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UPI123PAY: Rbi’s New Payment Service Launched

UPI has grown in popularity as a payment mechanism, accounting for more than half of all retail payments in the country. The Reserve Bank of India’s (RBI) UPI123Pay service will now make the unified payments interface (UPI) service, which was previously only available on smartphones, available to feature phones without internet. 

The RBI stated that the programme is “envisioned to accelerate India’s digital adoption process by developing a richer and inclusive ecosystem that can accommodate bigger sections of the population.” The service’s availability on feature phones without an internet connection might help it reach rural sections of the country, increasing financial inclusion and digital adoption while also growing payment volume on the platform.

How does this new payment service UPI123 Pay work?

UPI123Pay is a three-step process for users to initiate and execute services.

  • The missed call function would allow phones to access their bank accounts and do ordinary operations including receiving or transferring funds, making regular purchases, and paying bills, among other things. 
  • A user only needs to make a missed call to the merchant outlet’s phone number. 
  • After that, the customer will receive an incoming call asking them to verify the transaction by entering their UPI pin. 
  • UPI123Pay does not have the scan-and-pay feature of UPI, which is available on smartphones.

Does UPI123PAY have any scanning option?

UPI123Pay does not have the scan-and-pay feature of UPI, which is available on smartphones.

The Era of UPI 

According to RBI, In February 2022, UPI registered more than 450 crore transactions worth Rs 8.26 lakh crore, nearly doubling from the previous year. The overall value of trades in 2022-21 was roughly Rs 41 lakh crore. The overall volume of transactions in the current fiscal is Rs 76 lakh crore. The way people are using UPI is notable and the new feature further gives a push towards the new digital payment system.

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