UPI: THE FUTURE OF PAYMENT SYSTEM IN INDIA

Abstract

The study explores the transformative impact of the Unified Payment Interface (UPI) on India's payment systems post-demonetization. UPI, developed by the National Payments Corpoation of India (NPCI) and overseen by the Reserve Bank of India (RBI), was introduced to alleviate the disruption caused by the sudden withdrawal of high-denomination banknotes. This digital payment tool was designed to facilitate instant, real-time transactions directly between bank accounts, enhancing the convenience and security of transactions. The paper examines the adoption and widespread integration of UPI, evaluating its role in promoting a cashless economy and its effects on the banking sector and everyday financial activities of the Indian populace. Through comprehensive analysis of UPI’s mechanism, the study highlights the system's robust framework, which combines ease of use with high security, significantly influencing India’s move towards digital financial services.