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UPI-A Simplified Net Banking

UPI-A Simplified Net Banking

UPI-A Simplified Net Banking

A Simplified Net-Banking-UPI (Unified Payments Interface)

UPI is abbreviation of Unified Payments Interface

On Monday, 12-04-2016, the National Payments Corporation of India (NPCI), a wing of Reserve Bank of India launched the Unified Payments Interface (UPI).

It is hailed as one of the biggest game changer in the financial sector. UPI turns away from cash towards digital money.

The¬†NCPI¬†operates¬†the¬†Ru¬†pay¬†payments¬†infrastructure,¬†as¬†Visa¬†and¬†MasterCard¬†–¬†allows¬†different¬†banks¬†to¬†interconnect and¬†transfer¬†funds.

The¬†UPI¬†is¬†a¬†digital¬†framework¬†to¬†do¬†the¬†same¬†–¬†the¬†objective¬†is,¬†that¬†all¬†financial¬†instruments¬†provided¬†with¬†a¬†unique identification¬†number,¬†which¬†could¬†be¬†used¬†to¬†quickly¬†and¬†easily¬†carry¬†out¬†online¬†transactions.

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What is UPI?

The¬†following¬†are the points¬†explaining¬†in¬†a¬†simple¬†way¬†what¬†exactly is “UPI-A Simplified Net Banking”

1.The UPI is a method for instant, online bank transactions.

2.To¬†transfer¬†money¬†to¬†someone,¬†one¬†need¬†to¬†know¬†only¬†their¬†UPI¬†ID¬†-like¬†an¬†email¬†address,¬†which¬†may¬†be¬†¬†name,¬†or¬† phone¬†number,¬†such¬†as,¬†if¬†one’s¬†phone¬†number¬†is¬†9876543210,[email protected] (if¬†¬†bank¬†is¬†corporation¬†Bank)[email protected](if¬†a¬†customer¬†of¬†¬†Union¬†bank¬†of¬†India¬†),¬†and¬†so¬†on.

3.With¬†the¬†UPI,¬†one¬†simply¬†needs¬†to¬†enter¬†their¬†details,¬†and¬†ask¬†for¬†a¬†billing¬†statement¬†on¬†phone¬†–¬†which¬†one¬†¬†can¬†agree or¬†reject¬†right¬†away.

  • Smart¬†phones¬†become¬†more¬†and¬†more¬†powerful¬†at¬†low¬†price¬†points.
  • Just¬†send¬†bank,¬†asking¬†for¬†the money¬†owed.
  • And¬†on¬†one‚Äôs¬†phone,¬†they¬†have¬†to¬†enter¬†the¬†password¬†to¬†complete¬†the¬†transaction.

4.The¬†money¬†would¬†then¬†instantly¬†get¬†transferred¬†from¬†bank¬†account¬†to¬†the¬†seller’s¬†account,¬†and¬†record¬†of¬†transactions¬†is digitized,¬†that¬†normally¬†take¬†place¬†using¬†cash.

  • Since¬†it¬†depends¬†on¬†two¬†factors¬†for¬†authentication¬†–¬†¬†a¬†phone¬†with¬†a¬†registered application,¬†and¬†password,¬†to¬†accept¬†a¬†payment¬†–¬†this¬†means¬†it’s¬†a¬†secure¬†method¬†of¬†payments¬†too.

5.It does not rely on people having debit or credit cards, hence a simplified net-banking instead.

  • The¬†UPI¬†could¬†open¬†up¬†online¬†payments¬†for¬†a¬†larger¬†number¬†of¬†people.

6.UPI¬†does¬†not¬†need¬†the¬†remit¬†tee’s¬†name,¬†their¬†bank¬†account¬†number,¬†and¬†IFSC¬†code¬†(or¬†bank¬†branch).

7.UPI built based on IMPS, which is used to transfer money between bank account.

  • Like¬†IMPS,¬†UPI¬†is¬†immediate,¬†and¬†works¬†24×7,¬†throughout¬†the¬†year,¬†which¬†is¬†not¬†the¬†case¬†with¬†NEFT¬†or¬†RTGS¬†services, having¬†specific¬†working¬†hours.

8.The¬†UPI¬†can¬†also¬†be¬†used¬†for¬†shopping¬†online¬†–¬†just¬†enter¬†your¬†UPI¬†ID,¬†and¬†get¬†an¬†alert¬†on¬†phone¬†to¬†verify¬†the¬†transaction.

9.Because¬†it’s¬†using¬†the¬†phone¬†to¬†verify¬†transactions,¬†UPI¬†is¬†secure¬†–¬†none¬†can¬†enter¬†one‚Äôs¬†ID¬†and¬†spend¬†money.

10.Everyone can use the UPI to obtain money, like an invoice. This means that anyone could become a merchant, and make payment for any goods or services from one’s own account to the party’s account

11.”UPI¬†is¬†Less¬†Cash¬†oriented¬†but¬†more¬†of¬†digitized”.

 

AcademicAdda wishes you happy Net-banking !!!

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