The UPI (Unified Payment Interface) design is curious because very little of the implementation is on the designing body's side (NPCI).

You can think of UPI as a protocol or standard, an API contract, that must be followed by all banks to allow UPI transactions. The standardization of communication allows banks to talk to each other seamlessly. As long as the APIs provided do what is expected of them, we can ignore the internal implementations of these banks.

Let us see how fund transfers work in the Unified Payment Interface world.

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