Dear Reader, the need of the hour is to gain as much knowledge on cashless payment systems Recently, National Payments Corporation of India (NPCI) has launched Unified Payment Interface (UPI) with the support of the Reserve bank of India and Indian Banks Association (IBA). UPI apps of the banks can now be downloaded and used for transactions. Here we have listed some important points to know about UPI (cashless system) in detail.
- The Unified Payments Interface (UPI) is an instant online payment system using your smart phone
- The system involves an unique identifier that allows your bank to transfer money and make payments using the mobiles.
- UPI is an advance version of Immediate Payment Service (IMPS) which allows you to transfer money immediately.
- It works 24 x 7, on comparing to RTGS and NEFT services which have specific working hours.
- UPI eliminates the use of debit or credit card.
- To access UPI, you have to create UPI ID. It is a virtual identity like an email address. Your ID could be your name, phone number, etc. For example, assume 567892345 is your imaginary virtual address and if your bank is SBI, then your UPI ID could be 567892345@sbi.
- Steps to create ID with UPI:
- You have to download the app from Play Store of corresponding banks and install in phone.
- Login to that app.
- Create virtual address (like an email ID)
- Now add your bank account to that ID
- Set Pin
- Start transaction.
- Payment through UPI is safe as the customers share only their virtual address and provide no other sensitive information.
- Using UPI, you can perform merchant payments, bill payments and remittances.
- UPI can also be used as invoice so that you can become a merchant and transact money from accounts.
- UPI eliminates the need to share your name, bank account number, IFSC code, etc.
- UPI per transaction limit is up to Rs. 1 lakh.
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