Differences between UPI and Digital Rupee

  1. In UPI, the banks act as a gateway or a channel for payments, but when it comes to the digital rupee, the payments are done from one wallet to another. Here, banks don’t get involved, but it’s otherwise in the UPI. 
  2. UPI payments are made via sources like Google Pay, PhonePe, NEFT, and RTGS, etc. In the digital rupee, the payments are done electronically.
  3. Settlements can be done immediately by using the digital rupee and they possess a store of value. But UPIs don’t do that as they are merely an infrastructure made to process the payments. 
  4. In UPIs, you can’t withdraw the funds and store them in your wallet for future use. However, that’s absolutely possible in the digital rupee, making it a one-stop solution for all sorts of payments, both online and offline.
  5. The UPI payment system works similarly to debit cards and credit cards, whereas, the digital rupee is like a “cash form” where one can withdraw and spend or can store it like a deposit in their wallet.
  6. Payments made via UPI involve middlemen, hence the indirect route of transferring money. In digital rupee, the payment is done directly, and there’s no middlemen involved here.

Up to Rs 10,000 in UPI transactions will now be covered by insurance thanks to Paytm and HDFC ERGO.

One97 Communications-owned Paytm has launched a group insurance plan in partnership with HDFC ERGO General Insurance. The plan, which is called Paytm Payment Protect, will insure transactions made through UPI across all payment wallets and apps. 
Paytm users can insure transactions upto Rs 10,000 by paying Rs 30 and more per annum. In addition, insurance cover for transactions costing Rs 1 lakh or above will get added on in the times to come.
The fintech company also highlighted that this plan will increase the trust of the users, enhance their digital payments experience and accelerate its adoption across the country. 
According to Paytm’s Bhavesh Gupta, who is the CEO of Lending and Head of Payments, this move is meant to safeguard users and fight cybercrimes. Echoing Gupta’s point, Parthanil Ghosh, President at HDFC ERGO General Insurance’s retail business, said that while UPI and wallet payments provide ease and convenience, it makes the users susceptible to cybercrimes. 
“We are excited to partner with Paytm as this asserts our pledge to provide innovative solutions to mitigate cyber risks in today’s digital era. Our comprehensive insurance offering, coupled with Paytm’s digital access, will boost digital growth and ensure financial inclusion along with protection from cyber frauds across the country,” he said.
To avail this option, users can search for the ‘Payment Protect’ option on the Paytm app. Thereafter, they can enter their name, mobile number and tap on the ‘Proceed to Pay’ button. They can also visit the HDFC ERGO website for a detailed run-through of the policies, terms and conditions, and more.

A few days back, Paytm announced Bijlee Days for all the users who pay their electricity bills from the app. The digital payments service provider said that it would be offering 100 per cent cash back and additional rewards to its users who will be making payments for electricity bills between the 10-15th of every month.

How to use UPILinks in Bhutan 

 How to create UPI links

  1. Go to upilinks.in
  2. Enter your name
  3. Enter UPI or VPA

You can find your UPI ID or VPA on your payment apps like GPay, Amazon Pay, Google Pay, Phone Pay, Paytm etc.

You can refer to the following links to find out your VPA/UPI on popular apps.


GPay Or Google Pay


Amazon Pay

  1. Enter the amount of leave blank if you want the user to choose the amount.
  2. Choose link disposal date : If you want to terminate the payment link then select the date when it wants it to stop working. If you do not enable the disposal date then the link will be available forever. 

Note: If you enter invalid UPI ID or VPA a dummy link will be generated and you will not be able to use it for payments.

click here to Generate your UPI Payments links

UAE now accepts UPI payments from Indians.

To facilitate UPI-based payments in the Gulf country, the National Payments Corporation of India (NPCI) has teamed with the Mashreq Bank’s NEOPAY.

Travelers from India can now use UPI to pay in the UAE.
It is significant to remember that NEOPAY terminals are required in UAE stores in order for UPI payments to be accepted.
Bhutan and Nepal currently accept UPI payments.

Using UPI-based apps, Indian tourists may now easily make payments in the UAE. 

Who knows how? 

This is so that UPI based payments can be made in the Gulf State thanks to a partnership between the National Payments Corporation of India (NPCI) and Mashreq Banks NEOPAY. 

Being able to use UPI as one of the payment options will make it significantly easier for Indian visitors to make payments in the UAE, where there is a sizable population of Indian expats. 

The UPI services were first introduced in Bhutan in 2021 in association with the Royal Monetary Authority, the country’s official bank.

discussing UPI in the UAE We are happy to see BHIM UPI become live in the UAE thanks to our relationship with NEOPAY, according to Ritesh Shukla, CEO of NIPL. With the help of this initiative, Indian tourists will be able to make payments using BHIM UPI, which has become the preferred method of payment for Indian citizens. With our cutting-edge technologies, NIPL is constantly working to streamline digital payments and promote digital public goods around the world. To provide seamless user experiences when it comes to payments, we are committed to developing a sizable global acceptance network for UPI.

Finance Ministry Clarifies That UPI Transactions will not be charged!

The central government has clarified its position in response to rumours that it could impose additional taxes on UPI payments. In a series of tweets published on Sunday, the Ministry of Finance claimed that UPI is a “digital public utility” and that there are no intentions to charge for its services. According to the tweet, the government has financially supported the country’s digital payments ecosystem. It also noted that alternative funding mechanisms must be explored to meet the expense of recovery. The ministry went on to state that it has also made plans to offer support this year to encourage more people to adopt electronic payments.

In response to rumors that UPI transactions might be charged an additional cost to support the payments infrastructure, the remark was made. The Reserve Bank of India has also asked for comments on the topic, according to a discussion paper released on August 17th. Although it wasn’t particularly addressing UPI transactions, the document covered a number of electronic payment systems, including Immediate Payment Service (IMPS), the National Electronic Funds Transfer (NEFT) system, and the Real Time Gross Settlement (RTGS) system. The report demanded that the government maintain the zero-MDR (merchant discount rate) policy, which is still in place for RuPay and UPI transactions. Service providers assert that systems can be improved by tying an MDR fee to digital payments.

The Payments Council of India (PCI), the trade group for the country’s digital payments ecosystem, requested in writing to the government that the zero-MDR policy for UPI and Rupay debit cards be reversed before the introduction of the Union Budget 2022. MDR (0.4 to 0.9%) is currently assessed on Visa and Mastercard debit cards, and it is divided between the issuer banks and acquirer. In its paper on UPI, the RBI asked for feedback on whether it should be treated differently from debit cards from Visa and Mastercard. The administration declared in the tweet that it is in favour of “economical and user-friendly” digital payments.

The RBI has hinted that UPI will now be chargeable.

UPI will now be taxed: The Unified Payment Interface, or UPI, has brought about revolutionary changes in India’s payment ecosystem. While UPI transactions are currently free, the Reserve Bank of India has requested feedback from stakeholders on the possibility of imposing a tiered charge on them.

Discussion Paper by the RBIOn August 17, the Reserve Bank of India (RBI) issued a discussion paper on charges in payment systems in order to structure its policies and streamline the framework of charges for various payment services/activities in India. UPI, IMPS (Immediate Payment Service), NEFT (National Electronic Funds Transfer), RTGS (Real-Time Gross Settlement), and payment instruments such as debit cards, credit cards, and prepaid payment instruments are examples of such methods (PPIs).Based on the feedback received, the RBI intends to revise its policies and streamline the framework of charges for various payment services and activities in the country.

What did the RBI say?
UPI, as a funds transfer system, is similar to IMPS. As a result, it could be argued that UPI charges should be comparable to IMPS charges for fund transfer transactions. A tiered charge based on the different amount bands could be imposed. The RBI requested responses and recommendations from stakeholders by October 3 of this year.

The RBI has not issued any instructions on how to charge for UPI transactions. With effect from January 1, 2020, the government has mandated a zero-cost framework for UPI transactions. This means that UPI charges are nil for both users and merchants. Given that the goal of this discussion paper is to elicit general feedback, a few questions about which approach should be taken have been included. ”

PM Modi praises UPI

Nirmala Sitharaman, the Union Finance Minister, noted in a Tweet on Tuesday afternoon that the Unified Payments Interface (UPI) recorded more than 6 billion transactions in July, which is the greatest number since the system’s launch in 2016. UPI reported 6.28 billion, according to data from the National Payments Corporation of India (NPCI).

In terms of transaction volume, July had a month-over-month increase of 7.16%. The number of transactions nearly doubled year over year (YoY). The number of transactions rose by 4.76 percent in July while increasing by 75 percent year over year.

The UPI recording 6 billion transactions in July has been welcomed by Prime Minister Narendra Modi as a “amazing success” and he claims it shows how determined the populace is to adopt new technology and create a more sustainable economy.

He made these comments in response to a tweet from Nirmala Sitharaman, the minister of finance, in which she claimed that “UPI records 6 billion transactions in July, highest ever since 2016.”

PM Modi replied to her tweet by saying, “This is a fantastic achievement. It demonstrates the nation of India’s broad willingness to adopt cutting-edge technology and clean up its economy.”

The Prime Minister said, “Digital payments were very useful during the COVID-19 outbreak.”

Is UPI going to Kill credit and debit cards Soon!?

Providers in the fintech and retail ecosystems have emphasized that UPI adoption in India is at an all-time high. In order to rid the country of “black money” and effectively and systematically control transactions, the Government of India (GOI) and Reserve Bank of India (RBI) introduced UPI through the National Payments Corporation of India (NPCI) in November 2016.

Unified Payments Interface, also known as UPI, is a real-time quick payment solution that has skyrocketed in popularity recently. A user-friendly payment interface has replaced the conventional cash-based payment model, enabling customers to transfer money with just a few taps on their smartphones. Peer-to-peer and person-to-merchant money transfers are among the interbank transactions that UPI supports. Cashless transactions were implemented to stop the COVID-19 pandemic’s spread after it swept over the planet. Digital payments grew in popularity because they were more secure during those tumultuous times. UPI transactions outpaced conventional credit and debit card usage because they were quicker and simpler to use for money transfers.

Companies in the fintech and retail ecosystems have emphasised that UPI adoption in India is at an all-time high. In order to rid the country of “black money” and effectively and systematically control transactions, the Government of India (GOI) and Reserve Bank of India (RBI) introduced UPI through the National Payments Corporation of India (NPCI) in November 2016. Since then, UPI has made significant contributions to the field of electronic payments thanks to how quick, simple, and effective it is.

Recent statistics indicate that Tier 2 and Tier 3 cities and towns account for more than half of all internet sales. The largest adoption rate for the number of online transactions made using UPI was seen in the EdTech, Ecommerce, Gaming, and Healthcare industries. These online payments are becoming more common in Tier 3 and Tier 4 cities as well, dramatically expanding UPI’s market share. The Person-to-Merchant (P2M) use-cases have a huge potential for expansion, whereas the Peer-to-Peer (P2P) use-cases are now fixed. This demonstrates how UPI users favour convenience over the worry that their transactions may be recorded.

NPCI is in talks with SBI, BoB, and other banks, and UPI-Credit Card Linking is anticipated to happen in two months.

According to Dilip Asbe, chief executive of the National Payments Corporation of India (NPCI), the organisation responsible for handling retail payments in the nation, the connection of credit cards to the UPI network will soon be implemented. This comes after Reserve Bank of India governor Shaktikanta Das suggested that credit cards might be linked to UPI to speed up payments.

“BoB Cards, SBI Cards, Axis Bank, and Union Bank of India are all being discussed. Asbe stated at an event hosted by the Bank, “We should he able to submit our proposal to the Reserve Bank of India (RBI) in 10 days, and once we receive approval, we should be able to start in two months.

On June 8, Shaktikanta Das announced that the Monetary Committee Meet (MPC) was considering allowing credit card connection on UPI networks. However, it was anticipated that this action would test the UPI users’ access to the Merchant Discount Rate (MDR) benefit. According to experts, one of the main factors behind the expansion of UPI and why retailers choose it over credit and debit cards is the zero-MDR benefits. Banks and payment service providers split the amount paid by the merchant for each card transaction made when using credit cards. In the case of credit cards, this is approximately 2% to 3% of the overall payment.

Asbe noted, “While the existing credit card servicing merchants can continue to receive payments, we might have to take care of the smaller merchants and safeguard them from the MDR.”

When asked about the price disparity between UPI and credit cards and how both will be synchronised, RBI deputy governor T. Rabi responded in June that “getting to the pricing structure is jumping the gun” and that RBI “will see how it will be priced.”

“At the moment, UPI speeds up transactions by connecting customers’ debit cards to their savings and current accounts. Credit card connection on the UPI platform is now being discussed. Shaktikanta Das had stated in June that the Rupay credit cards would initially be connected to the UPI platform. According to a statement from the RBI, this arrangement will give users greater options and ease when using the UPI platform to make payments.

Location data collection by UPI apps must have user authorization, according to NPCI

The National Payments Corporation of India (NPCI) has stated that apps used for Unified Payment Interface (UPI) transactions must only collect users’ location data with their consent. In a circular dated July 5, NPCI informed UPI members that the consent requirement must be met by December 1.While initiating a transaction, the UPI application programme interface (API) framework captures geo-tagged payment information. According to NPCI guidelines, location details and other relevant customer data must be captured in an encrypted format within the app provider’s system. “In addition to the stated guidelines, we are releasing the… directions because geo-tagging involves customer-centric information and such data points are used in accordance with the defined norms and regulations,” NPCI stated in the circular.

The apps cannot make location data collection mandatory, and the customer must be given the option of enabling or revoking their consent. According to NPCI, apps should continue to provide UPI services even after the customer has revoked consent to share the app’s location or geographical details.

The guidelines will apply only to domestic UPI transactions where the customer is a person initiating transactions.

According to payment industry executives, NPCI’s circular is in line with the increased transparency regarding app permissions and user privacy implemented by mobile device platforms such as iOS and Android.

While the new guidelines are beneficial to users, Harish Prasad, MD, banking solutions (India), FIS, believes they may pose some practical challenges. “Many of the UPI apps are not standalone UPI apps, and have a broader set of features that frequently require or use location data for enhanced user experience or security,” he explained.

Apps that previously required location permission will now have to make changes to deal with non-consenting customers, which could be a significant change affecting not only UPI but many other features they provide, according to Prasad.

According to industry participants, the five-month compliance timeline may be too short.