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France Has Launched India’s Digital Payment System UPI

Utkarsh Classes 03-02-2024
France Has Launched India’s Digital Payment System UPI Agreements and MoU 5 min read

Unified Payment Interface (UPI) has been formally launched at the Eiffel Tower in Paris. UPI was formally launched at the Republic Day celebrations held in France.

Background of Launch

  • According to the India-France joint statement, in 2023, India and France are committed to nurturing a thriving ecosystem and building collaboration that empowers its citizens and ensures their full participation in the digital century.
  • NPCI International Payments Limited (NIPL) and France's Lyra Collect entered into an agreement to implement Unified Payment Interface (UPI) in France and Europe.
  • During his visit to France in July last year, Prime Minister Narendra Modi announced that India and France have agreed to use the UPI payment mechanism and it will start with the iconic Eiffel Tower.
  • Recently, French President Emmanuel Macron visited India to participate in the Republic Day parade as the chief guest. 
  • French President Macron used UPI to make payment at a tea shop in Jaipur.

About Unified Payment Interface (UPI)

  • Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging multiple banking features, seamless fund routing and merchant payments under one hood. 
  • It also caters to “Peer to Peer” collection requests which can be scheduled and paid as per requirement and convenience.
  • Keeping the above context in mind, NPCI launched a pilot with 21 member banks. 
  • The pilot launch was done by Dr Raghuram G Rajan, Governor of RBI, in Mumbai on 11 April 2016.
  •  Banks have started uploading their UPI enabled apps on Google Play store from August 25, 2016.

How is this unique?

  • Instant money transfer via mobile device 24 hours a day, 365 days a year.
  • Single mobile application for multiple bank accounts.
  • Single Click 2 Factor Authentication – Compliant with regulatory guidelines, yet provides a very robust feature of seamless single click payments.
  • Customer's Virtual Address for Pull & Push provides incremental security, wherein the customer does not need to enter details such as card number, account number; IFSC etc.
  • QR code
  • The best answer to the hassle of cash on delivery, running to an ATM or paying the exact amount.
  • Merchant payments with a single application or in-app payments.
  • Utility bill payments, Over the counter payments, QR code (scan and pay) based payments.
  • Donation, collection, disbursement scalable.
  • Raising complaints directly from the mobile app.

Countries with UPI are Singapore, Malaysia, UAE, France, BENELUX countries ( Europe), Nepal, UK.

BENELUX: Belgium, the Netherlands and Luxembourg – and Switzerland

National Payments Corporation of India (NPCI) 

  • National Payments Corporation of India (NPCI) is an initiative of the Reserve Bank of India (RBI) and the Indian Banks Association (IBA) under the provisions of the Payment and Settlement Infrastructure Act, 2007 to operate retail payment and settlement systems in India. 
  • Keeping in view the utilitarian nature of the objectives of NPCI, it is incorporated as a “Non-Profit” company under the provisions of Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013).

FAQ

Answer: France

Answer: NPCI

Answer: Reserve Bank of India (RBI) and the Indian Banks Association (IBA)

Answer: Unified Payment Interface (UPI)

Answer: Companies Act 1956 (now Section 8 of the Companies Act 2013).
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