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UPI System Design Mock Interview with Gaurav Sen & @sudocode

Gaurav Sen・30 minutes read

Yogita Sharma discusses UPI system design, focusing on simplifying transactions and authentication methods, with NPCI playing a crucial role in streamlining the process and ensuring scalability. The speaker rates a candidate's performance, highlighting the importance of self-awareness and communication skills in interviews, suggesting exploration of Interview Ready for further learning on system design like UPI payment gateways.

Insights

  • UPI simplifies transactions by unifying payment interfaces, allowing users to transfer funds without knowing the recipient's bank details, with authentication involving private keys and PIN verification.
  • NPCI plays a crucial role in UPI transactions by acting as an authentication party, streamlining the process, reducing direct bank interactions, and facilitating address resolution for banks, highlighting the scalability and storage challenges associated with managing UPI addresses.

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Recent questions

  • What is UPI system design?

    Standardizing payment interfaces for seamless transactions.

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Summary

00:00

"UPI System Design and Authentication Simplified"

  • Yogita Sharma is a recurring guest on GKCS, focusing on software engineering and system design content.
  • UPI system design stands for Unified Payment Interface, aiming to standardize different payment interfaces by various entities.
  • UPI simplifies transactions by unifying payment interfaces, allowing users to transfer funds without knowing the recipient's bank details.
  • UPI addresses are virtual identities similar to IP addresses, representing users and stored in a central database managed by NPCI.
  • Authentication in UPI transactions involves users signing requests with private keys and using a PIN for verification.
  • NPCI acts as an authentication party, verifying requests and transferring them between banks for transactions.
  • NPCI's role in UPI transactions streamlines the process, reducing the need for direct bank interactions and simplifying payments.
  • The scalability of UPI systems relies on individual banks managing client loads, while NPCI serves as a central point for transaction routing.
  • Potential failures in the UPI system include NPCI downtime leading to transaction failures and the reliance on NPCI for authentication.
  • The UPI system could be improved by reducing NPCI's involvement in routine transactions and enhancing direct bank interactions for seamless payments.

17:50

"NPCI: Centralized System for Bank Address Resolution"

  • Updating databases for thousands of banks with IP addresses poses challenges in address resolution.
  • NPCI can assist in maintaining user addresses for banks.
  • NPCI functions akin to a domain name server for bank addresses.
  • Banks can cache addresses for quicker transactions.
  • NPCI aids in address resolution for new accounts and scale is a key concern.
  • NPCI's centralized system offers higher availability compared to a distributed system for banks.
  • Storage estimation for India's UPI addresses amounts to 700 terabytes.
  • Despite the large data storage requirement, it is manageable with sufficient resources.
  • NPCI facilitates routing collect requests between banks and users.
  • Payment service providers like Google Pay handle notifications and transactions for users.

35:30

Candidate's Interview Performance Rated 3.8

  • The speaker rates the candidate's performance at 3.8, emphasizing the importance of self-awareness in interviews and highlighting areas for improvement such as communication and authentication, but praises the candidate for effectively addressing issues with subtle hints. The discussion covers designing systems like UPI payment gateways, with a recommendation to explore Interview Ready for knowledge enhancement.
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