Do you know what is UPI and how does it work? The Modi government is laying a lot of emphasis on making the country cashless and corruption free. Efforts are being made to promote a cashless economy.
A cashless economy means online payment through the internet instead of money transaction by hand. Developing a cashless economy in a country with such a large population is not an easy task but it is not impossible either.
After the advent of the Internet, every work in the world has become easy. In India too, the internet is gradually increasing its reach to the people. People are promoting digital payments.
There are many such mobile applications through which we can transfer money online from our mobile, such as PhonePe, Google Pay, Paytm, and MobiKwik. Nowadays every person is giving priority to digital payment. Must read How to get instant loan in 5 minutes.
Nowadays UPI ID is being used the most for making online payments. That’s why in today’s article, we will know the complete information related to UPI. If you also want to know what is UPI Autopay and how it works (What is UPI in Hindi), then definitely read this post till the end. Let’s get started.
What is UPI?
UPI is a real-time payment system that transfers money instantly between two bank accounts through a mobile platform. This system is based on IMPS or Immediate Payment Service technology. Through this you can add multiple bank accounts in a single mobile application.
There is no need to give complete details of bank accounts to transact money here. Only one Virtual Payment Address (VPA) is required in UPI. Using this VPA you can do money transfer between your friends, do online shopping, recharge your mobile, pay electricity bill, and many more things where you can do cashless payments. Have to do it can use it.
This system has been developed by NPCI (National Payment Corporation of India ) and is controlled by RBI (Reserve Bank of India) and IBA (Indian Bank Association). NPCI is an organization that manages the Rupay payments infrastructure, which is similar to Visa and Mastercard. It allows different banks to interconnect and transfer funds. IMPS (Immediate Payment Service) was also started by NPCI. UPI is called the advanced version of IMPS.
The full form of UPI is the Unified Payment Interface. This project was started on April 11, 2016, as a pilot project. The auspicious beginning of this project was done by the then RBI Governor Dr. Raghuram ji Rajan with 21 member banks. Today, the number of UPI-based banks is more than 140.
What is UPI ID and PIN?
UPI ID is a unique identification for a bank account, which can be used to send and receive money. UPI PIN is a 4 or 6 digit personal identification number that is required to transfer money through UPI. This PIN can be chosen by the Account Holder.
How to use UPI?
UPI can be used through the mobile app. For this, you have to get this service started by your bank. UPI can be started online by staying at home. For this, you must have the following things.
- A bank account
- The mobile number is linked to the bank account.
- Smartphone in which internet runs.
- Debit card (ATM card) from which UPI PIN will be created.
- UPI Mobile App
To use UPI, first, you have to do UPI registration. After this, the UPI app has to be installed in your mobile. For this, you have to go to the Google Play store and search the UPI app of the bank in which you have your account. After searching, install the app in mobile.
After installing the App, you have to follow the instructions shown on the screen to register. Here you have to create an account by giving your bank details, after which you will be given a Virtual ID. After this also create UPI PIN.
You can also be given email address in UPI ID or an Aadhaar card number or phone number can also be given. After the ID is created, it will look something like this- xyz@sbi. Now your UPI account is ready and you can easily use it for digital money transactions.
How does UPI work?
Apart from UPI, all the net banking apps are there, it is not so easy to transact money through them. In order to send money, one has to log in by opening the app and then add the person to whom the money has to be sent.
While adding it, you have to enter the complete details of the bank account related to it, such as the person’s account number, IFSC code, bank branch name, etc. It takes a lot of time to fill all these details.
But UPI is much easier than all these apps, where you do not need to enter all these details. To transfer money in UPI, you do not need to remember the account number, account type, IFSC and bank name of the recipient.
You can also transfer money by simply ascertaining the Aadhaar number, mobile number registered with the bank or UPI ID. In this, there is no need to tell the person in front that in which bank his account is or by what name his account is registered.
That is, with the help of UPI, you can send and receive money quickly and securely. Its service is available 24 hours a day, seven days a week. You can avail UPI services even on holidays.
Features of UPI
- IMPS (Immediate Payment Service) is used in this, through which you can send money immediately. Its services are faster than NEFT.
- It is available 24 hours a day, seven days a week. Its service continues even on holidays.
- Here you can connect with multiple bank accounts using only one mobile application.
- In this, the unique ID VPA i.e. Virtual Payment Address given by the bank is used.
- Through this you can pay rent, recharge mobile and pay bills.
- Using UPI, you can make instant payments at food delivery services, online shopping sites, grocery stores, etc.
- You can register a complaint directly through the mobile app.
How secure is UPI?
Highly secure encryption format is used for transactions in UPI, which is not easy to tamper with. NPCI’s IMPS network handles transactions of about Rs 8000 crores per day.
This transaction is expected to increase further in the coming times. A two-factor authentication method similar to OTP is used to verify each transaction inside UPI. However, here UPI PIN is used instead of OTP.
List of UPI-Enabled Banks
- HDFC Bank
- Kotak Mahindra Bank
- ICICI Bank
- State Bank of India
- Andhra Bank
- Bank of Maharashtra
- Axis Bank
- Canara Bank
- Catholic Syrian Bank
- Punjab National Bank
- Federal Bank
- Karnataka Bank KBL
- South Indian Bank
- United Bank of India
- UCO Bank
- Vijaya Bank
- RBL Bank
- IDBI Bank
- IDFC Bank
- Yes Bank
- Standard Chartered Bank
- Allahabad Bank
- Bank of Baroda
- Union Bank of India
List of Best UPI apps
- Google Pay
- BHIM UPI
- PayTM App
- HDFC Bank Mobile Banking
- SBI Pay
- ICICI Pockets
- Union Bank UPI App
- PNB UPI
- eMpower Canara Bank UPI
- UCO UPI
- Axis Pay
- Baroda MP
- OBC UPI
- Vijaya UPI
- Yes Pay
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