In today’s digital world the most common payment method used by many is UPI.
What’s UPI full form?
It’s Unified Payments Interface (UPI full form)
Transferring and receiving money is a day-to-day activity that is simplified by UPI. It’s a very concrete step towards the Cashless Economy.
UPI full form Unified Payment Interface also explains that it is an interface that helps to unite payments.
National Payments Corporation Of India (NPCI) developed UPI which is an instant real-time payment system facilitating inter-bank transactions.
Reserve Bank Of India regulates the UPI
Learn All About UPI :
Background of UPI
Unified Payments Interface (UPI full form), it’s a system that fuels multiple Bank accounts into a single mobile application. It’s like having all your bank account in your pocket.
Everything is under one roof like merging several bank features, seamless fund routing, and merchants payments.
It also helps to collect requests which can be scheduled and paid as per needs and comfort i.e “Peer to Peer”.
On 11th April 2016, a pilot was conducted with 21 member banks which were launched by Dr. Raghuram G Ranjan, Governor, RBI at Mumbai.
On Google Play Store banks started to upload their UPI enabled Apps from 25th August 2016.
Unique Features of UPI
- Instant money transfer through mobile device round the clock 24*7 and 365 days.
- Accessing different bank accounts in a single mobile application.
- Aligned with the Regulatory guidelines Single Click Transfer provides for a very strong feature of a seamless transaction.
- For Pull & Push, the virtual address of the customer provides for incremental security.
- Detailed view of the transactions, share the bill with friends.
- A sturdy step towards a cashless economy.
- In-App Payments for Merchants.
- Barcode (Scan and Pay) based payments.
- Payments of Utility Bill, Over the Counter Payments.
- Scalable Donations, Collections, and Disbursements.
- 24*7 customer support and Efficient Complaint handling.
Participants in UPI :
Registration in UPI enabled application :
The commonly used applications offering payment via the UPI method are BHIM, which is developed by NPCI, and other private players such as Paytm, PhonePe, Google Pay, Amazon Pay, etc.
Steps for Registration of UPI:
- From the App Store/Banks website download the UPI Application.
- Now create your profile by entering details like name, password, virtual id (payment address), etc.
- Links the bank and account number with the virtual id from the “Add/Link/Manage Bank Account” option.
How to set up UPI
Download your chosen UPI app, then you have to choose the bank from the given options.
Your bank will send you a one-time password (OTP) to verify that it is your bank account. Your virtual payment address (VPA) will be created once the OTP is verified.
Steps to set up a UPI account using the BHIM app:
1: Download and install the BHIM app from the Google Play Store or Apple App Store.
2: Select your preferred language.
3: You have to choose the SIM which has your mobile number linked with your bank account.
4: Set-up a four-digit login Pin i.e. Password. Enter this four-digit Pin to access the app.
5: Select and link your bank account.
6: Set your UPI PIN by providing the last six digits and expiry date of your debit card.
Now you can send or request money to be transferred to your account as your UPI account is registered.
However, the bank account can be linked to UPI. Multiple Bank account can be linked to a single UPI.
Different ways to transfer money via UPI
Three different ways to transfer money via UPI –
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- By entering the virtual payment address (VPA) of the payment receiver.
- Using account number, and IFSC code.
- Scanning QR code.
How much money you can transfer via UPI?
At the moment, the upper limit per UPI transaction is Rs 1 lakh per account per day according to the NPCI. Within this upper limit, different banks may have their sub-limits.
Non-Financial Transactions that UPI supports :
- Mobile Banking Registration
- Check Bank monetary balance
- Generate One Time Password (OTP)
- Set/Change PIN
- Check Transaction Status
- Raise Dispute/Raise query
UPI supports all platform ( Android / iOS )
UPI – Benefits to the Ecosystem participants
Benefits for banks:
- Single click Two Factor authentication
- Universal Application for transaction
- Leveraging existing infrastructure
- Safer, Secured and Innovative
- Payment basis Single/ Unique Identifier
Benefits for end Customers:
- Round the clock availability
- Single Application for accessing different bank accounts
- Using Virtual ID is more secure as no credential is shared.
- Single click authentication
- Raise Complaint from Mobile App directly
Benefits for Merchants:
- Seamless fund collection from customers.
- No risk of having customer’s credit/debit card info.
- Suitable for e-Com & m-Com transaction
- Resolves the Cash on delivery collection problem
- Two Factor Authentication facility to the customer in a single click – seamless Pull
- In-App Payments (IAP)
Some current affairs related to UPI
At present, 155 banks in India are live UPI members, i.e. they allow inter-bank fund transfers using UPI.
The National Payment Corporation of India launched “Pai” which is an Artificial Intelligence-based chatbot on May 27, 2020.
UPI Auto Pay feature for recurring payments launched on July 22, 2020, by the National Payment Corporation of India (NPCI).
National Payment Corporation of India (NPCI) has launched UPI 2.0, The new features will allow users to link their overdraft account to UPI.
For more current affairs visit Bankersway current affairs.
UPI Fraud Alert
In this period of Lockdown, people are using the digital mode of payment primarily UPI payments. It is now widely used in online shopping and transactions.
It may also contribute to an increase in FRAUDS!
So here are some tips to avoid frauds regarding UPI payments :
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- Never disclose important details like Debit/credit card number, security pin, expiry date, registration, OTP with anyone.
- Many a time, the caller asks you these details in the name of the bank executive stating that your card will be blocked. Don’t believe these types of calls.
- Never click on any unofficial link received via SMS. Also, never forward any such SMS to others.
- UPI MPIN should not be shared with anyone. MPIN is the one which you enter in the UPI app to check your balance.
- Similarly, SMS can also come in the name of IRDAI and EPFO, but they do not send any such messages to the customers. So BE AWARE OF FRAUDSTERS!!
In Conclusion, It is advised to not share your confidential details and do not download any app or confirm payment from unknown accounts via UPI.