Banking is an important component of the economy of any nation and the concept of Money transfer cannot be ignored, as this is a process initiated by others.
Due to the growth of various services like the Online Banking, Mobile applications, Physically Transferring the money from one person to another using the Cheques, Cash Deposits at the Banks, and other features has been eliminated in the new world order.
The credit of bringing the techno revolution goes to the Demonetisation, where in the old INR 500 and INR 1000 notes were banned by the government and this led to changes in the mode of payment from the Cash Based to the Online Mode of Banking.
Let’s explain this term UPI in a simple manner. It is a unique Smart Phone application allowing the users to transfer the money between various bank accounts. It is established by the National Payments Corporation of India (NPCI) in 2016 and it also removes the need to enter the bank details and other sensitive details each time a customer will carry out the transaction.
Nations like India and USA is leading the group, when it comes to offering the digital growth in the financial sectors.
The UPI is a real time payment methodology created to have a good interbank transfers done with a click. This enables the bank account holders in India to send and receive the money using their respective Smart Phones without entering the bank account details and the Net Banking Id and the Password.
The United Payments Interface is a unique venture undertaken by the National Payments Corporation of India NPCI, along with the assistance from IBA (Indian Banks Association) and good in handling the Rupay Payments Infrastructure similar to Visa and the Mastercard.
The best part is the sender need not remember the receivers Account Number, Name, Bank Name, IFSC code and other details. You need to know the receivers Aadhar Number, Mobile number that is linked with the bank account.
The Virtual ID created under the United Payments Interface is good in doing various transactions like the Payment to the Recipient, Immediate Fund Transfers and other related activities.
As per the survey done by a leading Public Relations agency in India, 2.21 billion transactions worth 4 crores happened in August 2020, while 3.21 billion transactions worth 5 crores happened in November 2020.
The United Payments Interface UPI, starts with the mobile number that is followed by @symbol and ends with the app that you are using.
Let us take an example, if the mobile number is 9567815487 and if you are using the Paytm app, the UPI id is 9567815487@paytm. The Id is made by giving the details of the bank account on the app. The app will send an OTP to your registered mobile number to make sure that you are the authorised person.
Once you enter the OTP, you will be forced to create a PIN for the UPI ID. After completing the registration, you can select any mobile number from the contacts and send the amount.
The features of the United Payments Interface are given below as follows.
There are some ways to create the United Payments Interfacein simple steps like:
What is an UPI Id?
It is a unique login id created to identify the customer and link it to any bank account the customer is having.
What is the best quality of the UPI?
The customer need not remember the account number, Net banking code, or id and password for receiving and sending money.
Which apps allow the UPI utilisation?
There are various apps allowing UPI payments like the Phone Pe, Google Pe, Free Charge, Paytm and others. It is valid in any part of India.
Do we need to pay transaction fee for payments done using the UPI?
No, we need not pay for any transactions done using the UPI.
Can I transfer the funds to foreigner using the UPI?
No, you cannot transfer the funds to another nation.
How long it takes for UPI to credit money to receiver’s account?
The money gets credited instantly to the account.
How will I come to know that transaction has gone through?
You will see a status of the payment on the screen and if the transaction does not go then result will be present on the transaction history along with the reference number. You will also receive an SMS about the status of the transactions.
When the Refund happens in the case of failed transactions?
When the transaction gets void or timed out then you must check the transaction after 24 hours the amount will be there in your account. If you do not receive refund, contact the respective customer service of the bank.
Are UPI Transactions Safe?
There is safety during verification as mobile number gets verified and if you change number, you will repeat the verifications. During the transactions, an option to have a 4/6-digit MPIN is there. This prevents others from entering into your account and do transactions.
Is it possible to add multiple accounts to one single UPI APP?
No worries. You can add multiple bank accounts to the UPI apps.
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