What is UPI
United Payment Interface
United Payment Interface
- *It is a payment system that will allow you to use a mobile phone to make money transfers. A virtual debit card, if you will.
- *The UPI is a system for instant, online bank payments.
How UPI APP Works
- *To send money to someone, you need to know only their UPI ID – a virtual identity like an email address. This could be your name, or your phone number, so for example, if your phone number is 1234567890, then your virtual address could be 1234567890@sbi (if your bank is SBI) or 1234567890@axis (if you’re an Axis bank customer), and so on.
- *By Using UPI app not need of knowing the recipient’s name, their bank account number, and IFSC code (or bank branch).
- *UPI is built on top of the IMPS, which you may have used to transfer money between bank account. *Like IMPS, UPI is immediate, and works 24×7, through the year, unlike NEFT or RTGS services, which have specific working hours.
- *The UPI can also be used for shopping online – instead of entering your debit card number, expiry date, and CVV code, followed by waiting for the OTP, you’d just enter your UPI ID, and get an alert on your phone to verify the transaction.
Benifits of UPI
The biggest impact of this app will be on third-party payments. Today, if you want to pay someone, you need to add him or her as a beneficiary. You need the IFSC code and bank account number and branch etc. The UPI app does away with all this. All you need is the receiver’s unique ID. Open the UPI app, select the amount to be paid, add the unique ID of the beneficiary and select ‘send’. The app will ask for a mobile pin to authenticate the payment after which it is done.
Every bank requires you to download its app. So, if you have two bank accounts, you will find yourself needing two apps on your smartphone. But, with this interface, the customer needs to download only one app. The UPI interface will network all the banks together and make it possible for the customer to make her transactions using a single app.
Safety of UPI
Yes Very much so. The customer will be given a virtual ID and won’t have to disclose her bank details. Of course, she will have to authenticate her ID with a password.
How to use UPI App
- Every Customer will need to have a bank account and a smart phone.
- Now Download the UPI app from Play Store
- Now Connect the bank account
- Create a Unique ID
- Generate a mobile pin
- Also link Aadhaar number
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*source: CAKnowledge site
