Is India's UPI the greatest Innovation of the 21st Century? Check the 4 nations adopting UPI, Now | Startup Bazaar
Case study of India's payment mode UPI

Is India’s UPI the greatest Innovation of the 21st Century? Check the 4 nations adopting UPI, Now

A CASE STUDY ON UPI

Nations that lay their hold additionally on taking risks and following the pressures of their development rather than looking for some instinctive and automated conveniences are the ones who put themselves on the track of progression and evolution.

Today’s write-up will follow up for such a likely country ‘India’, since 2010 or the nearly years the trend of online money transfers began here. Although online banking was even commenced before this period, the step was an initiative towards digitization, transforming payments into cash-free payments.

Confining, our context the discussion here is about the ‘Unified Payments Interface. India has adopted and originated UPI to welcome a digital module in the country. The model focuses on the primary usage of the convergent media that are our smartphones with abrupt and sudden money conducts, whether it is receiving or forwarding. As the platform suggests, UPI also is an amalgamated policy popularly started in India that aids even taking in-charge of numerous bank accounts on a single media.

 If fundamentally want to know some of the serviceable features of UPI, check the following list:

  • Transferring cash irrespective of the form plugging in the other side’s distinctive or individual VPA in UPI, the same can be undertaken with the addition of a scanner QR too.
  • Mostly, hand-to-hand payments are inclusive of many- disadvantages, one of them could be handing in extra and not realizing the fact, that UPI AutoPay is the attribute assisting you here with the feature of coming and going with your finances.
  • The era of digitization brings out each kind of communication on the modern grounds, so why could request your payments could be the one left- out? No, UPI does it for you by taking the action of asking out your payments from the other user.
  • It provides each user with a unique UPI id if understood in a lay-man language, the id automatically has to attach up with your filled in details of bank account, and according to your dependence and usage detaching of the same is also a possible alternative you could decide on.
  • The payments that are subjected to be out of the online platforms are stepped at each level to be linked up with your physical movements regularly in case you request them for a transaction, or the mini statement, transaction history goes same. But, when the payments are online UPI is there to reduce your headache and bring out the latter objectives at your platform, whether it is viewing the history or downloading it, UPI provides you with every possibility.
  • Failed or misinformed payment structures are much more common in the physical transference, not denying the fact that online mediums are also the gateway for the same but the number is comparatively null as UPI gives you the charge to hoist disagreements in any of such cases.
  • Bills payments are available on the online wallet system as well but UPI has the unique proposition that lifts out itself which is redirecting or forwarding the same. Bill acquisitions and payments can be the individual faces that could be acquired by different UPI ids, and thus has the same feature. Isn’t it great right? Of course, it is, India it is, UPI India it is that is now globally preferable too.
  • Transaction restriction has always been an issue in physical acceptance of money, in case of urgency if to-be acquiring value is high ATMs do not support that in a go. This was again an opportunity to Raghuram G. Rajan of India (founder, establisher; UPI) and now your unique ids permit you to move your money in a day or a year, the restricted limit set is also 1 lakhs.
  • The term rapid is directly proportional to the term lively, equaling to the process of UPI, the India-based system is promoted and enhanced on a regular note by some renowned Indian government bodies. They have recognized the need for quick and hassle-free money transfers whether it is done by sharing the QR codes or your UPI ids. The digitization that our Prime Minister Mr. Narendra Modi wanted was the cash-free cash-free transactions ‘the digital India’, which is exactly what UPI here is to support.

 

The first country to adopt India’s UPI system:

 

India is one such of all the other developed and developing nations to formulate this sophisticated system in the financial firm and today the reach, as well as they want, has gone global. The urge in other countries to surface their economy too with digitization is shooting up. But, wherefrom this inducement is arriving? It’s India’s system of UPI that they too ant to adopt and introduce to their citizens for the simplest money acts.

Nepal government, our neighboring country itself was the first emerged area to sanction UPI in Nepal. P2P and P2M money acquisitions are supposed to be held more easily by this mode in Nepal. The system is going to entitle the public to the tertiary level to capture the conveniences of this non- conflicting financial structure (UPI) that is ready to steer the instant, rapid even the abrupt transactions, which most in the country (Nepal) would be amongst retailers and the other side bank accounts.

The global acceptance of UPI has led to the revision of payments in India that in turn has remarkable and effective aftermath in India as well as the nations accepting the system.

 How UPI is assisting Nepal with its guidance, here are some particulars:
  • The existing payment configuration and framework of the same aid to effectuate the operation of monetary insertion in this neighboring country of India. More than we think, this country has invasions in the format of wants in money and regular transactions in a physical mode with n number of restrictions can become a delay and a scope for not leading as an economical nation. Therefore, UPI acceptance in Nepal was a prominent and needed step.
  • Whether it is B2B or B2C the format of businesses that already have stepped into the infrastructure of Nepal has been benefitted from the UPI, but what about the ideas that did not get a chance to make them happen in real-time, guessing the reasons; foremost is the financial crisis or the transactions which could have limited access before UPI was adopted in Nepal. But, now opportunities have automatically grown.
  • Nepal being a developing nation has to amend a lot in its authorization to be on the list of developed nations; success does not come in a go. Operational work mode goes hand in hand when it comes to the rejuvenation and renewal of a country like Nepal. One such step they have taken is taking the process of UPI, which is going to sharpen the digitization in the financial and money procedures.
  • As we discussed the safest money transfer acts India’s this payment mode will provide in the medium of businesses in Nepal same as it does in India. In the latter format, UPI is being mentioned and considered as the one leading process globally that functions with proper clarity, direction, welfare, and reliability.

 

Singapore, being the next in the game for this adoption; UPI:

 

A foreign money transfer has always been an issue or an obstruction, Singapore government (NETS) in November 2020 understood the problem and relied on a systematic matter for ceasing the issues in foreign money transfers with India by coming in together with NPCI (National Payments Corporation of India).

This was initially looked at from the  Indian side that receiving the finances from India to Singapore could not be a problem so the BHIM- UPI was adopted legally in Singapore.

Same as the procedure went in Nepal the money acts direct and indirect (could be the person to the merchant or the retailer), it was accepted smoothly in Singapore as well. Some of the plans for this collaboration:

  • The undertaking of UPI in Singapore was a clear victory which is visible, espying the same conjugation is to be stronger and an association has to be set up allying India’s UPI and Singapore’s Paynow.
  • The upper discussed step will uplift and magnify the commercial quarters of both the countries and would also license the citizens to make prompt and low-priced money conducts across India to Singapore and vice-versa low-priced.

 

UAE adopts UPI:

 

Travel is an aspect much wider than we think, and UAE has always been a common and exact location for tourists; specifically for the Indians. Following any official to informal tours; visiting UAE is happening and ongoing.

Indians on a company tour would not need to stress over the major finances as the company is handling the expenses, but going on a family trip or any personal vacation trip; the aspect entirely covered is how to get through different money transfers on your trip to UAE. Therefore, the Indian government felt the need to adjoin the system UPI in UAE (United Arab Emirates).

Major outcomes of the same:

  • Indians on their UAE trip now would not need cash, as the transactions are cash-free with the help of UPI also any stress-outs on the currency issue as well. Local shops to visit will also accept UPI (the Indian simplest and safest money transfer system) in UAE.
  • After this inducement of UPI in Emirates by the Indian government, next coming up in 2022 is the collaboration of NPCI International Payments Ltd. And Mashreq Bank, which is a privately recognized bank in UAE.
  • This inclusion in UAE is surely going to augment and establish the virtual or the digital monetary and commercial infrastructure in UAE. Plus, the need here was recognized by tourism. Hence, it was already proven that UAE is one such spot where tourists tend to visit repeatedly, so this step would also help UAE grow and develop as a précised tourist hub.
  • UAE advantages are talked about enough; now let’s shift our point of view toward the country which is the origin of UPI. The global reach of the system is widening and immense power is being taken by India as; as soon as somebody uses the service and has a look at the origin and India is there to expand its reach.

 

UPI in Bhutan:

As we talked about travel, Bhutan is no less when it comes to Indians for traveling, therefore the same purpose Bhim-UPI application is now been accepted in the latest country adopting India’s payment system of UPI. The need was generated once the number of Indians visiting Bhutan was calculated and scaled in a survey by the Indian government.

Bhutan is one such nation where Indians aspire to emerge with their startup and business ideas, this revolution is also going to support the same, by specifically focusing and escalading some of the companies originating from the base of technology plus finances. Once, a label is adopted of a country in another, relations tend to be stronger and not tighter as could be expected from Bhutan- Indian relations too in the terms of the economic framework. The association of Bhutan that linked the NIPL was the ‘Royal Monetary Authority of Bhutan.

 

Here, are the various prime aspects of UPI:

 

  • The advantageous UPI can be somehow inclined towards Indian tourists, till the time UPI shelters the world. Traveling is a comfort zone but international travel might give you some worries; UPI is here to address one of them, which is your safest money transaction in the nations accepting it.
  • Business models have a lot to gain from payments whether it’s the online customer transactions or the retailer’s charges. Now, UPI is here to proclaim the cash-free transactions.
  • The UPI India has certified the assets and capital, also has overreached their positive outcome of any added transaction approach or method been emerged in the Indian market.
  • The benefactions UPI has brought to the Indian finance management are staggering; the value in amounts has been exponential on the graph in a systematic manner. In 2020-2021 19% of the UPI transactions were owned by the GDP of India.
  • UPI is a whole independent platform to complete your all required money procedures, no doubt your bank account will be identical with all its particulars, but differentiating the same the latter gives every individual user VPA (Virtual payment address), and the ease starts here unlike other online bank transaction platforms, each time the need to ask for the account number, IFSC code, and PIN. The effortless task is your UPI id and your PIN.

 

The new policy is to, be adopted soon in India; you can now withdraw cash from ATM with the use of UPI:

The proposal is being made by the Reserve Bank of India to permit the card transactions from ATMs with this payment method. The statement was prescribed by RBI governor ShaktiKanta Das in the first monetary policy statement for the year 20022-23. The entirely to be called this Fintech advancement will be streamlining the country in a few years.

The in- date amendment has not been made yet, but several possibilities are been taken into consideration, like the one where, a QR code will appear on the ATM monitor screen, the scanning and further acceptance or disapproval are being operated by the ATM respectively.

The other way down can be the installments of the touchscreen ATMs, respectively the user will put in their unique   UPI ids, and the approval would be done by the user itself through their device where the VPA is been generated. For, the time being the policy is yet to be applied in the Indian economy and market, but once established and emerged, it is going to take India much higher in terms of commercialization than any other developed nations nation, such as USA or Russia.

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Other Resources:

Reasons why UPI payment has become famous in India

 

 

 

 

https://www.taxmann.com/post/blog/rbi-launches-upi-for-making-payments-without-internet/

 

 

 

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