Question

What does UPI stand for in the context of India Stack Global?

• A. Unified Payments Interface
• B. Universal Payment Infrastructure
• C. United Payment Initiative
• D. Unified Payment Interconnection

Answer 1

Answer:

A. Unified Payments Interface

UPI stands for Unified Payments Interface.

• What it is: A real-time payment system that allows users to instantly transfer money between bank accounts using a mobile app.

• How it works: It links multiple bank accounts to a single mobile application. Instead of using bank account numbers and IFSC codes, users can send and receive money using a simple UPI ID (also known as a Virtual Payment Address or VPA), a mobile number, or a QR code.

• Key features:

  • 24/7 Availability: Transactions can be made at any time, day or night.

  • Instant Transfers: Money moves in real time from one account to another.

  • Security: It uses a secure PIN and two-factor authentication, ensuring that sensitive bank details are not shared.

• Its role in India Stack: UPI is a key layer of the India Stack, serving as the foundation for the country's massive digital payments ecosystem and a model for other nations seeking to promote financial inclusion.