How UPI is giving e-payments a run for their money

by Lionel Casey

What is the motive behind the growing reputation of UPI?

The developing popularity of UPI can be attributed to its simple, safe, price-powerful and cellular-based charge gadget. Companies consisting of Paytm, PhonePe, MobiKwik, and GooglePay, at the side of a hundred and forty four banks, additionally offer payments through UPI, which surpassed mobile wallet payments in phrases of extent of transactions as well as value. There had been 384.89 million cellular wallet transactions worth ₹15,990 crore in March, in comparison to 799.54 million UPI transactions worth ₹1.33 trillion for the duration of the equal month. As their consciousness and luxury growth, people are transferring towards UPI to perform high-value transactions.

What are its blessings?

UPI lets a user transfer cash throughout a couple of financial institution debts in real time, with out revealing info of a beneficiary’s financial institution account. Money can be right away sent through one’s cellular telephone at any time, irrespective of a bank’s working hours. Most modes of financial institution-established virtual payments are restrained by the point of day and holidays. All one needs for UPI is a sturdy internet connection, a smartphone, and a UPI ID to ship funds with a cumulative cost of ₹2 lakh an afternoon or 10 transactions well worth that amount. It has been adopted as a fee mode via e-commerce web sites, cab aggregators and food ordering apps.

How rapid is it gaining popularity?

In April, 781. Seventy-nine million transactions are well worth ₹1.42 trillion have been made thru UPI. This is an enormous leap from the ninety-three,000 transactions when it went live in August 2016.

How can UPI preserve its momentum?

UPI transactions have surged over 4 instances in the closing 365 days. But it has more ability. UPI’s use has more often than not been confined to city India and cellphone users, as it depends on a web connection. Internet penetration in India has to expand and virtual payments should be popularized. UPI has been a motive force of digital payments, which additionally incorporate payments thru debit and credit cards, e-wallets and e-bills. The banking regulator said there has been a want to innovate charge offerings for characteristic telephones.

How is the banking regulator giving UPI and e-payments a push?

The banking regulator these days announced its imaginative and prescient for payments in India for the duration 2019-2021, with the intention to enable the setting up of safe, relaxed, on hand and less expensive price structures. The idea is to move toward a much less-coins society by using presenting greater price options to humans, who’ve been untouched with the aid of such systems. The regulator expects the number of digital transactions to more than quadruple from 20.69 billion in December 2018 to 87.07 billion in December 2021.

State-owned Punjab National Bank (PNB) has put on sale six non-performing loans amounting to over ₹1,000 crore, which include debts of Vandana Vidyut and Visa Steel.

Asset reconstruction agencies (ARCs), non-banking economic agencies (NBFCs), different banks and economic institutions can publish binding bids until 26 June. The bids will be opened on tomorrow.

“We intend to area the (six accounts) for sale to ARCs/NBFCs/Other Banks/FIs etc,” stated a note put up by PNB.

The reserve fee for the six non-performing property (NPA) has been fixed at ₹342 crore.

Bhopal-primarily based Vandana Vidyut Steel owes ₹454.02 crore, whilst Kolkata located Visa Steel has the first-rate stability of ₹443.76 crore.

The rest 4 NPAs – Temptation Foods, Helios Photovoltaic, Cabcom Cables, and Zoom Vallabh Steel – are Delhi based.

The sale system is to be handled via the Stressed Assets Targeted Resolution Action (SASTRA) Division of the bank. The submission of financial bids may be best via e-auction technique so that it will take vicinity on the portal of the financial institution, it said.

Related Posts