RBI Launches New UPI Service For Feature Phones

By Karan Brar 12.03.2022

The RBI launches UPI123Pay which will allow feature phone users to connect easily to India's digital payment ecosystem. 

They no longer need a smartphone or an internet connection to make UPI payments.

UPI 123PAY will enable more than 40 crore feature phone users to access the popular digital transaction platform without an internet connection.

UPI has grown to become one of the most popular modes of digital payment in India.



"In order to further deepen digital payments and make them more inclusive, ease transactions for consumers, facilitate greater participation of retail customers in various segments of the financial markets and enhance the capacity of service providers, it is proposed to launch UPI-based payment products for feature phone users leveraging on the Reserve Bank's regulatory Sandbox on Retail Payments" as reported by The News18

UPI 123 PAY requires a three-step process to initiate and execute a transaction

Methods of UPI Transactions

Four different technologies are used to feature phone users in the new payment system. – Interactive Voice Response (IVR) Number. – App functionality in feature phones. – Missed-call based procedure. – Proximity sound-based payments.

Feature phone users can make payments to friends and family, pay bills and do other transactions using UPI.

They can also check account balances and link bank accounts. Users can also set or change UPI Pins.