Summary of this article
Canara Bank enables UPI on ai1Pe via NPCI backend
User experience, limits and charges remain unchanged
Integration shifts UPI operations to centrally managed systems
Canara Bank has enabled transactions using Unified Payments Interface (UPI) in its mobile application, ai1Pe by connecting it to the backend systems of National Payments Corporation of India (NPCI) BHIM Services (NBSL). The integration will allow Canara Bank to provide UPI functionality without the need to maintain a platform, and through a centrally-managed framework that will also oversee system updates, compliance requirements, and security protocols.
By leveraging BHIM’s bank plugin capabilities, Canara Bank will be able to connect with the new UPI features as and when they are being introduced across the network without having to develop and test every feature individually. This will lower the complexity of the operations while allowing it to keep up with staying compliant with the regulations.
What Users will Experience
From a user perspective, there will be no visible difference in how UPI payments are made on the ai1Pe app. Users will, as usual, be able to send and receive money, pay merchants, or make other types of UPI transactions in a seamless manner. Transaction limits, fees and the interface will stay the same for both existing and new users.
The service is available to all users who have accounts with Canara Bank.
Operational Approach
The backend connection separates front-end app management from the technical operations of UPI. This will help Canara Bank to focus more on user experience, while NPCI will handle network compliance, security protocols, and technical updates.
Changes in the UPI policies or functionality, including increasing or decreasing transaction limits, fraud control efforts or authentication, are centrally decided by NPCI, and automatically accepted and enacted by banks logged into the system. By depending on a central system, banks lower the chances of managing this complex payment technologies on their own, while offering a complete set of digital payment services to their users.
UPI in India’s Payment System
UPI has become the backbone of the digital payment ecosystem in India by enabling real-time transactions involving high volumes. In December 2025, UPI transactions hit a record level of nearly 21.60 billion, achieving a total transaction value close to Rs 28 lakh crore, fuelled by holiday spending and greater merchant adoption.
