July 18, 2024

UPI –Making your smartphone into a bank – JIZ PAUL

What is UPI

Unified Payment Interface (UPI) is an online payments solution, which will facilitate the transfer of funds instantly between person and person (or peer to peer) using a smartphone.Unified Payment Interface is an initiative by National Payments Corporation of India’s (NPCI). NPCI was set up by RBI, IBA, and few Banks. According to NPCI, around 30 banks have gone live on UPI. UPI is built on top of the IMPS, which is a commonly used platform nowadays for real-time money transfer. (IMPS network currently handles transactions of more than Rs 8,000 crore per day). Thus, like IMPS,UPIalso is immediate, and works 24×7, throughout the year. But, for transferring funds, using IMPS, you had to know the beneficiariesname, bank account numberandIFSC code of the branch. UPI eliminates the need of knowing these details. Under UPI regime,to send money to someone, you need to know only their UPI ID -a virtual identity like an email address. This could be your name or your phone number. For example, if you had an account with XYZ bank and your mobile number is 1234567890, then you can have a virtual address like 1234567890@XYZ.
One major advantage of UPI is that it can be used both for sending and receiving fundsuptoRs 1 lakh. The other features like Immediate money transfer through mobile device round the clock 24*7 and 365 days, facility for using a single mobile application for accessing different bank accounts, transfer through virtual id, single click 2 factor authentication, facility to schedule push and pull payments and raising complaint from mobile app directly make UPI truly unique. The different channels for transferring funds using UPI are transferred through virtual id, Aadharnumber, a combination of Account number and IFSC, a combination of mobile number and MMID and pull message basis virtual Id . In the case of Virtual ID transaction, the beneficiary needs to have a Virtual ID and in turn be registered with UPI but in case of Account+IFSC or Mobile+MMID, Aadhar number, the beneficiary need not be registered for UPI.In case of mobile loss, customer needs to simply block his mobile number and thereafter no transaction can be initiated from the same mobile number



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