What is the Full form of UPI?
The full form of UPI is Unified Payments Interface. UPI 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. The idea was established by India’s National Payments Corporation and is under RBI and IBA (Indian Bank Association) supervision.
Characteristics of UPI
Few UPI characteristics are listed below,
- Instant money transfers via IMPS (Immediate Payment Service) that 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.
- Use the Virtual Payment Address that 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 its own UPI for various Android devices. Banks may or may not charge for the UPI plan.
- Good for merchant payments, in-app transaction, payments for electricity bills, OTC payments, 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 financial address of the customers 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 sharing of credentials.
Advantages of UPI
- It provides a secure, stable, quick and straightforward way to transfer money, bill payment, shopping payments and much more.
- It helps users to quickly transfer money from your 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.