New Delhi, Oct 29 - Prime Minister Minister Narendra Modi on Thursday announced a credit…
MUMBAI:Hard cash and credit cards will soon be passé in India. And all you will need is a smart phone and a financial identity, like an email id from a bank, to undertake transactions up to Rs 1 lakh.
The National Payments Corporation of India (NPCI), supported by the Reserve Bank of India (RBI), is all set to launch the Unified Payments Infrastructure (UPI) later this month, which will initially link up 19 banks and later extend to a number of other players.
The plan is to push electronic payments to the next level and counter the growing menace of fake currency.
The last available data from RBI shows that there are over 15.59 crore pieces of counterfeit notes in circulation in financial year 2014-15 in the banking system. This is set to increase by at least 10% in 2015-16. Currency manufacture management is an expensive task for the central bank, which spends over Rs 4,000 crore annually in printing and distributing notes and coins.
UPI is as easy as handing over cash or a credit card at a retail store. Instead of paying with cash or a credit card, you simply tell the retailer your virtual identity, which is an email id. The shopkeeper, who will also have the financial id, will generate an invoice through the UPI, which you need to approve using your mobile phone. It will facilitate instant money transfer by invoking the virtual identity of the beneficiary, and transfer money real time.
It will need a single click and a two-factor authentication. All you need is a bank account and a smart phone. Unlike mobile wallets, it can receive and send money.
AP Hota, managing director and chief executive officer, NPCI, told dna in an interview: “It will also check counterfeit notes, and the printing cost of currency will come down sharply.”