Today I am here with a topic which still might be a complicated one for many of us as Government of India has launched UPI, BHIM, Payment Banks back to back and Aadhaar Payment system is coming soon with ease cashless transactions. So today we are discussing UPI (Unified Payment Interface).
National Payment Corporation of India (NPCI) launched UPI on 25 Aug 2016. UPI is an advanced technology of transferring money instantly using smartphones. Earlier methods of online money transfer were NEFT and IMPS where banker needed to register the beneficiary before remitting the funds using IFSC Code of Bank Branch transferee. However, there is an option of MMID (Mobile Money Identifier) for IMPS users without registering the beneficiary to transfer the fund instantly 24 x7 hours. MMID is a seven-digit unique code which is linked to bank account holder’s registered mobile number. But UPI is a step forward towards the technology of instant payment system entirely based on smartphone operating system. Yes, you heard it right!. Unfortunately, this service is not available for Windows operating system in desktop systems.
Advanced features of UPI:
Earlier UPI was only operational in Android OS only, but now UPI is also available in App Store in iOS. There are almost 30 banks which have participated and launched UPI configured the mobile app. Let us come across the great features UPI:
- Virtual Payment Address: You do not have to tell anyone the bank account number, IFSC code & bank branch details anymore to receive funds. UPI generates a virtual address which can be your mobile number or email address linked to your bank account. The remitter just needs to have your virtual address to send money.
- Security: UPI mobile app uses the MPIN security configured in the smartphone which is using registered mobile number with the bank.UPI has a single click-two factor authentication system which means that with one click the transaction is authenticated at two levels.
- Simple Interface: UPI user interface is very simple to use. Users can receive and send payment with the single click. However, UPI app can be different with users depending on different banks.
- 24 x 7 Fund Transfer: UPI users can transfer funds anytime. It has no bars on the bank and public holidays. But there is transaction limit of Rs. 100,000 for a day.
- Scan and Pay – QR code of payee’s VPA can be scanned using smartphone and payment can be made instantly. Some banks offer cash back on the scan and pay transactions.
I hope above points give a brief about Unified Payment Interface. In my opinion, UPI is an advanced payment option for quick fund transfer and instant utility payments. We are looking forward to welcoming the Aadhaar Payment System in the country soon which will be undoubtedly version 2.0 of UPI where we will be using our biometrics to make payments.
I hope you guys will like the article. Please feel free to write me on firstname.lastname@example.org or write your comment in the comment section below.