Today we will learn about UPI in this article. What is UPI? How to use UPI? What is the full form of UPI? Advantages and importance of UPI? How does UPI work? And so on. In this article you will get complete information about UPI.
What is UPI?
UPI is a real time payment system, with the help of which users can directly transfer money from their bank account and can also receive money. It is based on IMPS (Immediate Payment Service) technology, which facilitates cashless banking and other financial transactions.
UPI is a new mode of online payment system, introduced by Reserve Bank of India and National Payments Corporation of India (NPCI). Through this, the user can easily transfer money between two bank accounts through his mobile.
Through this, money can be transferred instantly between two bank accounts without entering much bank account details. For which the user only needs a VPA (Virtual Payment Address).
With its advent, cashless payments have become even easier. Making cashless payments through UPI technology is considered the easiest and most secure. Earlier, to do online bank transfer, the user had to read a lot of information like bank name, account number, IFSC code etc. But with the advent of UPI it has become very easy. Through this, now the user can directly send or receive payment through VPA which is also known as UPI ID.
RBI (Reserve Bank of India) and IBA (Indian Banks Association) together formed NPCI (National Payment Corporation of India). Who manages the banking system of India today. NPCI has launched UPI payment system technology on 11th April 2016.
It is a method of online payment with the help of which you can send money to anyone from your bank account or ask for money from your friend, relative or any other person’s bank account anytime, anywhere. . Apart from this, if you buy something from the market or buy some goods online, then you can also easily pay it through UPI.
What is the full form of UPI?
The full form of UPI is “Unified Payment Interface”. It is called in Hindi as “Unified Payment Interface” (UPI Full Form in English.
UPI: Unified Payments Interface
What is VPA?
The full form of VPA is Virtual Payment Address. A user needs a VPA to send money from a bank account via UPI or to transfer money from anyone to his bank account through UPI. This is a unique ID that is linked to the user’s bank account.
VPA is used to send money through any UPI app. Apart from this, VPA is also used to take money from someone else. This is called UPI ID.
Advantages of UPI?
- Facility of instant real-time money transfer between two bank accounts.
- Freedom from typing account holder details every time you want to transfer money.
- Facility to transfer money through virtual address, providing greater ease and more security. And a lot of time is also saved.
- Completely safe and fast.
- You can transfer money to any bank account through the same UPI app.
- You can transact with multiple bank accounts in a single UPI app.
- Can transfer money instantly in real time 24X7, 365 days a year.
- It is a payment system developed by the government and government undertakings.
- Very easy to use.
- Facility to make all types of payments.
- Facility has been given to send request to anyone asking for money.
- Through this, users can pay any of their bills sitting at home.
- Through UPI user can make direct payment only through QR code.
- You can check your UPI transaction statement.
- You can also check your bank account balance.
Disadvantages of UPI?
Everything has two sides, everything has both advantages and disadvantages. Similarly, UPI has many advantages but along with it there are also some disadvantages which we cannot ignore. Let us know what are its disadvantages.
In order to transact through UPI, the mobile number of the user needs to be linked and verified with his/her bank account.
- In order to transact through UPI, the mobile number of the user needs to be linked and verified with his/her bank account.
- To use UPI, the registered mobile number should be linked with the bank account in the user’s mobile.
- UPI transaction cannot be done without VPA. Therefore, it can be used only by those people who have a virtual payment address i.e. UPI ID.
- Sometimes the internet server becomes slow while doing transactions through UPI. Due to which the financial transaction of the user stops in the middle. And in such a situation, there is a lot of delay in the necessary payment.
- It is not possible for everyone to pay through a virtual address. This requires the person to have some technical knowledge, otherwise the user may suffer economic loss.
- If someone else knows the UPI PIN, then the user can be deceived, and may also suffer financial loss.
What is the importance of UPI?
In today’s modern era, technology has progressed a lot and cashless payment has received a lot of boost in India after demonetisation. In such a situation, the importance of UPI increases a lot. Because it is completely cashless payment and that too in real time. In today’s time the importance of UPI has increased a lot.
- Because through this it has become possible to make cashless payment in real time.
- It is completely safe and fast.
- The hassle of carrying cash to make purchases in the market is eliminated, payments can be made easily anytime, anywhere through UPI.
- This saves the user a lot of time while making cashless payments. Because in this, money is paid from the virtual address itself. No need to fill more information.
- Through this, the user can pay by scanning the QR code directly while making any purchase.
So in such a situation, see how important is UPI for every person in today’s time. Almost everyone has a smartphone, so using UPI is very easy for every person.
How does UPI work?
UPI is an instant payment system based on IMPS (Instant Payment Service). It is an online payment service created by NPCL, with the help of which user can make online payment. In this, the user does not need to read the account details of the front to make the payment, only the payment is done directly through the UPI ID.
If you pay online through internet banking or any other app, you will have to fill the complete account details up front, such as – bank name, account holder name, account number, branch, IFSC code, etc. And you will have to do this work every time, as many times as you do the transaction, you will have to fill the complete information of the account.
But this is not the case in UPI, in this you do not need account details. UPI user gets VPA (also known as UPI ID) and through this UPI ID user can make direct payment. Here the user does not need the account number, IFSC code, branch and name of the account holder. Payment is done with only one UPI ID.
Without knowing all this information, we can send money quickly and securely with the help of UPI. There is not much hassle of entering bank details here, hence it saves a lot of time for the user.
In this, a limit of Rs 1 lakh has been fixed on every transaction i.e. you can send up to Rs 1 lakh per transaction. If you pay more than this, you will have to pay Rs 1 lakh separately. Whatever you pay out of it, they are all instant transfers.
On registering on UPI for the first time, a VPA (Virtual Payment Address) is created for the user, also known as UPI ID. After registering, the user will have to link the UPI ID with his bank account. Once the account is linked, the user can make payment through only one UPI ID.
How to use UPI?
Using UPI is very simple and easy. For this you need to have a smartphone. And in today’s time almost everyone has a smartphone. Apart from this, you should also have an account with the bank. If you have both these things then you can use UPI.
To use UPI, you must have the following things:-
- Smartphone with internet connection.
- a bank account
- A mobile number, which should be linked to the bank account.
- The mobile number registered with the bank account should be in the SIM 1 or SIM 2 slot of your phone.
- Outgoing service must be enabled on your mobile number.
- And a UPI app.
If you have all these things available then you can easily use UPI. For this you have to do UPI registration first.
- Download the UPI app of your choice.
- After downloading, open the app.
- First of all enter your mobile number. The numbers that are linked to your bank account.
- After that follow all the instructions given on the screen.
- After this a virtual ID will be created for you.
- Now generate MPIN as per the instructions given in the screen.
- After that you are ready to make payment through UPI.
Which is the UPI enabled bank?
When UPI was introduced, the service was started with 21 UPI bank members. But today more than 220 bank members are joining UPI and providing UPI service to the users. You can view the UPI Bank members list on NPCI (National Payments Corporation of India). Here we are giving a list of some popular banks.
|State Bank of India||Bank of Baroda|
|Central Bank of India||Punjab National Bank|
|Bank of India||ICICI Bank|
|HDFC Bank||Axis Bank|
|HSBC Bank||IDBI Bank|
|Dena Bank||UCO Bank|
|Andra Bank||Yes Bank|
|Paytm Payments Bank||Airtel Payments Bank|
|United Bank of India||Union Bank of India|
|Oriental Bank of Commerce||Central Bank of India|
|Kotak Mahindra Bank||Bank of Maharashtra|
Top Best UPI Apps List
There are many UPI apps in India. Banks providing UPI service have also created their own UPI apps for their customers. But here we are telling you about some of the popular and best apps that provide UPI service.
- BHIM UPI App
- Google Pay
- Amazon Pay
- ICICI iMobile Pay
- Baroda mPay
- SBI Pay
- PNB Pay
- Axis Pay
- Mi Pay
- Airtel Thanks
- Samsung Pay