Unified Payment Interface of India (UPI)
About UPI : UPI is an online payments solution which will facilitate the transfer of funds instantly between person and person (or peer to peer) using a smartphone. UPI can be used both to send and receive funds. UPI is a payment system which facilitates the fund transfer between two bank accounts. This payment system works on the mobile platform. UPI is one of the most advanced method among all the digital payments.
Advantages of UPI :
- The UPI transfers the fund immediately. No restriction of holiday or working hours. The bank strike will also not affect the UPI payments.
- You do not require the bank account number and IFSC code of the recipient.
- You can transact from many bank account through a single UPI app.
- You are not required to wait up to 24 hours to send money to a new payee. Anyone would get money immediately.
- A transaction through the UPI would cost about 50 paisa.
NOTE : Rather, the every fund transfers take place through your bank account. UPI app just acts as the link between you and your account. So, to establish the link between you and your account, you have to connect UPI app to your bank account. This is a one-time process. It is done when you download a new UPI app. The UPI payment system gives you liberty to connect many bank account to one VPA.
Security of UPI Payment :
The unified payment interface is as much secure as internet banking or mobile banking. To transfer the money through the UPI app, one has to go through the two-factor authentication.
- To open UPI app, you have to give a PIN.
- To transfer the money, again you have to enter the MPIN or UPI PIN. All other transactions also go through these two two-factor authentication.