The Buyt Desk
Online payments have become easy with a unified payment interface (UPI). You simply have to connect your bank account with the UPI ID and you are good to go cashless. It is the initiative of the Reserve bank Of India to make online payments seamless and secure.
The instant payment method developed by the National Payments Corporation Of India and regulated by the Reserve Bank of India has millions of users.
Have you ever wondered what UPI is and how it works? Let us get deep into it. We have got all your queries related to UPI covered.
The UPI payment is similar to IMPS in operation. Like IMPS, it also allows instant money transfer from one account to another, irrespective of the banks.
The UPI merges different bank accounts into one application. The UPI merges banking features of multiple banks and facilitates doing fund transfers, merchant payments, etc., under one roof. The facility also offers “Peer to Peer” collection requests.
With UPI on mobile, a user can transfer funds anytime, and it works on both Android and iOS platforms. The format of UPI is abcd@bank. The abcd could be the user’s name, email ID or phone number. To transfer money through UPI, a user needs to enter the receiver’s phone number. Some applications asks for the UPI id instead.
How Is UPI Created, and Does It Require a Bank Account?
To create a UPI, a user must have a smartphone. Follow the steps after that.
Step One: Download any UPI payment application, such as Paytm, Google Pay, Phonepe, BHIM app, Uber etc.
Step Two: Enter the mobile number used for the UPI transaction.
Step Three: Next, select the bank name from the drop-down list. Make sure the phone number entered in UPI is the same one registered with the bank. It is because the same phone number will be used for the UPI transaction.
The application will auto-fill the rest of the bank details.
Step Four: Set the UPI pin. A few apps ask for debit card details also.
Step Five: At this step, the bank account gets linked with the mobile number and is ready to make payments.
A user must have a bank account to receive money.
How To Send Money Via UPI?
UPI is one of the fastest modes of payment at present. Here we explain how to transfer money through UPI.
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Open your UPI supporting the application and click on the option “Send Money.”
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Enter the receiver’s phone number or select from the contact list.
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If the receiver is not using the same application, enter his UPI id.
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Scan the QR code option are also an option.
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Enter the UPI pin and click on the proceed payment button.
UPI and IMPS might seem the same, but UPI is better as it offers additional benefits like
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P2P full functionality.
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Makes merchant payment easier.
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One app for all types of payments.
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Two-factor authentication.
The maximum limit for UPI transactions is Rs 1 Lakh.
