Bhoomika Singh
RBI Governor Shaktikanta Das launched ‘UPI123Pay,’ a Unified Payments Interface (UPI)-based payment for feature phones. The event was streamed live on RBI’s YouTube channel. Das also launched DigiSaathi, a 24-hour helpline for digital payments.
This would allow India’s 40 crore feature phone users to access the payment service, which would be a significant step toward the digitisation of payments and transactions. In his remarks at the event, Governor Das stated, “This current decade will witness a transformative shift in the digital payments ecosystem in the country.”
He also mentioned that the RBI has announced a number of initiatives in the last three years to promote digital transactions.
The governor emphasised that UPI on feature phones will assist people in rural areas who cannot afford a smartphone in participating in UPI transactions. A feature phone is a phone with basic functions such as calling and text messaging.
Das confirmed that UPI 123Pay customers will be able to use feature phones for almost all transactions, except scan and pay. It does not require an internet connection for transactions, and customers can use this service by linking their bank accounts to feature phones. In 2016, the UPI payment platform was introduced. Since then, the number of transactions has multiplied many times over.
Das believes that the launch of this new UPI for feature phones will assist the National Payments Corporation of India (NPCI), an organisation responsible for operating retail payments and settlement systems in India, in meeting its goal of processing a billion transactions per day.
He went on to say that UPI 123Pay will also help the RBI achieve its goal of a cashless economy, and that feature phone users will have more limited payment options. “UPI has emerged as a popular mode of payment through smartphone. The number of digital transactions has grown over five times and a large part of this is limited to those who hold smartphones,” Das added.
Chairman of the NPCI Biswamohan Mahapatra, Deputy Governor T Rabi Shankar, and RBI Governor Shaktikanta Das were present at the event. Deputy Governor T Rabi Shankar stated during the launch, “At present, UPI services are available for such users through the USSD-based services, but the same has been found to be cumbersome and all the mobile operators do not allow such services.”
The RBI has played an important role in developing innovative payment and digital solutions. Through these initiatives, it is facilitating digital penetration, raising digital awareness, and promoting financial literacy as it strives for a cashless society with bokeh of digital payment options.
