Published Paper Details:

The Unified Payments Interface (UPI) has emerged as a transformative force within the Indian banking sector, transforming the way financial transactions are conducted. This study dives into the multifaceted effects of UPI on banks, analysing its implications on various aspects including customer behaviour, operational efficiency, competition, and regulatory framework. With its seamless and user-friendly interface, UPI has facilitated a sudden increase in adoption rates among consumers across diverse demographic segments. Banks have leveraged UPI to modernize their backend systems, automate routine tasks, and optimize resource allocation, leading to tangible improvements in service delivery and cost management. The transition towards digital payments is expected to fuel an increase in impulsive buying behaviour among individuals, further impacting the banking sector and consumer spending patterns. Traditional banks are facing increased pressure from non-banking entities such as fintech startups and digital wallets, which leverage UPI as a platform to offer innovative payment solutions. To analyse the impact of UPI on banking sector applications, how it influences the behaviour of normal people in impulsive buying and convenience of digitalisation. To analyse the use of UPI apps like Gpay, Phonepe etc. In conclusion, the advent of the Unified Payments Interface (UPI) in India has transformed the landscape of digital payments, offering unparalleled convenience and accessibility. However, its rapid adoption has brought forth challenges in the banking sector. While UPI transactions reduce fee-based income for banks and intensify competition from fintech players, they also necessitate substantial investments in cybersecurity and infrastructure. Moreover, the shift towards digital payments may strain banks' margins and interest income. In the foreseeable future, as digital payments become increasingly prevalent, the role of hard currency is likely to diminish, further reshaping the banking landscape.