Ever since PM Narendra Modi demonetized 500 and 1000 rupees billet , service like digital notecase have become quite popular ; Paytm being the top one on the tilt . But hold off , there is also a newfangled nipper in the township called – UPI , short for Unified Payment Interface . So , what on the button is UPI , how does it make , and how can it be a secret plan auto-changer ? Well , rent ’s find out .
Related : Everything You necessitate to lie with About Paytm Wallet
Day before yesterday , State Bank of India set in motion their first UPI app ; which according to them , will be a game - changer in the current economic scenario of demonetisation , and we harmonise with them . SBI has India ’s largest customer base , and by joining work force with 30 other Indian banking concern , UPI might change the fashion banking is done in India .
This is a highly research clause , and once you make it to the ending , you will have a crystal vindicated Idea of what UPI can do and what it ca n’t . So , please read it cautiously and here we go .
So, what exactly is UPI?
UPI ( unretentive for Unified Payments Interface ) in simple word of honor is an onlinepaymentsystem which allow you transfer money to your friend ( or anyone ) using your smartphone . Now , I know , what you are thinking , one can also change funds with the smartphone using on-line banking and Paytm , right ? So , how is UPI different ?
If you transfer money viaonline banking(i.e . NEFT or IMPS ) , you take to know the beneficiary ’s account issue and IFS Code . Not to forget , it also take some meter to tot up a new donee and remove stock .
Paytm , on the other hand , is simple . Enter the somebody ’s mobile number and the monetary fund are transfer instantaneously . No need to hold back or enter the complicated explanation bit . But , a big problem with it , the money you incur from Paytm go bad to yourPatym walletand not your camber report . Yes , you may transfer that money from your Paytm wallet to your bank chronicle , but that takes prison term , and there is a Brobdingnagian dealings fee ( 4 % ordinarily , but it is at 1 % right now ) .
And this is where UPI come into the moving picture . With UPI , you could reassign funds by knowing the benefactive role ’s peregrine bit or VPA and the amount goes directly from your bank account to your friend ’s depository financial institution account . No third party wallet is involved . Best of both humans .
How UPI works?
Here is how it wreak , you download the UPI app for App Store > open it > enter the benefactive role ’s VPA ( the Virtual Payment Address , which is like an e - mail speech for your bank account ) > confirm the amount > crush send . And that ’s it . You have successfully transfer the money to that someone ’s bank account .
So , you see , to send and incur money via UPI , you do n’t need extra savings bank account information like you need to during IMPS , RTGS , etc . UPI can also be used to devote merchants who accept UPI as a payment mode , just like you’re able to with mobile notecase such as Paytm . And yes , UPI is back by the Native American govt i.e. NPCI ( National Payment Corporation of India ) .
What are the advantages of UPI over NEFT, IMPS, and RTGS?
Unlike NEFT and RTGS , UPI is available 24×7 . you may transact even on public holidays , or at 3 am when your young brother asks you for pressing hard cash .
With UPI , you’re able to easilypay to merchants(obviously who accept it ) flat from your camber account without inputting your card contingent , final banking ID / password , etc .
There is also no motivation of total a beneficiary everytime you want to send money to a new party . All you need is their VPA ( which is well-fixed to retrieve ) , and you are quick to go .
What are the advantages of UPI over mobile wallets like Paytm?
Unlike the online pocketbook , with UPI , your money is in your bank account . And you get the interest for that as long it ’s there , which is not the case with the online wallet .
UPI also has better security . You do n’t have to care about the base hit of your UPI write up in case it gets hacked since it uses two - factor authentification . So , without your mobile number or MPIN , the data is useless for a hacker . It can not be get at from any website , like other E - Wallets .
lead up your UPI notecase is also not a rough-and-tumble as it ’s immediately associate to your bank business relationship , and all the investment firm are always available .
Also , there is no monthly terminal point for minutes which is fructify to ₹ 20,000 for wallets such as Paytm ( KYC increases this limit ) .
Can any Bank’s UPI app be downloaded for use?
Yes . There are a lot of apps for UPI access , andany one of themcan be used to transact using UPI . For example , you’re able to use ICICI Bank ’s app ‘ sack ’ to transact using your SBI report .
A few of the apps from the pop banks are :
ICICI – PocketsHDFC – HDFC Bank MobileBankingSBI – SBI PayAxisBank – Axis Pay
observe : Make certain you revise your app from the Play Store .
How do I get started with using UPI?
There are a few requirements for using UPI such as –
1 . Android smartphone with active Internet connexion .
2 . A Debit card relating to this bank account
3 . A mobile number yoke to the aforementioned bank accounting . One SM will be transmit from your wandering number , so check that you have sufficient balance .
observe : None of the UPI apps work on root Android earphone for security reasons .
Once you have all these necessary fulfil , you are expert to go .
first off you have to create your uniqueVPA ( Virtual Payment Address ) .
For this representative , we ’ll see how to create a VPA on ICICI Pockets app ( ICICI bank ’s nomadic app ) using an SBI score . But the step should be alike for other banking apps as well .
stair 1 : Open ICICI Pockets . The first clip you launch the app , you will be require to set anMPIN . Also , anSMSwill be send from your roving number for verification .
Step 2 : tick on ‘ Continue ‘ to create a unparalleled Virtual Payment Address ( VPA ) .
pace 3 : opt aVPAand confirm whether it ’s available .
Step 4 : Select your Bank from the listing .
Step 5 : Then register that bank accounting using your debit / credit wag information .
Step 6 : Choose your nonpayment account for minutes .
Step 8 : After submitting , you ’ll be all done – and can now begin transact using UPI .
What transactions can I perform via UPI?
dealings are currently limited to transferee between unlike bank accounts in the form of VPA to VPA transfers . But , there will be more in time to come as UPI penetration pass away deeper in India .
Can you link more than one bank account to a VPA?
Yes , you’re able to . You require to choose your be VPA while link up your new bank account statement . If you select to link another invoice to a VPA , then you need to also take one fussy explanation to be your nonremittal for sending and receive payments .
Is there a transaction limit for UPI?
Yes , right now the transaction terminus ad quem is gear up at ₹ 1,00,000 . This limit is per dealings based , so you may perform multiple proceedings a daytime if you postulate to .
Are there any charges for transactions done via UPI?
No , right now there are no charge for transactions done via UPI , but there may be a charge in the futurity , as ab initio it was announced by NCPI that they would be charging a flat pace of ₹ 0.50 per transaction .
Again , this is right smart less than what NEFT / IMPS guardianship ( normally 5.75 Rs ) and receiving money from Paytm pocketbook to bank account ( usually 4 % of the full amount for non - VIP user ) .
What security protocols are being taken care of?
Nandan Nilekani , the advisor to NPCI , has enounce that the surety which is being used by UPI is patsy - proof , and the transactions will take place in a extremely encrypted data format . The same engineering science is being used by NPCI ’s IMPS mesh , which already handles more than Rs.8,000 crore Charles Frederick Worth of transactions per day and this bod is only set to increase with UPI becoming democratic .
Is my money at risk if I lose my mobile phone?
No , all accounts are lay to adhere to RBI ’s two - factor certification norms , so without admittance to your MPIN , your history is completely safe from the intruders .
Can money be remitted abroad using UPI?
No , as of now only domesticated transactions are permissible .
Is there an iOS or Windows Phone App for using UPI?
No , but concord to the National Payment Corporation of India ( NPCI ) , it will be available on other platforms shortly . As of now , it ’s only available for Android users , since Android has the largest market place contribution in India .
Wrapping Off
UPI is the way forward for the Indian saving as there is a deficit of cash right now , and also because it is a better alternative to other E - wallets such as Paytm , Mobikwik , Oxigen pocketbook , etc . Over the course of action of time , it will essay to be a great utility for the public as it will make payments fast and soft for the Billion plus population of the earth ’s largest democracy , India .
Also Read : ATM to ATM Money Transfer Guide for Amerind banks [ Researched ]
