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UPI 2.0 : The Upgraded UPI


After demonetization The NPCI (National Payment Corporation of India) Launched a new payment interface called UPI (Unified Payments Interface). UPI is an instant payment interface which lets you do easy transaction directly from your bank account with other bank accounts or merchants. It was a great move in making India a cashless economy. After more than 2 years of launch The NPCI updated UPI which we’re calling UPI 2.0 for now. After a delay of several months, the upgraded version of the Unified Payments Interface (UPI), UPI 2.0, was launched on Thursday at a private event in Mumbai.

upi 2

Here’s the quick intro of the upgraded UPI version

1.     One-time mandate: With this feature, customers can pre-authorize a transaction, for debit from their bank accounts later. UPI mandate can be used in scenarios where money is to be transferred later, however, the commitment towards that is to be done now. The mandates are created with one-time block functionality and customers can pre-authorize a transaction and pay at a later date. In the case of merchant payments/service, it acts as an assurance to both the customer as well as the merchant.
In Simple words if you order something from an online service they can block the amount which is equal to the cost of product (of course after you authorize them) but it’s not paid to the to the merchant yet, when this product gets delivered that blocked amount will automatically be transferred to the merchant.                                                              

2.     Linking of overdraft account: Earlier customers could only link their savings and current accounts but after this update they can now link their over-draft account to UPI. This feature will give customers a digital channel to access their over-draft account. Instant linking of over-draft account in UPI is also possible.


3.     Signed intent and QR: If the customer is making payment using this new intent or through scanning QR, they will get additional security in the form of signed QR / intent. This feature is designed for customers to check the authenticity of merchants while scanning QR or quick response code. It notifies the user with information to ascertain whether the merchant is a verified UPI merchant or not and will also be informed in case the QR is not secured. Also transaction will be faster as app passcode will not be required in case of signed intent.


4.     Invoice in the inbox: Earlier, when a collect request was sent one could only verify the amount being paid and make the payment post entering the UPI PIN. Now, Customers can check the invoice sent by merchant prior to making payment. It will help customers to view and verify the credentials and check whether it has come from the right merchant or not. Customers can pay after verifying the amount and other important details mentioned in the invoice. This functionality is only available for the invoices of verified merchants. Customers will now get to view the bill in the UPI app, verify the details and pay the invoice.