RBI Launches UPI Tap & Pay in Mumbai

The Reserve Bank of India Governor, Shri Sanjay Malhotra, has launched the UPI Tap & Pay feature in Mumbai, aiming to simplify digital payments through the Unified Payments Interface. This feature allows users to make payments without scanning a QR code or opening a UPI application, making it easier to use in locations with weak or unavailable networks.

The UPI Tap & Pay feature works like a contactless credit card, where customers need to unlock an NFC-enabled smartphone and hold it close to a merchant’s point-of-sale machine or smart tag. The transaction will use the merchant terminal’s internet connection, eliminating the need for users to open Google Pay, PhonePe, or Paytm.

The National Payments Corporation of India (NPCI) has also allowed transactions of up to Rs 5,000 without entering a UPI PIN for small payments. Users will need to enter their PIN when making payments above this limit. This move is expected to make UPI payments faster and more convenient, particularly for people who frequently experience slow internet connectivity on their smartphones.

In addition to UPI Tap & Pay, the RBI Governor also unveiled MyUPI, an artificial intelligence-powered customer-support and control platform. MyUPI is based on NPCI’s small language model, FiMI, and provides a consolidated view of transactions and recurring payment mandates across different banks and payment applications.

MyUPI also includes a “Safety Switch” feature, which allows users to block all UPI debits from their accounts with one click if they suspect that an account has been hacked or fraudulent activity has occurred. This feature is designed to provide an additional layer of security and control for UPI users.

The launch of UPI Tap & Pay and MyUPI is expected to further boost the growth of digital payments in India. According to recent data, UPI transactions hit a record 24.51 billion in August, indicating a rapid growth in digital payments.

The new features are expected to benefit users in various locations, including basements, hills, and metro stations, where internet connectivity is often weak or unavailable. With the UPI Tap & Pay feature, users can make payments quickly and easily, without relying on their smartphone’s internet connection.

Overall, the launch of UPI Tap & Pay and MyUPI is a significant step forward in the development of digital payments in India. The features are designed to provide greater speed, convenience, and security for UPI users, and are expected to contribute to the continued growth of digital payments in the country.

The growth of digital payments in India has been rapid in recent years, with UPI transactions playing a major role. The launch of UPI Tap & Pay and MyUPI is expected to further accelerate this growth, making digital payments more accessible and convenient for users across the country.

In conclusion, the RBI’s launch of UPI Tap & Pay and MyUPI is a significant development in the digital payments space in India. The features are designed to provide greater convenience, security, and control for UPI users, and are expected to contribute to the continued growth of digital payments in the country.