How UPI Works Behind the Scenes: NPCI, PSP Banks, HSM and Settlement

Описание: What actually happens after you hit Pay on Google Pay or PhonePe? This video walks through the complete UPI architecture with one real example: you pay from an SBI account on Google Pay, and your friend receives the money in an HDFC account on PhonePe.

You'll see why Google Pay never sees your UPI PIN, why your UPI ID ends with @okaxis, how the NPCI switch turns friend@ybl into an account number and IFSC, how the PIN is decrypted and re-encrypted inside a hardware security module (HSM), and why no money moves between banks until settlement.

Chapters
0:00 What happens after you hit Pay
0:10 Why Google Pay never sees your UPI PIN (NPCI Common Library)
0:25 PSP banks and why your UPI ID ends with @okaxis
0:43 NPCI switch resolves @ybl to account number and IFSC
0:55 Inside NPCI's HSM: PIN decrypted and re-encrypted for SBI
1:05 SBI verifies the PIN, debits; HDFC credits; reversal on failure
1:23 Settlement: 10 cycles a day and netting

What you'll learn
The NPCI Common Library encrypts your UPI PIN on your phone, so the app only ever handles an encrypted blob
Third-party apps like Google Pay connect to UPI through PSP banks (Axis, HDFC, ICICI, SBI), which is where handles like @okaxis, @okhdfcbank, @okicici and @oksbi come from
PhonePe's @ybl handle belongs to Yes Bank, its PSP partner
The plain PIN never leaves the HSM chip; SBI's own HSM checks it against a protected copy
Debit and credit run side by side, and SBI reverses the debit if the credit fails
Banks settle later: NPCI nets out what each bank owes, so if SBI owes HDFC 10 crore and HDFC owes SBI 9 crore, only 1 crore moves

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#UPI #SystemDesign #NPCI #HowUPIWorks #PaymentSystems #Fintech #GooglePay #PhonePe