Unified Payment Interface Mechanism for the Development of Digital Banking in India

Abstract

Demonetization and the digital India initiatives pave the way for the development of various digital payment systems, allowing the economy to transition to a cashless system. As a result of the country's increasing use of the internet and mobile phones, India's digital payment infrastructure is expanding, and a variety of payment methods have emerged to enable quick and real-time payment processing. The National Payment Corporation of India's UPI (Unified Payment Interface) is one of the most popular digital payment methods in India. The research looks at the fundamentals of the UPI payment system as well as the various UPI apps that are widely used based on their features and market share. The study discusses the UPI technology development phase and aims to analyze the growth of UPI in India to determine whether UPI acts as a driving force for the development and growth of digital payments. The study's findings shed light on the UPI payment system's year-over-year growth. It also shows a significant increase in the market share of various UPI applications. The paper concludes that the banking sector is on its way to a tech-driven landscape by embracing various technological innovations and payment modes, such as UPI, which assists banks in achieving a milestone transformation in the Indian banking sector's payment infrastructure.