Unified Payment Interface (UPI) | A New Horizon Of Cashless Economy In India

Unified Payment Interface (UPI) - A New Horizon Of Cashless Economy In India

Technological evolution is opening new horizons everyday and definitely India is not an exception. India is adopting every possible technological change. Unified Payment Interface is the latest big thing which India has adopted. UPI is the system approved by National Payments Corporation of India (NPCI). Unified Payment Interface is a system by which a user can send money to another user’s bank account without any hassles. Account number, credit or debit card is not involved in the transaction. User can transfer money from his/her smartphone. We will use abbreviation of Unified Payment Interface i.e. UPI throughout the article.

UPI is the next big thing in the market and will lead to cashless economy. And cashless economy is the future of any country. UPI does not need any bank approval for transfer of funds. It is fast and secure. And the most important, it is 24×7 available. Stay with us throughout the article and we will explain you what is UPI, and what is it’s future.

What Exactly Is Unified Payment Interface

UPI is the system with the help of which you can transfer money from one bank account to another bank account without the help of your account number or credit card by using your smartphone. Every user will get unique identifier which is called as Virtual Payment Address (VPA). A sender and receiver is identified with the help of this VPA. VPA is generated one time.

For the transfer process a user has to enter his own VPA, amount to be transferred and receiver’s VPA.  Only these 3 fields are used for transfer. Banks involved in the transaction are in an agreement for the transfer of money. The transfer done via UPI will be shown as IMPS in your passbook. NPCI has enforced two-step security for any transaction to happen. You can use UPI payment method from the your personal banking app.

UPI transaction is completely secure as only your VPA is shared with the other party and not any sensitive information. You can perform merchant payments, bill payments and fund transfer using UPI. Daily limit for UPI is set to Rs. 1 lakh.

List Of Banks Who Have Adopted UPI

Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, South Indian Bank, Vijaya Bank, YES Bank, HDFC Bank,Andhra Bank, United Bank of India, Punjab National Bank.

Future Of UPI

UPI is definitely here to stay. E-commerce giant Flipkart has already started accepting payment via UPI using there PhonePe App. Currently UPI is associated with the bank account of the user. But very soon UPI is said to integrated with the Aadhar card of the user in UPI version 2.0 which is supposed to launch around March 2017. UPI is far better and superior than E-Wallets. UPI is going to be a standard thing very soon.

Check with your bank if they have integrated with UPI and start using it. Because, this boy is here to stay.

Comment down your suggestions on this.

Happy Learning!

One thought to “Unified Payment Interface (UPI) | A New Horizon Of Cashless Economy In India”

Leave a Reply

Your email address will not be published. Required fields are marked *