UPI switch
Also known as: UPI switching software, bank UPI switch
Definition
A UPI switch is the bank-side software that connects a bank's core banking system and customer apps to NPCI's Unified Payments Interface. It receives, validates and routes UPI debit and credit requests so that UPI payments can be posted to the bank's customer accounts.
More about UPI switch
NPCI's UPI procedural guidelines describe up to four parties in a UPI payment: the payer's PSP, the payee's PSP, the remitter bank and the beneficiary bank, with the actual debits and credits happening in the bank accounts [1]. Each participating bank needs a switch to take part.
- Remitter bank role: receives debit requests from NPCI, validates the customer's PIN and balance, debits the account and responds [1].
- Beneficiary bank role: receives credit requests, credits the payee's account and confirms [1].
- PSP role: registers customers, links accounts and manages virtual addresses for the bank's own UPI app.
- Operations: keeps the NPCI connection open, handles reversals and records each transaction for reconciliation.
How this relates to LCode Technologies
LCode Technologies' UPI & IMPS Switch is an NPCI certified switch with a Version 2.0 certified UPI switch and PSP app. LCode launched its UPI application in 2016.
Frequently asked questions
What does a UPI switch do?
It connects a bank to NPCI's UPI network, validates and routes UPI debit and credit requests, posts them to customer accounts, handles reversals and keeps records for reconciliation. It also supports the bank's own UPI app if the bank acts as a PSP.
Is a UPI switch the same as an IMPS switch?
No. Both connect a bank to NPCI for real-time transfers, but an IMPS switch processes IMPS messages addressed by mobile number and MMID, account number and IFSC, or Aadhaar, while a UPI switch also handles virtual addresses, collect requests and PSP app registration.
Related reading
Sources
- Unified Payments Interface – Procedural Guidelines, Version 1.5 (July 2016) — National Payments Corporation of India (copy hosted by SLBC Madhya Pradesh)