RBI's New UPI Features and Multi-Currency Forex Service on Bharat Connect
The RBI has introduced new features such as UPI Tap-to-Pay, MyUPI, and biometric authentication, making digital payments more convenient and secure. UPI Tap-to-Pay will enable payments by tapping a smartphone on a PoS terminal using NFC technology, while MyUPI will consolidate all UPI transactions and AutoPay mandates in one place. According to the NPCI, over 6.29 billion transactions have been processed using biometric methods like face recognition and fingerprints. The multi-currency forex facility on Bharat Connect includes USD, EUR, GBP, CAD, CHF, and UAE Dirham, thereby enhancing the interoperability of digital financial services.
The UPI Tap-to-Pay feature introduced by the RBI utilizes NFC (Near Field Communication) technology. This allows users to make payments by tapping their smartphones on PoS (Point of Sale) terminals. The feature simplifies the use of payment instruments such as RuPay credit cards alongside standard UPI accounts. A PIN will not be required for transactions under ₹5,000, whereas a PIN will be mandatory for transactions exceeding ₹5,000.
MyUPI: Unified UPI Management
MyUPI aims to consolidate UPI transactions and AutoPay mandates from various banks and UPI apps into a single platform. This facilitates easier monitoring and management of digital payments for users. It also incorporates security measures like a 'Safety Switch,' allowing users to block UPI debit transactions when necessary.
Biometric-based UPI Authentication
The NPCI has promoted the use of biometric technology as an alternative authentication method for UPI payments. Reports indicate that over 6.29 billion transactions have been completed using technologies such as face recognition and fingerprint scanning. This is a significant step towards making digital payments more convenient while simultaneously reducing reliance on PINs.
Multi-Currency Forex Facility on Bharat Connect
The RBI has launched a multi-currency forex facility on Bharat Connect. In the initial phase, this includes the US Dollar (USD), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Swiss Franc (CHF), and UAE Dirham (AED). This facility has been introduced under a Closed User Group (CUG) arrangement.
Bharat Connect and Digital Financial Infrastructure
Bharat Connect is managed by NPCI Bharat BillPay Limited (NBBL). The new forex facility is interoperable with FX-Retail, which is managed by Clearcorp Dealing Systems (India) Ltd. This initiative is significant for making digital financial services in India more interoperable, accessible, and integrated.
Significance for UPSC
These initiatives are linked to strengthening Digital Public Infrastructure (DPI), financial inclusion, and a cashless economy in India. NFC and biometric authentication can enhance payment convenience and security, while MyUPI strengthens consumer protection. The multi-currency forex facility reflects India's growing digital financial ecosystem and global financial integration. UPSC questions related to the economy, Digital India, financial inclusion, cybersecurity, NPCI, RBI, and fintech could be based on these topics.
