UNIFIED PAYMENTS INTERFACE

1. SREE VENKATESWARA COLLEGE OF ENGINEERING, NELLORE
NAAC 'A' Grade Accredited Institution,
An ISO 9001:: 2015 Certified Institution
(Approved by AICTE, New Delhi and Affiliated to JNTU, Anantapur)
Northrajupalem (VI), Kodavaluru (M), S.P.S.R Nellore (Dt)-524316
Under the Esteemed Guidance of
P .Rajesh, M .Tech, (Ph.D.)
Head of Department
Associate Professor.
Department of ECE.
Presented by
U.NIKHILESH
18JN1A0419
DEPARTMENT OF ELETRONICS AND COMMUNICATION ENGINNERING
TECHNICAL SEMINAR
ON

2. CONTENTS
WHAT IS UPI ?
WHAT MAKES UPI DIFFERENT?
UPI ARCHITECTURE
HOW UPI WORKS
TERMINOLOGIES
Core APIs
UPI MESSAGE FLOW
UPI TRANSACTION FLOWS
SECURITY FEATURES
ADAVANTAGES
BENEFITS OVER OTHER EXISTING TECHNOLOGIES
DISADVANTAGES

3. WHAT IS UPI ?
Unified Payments Interface (UPI) is an instant payment system developed by
NPCI
National Payments Corporation of India (NPCI) is the umbrella organization for
all retail payment systems in India NPCI Launched RuPay & IMPS
IMPS (Immediate Payment Service) is used to transfers funds instantly between
bank accounts
UPI is built over the IMPS infrastructure

4. WHAT MAKES UPI DIFFERENT?
Open Source
Instant
Secure
Cheap
Open source APIs
Partner with the PSPs (Banks) to get their SDKs
No need to add payee & beneficiaries
Single click authentication & share only vpa
0.5 rupee charge instead of rupee for IMPS Available
24x7 & a single app for all banks
Availability & Utility

5. UPI ARCHITECTURE

6. HOW UPI WORKS
An NPCI repository is used.
Repository stores credentials about payer and payee.
Route payments instructions (Aadhaar no. or Mobile no.).
Do switching, clearing and settlement of transactions.
The Payer/Payee information is sent, via PSP, to NPCI.
To identify the details of the second party involved, it either uses its repository or
it contacts the second party PSP
Once both PSP’s information is available to NPCI proceeds with the debit and
credit processes
On successful completion the payer and payee PSP’s are notified, which then
notify their customers

7. TERMINOLOGIES
PSP (Payment service provider) Bank built PSP – Baroda pay, Standard
Chartered/ Non Bank PSP – BHIM, Tez. Create VPAs in the backend
VPA (Virtual Payment Address) Resolved by PSPs, using Address Translation
handle/ eliminates the use of sharing info like account number/ Global address -
Resolved by NPCI, Aadhaar Number & Mobile handle
Push – pay/ Pull – collect financial transactions/ Non financial transactions like
generate pin, check balance etc. Mobile is first factor which receives the OTP and
MPIN is the second factor

8. Core APIs
ReqPay Initiating & Processing the transaction
RespPay Sending back the response of transaction initiated through ReqPay
ReqAuthDetails Translate PSP address and obtain appropriate authorization
details
In total there are 19 APIs provided by UPI
Divided into Core(4) & Meta APIs (15)
List psp, list account, check transaction status, Request confirmation
RespAuthDetails Sending back the response of transaction initiated through
ReqAuthDetails

9. UPI MESSAGE FLOW

10. PAY TRANSACTION FLOW

11. COLLECT TRANSACTION FLOW

12. SECURITY FEATURES
UPI Solution provides strong end-to-end security and data protection. The key
Security features of the Unified Payments Interface are:
• Device Fingerprinting during the registration process
• Credential Capture through NPCI Common Library
• Credentials encrypted by using RSA 2048 Asymmetric Encryption
• The decryption/encryption at NPCI will be performed through HSM
• Message communication between PSPS and UPI over HTTPS
• All messages are digital signed using SHA2 with RSA.

13. ADAVANTAGES
• One of the major advantages of UPI is that it is fast, hassle-free, and the cheapest
way of money transfer.
• UPI is also very fast and a safe medium, while you only need a UPI ID for
carrying out a transaction.
• It is easy to use as it only requires a single click authentication that involves only
two factors.

14. BENEFITS OVER OTHER EXISTING TECHNOLOGIES
NEFT
NEFT means National Electronic Funds Transfer. It is a mode of money transfer
that enables one-to-one payments within India. NEFT is owned and operated by
the Reserve Bank of India, and through this facility, you can transfer money from
one account to another.
UPI vs NEFT
Both the platforms are known to have pros and cons. UPI facilitates instant transfer
for free, whereas it can only transfer Rs. 1 Lakh per day. NEFT on the other hand
allows the user to transfer funds from any bank branch to any individual having an
account with any other bank branch in India. A disadvantage of NEFT is that the
cost is higher than UPI and it takes about 12 hours for one NEFT transfer.

15. BENEFITS OVER OTHER EXISTING TECHNOLOGIES
RTGS
The term real-time gross settlement (RTGS) refers to a funds transfer system that
allows for the instantaneous transfer of money and/or securities. RTGS is the
continuous process of settling payments on an individual order basis without netting
debits with credits across the books of a central bank.
UPI vs RTGS
UPI transactions are fast, simple to use, and free of charge, and are ideal for
future payments, loan repayment, or credit card payments. Whereas the Real
Time Gross Settlement (RTGS), is said to be of high value and need to be
processed in real-time and is ideal for the transfer for Rs 2 lakhs and above.

16. BENEFITS OVER OTHER EXISTING TECHNOLOGIES
IMPS
Immediate Payment Service is an instant payment inter-bank electronic
funds transfer system in India. IMPS offers an inter-bank electronic
fund transfer service through mobile phones. The service is available
round the clock,including bank holidays.
UPI vs IMPS
The Immediate Payments Service (IMPS), helps the user to access your bank
account and transfer funds immediately and securely. However, with UPI the user
can pay directly from a bank account to different merchants, both online and offline,
without the hassle of typing your credit card details, IFSC code, or wallet passcodes.

17. DISADVANTAGES
Sometimes, there can be delays in payments, it takes up to 48 hours for the money
to get back to your bank account.
The UPI money transfer limit is currently Rs 100,000, which you can send to
anyone through the mobile app.
The UPI pin only consists of four to six digits, which should be elongated for
more security.
Another major disadvantage of UPI is that it is very slow in making payments
sometimes, but that can be avoided by using faster internet services.

18. THANK YOU