RBI Governor launches UPI service for feature phones

Reserve Bank of India (RBI) Governor Shaktikanta Das on March 8 launched an instant payment system “UPI 123PAY” for feature phones. He also launched DigiSaathi, the 24×7 helpline for digital payments.

The RBI governor said the new Unified Payments Interface (UPI) on feature phones will allow people in rural areas who cannot afford a smartphone to participate in UPI transactions. This would allow 40 crore feature phones users to access the payment service.

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“This current decade will witness a transformative shift in the digital payments ecosystem in the country,” Das said. The RBI has announced several measures in the last three years to push digital transactions, he added.

Das also stressed the need to focus on cyber security. He said systems need to be prepared to handle such risks.

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UPI 123Pay will allow feature phone users to make almost all transactions except scan and pay. It does not require an internet connection for transactions. Feature phone users will now be able to undertake a host of transactions based on four technology alternatives which include calling an interactive voice response (IVR) number, app functionality in feature phones, missed call-based approach and also proximity sound-based payments, said the central bank. Customers will have to link their bank accounts with feature phones to use this service.

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Through this platform users can make payments to friends and family, pay utility bills, recharge FASTags for vehicles, pay mobile bills and also allow users to check account balances, the RBI said.

The DigiSaathi helpline will assist users with all their queries on digital payments through the website and chatbot.

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UPI is India’s largest digital payment system in terms of transaction volumes. Since the launch of the UPI payment platform in 2016, transactions have grown multifold. However, UPI payments remain a mobile-based payment platform. Many people in rural areas are unable to conduct transactions using feature phones. In December, the RBI announced a plan to introduce UPI in feature phones. Having UPI enabled on feature phones will increase digital penetration of financial services and allow a large segment of people without access to smartphones or reliable internet services to conduct digital transactions.