What is UPI? How it Works & Benefits of UPI
The full form of UPI is Unified Payments Interface. This is an instant real-time payment system, this means that with the help of UPI, you can send money from anywhere and anytime to your friends and relatives at the same time. It has been started by National Payments Corporation of India (National Payment Corporation of India) to do interbank transactions.
Nowadays whenever we go to make online payment, a new name appears in the option. We too have started preferring to pay in different ways these days.
People also need easy ways to pay with credit cards and debit cards, that is why people want such a way that we can make payment in just a few seconds.
In this, a new method is becoming quite popular, which is known as UPI, so What is UPI? And what is the UPI address and how does it work.
We already have multiple payment methods. Ever since internet banking started, people got this opportunity to transfer money from online internet banking to their friends or relatives sitting at home.
If we talk about how we can make cashless payment, then there are many ways that you often already know. In which apart from Debit card / Credit card, Internet banking, Paytm, PhonePe, Mobikwick, Freecharge are the major mobile wallets using which we make online payments.
But there are still many people who do not know that there is an easier way than mobile wallet, in which we can do transactions in a very short time. Until recently, we used to do money transactions within a limited time, but now 24 * 7 can be done with this facility, which is named UPI.
So without delay, let us know what is UPI and how it works.
Introduction to UPI
We also know it by the name of NPCI. There are many banks in our country and people can have any bank account.
ATMs of all banks are not present everywhere and in such a situation suppose we withdraw money from SBI ATM using ICICI Debit card.
That is why this department also keeps an eye on the transactions happening between one bank’s ATM to another bank’s ATM.
We can transfer money very easily using UPI. With the help of this, we can make any kind of payment, for example, if you have done any shopping online, then you can also pay it through UPI.
Apart from this, you also use to book movie tickets, OLA Uber ride, bus tickets, flight tickets, electricity bill payment, to load money in mobile wallet, mobile recharge, DTH recharge.
Very few people use UPI right now, the main reason for this is that not everyone is fully aware about it. This post of ours is giving you information about UPI in a very easy way so that you too can do your payment related work comfortably by using this service.
Since online banking happened, people did not have to go to the bank and line up, it made people’s life a little easier. Ever since online shopping started, new payment options were also invented.
The method of payment by debit card and credit card is still in great use, but still people want that they have to enter a code after and the transaction should be done easily.
Some big changes have been made in the economy of our country recently. In which demonetisation has been a very important step which was taken by the Prime Minister of India. After that, those who used to hide the notes to evade tax in the form of black money, their evening went away.
Those who used to steal income tax and kept the money hidden in the house, their mind remained in the ground.
Common people had to face problems due to demonetisation. To overcome these problems, our Prime Minister advised the countrymen that all of us together have to make the entire country a cashless economy.
Cashless economy means that instead of using the money we buy things, all payments should be made online.
To create a Digital and Cashless India, first of all it is necessary that every Indian should have his own bank account and it is also necessary for everyone to know how to use the Internet.
How does UPI work?
UPI works only on IMPS. Transfers in IMPS (Immediate Payment Service System) are instant and it is better than NEFT.
It takes a lot of time to do online transaction with NEFT and also it cannot be done 24*7. But IMPS is better than this in all these cases because transactions can be done in it anytime whether it is Sunday or any holiday.
If you want to transfer money to someone’s bank account now, then all the details are needed for his Bank Account No, Account Type, IFSC Code, Branch Name.
Even after having them, adding a new account by typing in the mobile phone seems to be a difficult task. Even after you add, you have to wait a few hours to transfer the new Payee account.
This is where UPI takes the lead. UPI is such an interface with the help of which people of any bank account can send and receive money from their smartphone to others, they just have to use their aadhaar number, mobile number and VPA.
To transfer money from UPI, you just need UPI ID. You just have to fill the money as much as you have to transfer.
As soon as you transfer the money will immediately go to the next person’s account. Here neither the account number, nor the IFSC code, nor the branch name is required.
Money can be sent without knowing which bank account is being sent using UPI and what is the name of the account holder.
The overall thing here is that if you have a UPI ID, then you can transfer money at the same time without any details and it is a very safe method.
A limit has also been kept for transferring money through UPI i.e. you can send 1 lakh rupees per transaction. And for this you also have to pay a fee which is 50 paise. If seen, this is a very small amount to send money so quickly.
What is UPI address?
The address which is something like this [email protected] This address is called UPI ID. It is directly linked to our bank account.
That is, only if we have such an address of any of our friends or relatives, then we can directly transfer money to them in their account.
How to create and use UPI ID?
To use UPI, first you have to generate UPI ID. To generate ID, you have to install Bank’s application in your mobile phone or you can use UPI ID generation application apart from Banks.
So you can install net banking app or UPI related application according to your bank account by going to Google Play Store.
After installing, you can sign in with the help of your net banking user ID and password. If your bank provides UPI service, then you will definitely get the option of that, you have to go there and create your ID. Like my UPI ID.
Apart from Net Banking Application, there are many apps in which you can create your UPI ID which will generate UPI ID for you by doing registered mobile number linked to your bank, then you can use that ID whenever you want to make money transactions. can give.
BHIM, Google Pay, Phone Pe are the best and secure apps for this.
How to generate UPI:
- Install any app from BHIM, Google Pay, Phone Pe after that enter your mobile number.
- It will check the accounts associated with your mobile number and if there is an account associated with the mobile number, then it will show you.
- If more than one bank is registered with that number, then now you select the bank account.
- After this you have to set 4 digit MPIN or Passcode. Which you have to use every time to login.
- Now you are ready to use UPI.
Benefits of UPI
Friends, we have come to know so far what is UPI and how it works. This is a service that has been started by the Government of India and has been started especially for the convenience of the people.
We have benefits from this, so let’s know that if we want to use UPI, then what will be the benefit to us.
Cheapest money transfer service
UPI is the cheapest way to transfer funds. In NEFT and IMPS also we have to pay minimum 2.5 fees.
But to transfer money from UPI, it takes us very little money which is 50 paise.
There are also some applications that do not charge for fund transfer like Google Pay does not charge any money for fund transfer.
Relief from cash transactions
By the way, now there are many such ways in our country by which we can do money transactions. There is no need to keep cash in pocket.
So earlier there was a danger that when we had to pay a heavy amount in the form of cash, then it was very dangerous to carry it from one place to another.
Now is the time that you can send any huge amount from your phone sitting at home.
Details are not required
To transfer funds, apart from UPI, all other methods must have the account information of the person to whom you want to send money.
There are many mobile users and they do all the work from the smartphone itself, so adding the bank details of New Payee and waiting for confirmation seems very difficult.
This is the most beneficial thing in UPI that we just need ID for fund transfer and not bank details.
UPI App Selection
It is not necessary that you can use only one UPI. It is not like this at all, if you want, you can use any app that provides the service of Unified Payment interface.
Multiple accounts in one UPI ID
If you have registered many bank accounts with only one mobile number, then when you create UPI ID, you can use many banks simultaneously with the same ID.
You also get the option to choose the bank in it.
The service of UPI is based on IMPS and IMPS is instant money transfer service.
It can be used 24*7 anytime. And after paying, the money reaches immediately. Whereas in other services it takes some time after sending money.
We learned in today’s post that now only debit card, credit card, online banking is not necessary, apart from this new options have also come so that we can do money transaction.
Everyone wants everything to be done easily. Bank details have to be added to do online internet transactions.
But today just a code which is generated through UPI, the transaction is done with that. The shorter the transaction process, the easier it is for people.
Through this post, you also learned that what is UPI address, how it works and what are its benefits. Such a time has come that people have less time and want to do everything as soon as possible.