What is PSP in UPI payment?

A Payment Service Provider (PSP) in the UPI ecosystem is a bank authorized by the National Payments Corporation of India (NPCI) to connect directly to the UPI infrastructure. It acts as the technical backbone for transactions. Key roles include:

• Onboarding users and linking their bank accounts to UPI IDs.
• Authenticating users and verifying transactions via UPI PIN.
• Routing transaction requests securely through the NPCI network.
• Providing grievance redressal and dispute resolution for payment issues.