Unified Payment Interface(UPI)

It is a real time instant payment system used for inter-bank transactions. It is developed by NCPI and regulated by RBI. Any UPI app client may be used for sending or requesting money and multiple bank accounts can be linked to single app. It makes life much easier by avoiding bank and ATMs for the money.

 

Unified payments interface commonly known as UPI is a system that brings all your bank accounts on one common platform to make account management easy for a customer. Developed by NPCI, it is an RBI regulated interface for immediate fund transfers among two or more mobile platforms.  It becomes easy to transfer funds or manage your funds along with easy utility payments. Usually, banks have their own UPI applications that a user can utilize for instant money transfers.

Features of  Unified Payment Interface (UPI)

  • UPI enables immediate money transfers round the clock anytime, anywhere.
  • It is one common platform to manage multiple bank accounts.
  • Virtual addresses keep the user’s personal details and credentials secure.
  • No more visiting banks or ATM.
  • Makes life easier with the easy digitized payment option.
  • Merchant payments easy through a single application or with in-app payment feature.
  • Fast counter payments through a barcode scan.
  • All banking queries solved through an app. You can even raise complain over the phone.

Unified Payments Interface (UPI )Services

  • Check Transaction record/history
  • Register for mobile banking
  • Send/pay money or receive money
    • Virtual address
    • Aadhar number
    • Account number and IFSC code
    • Mobile number
  • Reset your MPIN
  • Manage account
  • Check notifications
  • Collect money
  • Raise complaints

Participants in the UPI process

  • Payer payment service provider (PSP)
  • Payee payment service provider (PSP)
  • Remitter bank
  • Beneficiary (receiver) bank
  • National Payment Corporation of India
  • Bank account holder
  • Merchants

UPI benefits both the customer or the user and the intermediaries involved.

Benefits to the bank

  • Single click authentication
  • One application for transaction
  • Flexible and user-friendly set up
  • Safe, secure and fast process
  • Enables hassle-free merchant transactions
  • Payment involves a single identifier

Benefits to an end customer

  • Available round the clock
  • Common platform and single access to multiple accounts
  • Credentials remain safe with virtual ID
  • Complain from the app directly
  • One click authentication

Read More: DIGITAL TECHNOLOGY WALKTHROUGH FROM NET BANKING TO UPI

Benefits to merchants

  • Easy and fast fund collection from customers
  • No risk in storing customer’s virtual address
  • Eases cash on delivery uncertainty and insecurity
  • Helps the customers not using cards
  • In-app utility payments
  • Single click 2 factor authentication facility offered to customers

Requirements to get a UPI

  • Active bank account
  • Mobile number linked to the bank account
  • Smartphone with an internet connection
  • Debit card to set MPIN

Activating UPI

  • Download the UPI app
  • Register on the app with your account details
  • Create virtual ID
  • Set MPIN
  • Account gets activated within 5 mins

Requirement for processing a transaction

  • Smartphone with an internet connection
  • Registered device
  • Use registered MPIN

Unified Payments Interface UPI Transaction Process

Carrying out a transaction means either you have to send money referred to as PUSH or you have to PULL that means request money or receive money. Here are the steps to follow:

PUSH – send money using virtual address

  • Log in to your UPI app
  • Select the option to send money/payment
  • Enter beneficiary’s virtual ID and amount, select the account to be debited
  • Confirm the payment details on the confirmation screen and press enter to proceed
  • Enter the UPI PIN
  • Check the success or failure message of a transaction

Read More: Top Ways to Protect UPI (Unified Payments Interface) Transactions

PULL – Request or Receive money

  • Log in to your UPI app
  • Select the option of collect money i.e. request for payment
  • Enter remitters/payers virtual ID, amount, select the account to be credited
  • Confirm the payment details on the confirmation screen and press enter to proceed
  • Payer will get a notification for the money requested
  • Payer reviews the payment request
  • Payer chooses to accept or decline the request
  • If he chooses to accept, the payer will enter the UPI PIN to authorise a transaction
  • Payer gets the notification of successful transaction or declined a transaction
  • In case the transaction is successful from payer’s end, the payee will receive the notification of credit in his account

In order to send money, you need a virtual address, account number and IFSC code, mobile number, MMID and Aadhar for safe transfers. There is a limit of money transfer that is set up to a maximum of 1 lakh that you can transfer. There are no extra charges applicable on a transaction, the only charges levied on customer are the internet or data usage charges which are not much.

Unified Payment Interface UPI is a user-friendly approach to make the world go digital and adapt faster and easier ways of banking and account management. Upgrade yourself to the latest technologies and experience the ease what technology offers. GO DIGITAL!

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