New Initiative Aims to Bridge Digital Divide: RBI Launches UPI for Feature Phones
NEW DELHI: In a transformative move to enhance digital adoption across India, Reserve Bank of India (RBI) Governor Shaktikanta Das introduced a new unique payment interface (UPI) specifically designed for feature phones during an event on Tuesday. Dubbed ‘UPI 123PAY’, this innovative platform aims to empower approximately 400 million feature phone users, enabling them to securely conduct transactions and access banking services without needing a smartphone or internet connection.
Governor Das emphasized the importance of this launch, particularly for individuals in rural and underserved communities, stating that it would enhance financial inclusion by providing a straightforward payment solution for those previously excluded from digital services. "The introduction of UPI 123PAY represents a significant step toward realizing our vision of a cashless economy," Das noted.
This new functionality offers four distinct modes of payment: app-based options, transactions via missed calls, Interactive Voice Response (IVR) systems, and proximity sound-based payments. These varied methods ensure accessibility and ease of use for users who may not be technologically savvy.
The initiative aligns with the National Payments Corporation of India’s (NPCI) goal of processing one billion transactions daily and reflects a broader trend towards digitization in India. Currently, UPI transactions are predominantly smartphone-based, as noted by Das, with a fivefold increase in digital transactions over recent years. However, the potential for growth remains immense, particularly among the country’s feature phone users.
In conjunction with this launch, the RBI also unveiled ‘Digisaathi’, a dedicated helpline to assist users 24/7 with digital payment queries. The initiative has received praise from industry leaders, who believe it will significantly reshape India’s digital payments landscape and bridge the economic divide.
