Unified Payments Interface (UPI) empowers multiple bank accounts of participating banks in a single mobile application. It offers several banking services like fund transfer (P2P) and merchant payments in a single mobile application. UPI was launched by National Payments Corporation of India with Reserve Bank of India’s vision of migrating towards a ‘less-cash’ and more digital society.
UPI is a layer on IMPS. Once it is adopted by all banks; money can be transferred from a bank to any other bank using a mobile phone. UPI is like an email ID for your Money. It’s an unique identifier that your bank uses for money transfer and making payments using IMPS. Using IMPS, you can transfer money immediately and 27 x 7; 365 (+1)days. Hence, now online payment would be much easier than ever; and that too without any digital wallet or credit card or debit card. It’s hassle free, secure and seamless payment option.
What I can do with Unified Payments Interface (UPI)?
You can use UPI platform for the following:
- Immediate money transfer through your mobile that too round the clock 24*7 and 365 (+1)days;
- Single mobile application for accessing multiple bank accounts, so, you don’t have to install mobile app for all the banks separately;
- Click once and get 2 Factor Authentication;
- You don’t have to enter your bank account details such as Card number, Account number; IFSC etc. Your virtual address would be used for Pull & Push; as a result, it provides incremental security;
- You would be able to share your bills with your friends now, so more party with less contribution, hence no burden at all on individual pocket;
- Merchant Payment would be easy with Single Application or In-App Payments;
- Scheduling PUSH and PULL Payments for various purposes.
- Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments;
- Donations, Collections, Disbursements Scalable;
- Raising Complaint from Mobile App directly;
- UPI will more simplify your online payments. Currently, you are using NEFT, IMPS or digital wallets such as MobiKwik, Paytm, etc to make a quick payment to the service providers.However, with the UPI, you just need to enter your details and get a billing request on your phone; which not necessarily you will have to accept, but you can reject the same, then and there;
- Cab services such as Uber and Ola, food ordering services like Zomato and Food Panda, online grocery shops like Big Basket and Grofers would get an advantage of the UPI system. These companies and e-commerce companies would be able to register its identifier on the UPI system and receive funds from a customer’s bank account through this service. Most of these companies are banking on mobile wallets in the current scenario;
- Apart from this, you can send money to your family and friends instantly.
Is UPI available now for me to use?
Unified Payments Interface was launched in Jan 2016; and was made available to banks from Apr.11, 2016. However, it will take banks little more time to figure it out and add support for it in their mobile app.
Banks live with UPI apps:
Out of 29 banks that had concurred; Axis Bank Ltd, Union Bank of India, Federal Bank Ltd, PNB, Canara Bank, United Bank of India, ICICI, Andhra Bank, UCO Bank, Vijaya Bank, South Indian Bank, Karnataka Bank, Oriental Bank of Commerce, DCB Bank, TJSB Sahakari Bank, YES Bank, HDFC Bank, Catholic Syrian Bank, IDBI Bank, IDFC Bank, Kotak Mahindra Bank, RBL, SBI, Standard Chartered Bank of India, Allahabad Bank and Bank of Maharashtra went live with National Payments Corporation of India’s (NPCI’s) UPI apps on the Google Play Store.
UPI Apps on the Google Play Store:
Also, Flipkart launched “PhonePe”, Snapdeal already has “FreeCharge” apart from this, you will find “UPI Pay” and “Trupay” apps on the Google Play Store. However, “PhonePe” seems to be most user friendly.
Charges and Limits of using UPI:
As per NCPI, they will charge Rs. 0.50 per transaction. However, apps will not charge anything.
Transaction Limit: You can transact upto Rs.1.00 Lakh per transaction.
How Unified Payments Interface works?
Any smartphone user who has an account with a UPI-partnered bank can download an UPI app.
Registration in UPI enabled application:
Steps for Registration:
- Download the UPI application from the App Store or Bank’s website.
- Next, you create your profile by entering details such as name, virtual id i.e. your payment address, password etc.
- Then, go to “Add/Link/Manage Bank Account” option and link your bank and account number with your virtual id.
Generating M – PIN:
- Select your bank account from which you want to initiate the transaction; and
- Click on required option.
After demonetization, Unified Payments Interface (UPI) seems to be a big support and a great option towards a “Cashless Society”. Though it’s a bit difficult in India with a huge population staying in rural part. However, with Mr. Narendra Modi’s dream of Digital India, seems to be a reality soon.
You may click here to visit Official Website of UPI