What is a Unified Payment Interface (UPI)?
A Unified Payment Interface (UPI) is a Service which allows users to transfer money from one bank account to another bank account. The interface is regulated by the RBI and works by transferring funds from one bank to another bank with one click . From March 2019 there are 142 banks live on UPI with a monthly volume of 799.54 million transactions and a value of ₹1.334 trillion (US$19 billion).It eliminates the need to enter bank details or other sensitive information each time when the transaction process is done.
There are several good reasons to use the UPI app.
Thus, it is simply a matter of a few clicks to do for any financial transaction.
- Inexpensive Overhead
- NEFT is a popular form of fund transfer and it offers a feeble ₹2.5 rupees for each transaction. Comparatively, UPI transfer costs only ₹0.50 or even less for making a fund transfer.
- UPI fund transfer is an inexpensive way for instant money transfers for low amounts. Moreover, making online transactions with UPI service doesn’t even cost a single paisa.
- Go Cash-Free
- The UPI app allows you to carry on all your bank accounts in your pocket. Whether you need to send, receive or make a payment with a mobile phone or computer , you’re just a few clicks away. Hence, it is a great way to go cash free.
- It is Secure and safe.
- Adding a bank account to the UPI app, provide you a virtual payment address and no information regarding your bank account is used. Hence, the UPI app offers more secure and safe transactions than other popular payment apps.
Services Offered by UPI
A number of Benefits offered by UPI. Users can access transaction histories and balances and along with sending and receiving money . To send money, users need an account number, the Indian Financial System Code (or IFSC, which is an alphanumeric code that facilitates electronic transfers), mobile number of the recipient, and a virtual ID or Aadhaar number (which is like a Social Security number).
How the UPI (Unified Payments Interface ) works
UPI uses existing systems, such as IMPS ( Immediate Payment Service ) and AEPS ( Aadhaar Enabled Payment System ) , to ensure seamless settlement across accounts. It facilitates pay and receive transactions and even works for Barcode ,Qr code or over-the-counter payments, as well as for multiple recurring payments such as utility bills, school fees and other subscriptions. This would not just ensure greater safety of sensitive information and data of user , but connect people who have bank accounts via smartphones to carry out cash free transactions.
The adoption rate of UPI payment services is on the rise. As a consequence, banks and other financial services providers are launching distinct UPI apps with additional perks to ensure a better and beneficial experience for their customers.