Cashless transactions and payments have been trending since last few years. Various banks and finance companies have turned to online payment methods. Anyway, this transaction has replaced the cash payment not only in different industries but also among small shops, vendors, in fact, individual money transfers.
Unified Payment Interface (UPI) is an integrated system developed by the National Payments Corporation of India that puts together various banks and puts them on a single platform for sending and receiving money between any personal or any corporate bank accounts irrespective of their banks.
When the idea of UPI was termed?
The launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started launching their UPI-enabled Apps on the Google Play store from 25th August 2016 onwards.
Working process of UPI:
UPI system completely works on the application platform. Many UPI applications on mobile are available on Application stores for example Paytm, Phone Pay, Amazon Pay, Google Pay, etc. These applications are all authorized and devoid of any unfair means of involving money.
When an individual installs a UPI application and registers by signing up, a profile is created. Through this profile, the user needs the mobile number which he has registered for his particular bank account(s). After completing the registration, a UPI id is generated for a particular bank account chosen by the user. This ID is nothing less than a virtual ATM card. Just a PIN is required for a complete transaction. So, the PIN is set up by the user at the same time by providing the debit card number CVV code, and expiry date.
Now, the user in order to send money either needs the bank account information of the recipient or the UPI ID of the receiver. OTP is also involved to maintain the security policy of the payment.
The durability of UPI:
- The most important one is availability for 24 x 7. This is why people can easily use it irrespective of time and condition.
- The fastest process of money transfer is declared to date because no other external payment gate is involved.
- The reverse of the payment for unsuccessful or invalid transfer marks the most vital facility.
- No one can fraud any payment from one’s account unless the user inputs his UPI PIN in the transaction process. So, the ultimate security relies on the user.
- UPI payments in case of transactions involving joint account(s) require the assent of both the users irrespective of different UPI IDs for the same account.
- The maximum daily transaction is limited to Rs. 1 lakh. This amount is set to be enough for any common man for daily transactions.
- One of the unique features includes the request for money or asking for financial help from your near ones or relatives just by clicking a button to send them the notification.
- The most interesting one is the availability of cashback offers and instant rewards, coupons discounts, etc. remarks the most attractive feature for the user to increase the frequency of the UPI payments.
UPI has set up a bar of the most innovative way or method of financial transaction that provides more facility of available loan from various financial companies, Life Insurances, Health Insurances, quicker schedule payment of electricity bill, LPG bill, water bill, vehicle road tax, now trending fastag for toll tax.
These apps provide options for ticket booking of air, train, bus, cabs, movies, and so on. Actually, they frame a network of different online facility apps viz. Online shopping, OTT subscription, ticket booking apps, online payment portal of different housing features. We all are living in an era of innovation, the more we are advancing the more development is occurring in terms of data and security of our data.
This article was written by: Debjit Chattopadhyay