UPI or Unified Payments Interface is all set to revolutionize the economic sector of India and you must know the nitty-gritty of this game changer. Campaigns like Demonetization and Digital India have given the objective of a cashless India a huge boost. Now, the development of UPI technology is set to give the digitization of a growing economy like India an even bigger impetus.
UPI is a technology that has been developed by the NCPI or National Payments Corporation of India adhering to the rules and regulations set by the Reserve Bank of India. The UPI technology allows you to transfer funds from one bank account to another in a cashless way through a mobile app. Now you may think that one can do the same through internet banking or mobile wallets like Paytm. That's not quite right. If you want to use online banking (i.e NEFT, RTGS or IMPS) to transfer money to an account, you must know the recipient's account number and the said bank's IFSC number. In a mobile wallet like Paytm, you can just enter the beneficiary's mobile number and instantly transfer money but only to the person's Paytm wallet and not to his bank account. UPI has struck a balance between these two transaction methods. With UPI, you can make instant transfer of funds from one bank account to another by simply entering the recipient's registered mobile number or VPA (Virtual Payment Address) and without the involvement of any third-party payment wallet. No wonder UPI has been dubbed the 'Whatsapp moment' in the banking sector of India with its instant money transfers.
Unlike RTGS or NEFT, you can avail the UPI technology 24×7 and also on public holidays. So, in case of any emergency, you transfer funds as and when needed. Unlike online wallets, UPI lets you keep your money in the bank thereby accruing interest on the sum. UPI payment is also supposedly more secure than third-party mobile wallets.
There are many UPI apps available in the market right now. The first and foremost, of course, is the BHIM UPI app developed by the NPCI itself. It is most probably the simplest UPI app available and perhaps the fastest. PhonePe is a UPI app that also doubles up as a mobile wallet. This app too is very popular and provides a great user experience. Many banks like the Axis Bank, SBI, Canara Bank and PNB have also come up with their own UPI apps. Now, it is not necessary for you to use the app of the bank in which you are an account-holder. UPI apps are independent of banks, and so you can go ahead and choose the app that will suit your requirements the most.
UPI is a technology that has been developed by the NCPI or National Payments Corporation of India adhering to the rules and regulations set by the Reserve Bank of India. The UPI technology allows you to transfer funds from one bank account to another in a cashless way through a mobile app. Now you may think that one can do the same through internet banking or mobile wallets like Paytm. That's not quite right. If you want to use online banking (i.e NEFT, RTGS or IMPS) to transfer money to an account, you must know the recipient's account number and the said bank's IFSC number. In a mobile wallet like Paytm, you can just enter the beneficiary's mobile number and instantly transfer money but only to the person's Paytm wallet and not to his bank account. UPI has struck a balance between these two transaction methods. With UPI, you can make instant transfer of funds from one bank account to another by simply entering the recipient's registered mobile number or VPA (Virtual Payment Address) and without the involvement of any third-party payment wallet. No wonder UPI has been dubbed the 'Whatsapp moment' in the banking sector of India with its instant money transfers.
Unlike RTGS or NEFT, you can avail the UPI technology 24×7 and also on public holidays. So, in case of any emergency, you transfer funds as and when needed. Unlike online wallets, UPI lets you keep your money in the bank thereby accruing interest on the sum. UPI payment is also supposedly more secure than third-party mobile wallets.
There are many UPI apps available in the market right now. The first and foremost, of course, is the BHIM UPI app developed by the NPCI itself. It is most probably the simplest UPI app available and perhaps the fastest. PhonePe is a UPI app that also doubles up as a mobile wallet. This app too is very popular and provides a great user experience. Many banks like the Axis Bank, SBI, Canara Bank and PNB have also come up with their own UPI apps. Now, it is not necessary for you to use the app of the bank in which you are an account-holder. UPI apps are independent of banks, and so you can go ahead and choose the app that will suit your requirements the most.
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