UPI: Internationalization of Digital Payments

Central Idea

• On Tuesday, the Union government unveiled India’s first cross-border real-time payments systems linkage, with the Unified Payments Interface (UPI) connecting with Singapore’s PayNow payment system.

What is Unified Payments Interface (UPI)

• UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
• It eliminates the risk of sharing bank account details by the remitter.
• UPI supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments and it also enables a user to send or receive money.

What is PayNow?

• It is a fast payment system in Singapore.
• It enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore.
• It allows users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore National Registration Identity Card (NRIC)/Foreign Identification Number (FIN), or VPA.

Overview: Remarkable success of UPI

• Changed the landscape of electronic payments: The introduction of UPI in 2016-17 led to a dramatic change in the electronic payments landscape of the country.
• Instrumental in dramatic growth of digital payments: Along with the JAM trinity of Jan Dhan, Aadhaar and mobile phones, this payment architecture has been instrumental in facilitating the dramatic growth of digital payments in the country, aided by a conducive regulatory framework.
• Value and volume increasing day by day: Over the years, various reports by the RBI have documented the significant increase in digital payments transactions in the country, with per person digital transactions growing both in terms of value and volume.
• Dramatic surge during the pandemic: Contactless payments also witnessed a surge during the pandemic. In fact, as per another study, roughly one-third of households surveyed had transacted digitally for the first time during the lockdown.
• Statistics for instance:

1. In January 2023, roughly 8 billion transactions were carried out on the UPI platform, whose value touched almost Rs 13 lakh crore.
2. In comparison, in January 2020, just prior to the pandemic, 1.3 billion transactions were routed through the UPI platform, which touched Rs 2.1 lakh crore in value.
3. Aided in accelerating financial inclusion: The convenience of real-time transfer of payments, the zero-cost framework for users, the rapid expansion in the acceptance touch-points, have encouraged its widespread adoption. This has also aided in accelerating financial inclusion by providing access to financial services at low cost.

Did you know? “UPI Lite”

• UPI Lite is a on device wallet feature similar to the ones seen on popular digital payment apps such as Paytm, Freecharge, MobiKwik and others.
• The feature will allow you to make faster near real-time small value payments without internet connection via the money added in the wallet.
• In phase one, UPI Lite will process transactions in near offline mode i.e. debit offline and credit online, and at a later point, UPI Lite will process transactions in complete offline mode i.e. debit and credit both offline.

All you need to know about UPI-PayNow interlinkage facility

• How is the interlinkage benefit users?

1. With this facility, funds held in bank accounts or e-wallets can be transferred to /from India using just the UPI ID, mobile number, or Virtual Payment Address (VPA), which is essentially the address to or through which you can make UPI money transfers.
2. With this payment facility, both inward and outward remittances will happen instantly.
3. Who can undertake remittance transactions through this facility: Account holders of participating banks and financial institutions in India and Singapore.
4. Participating banks in India and Singapore:

1. Banks from India are Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India (SBI). Going forward, the UPI-PayNow interlinkage will cover more banks and financial institutions.
2. From Singapore, DBS Bank Singapore and Liquid Group (Non-Bank Financial Institution) are selected.
3. Popular payment platforms such as PhonePe and Google Pay have been excluded from the ambit of this framework. Perhaps, over time, these platforms will also be brought under this framework, aiding in its widespread adoption.
4. The daily transaction limit:

1. Banks in India have not communicated about any restrictions on transfers yet.
2. It is Rs 60,000 (around SGD 1,000). Initially, DBS customers can use PayNow-UPI only to transfer funds up to SGD 200 per transaction, capped at SGD 500 per day.
3. There is no such communication about capping for transferring funds through Liquid Group (Non-Bank Financial Institution) to India.

Conclusion

• The UPI-PayNow interlinkage is a milestone moment for cross-border transfers. Not only India but the world has witnessed how UPI revolutionized the landscape of domestic digital payment infrastructure. With this encouraging development we are now going to see a similar revolution in the cross-border payments space as well. This internationalization of the digital payments architecture, will help bring down both the cost and the time associated with such transfers, bringing benefits to migrant workers, students, and professionals, among others.

‘Corrupt act’ according to the RPA 1951

The Supreme Court observed that no one in India votes for a candidate based on their educational qualifications and, thus providing false information about an electoral candidate’s qualifications cannot be considered a “corrupt practice” under Sections 123 (2) and Section 123 (4) of the Representation of People’s Act, 1951.

What are ‘corrupt practices’ under the RPA, 1951?

1. Section 123 of the Act defines ‘corrupt practices’ to include bribery, undue influence, false information, and promotion or attempted promotion of “feelings of enmity or hatred between different classes of the citizens of India on grounds of religion, race, caste, community, or language” by a candidate for the furtherance of his prospects in the election.
2. Section 123 (2) deals with ‘undue influence’ which it defines as “any direct or indirect interference or attempt to interfere on the part of the candidate or his agent, or of any other person, with the consent of the candidate or his election agent, with the free exercise of any electoral right.”
3. This could also include threats of injury, social ostracism and expulsion from any caste or community.
4. Moreover, convincing a candidate or an elector that they will become “an object of divine displeasure or spiritual censure” will also be considered an interference “with the free exercise of the electoral right of such candidate or elector.”
5. Section 123 (4) extends the ambit of “corrupt practices” to the intentional publication of false statements which can prejudice the outcome of the candidate’s election.
6. Under the provisions of the Act, an elected representative can be disqualified if convicted of certain offenses; on grounds of corrupt practices; for failing to declare election expenses; and for interests in government contracts or works.

What happened in the present case?

1. In “Anugrah Narayan Singh v. Harsh Vardhan Bajpayee”, a bench of Justices K.M. Joseph and BV Nagarathna of the Apex Court heard a plea challenging a 2017 Allahabad High Court ruling, dismissing a similarly titled petition to declare the election of a MLA as “null and void”.
2. However, the Apex Court refused to interfere with the High Court’s order of dismissal.
3. The petition filed by Anugrah Narayan Singh said that MLA Harsh Vardhan Bajpayee committed a “corrupt practice’ under Section 123(2) by interfering in the free exercise of electoral rights of the voters by not disclosing his liabilities and correct educational qualifications in his affidavit of nomination.
4. It also argued that a “corrupt practice” under Section 123(4) was committed by Bajpayee in publishing a false statement of fact about his character and conduct to influence the outcome of his election, knowingly.

India’s first hybrid rocket launched

India’s first hybrid sounding rocket by private players was launched from Pattipulam village, Chengalpattu. Martin Foundation, in association with Dr. APJ Abdul Kalam International Foundation and Space Zone India, launched the Dr. APJ Abdul Kalam Satellite Launch Vehicle Mission- 2023.

What

1. The organisations mentioned that 5,000 students were involved in the project. The selected students designed and constructed a student satellite launch vehicle (rocket) and 150 PICO satellite research experiment cubes that contained different payloads.
2. The reusable rocket was made by the selected top 100 students, while the rest made the satellites. The rocket can be used for research in weather, atmospheric conditions and radiation.
3. Mylswamy Annadurai, former director of ISRO Satellite Centre, said that the launch was a success.
4. He told the students to explore opportunities in the space sector. Both the foundations said that the selected students learnt not only about satellite technology but also learnt more about STEM.

Save our high seas from overfishing, pollution

While the high seas make up more than 60% of the world’s oceans, they have long drawn far less attention than coastal waters. The UN wants to protect them in a global treaty.

What

1. Fishing, shipping, tourism and ocean protection are currently controlled by around 20 organizations.
2. However, their regulations only apply to a distance of 200 nautical miles (370 kilometers) from the coast. Farther out, international waters start, and individual states don’t have any power or say.
3. Although the high seas make up more than half of the surface of the Earth and 61% of all oceans, only 1% of international waters are under protection.
4. Illegal fishing, overfishing and other forms of damage to the ecosystem, such as deep-sea mining, oil and gas drilling, can hardly be monitored, tracked or prosecuted in a consistent way.
5. That’s why government officials from 51 countries want to negotiate the High Seas Treaty at the United Nations in New York. The treaty has been in the works for years and is supposed to protect species and allocate the oceans’ resources in a sustainable way.

Why is a healthy underwater world so important for humans and our planet?

1. The resources of the ocean don’t just sustain coast dwellers, but almost 3 billion people worldwide.
2. The entire sea industry has a worth of $3 trillion (€2.8 trillion) — that’s 5% of the world’s gross domestic product.
3. The ocean isn’t just important for beach tourists and fishers. We also need it in order to generate sustainable wave and tidal energy, as well as for the production of commodities and even medicine.
4. Some agents used to fight leukemia, for instance, are derived from a shallow water sponge called Tectitethya crypta, which can be found in the waters of the Caribbean.
5. The poison of the fish-eating sea snail Conus magus is being used to develop an effective painkiller. Many similar possibilities have yet to be explored, but scientists see a huge potential for the treatment of diseases.

Will a new treaty help?

1. According to the UN’s environment program, international treaties are one of the best ways to stop the destruction of oceans.
2. Many treaties have been signed in recent years regarding the protection of coastal regions.
3. Some have already had a positive effect on the environment; many, however, have not been able to reach their goals. That has to do with the fact that agreements are always dependent on national parliaments turning them into laws, and allocating enough resources to institutions and projects so the goals can be reached.
4. The EU is pushing for an ambitious new treaty for species protection and the implementation of the historic 2022 Kunming-Montreal Global Biodiversity Framework.
5. Part of this historic agreement is to put 30% of the globe under protection until 2030. Meanwhile, 18 developing and emerging nations are pushing for the introduction of a mechanism that guarantees the fair distribution of ocean resources.

Investor Education and Protection Fund Authority (IEPFA)

The IEPFA is seeking applications from young students and scholars for its short-term internship programme which began recently.

About IEPFA:

• IEPF is a statutory body under the Ministry of Corporate Affairs, established under the Companies Act 2013.
• It administers the Investor Education and Protection Fund.
• IEPF Authority has undertaken a proactive approach to achieve its mandate of promoting investor education, awareness and protection.
• Its objective is to promote Investor Education, Awareness, and Protection.
• The Amounts credited to IEPF are maintained under the Consolidated Fund of India (Article 266 of the Constitution).
• Composition:
• Secretary Ministry of Corporate Affairs is the Chairperson of the Authority.
• The Joint Secretary Ministry of Corporate Affairs is the Chief Executive Officer of the Authority.
• The Authority is entrusted with the responsibility of administration of the Investor Education Protection Fund (IEPF), make refunds of shares, unclaimed dividends, matured deposits/debentures etc. to investors and to promote awareness among investors.
• The Authority has taken a 360 degree approach to sensitize stakeholders to include household investors, housewives, professionals, etc. across the country in rural and urban areas through direct investor awareness programmes, media campaign and engaging with other stakeholders with the common goal.
• In the urban and semi-urban areas the Authority organizes investor awareness programmes in association with the Institute of charted Accountants of India, Institute of Cost Accountants of India and Institute of Company Secretaries of India.
• In the rural areas the programmes are organised in collaboration with CSC e-governance Services Private Limited through the Common Service Centre (CSC’s) located in villages.
• Multilingual Information, Education and Communication booklets and films have been developed for creating awareness.
• A Joint Awareness campaign has been launched in association with Reserve Bank of India, Securities and Exchange Board of India & Department of Consumer Affairs.

The IEPF is to be utilized for :

• The refund of unclaimed dividends , matured deposits, debentures , application money due for refund and interest thereon.
• Promotion of investor’s education, awareness and protection.
• Distribution of any disgorged amount among eligible and identifiable applicants for shares or debentures , shareholders, debenture-holders or depositors who have suffered loss due to wrong actions by any one person , in accordance with the ordered made by the court which had ordered disgorgement.