The feature was first released by the National Payments Corporation of India (NPCI) in September 2021.
Bank account holders will now be able to use their Aadhaar card and OTP in lieu of debit card from March 15, 2022. Banks have been instructed to activate this UPI service for all bank account holders.
The feature was first released by the National Payments Corporation of India (NPCI) in September 2021 to help customers who either don’t have a debit card or whose debit card has not been activated to start using UPI.
To allow the bank account holders to use this service, NPCI was connected to the Unique Identification Authority of India on behalf of the bank.
Even after the launch of this feature, customers were dependent upon the banks for availing this service.
Notably, the NPCI has asked banks to provide this UPI service to customers by December 15, 2021 earlier. Since many banks prioritised offering other product features, the deadline for UPI feature was extended to March 15, 2022.
It is important to know that the UPI feature will be made available only to those having access to digital banking. As of now, most banks are asking customers to verify themselves with their debit card.
Despite NPCI launched this feature, it always depended on the banks to extend the same to their customers. Earlier, NPCI had asked banks to comply for enablement of this feature by December 15, 2021.
Meanwhile, the Reserve Bank of India (RBI) is also encouraging UPI transactions with the launch of UPI 123Pay.
The UPI123Pay was launched by RBI governor Shaktikanta Das on Tuesday. It is a simplified form of the account-to-account transfer service that can be undertaken using feature phones.
According to Das, this UPI feature will help people in rural areas to access payment services. “This current decade will witness a transformative shift in digital payments ecosystem in the country”, he added.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Banks to enable UPI with Aadhaar card, OTP from March 15")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}