UPI (Unified Payments Interface)

UPI full form is Unified Payments Interface. It is a payment system that allows users to link their one or multiple bank accounts in a single smartphone app and transfer funds without providing IFSC code or account number.

This payment model lets you use your smartphone as a virtual debit card and send and receive money instantly just with a UPI code meaning a 4-digit passcode. UPI is gradually becoming the most preferred mode of digital payment.

The user has to use a virtual address, known as a VPA or Virtual Payment Address to make any transaction. You will require following things to transfer funds through UPI:

• Smartphone
• Active bank account
• An active mobile number that is linked to the bank account
• Proper internet connection

You can transfer money only by knowing the recipient’s Aadhaar number, mobile phone number (which is registered with their bank account), or UPI ID. 

All you need to do is set up UPI ID on any app that supports UPI service. A UPI ID usually begins with your mobile number followed by ‘@’ symbol and then ends with the app you are using. For example, ‘98xxxxxx10@paytm’. 

You can set up the UPI ID by providing your bank account details on the app. The app will send an OTP on your registered mobile number for verification. On entering the OTP, you will be asked to create a PIN for the UPI ID. 

After completing the registration, you can send money to anyone by choosing a mobile number from your contacts. You can also request money through UPI from anyone on your contacts list.

The UPI interface is compatible with many banks and digital wallets. Some payment applications are also embracing UPI, such as Google Tez, Paytm, PhonePe, and so.

Following are the advantages offered by UPI:

• Simplified online payments and easy transactions.
• Easy payments for food delivery services, shopping sites, cab services, etc. with UPI.
• Online payment is feasible at nearest restaurants, departmental stores, and grocery stores.
• Payment of rent, utility bills, and mobile recharge can be done online instantly.
• Safe and secure payment system.
• Makes it easy to receive funds.
• No risk of storing the user’s virtual address.
• Suitable for e-commerce and m-commerce transactions.
• No need to use credit/debit cards.
• In-App Payments (IAP).
• UPI resolves the hassle of cash on delivery for merchants.
• Single application can be used for accessing various bank accounts.
• 24x7 availability.
• The use of Virtual ID is secure.
• Complaints/feedback can be shared easily from the mobile app directly.

UPI registrations can be done via any of the following two modes:

• Through the app that supports UPI payments on your smartphone.
• By dialing *99# on your phone and pressing the call button.

Here are the steps for UPI registration through mobile app:

• Install the UPI app (like BHIM, Google Tez, etc.) or UPI enabled app offered by your bank from Google Play Store (for Android users) or Apple App Store (for iOS users).
• Select your preferred language, verify your mobile number, and select your bank account.
• Now create your profile by entering your name, virtual ID (which will be your payment address), and password. 
• Go to ‘Add/Link/Manage Bank Account’ option available on the app to link your bank and account number with the virtual ID previously created.
• Then create your MPIN (which will be your password for proceeding with transactions).
• Voila! You are successfully registered.

Additional Info: Check Banglarbhumi West Bengal Land Record in detail.

No fees and charges are associated with using the UPI platform. The UPI payment system was introduced to promote digital transactions. The NCPI decided the transaction charges of 50 paise per transaction earlier. However, the Government of India canceled it later to encourage more people to use the platform.

Following are some popular banks that offer the UPI facility:

• Allahabad Bank
• Andhra Bank
• Axis Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra 
• Canara Bank
• City Union Bank
• DBS Digibank
• Federal Bank
• HDFC Bank
• HSBC
• ICICI Bank
• Indian Bank
• IndusInd Bank
• Kotak Mahindra Bank
• Punjab National Bank
• SBI
• UCO Bank
• Union Bank of India
• YES Bank

Following are some popular apps that provide UPI feature:

• Amazon Pay
• Axis Pay
• BHIM app
• BOB UPI
• Chillr
• G Pay or Google Tez
• iMobile
• MobiKwik
• Paytm
• Paytm Payments Bank
• PhonePe
• SBI Pay
• Uber

UPI ID means an identification for a bank account that can be used for sending and receiving funds. A UPI ID usually begins with your mobile number followed by ‘@’ symbol and then ends with the app you are using. For example, ‘98xxxxxx10@paytm’.

A UPI PIN is a 4-digit personal identification number chosen by the account holder that they need to enter for authorizing the transfer of money through UPI. 

UPI 2.0 is the new version of UPI payment system with enhanced features and benefits. It was launched in August 2018. It is more secure and comprehensive with an easier authentication process.

Additional features of UPI 2.0:

• Payment of Bills: With UPI 2.0, you can make utility bills (electricity, telephone, insurance, mobile), credit card and EMI payment. UPI hasl integrated Bharat Bill payment system for facilitating bill payments.
• Biometric Authentication: By introducing fingerprint mapping technology and iris scanner in UPI 2.0, UPI based payments have become more secure. Biometric payment authentication facility is introduced with the Aadhar service. Biometric authentication can be done with the help of phones with fingerprint scanners and high-quality cameras that can capture iris image.
• Pre-authorized Transactions: Users can authorize billers for bill payments that have to be made regularly to automatically withdraw the bill amount prior to the bill due date. This facilitates a stress-free bill payment system. You can also limit the number of automatic payments with the option of setting the maximum amount limit and applicable date. This feature also works for EMIs.
• Transaction Speed Check: UPI 2.0 has added the velocity checks for UPI transactions to detect fraudulent transactions and prevent them from completion. 
• Scheduled Payment: In earlier versions, scheduling payments feature was not available in UPI payment system. UPI 2.0 has added this facility giving more needed flexibility to the current system.
• Error Resolution: The older version of UPI used to show error if your mobile number was linked to the bank accounts of other people. The phone number must be unique to a person for UPI to work. UPI 2.0 resolved this issue.
• Aadhaar Based Payments: UPI 2.0 enabled payments using Aadhaar numbers. The primary reason for this is that an Aadhaar number is unique to an individual unlike mobile numbers which could have been owned by multiple people before you. 

Also check AnyRoR Gujarat Land Record.

• NEFT: The NEFT banking allows people to transfer their money instantly from one bank account to another.
• RTGS: The transfer mechanism of RTGS allows real-time money transfers on a gross basis. And, each request is handled individually.
• IMPS: It is an instant inter-bank fund transfer system that allow real-time money transfer. The IMPS transfer is considered a safe, hassle-free, and cost-effective way to transfer funds electronically.