What is the Full form of UPI?
The full form of UPI is the Unified Payments Interface. UPI’s instant real-time payment system helps to transfer cash immediately via a mobile interface between the two bank accounts. Thus, UPI is a concept that allows different bank accounts to join a single mobile app. India’s National Payments Corporation established the idea under the supervision of RBI and IBA (Indian Bank Association).
Characteristics of UPI
A few UPI characteristics are listed below:
- Instant money transfers via IMPS (Immediate Payment Service), and is quicker than NEFT.
- Individuals could use UPI twenty-four hours a day and on all public holidays since it is entirely digital.
- One Mobile App that allows access to different bank accounts.
- Uses the Virtual Payment Address, which is the unique bank ID.
- Uses IFSC code, account number and phone number with Mobile Money Identifier or MMID.
- PIN (Personal Identification Number) for MPIN or Mobile Banking is provided to verify every transaction.
- Some bank offers their own UPI for various Android devices. Banks may or may not charge for the UPI plan.
- Good for merchant payments, in-app transactions, payments for electricity bills, OTC payments, and payments based on barcodes.
- Someone can make a complaint directly with the Mobile App.
Working process of UPI
- The users would need to create a VPA (Virtual Payment Address) of their choice to use the UPI service.
- The user also needs to connect their bank account to the VPA.
- The VPA then becomes the customer’s financial address, and they do not need to recall information such as IFSC code, beneficiary account number or net banking password & user ID to send or receive money.
- The customer’s virtual address for Pull and Push aims to strengthen extra protection.
- The customer does not need to punch over again in this information, and there is no credentials sharing.
Advantages of UPI
- It provides a secure, stable, quick and straightforward way to transfer money, make bill payments, make shopping payments and much more.
- It helps users quickly transfer money from their bank account directly into an individual’s bank account.
- The UPI transactions do not demand the full bank details of the users as well as other confidential information once the users initiate a payment.
Comments