RBI introduces UPI with no internet requirement for basic phones

Mumbai, Mar 11 (KNN) In an effort to promote financial inclusion, the Reserve Bank of India (RBI) has introduced United Payments Interface (UPI) for basic phones under the realm of India’s homegrown payments network.

Phones providing basic functionalities such as voice calling and text messaging are called the feature phones which has a large consumer base in India.

RBI Deputy Governor, T Rabi Sankar said, UPI or digitalisation must not be limited to smartphones, as it is crucial to be available in an offline mode and on feature phones to take it to the next phase of development.

There are four different technologies involved in the new payments system for feature.

Interactive Voice Response (IVR) numbers are used for the first one wherein one can dial a number and initiate a secured call from feature phone, and after getting registered can start financial transactions without internet connectivity.

The second module is through apps on feature phones. Majority of UPI functions will be available on apps that are available on feature phones and one can do almost all kinds of UPI transactions except scan and pay, which is still a work in progress.

Proximity sound-based payments is involved in the third method of feature phone UPI involves. It uses sound waves to enable networking and therefore helps carry out contactless offline and proximity data communication on any device.

The final method is a traditional Indian way of missed call approach -- where users receive a callback from a standard number to authenticate and carry out transactions.

UPI has played a major role in the adoption of digital payments in India, recording about 4.53 billion transactions worth Rs 8.26 trillion in February 2022, almost double compared to a year ago, said the central bank. (KNN Bureau)