Latest news with #IMPS
News18
2 hours ago
- Business
- News18
How India's Homegrown UPI Became The World's Top Real-Time Payments System
With over 640 million transactions a day, India's UPI has now overtaken Visa in volume. In June 2025, it recorded 18.39 billion transactions worth Rs 24 lakh crore India's Unified Payments Interface (UPI), launched less than a decade ago, has now become the world's most used real-time payment system. In its July 2025 report titled Growing Retail Digital Payments: The Value of Interoperability, the International Monetary Fund (IMF) revealed that UPI now powers 85 per cent of India's digital payments and nearly 60 per cent of global real-time digital transactions. UPI is processing over 640 million transactions every day, surpassing global giant Visa, which sees about 639 million daily. In June 2025, UPI recorded 18.39 billion transactions worth Rs 24 lakh crore, marking a 32 per cent year-on-year jump compared to June 2024. So, what's the story behind this fintech phenomenon? How did a public digital infrastructure, created by a government-backed body, beat multinational corporations at their own game? Here's a deep dive into the rise of UPI. What Is UPI And How Does It Work? Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI) and made available to the public in August 2016. Built atop the Immediate Payment Service (IMPS) infrastructure, UPI allows users to link multiple bank accounts into one mobile app, enabling instant fund transfers, peer-to-peer payments, merchant transactions, and even recurring bill payments. Unlike traditional card-based systems that involve intermediaries and longer settlement periods, UPI facilitates instant and direct bank-to-bank transactions, 24×7, including holidays. The key innovation lies in interoperability. UPI is not restricted to a particular bank or app. Whether using Google Pay, PhonePe, Paytm, BHIM, or any other UPI-enabled application, users can transfer money across platforms without friction. The Genesis: Why Was UPI Launched? The seeds of UPI were sown in the years following India's push for financial inclusion and digitisation. NPCI, a not-for-profit umbrella body promoted by the Reserve Bank of India and Indian Banks' Association, had already rolled out the IMPS system and RuPay cards. But a need was felt for a more scalable, flexible, and user-friendly payment system that could integrate multiple services into a single interface. The real push came post-2014, as the Digital India mission gained momentum and the Pradhan Mantri Jan Dhan Yojana (PMJDY) brought millions of Indians into the formal banking system. UPI emerged as the ideal next step to connect those bank accounts to a seamless digital payment ecosystem. Former RBI Governor Raghuram Rajan, who was at the helm when UPI was conceptualised, had called it a 'revolution" for retail payments in India. Speaking at an event in 2016, he said, 'The country has the most sophisticated public payment infrastructure in the world, which can be accessible to anyone who enters the system." Pandemic Push And The UPI Boom While UPI was gaining steady traction in its early years, the Covid-19 pandemic acted as a major catalyst. With physical distancing, lockdowns, and a sudden aversion to cash handling, digital payments skyrocketed. UPI saw exponential growth between 2020 and 2022, reaching over 6 billion monthly transactions by late 2022. With zero cost to users, wide availability across urban and rural India, and support in multiple languages, UPI became the go-to for both consumers and small businesses. The government's push to promote QR code-based payments, especially through schemes like PM SVANidhi for street vendors, also brought millions of informal economy participants into the fold. By 2023, UPI had outpaced debit and credit card transactions in both volume and value, according to Reserve Bank of India's Annual Report. The Numbers: UPI's Record-Breaking Growth As of June 2025: UPI powers over 85 per cent of India's digital retail payments, and it is now accepted by over 500 million users. The NPCI's vision of open architecture and standardised APIs (Application Programming Interfaces) has allowed private players like PhonePe and Google Pay to thrive while keeping the underlying system neutral and publicly governed. Why UPI Succeeded Where Others Struggled Interoperability and Open Access The IMF report highlights interoperability as a key driver behind UPI's growth, noting that it 'supports the adoption of digital payments by increasing users' freedom to choose their favourite app" and fosters an ecosystem where 'more providers join and improve, offering better features and security" UPI's meteoric rise was also driven by its zero-cost structure. Since January 2020, the Indian government has enforced a no Merchant Discount Rate (MDR) policy on UPI transactions, meaning merchants are not charged any fees, even for small-value or high-volume payments. The Finance Ministry has repeatedly clarified that there is no plan to impose MDR, calling reports to the contrary 'completely baseless and misleading". With no charges for consumers and no burden on merchants, UPI emerged as the most economical way to transact digitally across income levels and geographies. Its intuitive, multilingual user interfaces further helped it penetrate rural areas, tier-2 and tier-3 towns, and digitally underserved communities. Combined with low data usage, rapid onboarding via Aadhaar-linked bank accounts, and government-supported promotion drives, UPI's frictionless design made it the default payment mode for everything from street vendors to supermarkets. Strong Regulatory Backing Beyond cost advantages and interoperability, UPI's expansion has been actively enabled by targeted government schemes and RBI-led mandates aimed at reaching the informal and underserved segments of the economy. One key intervention was the PM SVANidhi scheme, launched in June 2020, which offers financial incentives to street vendors who adopt digital payments. By linking cashback rewards to UPI transactions, the scheme helped digitise payments in India's vast informal sector. The Reserve Bank of India has also pushed for UPI's integration into feature phones through services like UPI 123Pay, allowing users without smartphones or internet access to make digital transactions using IVR and missed call systems. These innovations have expanded UPI's reach beyond urban centres. Such regulatory and policy measures, focused on inclusion, infrastructure, and behavioural nudges, have ensured UPI's adoption across a wide spectrum of India's population. UPI Goes Global: From Singapore To France UPI's success story isn't confined to India's borders. According to the IMF report, UPI is now live in seven countries: United Arab Emirates Singapore Bhutan Nepal Sri Lanka France Mauritius Its entry into France is particularly notable; it marks UPI's first step into Europe. Tourists and Indian expats can now make payments using Indian bank accounts in outlets accepting UPI, bypassing the need for currency exchange or international cards. The NPCI, via its international arm NPCI International Payments Ltd (NIPL), has been proactively signing agreements with foreign governments and payment gateways. The UAE's Mashreq Bank and Singapore's PayNow are among the first partners. What Lies Ahead for UPI? BRICS Standardisation Drive India is actively advocating for UPI to be recognised as a standard payments platform within BRICS, which recently expanded to include six new member nations. This initiative is part of the broader BRICS Pay agenda aimed at establishing a shared digital payments system. If successful, the move could: Lower costs of remittances across member countries Enable seamless cross-border merchant transactions Elevate India's global fintech influence UPI–e‑Rupee Integration The Reserve Bank of India is integrating UPI with the e‑Rupee (India's retail Central Bank Digital Currency), which began its pilot in December 2022. Currently, users can: Scan UPI QR codes using e‑Rupee wallets for P2P and P2M transactions, settled via the UPI backend Leverage the existing UPI infrastructure to scale e‑Rupee usage—the RBI aims to increase daily CBDC transactions from around 10,000 to 1 million The strategy combines UPI's unparalleled convenience with CBDC's programmability and traceability, potentially creating a sophisticated and inclusive digital money ecosystem. Final Word top videos View all In just nine years, UPI has achieved what many multibillion-dollar payment giants couldn't in decades—creating a unified, inclusive, and globally scalable real-time payments network. With backing from the government, trust from users, and recognition from global institutions, UPI's journey from an Indian innovation to an international benchmark is nothing short of revolutionary. About the Author Karishma Jain Karishma Jain, Chief Sub Editor at writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @ More Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : digital banking Financial Inclusion imf Unified Payments Interface view comments Location : New Delhi, India, India First Published: July 21, 2025, 14:33 IST News explainers How India's Homegrown UPI Became The World's Top Real-Time Payments System Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
5 days ago
- Politics
- Time of India
Income tax department uncovers donation scam involving unrecognised political party in Chhatrapati Sambhajinagar
Chhatrapati Sambhajinagar: In ongoing searches carried out by the income tax department at more than 200 locations across the country for false deductions by political parties, the I-T teams in Chhatrapati Sambhajinagar unearthed a massive scam involving crores of rupees routed through an unrecognised political party under the guise of donations eligible for tax deductions under section 80GGC of the Income Tax Act, 1961. As part of the action, the IT teams conducted searches at five different locations in the city, including those belonging to a chartered accountant. "The party at the centre of this scam is Yuva Bharat Atmanirbhal Dal, formerly operating under the name Save Merit Save Nation, and registered in Chhatrapati Sambhajinagar. The discreet investigation carried out for the past several months revealed the party received hundreds of crores in donations directly into its bank accounts via RTGS, NEFT, and IMPS from a large number of individuals, primarily salaried taxpayers, who then claimed tax deductions under section 80GGC," said sources. Investigations revealed a large portion of these so-called donations were never retained by the party. Instead, the funds were systematically rotated back to the donors or their close associates. In many instances, the money was rerouted to the donor's family members, Hindu Undivided Family (HUF), or intermediary shell entities. The political party is believed to have kept a fixed percentage as commission for facilitating the circular transactions. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo The I-T department reportedly traced the entire chain of fund movement, and notices have already been issued to several donors across Maharashtra and other states. Adding to the gravity of the case, the party in question failed to file mandatory reports with the Election Commission and began receiving donations even before being officially registered under section 29A of the Representation of the People Act, 1951 — a legal requirement for any political entity to lawfully accept donations. The I-T department has issued advisory communications to all identified donors of Yuva Bharat Atmanirbhal Dal, urging them to file updated returns under section 139(8A) of the Income Tax Act. Failure to comply may attract strict penal consequences.
Economic Times
5 days ago
- Business
- Economic Times
SBI, Kotak Bank scheduled maintenance: UPI, net banking, NEFT services to be temporarily unavailable on these days
ET Online Kotak and SBI Bank downtime Customers of State Bank of India (SBI) and Kotak Mahindra Bank should note that these banks have announced scheduled maintenance activities this week during which several key digital banking services will be temporarily unavailable. The affected services include Unified Payments Interface (UPI), Immediate Payment Service (IMPS), YONO, Retail Internet Banking (RINB), Automated Teller Machine (ATM) services, National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS) will be temporarily unavailable from between 1 AM and 2 AM on July 16, 2025. However, during the said period, customers are advised to use UPI Lite. SBI revises FD interest rate on these fixed deposits: Check latest SBI FD interest rate According to SBI social media post, 'Due to scheduled maintenance activity, our services UPI, IMPS, YONO, RINB, ATM, NEFT and RTGS will be temporarily unavailable from 01:05 hrs to 02:10 hrs on 16.07.2025 (IST). These services will resume by 02:10 hrs on 16.07.2025 (IST).' What is UPI LITE? UPI LITE is a new payment solution to process low value transactions that have been set at below Rs is how to enable UPI LITEStep 1: To enable UPI LITE, user has to open his/her UPI AppStep 2: On the home screen of the App, the user will get the option to enable UPI LITE. Click on the optionStep 3: User reads and accepts the terms & conditionsStep 4: User enters the amount to add in UPI LITE and select the bank accountStep 5: User enters UPI PINUPI LITE will be enabled successfully! Kotak Mahindra Bank maintenance date and time Kotak Mahindra Bank will carry out maintenance on multiple dates, impacting various digital servicesThese services will not be available as per the details mentioned below. Date Services unavailable 17th July (Thursday) & 18th July (Friday) NEFT via Net banking & Mobile banking 12.00 am to 02.00 am 20th July (Sunday) & 21st July (Monday) Net banking, Mobile banking, UPI 12.00 am to 02.00 am 20th July (Sunday) & 21st July (Monday) Payment Gateway 12.00 am to 03.00 am Source- Bank mail N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. Reddy Founder Chairman, Apollo Hospitals Watch Now Vikram Kirloskar Former Vice Chairman, Toyota Kirloskar Motor Watch Now Kiran Mazumdar Shaw Executive Chairperson, Biocon Limited Watch Now Shashi Kiran Shetty Chairman of Allcargo Logistics, ECU Worldwide and Gati Ltd Watch Now Samir K Modi Managing Director, Modi Enterprises Watch Now R Gopalakrishnan Former Director Tata Sons, Former Vice Chairman, HUL Watch Now Sanjiv Mehta Former Chairman / CEO, Hindustan Unilever Watch Now Dr Ajai Chowdhry Co-Founder, HCL, Chairman EPIC Foundation, Author, Just Aspire Watch Now Shiv Khera Author, Business Consultant, Motivational Speaker Watch Now Nakul Anand Executive Director, ITC Limited Watch Now RS Sodhi Former MD, Amul & President, Indian Dairy Association Watch Now Anil Rai Gupta Managing Director & Chairman, Havells Watch Now Zia Mody Co-Founder & Managing Partner, AZB & Partners Watch Now Arundhati Bhattacharya Chairperson & CEO, Salesforce India Watch Now
Time of India
6 days ago
- Business
- Time of India
SBI, Kotak Bank scheduled maintenance: UPI, net banking, NEFT services to be temporarily unavailable on these days
SBI scheduled maintenance date and time Academy Empower your mind, elevate your skills What is UPI LITE? Kotak Mahindra Bank maintenance date and time Date Services unavailable 17th July (Thursday) & 18th July (Friday) NEFT via Net banking & Mobile banking 12.00 am to 02.00 am 20th July (Sunday) & 21st July (Monday) Net banking, Mobile banking, UPI 12.00 am to 02.00 am 20th July (Sunday) & 21st July (Monday) Payment Gateway 12.00 am to 03.00 am Customers of State Bank of India (SBI) and Kotak Mahindra Bank should note that these banks have announced scheduled maintenance activities this week during which several key digital banking services will be temporarily affected services include Unified Payments Interface (UPI), Immediate Payment Service (IMPS), YONO, Retail Internet Banking (RINB), Automated Teller Machine (ATM) services, National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS) will be temporarily unavailable from between 1 AM and 2 AM on July 16, 2025. However, during the said period, customers are advised to use UPI to SBI social media post, 'Due to scheduled maintenance activity, our services UPI, IMPS, YONO, RINB, ATM, NEFT and RTGS will be temporarily unavailable from 01:05 hrs to 02:10 hrs on 16.07.2025 (IST). These services will resume by 02:10 hrs on 16.07.2025 (IST).'UPI LITE is a new payment solution to process low value transactions that have been set at below Rs is how to enable UPI LITEStep 1: To enable UPI LITE, user has to open his/her UPI AppStep 2: On the home screen of the App, the user will get the option to enable UPI LITE. Click on the optionStep 3: User reads and accepts the terms & conditionsStep 4: User enters the amount to add in UPI LITE and select the bank accountStep 5: User enters UPI PINUPI LITE will be enabled successfully!Kotak Mahindra Bank will carry out maintenance on multiple dates, impacting various digital servicesThese services will not be available as per the details mentioned Bank mail
News18
6 days ago
- Business
- News18
SBI Customers, Take Note: YONO, UPI, ATM Services To Be Unavailable On 16th July
Last Updated: SBI has recommended customers complete all important transactions in advance, preferably by the evening of 15th July. If you need fund transfers or bill payments, plan ahead. If you're an SBI customer, mark your calendar. The State Bank of India has announced that several of its digital services will be temporarily unavailable on 16th July 2025, due to scheduled technical maintenance. The downtime will occur between 1:05 AM and 2:10 AM, a 65-minute window during which customers may face service disruptions across UPI platforms (including apps like YONO, PhonePe, and Google Pay), ATM withdrawals, and internet banking. This is part of a planned system upgrade intended to improve the performance and reliability of SBI's digital infrastructure. What services will be affected? According to SBI's official communication, the following services will be inaccessible during the maintenance period: UPI (Unified Payments Interface) IMPS (Immediate Payment Service) YONO (You Only Need One – SBI's mobile app) RINB (Retail Internet Banking) ATM services NEFT (National Electronic Funds Transfer) The bank has assured customers that services will resume gradually after the maintenance is completed. SBI has recommended customers complete all important transactions in advance, preferably by the evening of 15th July. If you anticipate the need for fund transfers or bill payments around that time, it's best to plan ahead. For small-value transactions, UPI Lite may still be available depending on the platform, offering limited access even during partial service disruptions. Key precautions to take: SBI's advisory to customers The bank issued the announcement via its official social media channels, thanking customers for their understanding and patience. While the downtime is short, it's a crucial part of ensuring system efficiency and long-term stability. By notifying users in advance, SBI has taken a proactive step to minimize customer inconvenience and reinforce transparency. If you're an SBI customer, there's no need to panic if transactions momentarily fail in the early hours of 16th July. Your account is safe and functional. Just plan ahead, and you should face no issues during the scheduled maintenance. view comments First Published: July 15, 2025, 12:21 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
