UPI – The Latest Trend

UPI is the abbreviation for Unified Payments Interface. In this system, the payer simply processes the payment request according to your mobile number and the payment arrives in your bank account. If you also pay for the daily use of the smartphone, then you must have had a connection with UPI.

Unified Payment Interface or UPI is used to transfer money from mobile platforms to another bank account. This is such a concept, which allows many bank accounts to transfer funds through a mobile application. It has been developed by the National Payment Corporation of India (NPCI). Its control is in the hands of the Reserve Bank and the Indian Bank Association.

What are the special features of UPI?

* Fund transfer to an account with the help of IMPS (Instant Fund Transfer). This takes less time than NEFT in fund transfer.
* Transactions can be made from multiple bank accounts with one mobile application.
* Money is transferred using IFSC code and mobile number.
* M-PIN (Mobile PIN) is required to authorize every payment.
* Service can also be availed by dialing *99 # in a phone without an internet connection.
* Every bank has a UPI platform, which is developed according to the operating system of mobile (Android, Windows or Apple).
* It also has a bill sharing facility.
* Complaints can be made from the mobile app itself.

How safe is UPI?

This interface of digital payment performs 2 types of authentication. Only after this, you can pay someone with a single click. Here PIN is used. There is no need of a OneTime Password. NPCI consultant Nandan Nilekani had said that it is a safe payment option due to its excellent encrypted format.

How does UPI work?

To avail UPI, you have to create a virtual payment address. After this, you have to link it to your bank account. The virtual payment address becomes your financial address. After this, there is no need to remember your bank account number, bank name or IFSC code, etc.
The payer simply processes the payment request according to your mobile number and the payment arrives in your bank account.

Read our blog on RTGS and Open banking.

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