Unified Payment Interface (UPI)

What Is a Unified Payment Interface (UPI)?

A Unified Payment Interface (UPI) is a smartphone application that permits users to transfer money between bank accounts. It is a single-window mobile payment system developed by the National Payments Corporation of India (NPCI). It disposes of the need to enter bank subtleties or other sensitive data each time a customer starts a transaction.

The Unified Payment Interface is a real-time payment system. It is intended to empower peer-to-peer between bank transfers through a single two-click factor authentication process. The interface is regulated by the Reserve Bank of India (RBI), India's central bank. It works by transferring money between two bank accounts alongside a mobile platform.

The system is said to be a safe and secure method of transferring money between two gatherings and takes out the need to execute with physical cash or through a bank. The pilot system was sent off in India on April 11, 2016. Banks across the country began to transfer their interface in August 2016.

How Unified Payments Interface (UPI) Works

UPI utilizes existing systems, for example, Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS), to guarantee consistent settlement across accounts. It works with push (pay) and pull (receive) transactions and even works for over-the-counter or barcode payments, as well concerning various recurring payments, for example, utility bills, school fees, and other memberships.

As per NPCI, 134 banks were involving the interface as of February 2019. More than Rs. 270 billion was traded through the UPI that very month.

When a single identifier is laid out, the system permits mobile payments to be delivered without the utilization of credit or debit cards, net banking, or any need to enter account subtleties. This wouldn't just guarantee greater safety of sensitive data, however interface individuals who have bank accounts by means of smartphones to carry out problem free transactions.

Overall, UPI infers less cash transactions and possibly decreases the unbanked population.

Sending Money versus Getting Money

Sending money on the UPI is called a "push." In order to send money, the client signs into the interface and chooses the Send Money/Payment option. In the wake of entering the beneficiary's virtual ID and the amount wanted, he picks the account from which the money will be debited. The client then enters a special personal identification number (PIN) and receives a confirmation.

Getting money through the system is called a "pull." Once the client has signed in to the system, she chooses the option to collect money. The client then needs to enter the virtual ID for the remitter, the amount to be collected, and the account where she will deposit the funds. A message then goes to the payer with the request to pay. Assuming that he decides to make the payment, he enters his UPI PIN to approve the transaction.

When the transfer has been completed, both the shipper and the beneficiary receive a confirmation by instant message to their smartphones.

Illustration of Services Offered by UPI

A number of key highlights are offered by UPI. Users can access balances and transaction histories alongside sending and getting money. To send money, users need an account number, the Indian Financial System Code (or IFSC, which is an alphanumeric code that works with electronic transfers), the mobile number of the beneficiary, and a virtual ID or Aadhaar number (which resembles a Social Security number).

Features

• A Unified Payment Interface (UPI) is a smartphone application for banking in India.
• The interface is regulated by the Reserve Bank of India (RBI), India's central bank, and funds sent between accounts.
• This app wipes out the need to enter bank subtleties or other sensitive data each time a customer starts a transaction making it a safe method for banking.