-fraud. Lack of digital literacy is another challenge that many people are facing. A properly structured Public-Private Partnership (PPP) policy can provide the engine of the 21st century to harness the power of market players for greater digital infrastructure, access, and literacy for the Indian population. In a vibrant Indian democracy, public policy-driven digital empowerment of the Indian electorate can help ensure responsible digital conduct in the interest of consumers and the larger public interest.
(The author is a freelance
journalist and columnist).
