UPI is Referred to as the Unified Payment Interface.
What is UPI?
Unified Payments Interface (UPI) is a framework that puts numerous bank accounts into a single mobile application (of any participating bank), consolidating banking features, consistent fund transfer and merchant payments through one application. It also serves the peer to peer transfer request which can be planned and paid according to necessity and convenience.
Unique Features of UPI:
It allows immediate money transactions through mobile device 24*7 for 365 days.
One needs a single mobile application for accessing numerous bank accounts.
Single click authentication allows seamless transaction
Customer need not enter account no. and other details as a virtual payment address is used in UPI transactions.
Transactions can be shared immediately.
It is an alternative for cash transactions and customers need not run to ATMs for cash.
Merchants can be paid with the use of a single UPI app.
Utility bills, counter payments and barcode-based payments all can be done through single UPI application accessing numerous bank accounts at a single time.
In case of payment failure concern can be raised within the app only.
A transaction through UPI involves the following parties:
Payer PSP(payment system player)
National payment corporation of India
Bank account holder
UPI Benefits to the Ecosystem:
Benefits to Banks:
Single click two-step authentication process.
Universal application for transactions.
It is safe, secure and innovative.
Unique identifier for payments.
Seamless merchant transactions
Benefits to Customers:
Single mobile application for accessing numerous bank accounts.
No credential sharing required as UPI uses virtual address.
Customers can raise a concern through inbuilt transaction failure feature.
Benefits to Merchants:
Seamless fund collection from customers through single virtual address.
No need for storing customers identity ie. virtual addresses.
Access to customers not having credit or debit cards.
Suitable for e-commerce and m-commerce businesses.
Resolves the issue of having to round off payments as an exact amount can be paid through digital mode.
In-app feature of payments to vendors and customers.
Registration in UPI Application:
Customer downloads UPI application from any bank’s website
User creates his/her profile by entering details like bank account, password, UPI pin etc.
User adds/links/manages his/her bank account through UPI app.
Performing UPI Transactions:
PUSH transaction meaning sending money using a virtual address.
User logins to UPI app
Selects option for payments
User enters beneficiary virtual address and amount to send.
User enters a PIN to allow the transaction.
PULL transaction meaning requesting money.
User log in to UPI application.
He/she selects options for collecting money.
User enters payers virtual id, amount and account to be credited.
Payer gets notification for request money.
Payer clicks on accept or decline after reviewing the request.
After a successful transaction, both user and payer get confirmation from the bank.
1. What is UPI?
Ans: UPI is a single platform that combines different financial services and features under one umbrella. A UPI ID and PIN are adequate to send and get cash. Ongoing bank-to-bank payments can be made utilizing a portable number or virtual payment address (UPI ID).
2. What is UPI ID and PIN?
Ans: ID is a unique identification proof for a bank account that can be utilized to send and get funds. UPI PIN is a 4-digit individual identification proof number that must be entered to approve the exchange of cash through UPI. The PIN can be picked by the account holder.
3. Is UPI Safe?
Ans: UPI transaction utilizes profoundly secure encryption format that isn't anything but difficult to tamper. NPCI's IMPS network handles about Rs.8,000 crore worth transaction each day. This is expected to exponentially increment with UPI innovation. It utilizes a two-factor validation technique, like OTP, for confirming each exchange. However, UPI PIN will be utilized in the spot of OTP for approval.
4. What is the Difference Between UPI and BHIM?
Ans: UPI is the platform, whereas BHIM is identified as a mobile app. BHIM is a transaction-related mobile app in which UPI can be synced easily from any of the UPI activated bank accounts. In this term, only a single UPI account can be connected to BHIM not multiple.
5. What is the Full Form of UPI?
Ans: UPI is known as Unified Payment Interface.