The government has now decided to remove the requirement for a debit card to generate a UPI payment ID, providing a boost to make Unified Payments Interface (UPI) the most well-liked digital payment option and extend its penetration throughout the nation. Starting on March 15, 2022, users can register for UPI using the OTP they got on the registered mobile number associated with their Aadhar Card.
It used to be possible to create a UPI ID only if you possess a debit card. All account holders with an AADHAAR Card will now have access to UPI ID's functions, even if they don't have a debit card.
There are millions of people with bank accounts who haven't received a debit card and weren't given access to UPI's advantages. This action will eliminate the obstacle of a debit card for owners of such accounts.
You must use the same mobile number that is linked to both your bank account and your Aadhar card in order to register for UPI without a debit card.
The Reserve Bank of India (RBI) on Tuesday announced the launch of a special feature for payments with a facility allowing those with feature phones to also use the UPI platform, pointing to a greater uptake of digital transactions in the country's regions where the majority of residents still do not own smartphones.
This function, known as UPI123Pay, will enable payments using feature phones without an internet connection.
The deadline for enrolling in UPI utilising Aadhaar OTP, which was originally set by NPCI to terminate on December 15, 2021, has now been extended till March 15 due to banks' lack of readiness.
