What is UPI? How it Works & Benefits of UPI
- 1 Introduction to UPI
- 2 How does UPI work?
- 3 What is the UPI address?
- 4 How to generate and use UPI ID?
- 5 summary
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, so people want a way that allows us to pay in seconds.
There is a new approach becoming very popular, which is known as UPI, hence What is UPI? And what is a UPI address and how does it work.< /p >
We already have several payment methods. Ever since the introduction of internet banking, people have got an opportunity to transfer money to their friends or relatives sitting at home through online internet banking.
If we talk about how we can make cashless payments, there are many ways that you often already know. In which apart from Debit Card / Credit Card, Internet Banking, Paytm, PhonePe, Mobikwik, 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 a mobile wallet, through which we can do transactions in a very short time. Till some time back we used to do money transactions in a limited time, but now 24*7 can be done with this facility, which is named as 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 available everywhere and in such a situation suppose we withdraw money from SBI ATM using ICICI Debit card.
Therefore, this department also monitors the transactions taking place between one bank’s ATM to another bank’s ATM.
We can transfer money using UPI very easily. With the help of this we can make any kind of payment, for example, if you have done any online shopping then you can also pay it through UPI.
Also you can also use for Movie Tickets, OLA Uber Ride, Bus Ticket, Flight Ticket, Electricity Bill Payment, Load Money in Mobile Wallet, Mobile Recharge, DTH Recharge.
Right now very few people use UPI, mainly because not everyone is fully aware of it. This post of ours is giving you information about UPI in a very easy way, so that you can also do your payment related work comfortably using this service.
Since online banking took place, people did not need to line up at the bank, it made people’s lives a little easier. Since online shopping has started, new payment options have also been discovered.
The method of payment by debit card and credit card is still very much in use, but still people want that they have to enter a code later and the transaction should go smoothly.
Recently some big changes have been made in the economy of our country. In which demonetization has been a very important step which was taken by the Prime Minister of India. After that those who used to hide notes as black money to evade tax, their evening is gone.
Those who evaded income tax and kept the money hidden in the house, their mind remained in the ground.
Common people had to face difficulties 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 all payments must be made online, instead of using the money we buy.
To make a digital and cashless India, first of all it is necessary that every Indian has 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 are instant in IMPS (Immediate Payment Service System) and it is better than NEFT.
Transacting online with NEFT takes a lot of time and cannot even be done 24*7. But in all these cases IMPS is better as it can be transacted 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/her bank account number, account type, IFSC code, branch name.
Even after having them, adding a new account by typing in the mobile phone seems a difficult task. Even after adding, you will have to wait a few hours for the new recipient account to be transferred.
This is where UPI is at the fore. UPI is an interface that allows people with any bank account to send and receive money from their smartphones, all they need to do is use their Aadhaar number, mobile number and VPA.
All you need is a UPI ID to transfer money through UPI. All you have to do is fill in the amount you want to transfer.
As soon as you transfer money, it will be transferred to the next person’s account immediately. Neither account number, nor IFSC code nor branch name is required here.
Money can be sent using UPI without knowing which bank account is being sent and what is the name of the account holder.
The overall point here is that if you have a UPI ID, you can transfer money at the same time without any details and it is a very secure method.
There is also a limit for transferring money through UPI, that is, you can send Rs 1 lakh 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 the UPI address?
The address which is something like [email protected] This address is called UPI ID. It is directly linked to our bank account.
ie if we have such address of any of our friend or relative, we can transfer money directly to their account.
How to generate and use UPI ID?
To use UPI, first you need to generate a UPI ID. To generate ID, you need to install Bank’s application in your mobile phone or you can use UPI ID generation application other than Banks.
So you can go to Google Play Store and install net banking app or UPI related application as per your bank account.
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 its option, you will have to go there and create your ID. Like my UPI ID.
Besides net banking application there are many apps in which you can create your UPI ID which will generate UPI ID for you from mobile number linked with your bank, then whenever you want to earn money you can use that ID are transactions. can give.
BHIM, Google Pay, Phone Pe Best and secure apps are 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, by now we have learned what is UPI and how it works. This is a service which has been started by the Government of India and specially started for the convenience of the people.
It benefits us, so let us know if we want to use UPI then what will it benefit 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 fee.
But to transfer money through UPI it takes very less money which is 50 paise.
There are also some applications that do not charge for fund transfer such as Google Pay does not charge any money for fund transfer.
Relief from cash transactions
By the way, now in our country there are many such ways in which we can transact money. No need to carry cash in pocket.
So earlier there was a danger that when we had to pay huge amount in the form of cash then it was very dangerous to carry it from one place to another.
The time has come for you to send any huge amount from your phone sitting at home.
Description not required
In order to transfer funds, except UPI, all other methods require the account details 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 the new recipient and waiting for the confirmation seems very difficult.
The most beneficial thing in UPI is that we only need ID for fund transfer, not bank details.
UPI App Selection
It is not necessary that you can use only one UPI. Not at all, you can use any app that provides Unified Payment Interface service.
multiple accounts in one UPI ID
If you have registered multiple bank accounts with only one mobile number, you can use multiple banks simultaneously with the same ID while generating UPI ID.
You also get the option to choose the bank in it.
UPI’s service is based on IMPS and IMPS is instant money transfer service.
It can be used 24*7 anytime. And after making the payment, the money reaches immediately. Whereas in other services it takes some time after sending money.
In today’s post, we learned 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 transactions.
Everyone wants everything to go smoothly. Bank details have to be added to do online internet transactions.
But today only a code which is generated through UPI, is used to do the transaction. The shorter the transaction process, the easier it is for people.
Through this post you also got to know what is UPI address, how it works and what are its benefits. Time has come that people have less time and want to do everything as soon as possible.