Unified Payments Interface (UPI) has revolutionized digital payments in India. Addressing its shortcomings will be essential for ensuring its sustained growth and relevance in the evolving payments landscape. Discuss.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

3. Unified Payments Interface (UPI) has revolutionized digital payments in India. Addressing its shortcomings will be essential for ensuring its sustained growth and relevance in the evolving payments landscape. Discuss. (250 words)

Difficulty level: Moderate

Reference: Live Mint , Insights on India

Why the question: India should mitigate the risks of an online-transfer monopoly while enabling the UPI system to pay for itself and innovate. Key Demand of the question: To write about the achievements of UPI and to comment on the move to levy a fee on UPI transaction. Directive word: Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments. Structure of the answer: Introduction: Begin by defining UPI. Body: First, write about the mechanism of UPI. Next, write about the successes of UPI in India – convenience, speed, security, interoperability, and increasing adoption. Next, write about the shortcomings of UPI and measures needed to overcome the sortcomings. Conclusion: Conclude by writing a way forward.

Why the question:

India should mitigate the risks of an online-transfer monopoly while enabling the UPI system to pay for itself and innovate.

Key Demand of the question:

To write about the achievements of UPI and to comment on the move to levy a fee on UPI transaction.

Directive word:

Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Begin by defining UPI.

First, write about the mechanism of UPI.

Next, write about the successes of UPI in India – convenience, speed, security, interoperability, and increasing adoption.

Next, write about the shortcomings of UPI and measures needed to overcome the sortcomings.

Conclusion:

Conclude by writing a way forward.