RBI announces proposal to push UPI payments through feature phones

USSD 2.0, which facilitates UPI for feature phones, accounts for only 0.003 per cent of total UPI volumes and value transactions

On Wednesday, the RBI in its “Statement on Developmental and Regulatory Practices”, announced a proposal to popularise UPI payments on feature phones. Although the central bank is yet to release details of the new service, this would be the third iteration of the feature phone payments push in the country.

In 2012, the National Payments Corporation of India had launched a USSD (Unstructured Supplementary Services Data)-based mobile banking service called *99#. Initially, the facility was only available to MTNL and BSNL users. It was later expanded to all telecom service providers and linked to Pradhan Mantri Jan Dhan Yojana in 2014.