by Sonal Deo
Published Mon, Feb 27th 2017, 15:19 | Technology
Earlier transactions were done by using debit cards/credit cards or net banking transactions. But after the digital revolution that took place in India it has taken over all the sectors. After the digitalization and revolution in the banking sector ample of options were created for digital payments. Visiting the bank , waiting in the queue can be replaced with a mobile app. A mobile app designed by the NPCI to provide interoperability in the banking sector. UPI refers too unified payment interface. The unified payment interface is a platform designed in association with banks that allows an individual to make digital payments by just busing the phone, the customer’s linked bank account is used for the transaction. In really simple terms unified payment interface is a payment system just like your debit card, credit card. The UPI app has gone live with major banks in India.
How and where to use the unified payment interface app ?
An UPI app is a payment system app. You can use UPI to transfer money between your friends and family or paying sort of bills, to buy something online etc. The money from your account will debited and will be sent to recipients in the transaction instantly and securely. UPI is based on the immediate payment service which an individual must have used with the net banking app. With the UPI app you can make payments 24*7 throughout the year even on holidays.
How do you send money across ?
When you download the unified payment interface app on your smart phone you have to register your phone number then a code is sent to your phone to verify. You need to link your bank account there you can actually link multiple bank accounts once you are done confirming the details you are ready to use the UPI app to send and receive money across. An individual uses his bank account to carry on the transactions hence, ensure that you have sufficient balance to transfer money.
What has made the UPI popular ?
The UPI app has a limit of rs 1 lakh on the transactions made in a day. The system supports only debit accounts, it means that no credit accounts are linked to the Unified payment interface app so you can only use the amount that is in your debit account. Instead of loading money onto the wallet and then spending it you can use Upi App directly to mobilize the money from your account to make transaction. This means that the money in your savings account will get you interest on the money that is still not spent.
When you make transaction using the UPI app you do not pay any extra money for it, the processing fee is nominal. UPI is any day better than using wallet because it is secure also the transaction limit of the wallets is comparatively low than UPI. You don’t have jot down the bank details like the password, the bank account number, the IFSC code, once you have registered you can directly make payments through Upi App. You don’t have to share the confidential beneficiary details instead just exchange the code to receive money instantly.