From March 15, 2022, bank account users will be able to utilise their Aadhaar card and OTP instead of a debit card. Banks have been urged to make this UPI service available to all bank account users.
The National Payments Corporation of India (NPCI) launched the feature in September 2021 to assist users who do not have a debit card or whose debit card has not been activated to begin using UPI.
To enable bank account holders to access this service, NPCI was linked to the Unique Identification Authority of India on the bank’s behalf.
Customers were still reliant on banks to use this feature even after introducing it
Notably, the NPCI has ordered banks to provide this UPI service to clients by December 15, 2021, rather than December 15, 2022. Because many banks prioritised the availability of other product features, the deadline for the UPI feature was extended to March 15, 2022.
It is critical to understand that the UPI feature will be offered exclusively to individuals accessing digital banking. Most banks require consumers to prove their identity using their debit cards
Although NPCI introduced this service, it was always up to the banks to make it available to their consumers. Previously, NPCI has asked banks to comply in order for this feature to be enabled by December 15, 2021.
Meanwhile, the Reserve Bank of India (RBI) has launched UPI 123Pay to encourage UPI transactions.
On Tuesday, RBI Governor Shaktikanta Das introduced UPI123Pay. It is a streamlined version of the account-to-account transfer service that may be used with feature phones.
This UPI functionality, according to Das, will enable consumers in remote areas to use payment services. “This decade will see a transformational transition in the country’s digital payments environment,” he continued.