India copies the west from Bollywood songs to corporate products and services ideas. India is excellent in the first copy. But today we will learn about advanced technology. We will know how UPI has changed the Indian economy. Why do we need it? Why US and China stop it?
India’s UPI and US Federal Reserve
According to the report, the biggest revolution in India is UPI Transactions. India is the largest real-time payments market in the world. Seeing the success of UPI even google praise India. In 2019, Google gave the US federal Reserve a suggestion to look at the UPI and build something similar. Otherwise, there will be a problem for you. Imagine, when don’t have to convert Indian rupees into dollars and not even high conversion charges.
The USA is a superpower where the dollar is a global standard. When dollar importance is challenged, it would create opportunities for developing nations. It sounds impossible but, if we play it well it can be possible. UPI will be launched in Singapore too. You can pay via UPI for shopping from Singapore. Bhutan has also accepted UPI. 10 countries will also going to accept UPI.
Problems before UPI came in India
Let’s rewind a little, in 2011 an average user would have no more than 7 transactions in a year. No, it is not that there is no facility for payment via cards. India has over 1 crore merchants who would accept card payments. But for some or for others card payments are not mainstream. There are three reasons.
Complexity: Not everyone has a credit card and you need a machine to operate a debit card. If you have to transfer funds digitally, you need to know IFSC Code, bank name, account number. Who will be bothering with all this stuff?
Charges: Merchants have to pay 2% on MasterCard and visa on transactions. This was a huge charge for small shops.
Frauds: You must have seen the series jam tart. Cards getting stolen and getting duplicated are quite common. This causes a huge number of cases of fraud.
How UPI has Changed the Indian Economy? – Solution When UPI came in
To solve all these issues. In 2016, the National Payment Corporation of India launch UPI Technology. UPI literally stands for Unified Payment Interface. Earlier you have to go bank for sending or receiving but using UPI you can do it in just clicks.
Apps collect money on your behalf and they can also deposit on your behalf. Now UPI isn’t charging any amount. And available for 24*7, network all over India, and also act as your personal assistant. On October 21, India has crossed $100 billion in transaction value. All these things help our economy in smooth functioning and development.