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absolutely. i am a professional who deals with businesses and i have seen how UPI has immensely helped reduce dependency on cash... i use it everyday. right no

absolutely. i am a professional who deals with businesses and i have seen how UPI has immensely helped reduce dependency on cash... i use it everyday. right now UPI is mandated to be mobile phone based, it has to keep the registered SIM card at all times, you cannot change your phone, cannot have a single account on muliple places, you dont have account portability but those are all technical issues. Because of an actual recession, the government is finding new ways of collecting taxes, recently they put GST or a tax on paid public toilets. So, everytime you pay to use a paid toilet, you are giving 18% tax on that transaction. That is the level of "tax hounding" the government has resorted to. i fully agree with the author here, i would even suggest, all the private players like google pay/phone pe who have their own apps built on top of UPI network should be made to pay-to-play because they are definitely earning because of cross-selling/upselling/advertising. google/amazon wants to float a new UPI app, heck even trucaller has one so why should they not have an interest free bank deposit to pay for the infrastructure. they would continue to earn by up selling etc anyways and the network would continue to get funds to run.

bergenty 4y ago
What happens if you lose your phone? There must be some way to transfer the account right?
- 2Gkashmiri 4y ago
  nah, its not like that. your "upi address", like "abc@sbi" is tied to that phone/sim card/bank. if you change your phone or use a different app, that "handle" is reserved and not portable. if you change your phone or lost it, just get a duplicate sim card, install a UPI app and get a new address.
  - phanimahesh 4y ago
    The handle is tied not to the device but to the mobile number. If you change your device you reregister on the new device and can continue to use the same handles.
    - 2Gkashmiri 4y ago
      dunno. i changed phones and lost out on a vanity address because "it was already in use"... maybe things have changed ? i am not sure
- wtmt 4y ago
  UPI is not a money holding account by itself. It’s an identifier for your bank account. You can have multiple identifiers for the same bank account (like email aliases pointing to one mailbox). UPI is primarily available on smartphones through an app. The setup process involves the UPI app (could be bank’s app or a third party app like Google Pay) sending an SMS with a specific code to NPCI (the private consortium operating the UPI service). If you lose your device or uninstall the app or the UPI account is deactivated due to inactivity, you just fire up the app and get it to send the SMS again for authorization.
  - bergenty 4y ago
    How do you validate yourself as the owner of the bank account especially if that validation happens over SMS? Is there a password or pin that is secret? Or do you have to go to the bank website and initiate an SMS send to your new phone? How are very rural people able to navigate all that complexity given how prevalent UPI is at this point?
    - 2Gkashmiri 4y ago
      its like this. your bank account has a phone number linked to it. in normal cases here is the workflow. you install UPI. UPI app sends sms verfiying your mobile. app lists all banks. you select your "bank". you set pin. done.
    - 2Gkashmiri 4y ago
      even illiterate people are able to navigate a cell phone. take for example infants or 1-2 yo kids. they cant read, cant speak but they can open youtube and even reach their favorite video.
    - nmzaheer 4y ago
      It a two factor authentication system. One is your mobile number i.e. the UPI app first verifies whether the number belongs to you and it is being sent from the same device. To do that, it auto sends a encoded SMS to the NPCI server and awaits a response on the same device (no provision to manually enter the response. It has to be auto read by the app). This ensures that nobody else can claim ownership of that mobile number. Having known that you own the number, it allows you to link your bank account to the UPI ID. This mechanism involves again sending a SMS to the bank server to verify whether an account exists that is linked to the mobile number you just proved that you possess. If that is true, then you need to prove that you own the bank account. This is done by asking you to enter your debit card details along with the ATM PIN. If that is successful, then that bank account is linked to the UPI ID you just created. Further, the app now forces you to set a UPI PIN that can/is different from your ATM PIN. Now you can perform UPI transactions with your UPI PIN.

bergenty 4y ago

What happens if you lose your phone? There must be some way to transfer the account right?

2Gkashmiri 4y ago
nah, its not like that. your "upi address", like "abc@sbi" is tied to that phone/sim card/bank. if you change your phone or use a different app, that "handle" is reserved and not portable. if you change your phone or lost it, just get a duplicate sim card, install a UPI app and get a new address.
- phanimahesh 4y ago
  The handle is tied not to the device but to the mobile number. If you change your device you reregister on the new device and can continue to use the same handles.
  - 2Gkashmiri 4y ago
    dunno. i changed phones and lost out on a vanity address because "it was already in use"... maybe things have changed ? i am not sure
wtmt 4y ago
UPI is not a money holding account by itself. It’s an identifier for your bank account. You can have multiple identifiers for the same bank account (like email aliases pointing to one mailbox). UPI is primarily available on smartphones through an app. The setup process involves the UPI app (could be bank’s app or a third party app like Google Pay) sending an SMS with a specific code to NPCI (the private consortium operating the UPI service). If you lose your device or uninstall the app or the UPI account is deactivated due to inactivity, you just fire up the app and get it to send the SMS again for authorization.
- bergenty 4y ago
  How do you validate yourself as the owner of the bank account especially if that validation happens over SMS? Is there a password or pin that is secret? Or do you have to go to the bank website and initiate an SMS send to your new phone? How are very rural people able to navigate all that complexity given how prevalent UPI is at this point?
  - 2Gkashmiri 4y ago
    its like this. your bank account has a phone number linked to it. in normal cases here is the workflow. you install UPI. UPI app sends sms verfiying your mobile. app lists all banks. you select your "bank". you set pin. done.
  - 2Gkashmiri 4y ago
    even illiterate people are able to navigate a cell phone. take for example infants or 1-2 yo kids. they cant read, cant speak but they can open youtube and even reach their favorite video.
  - nmzaheer 4y ago
    It a two factor authentication system. One is your mobile number i.e. the UPI app first verifies whether the number belongs to you and it is being sent from the same device. To do that, it auto sends a encoded SMS to the NPCI server and awaits a response on the same device (no provision to manually enter the response. It has to be auto read by the app). This ensures that nobody else can claim ownership of that mobile number. Having known that you own the number, it allows you to link your bank account to the UPI ID. This mechanism involves again sending a SMS to the bank server to verify whether an account exists that is linked to the mobile number you just proved that you possess. If that is true, then you need to prove that you own the bank account. This is done by asking you to enter your debit card details along with the ATM PIN. If that is successful, then that bank account is linked to the UPI ID you just created. Further, the app now forces you to set a UPI PIN that can/is different from your ATM PIN. Now you can perform UPI transactions with your UPI PIN.