UPI - Unified Payments Interface

The trend of UPI in India is increasing day-by-day. But did you really known what UPI is? Full Form of UPI? How to create UPI ID? And so on… Read everything about the India’s own payment system – UPI

What is UPI:

Unified Payments Interface is an acronym of UPI introduced by National Payments Corporation of India (NCPI). UPI is a system that provides several banking features, seamless fund routing and merchant payments through a single mobile application. For UPI one need to create UPI ID and PIN that are sufficient to send and receive funds. It is a real time bank-to-bank payment system.

How does it works:-

UPI has made the money transfer lot easier. There is no to take or remember any bank account number and IFSC Code. You can simply transfer fund by asking the mobile number or Aadhar number of a person that is registered with bank account or UPI. Mostly, UPI ID begins with the mobile number followed by ‘@’ symbol and ends with name of app. For example 70XXXXXX90@paytm, this also known as Virtual Payment Address (VPA) that helps UPI to track a person’s account.

How to Create UPI ID:-

To Create UPI ID you need to install any of UPI providing application like BHIM UPI, Paytm, SBI YONO, etc. You need to provide some details i.e., last 6 digits of your debit card and expiry date and your mobile number. To verify your mobile number a verification message will be send to app from your mobile. After verifying it’s you, you will receive an OTP after entering the OTP you need to set your UPI ID and UPI PIN of 4 or 6 digits. On every UPI transaction you need to enter that UPI PIN. After successfully creating your UPI ID you can send or request for money from any of your country.

Initiative of UPI:-

Initiative of UPI is taken by the National Payments Corporation of India (NPCI) together with the Reserve Bank of India (RBI) and Banks Association (IBA). NPCI is the owner of India’s own global card payment network i.e., Rupay. UPI is the advance version of Immediate Payments Service (IMPS) which is one of the NPCI’s initiatives. UPI is the unique payment system which is introduce by India. It is one of the high secured payment methods which NPCI’s IMPS network handling. About 8,000 crore worth transaction is made every day using UPI.

Popular UPI Apps:-

There are lots of UPI apps that are available on play store. Some popular UPI Apps:-

• BHIM
• Paytm
• Google Pay
• SBI Pay
• PhonePe

Advantages of UPI:-

• Highly Secure and Safe
• Instant Transaction
• Scan and Pay Facility
• Online payment of bills and recharges
• Cash back offers

Disadvantages of UPI:-

• Short UPI PIN: - UPI PIN varies from 4 to 6 digits which makes it easy to crack.
• Limited to Fund Transfer: - Only Rs. 100,000 can be transfer at once using UPI.