The Unified Payment Interface or UPI is an interface through which you can transfer money between bank accounts through one cash register. This means that you can send or receive money or scan a Quick Response Code (QR) to pay an individual, seller, or service provider for purchases, bill payments, or payment authorization.
To activate a payment using your phone, all you need is a mobile payment app and the recipient’s virtual address (which reads something like [email protected]). This means that you can make payments directly to the accounts of the supplier or an individual in one step. There is no repeating stage. For example, entering bank details or other confidential information every time you need to make a payment.It’s simple, free and instant. UPI allows you to make transactions 24/7 throughout the year. Currently, it is possible to transfer up to 1 lakh Indian rupees per UPI transaction.
UPI, launched in 2016, is the brainchild of the National Payment Corporation of India (NPCI), the parent organization that oversees retail payment systems in India. Npci is regulated by the Central Banking Authority, the Reserve Bank of India, and its main goal is to lead India towards becoming a digital economy.
What is the Unified Payment Interface (UPI)?
The Unified Payment Interface (UPI) is a smartphone application that allows users to transfer money between bank accounts. It is a universal mobile payment system developed by the National Payment Corporation of India (NPCI). This eliminates the need to enter bank details or other confidential information every time a customer initiates a transaction.
The unified payment interface is a real-time payment system. It is designed to provide peer-to-peer interbank transfers using two-factor authentication with one click. The interface is regulated by the Reserve Bank of India (RBI), the Central Bank of India. It works by transferring money between two bank accounts using a mobile platform.
The system is considered a safe and reliable method of transferring money between two parties and eliminates the need to deal with physical money or through a bank. The pilot system was launched in India on April 11, 2016. Banks across the country started uploading their interfaces in August 2016.
Unified Payment Interface (UPI) is a smartphone application designed for banking services in India.
The interface is regulated by the Reserve Bank of India (RBI), the Central Bank of India and funds sent between accounts.
This application eliminates the need to enter bank details or other confidential information every time a customer initiates a transaction, making it a secure way to perform banking transactions.
Who started UPI?
UPI is an initiative of the National Payment Corporation of India (NPCI) in collaboration with the Reserve Bank of India and the Association of Indian Banks (IBA). NPCI is a company that manages the RuPay payment infrastructure, that is, similar to Visa and MasterCard. This allows different banks to merge and transfer funds. The Immediate Payment Service (SPI) is also an IPCN initiative. UPI is considered an extended version of IMPS.
What is the UPI ID and PIN?
The UPI identifier is a unique bank account identifier that can be used to send and receive funds. UPI PIN code is a 4-digit personal identification number that must be entered to allow money transfer through UPI. The PIN code can be selected by the account owner.
Your VPA is unique and flexible
You may be wondering that if your smartphone’s APV is maliciously used in another system, your financial security may be compromised. This is not the case because APV is not constant. The service provider may provide you with an address that expires after one use.
Also, you can get an address that is limited to limited usage. The address can be used to make a transaction for a fixed amount or for a predetermined period of time. The address can also be associated with specific beneficiaries, which means that other users cannot make transactions with you. The service provider can create as many VPAs as you want. Each of them can be assigned user permissions.
UPI-How to use UPI apps?
If you haven’t started using the UPI app or the Unified Payment Portal (UPI) yet, it’s not that difficult.
So, if you are wondering “ “how to pay with UPI?” then don’t worry!
Here you will first need to register and create a unique UPI/VPA identifier. You can register with UPI before using the payment system using any UPI-compatible mobile banking application or a third-party application. After completing the registration, you can start using UPI to send and receive payments. Here are some simple steps that will help you in this process:
Step 1: You need to install UPI app or your UPI banking app from Google Play store or Apple app store.
Step 2: Then you need to choose your preferred language, check your mobile phone number and maybe select your bank account.
Step 3: Now you need to create your profile by entering basic data such as your name, virtual login, password and more. This virtual ID, which you will create here, will serve as a billing address.
Step 4: Then you will need to go to the option “add/link/manage a bank account in the app” and link your bank and your account number with the virtual ID that you created in the previous step.
Step 5: After that, you need to create your Mobile Personal Identification Number (Mpin), which is a security code that will be requested from you every time you want to continue a UPI transaction.
Step 6: You will now be successfully registered.
UPI-transaction limit per day
IPCN claimed that although there is no daily limit on the number of transactions, the maximum possible amount of funds transferred per day is only 1 million rupees. This means you can pay different beneficiaries multiple times every day, making free shipping a reality. However, regarding the money transfer limit in the BHIM app, the app allows you to send/receive 40,000 rupees per transaction and 40,000 rupees per day.
Some UPI applications, such as SBI Pay, WhatsApp Money, allow only 20 transactions per day, which is also enough for regular use in the daily life of users.
Advantages and disadvantages of UPI
UPI means a single payment interface, it is a unique user identifier that the bank uses to make money transactions in real time. The National Payment Company of India, established by the Reserve Bank of India and the Association of Indian Banks, supports UPI. This makes it easier to transfer money between bank accounts and interact via IMP, which is much faster than traditional NEFT. So, in this article we will talk about the advantages and disadvantages of UPI in order to better understand this topic.
Advantages or advantages of UPI:
Using the UPI PIN code, you will be able to make the most secure payment. This is a very secure way, it gives you only one PI through which you can transfer money.
If you make a payment from UPI, you won’t have to pay any fees as the government of India is completely free.
UPI that you can also send any payment at one time or request it in your account. It transfers money to your account or transfers money to another account in seconds.
UPI provides access to all your bank accounts through a single mobile app
You can send a payment to any single payment interface support bank, which is very easy and free of charge, to the State Bank of the National Bank of Punjab and to all other banks.
UPI is easy to access, you can use it 24*7 hours a day anytime and anywhere, even on holidays.
UPI is someone who does not need to fill in various details, such as ATM card number, IFSC code, account number.
UPI payment is very simple, with it you can quickly and easily send money to another account.
If you send money to another account holder, then if you send the same payment via UPI, they will receive a refund. You can take many advantages from this.
Disadvantages or disadvantages of UPI:
UPI is an agreement for small money transfers, when the amount is large, other online transfer methods are preferred.