What is UPI and how does it work?

 

In today's article, you will know what is UPI, and how is money exchanged with UPI? Apart from this, if you want to know how to transact between two bank accounts from your mobile and how to buy or sell something through Online Payment, then read this article completely.

 

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Nowadays most people use UPI in banking services and online payment, which saves both their time and money. It is very easy to send money to another bank and Transaction Fee is also very less in it and you do not have to go to the bank. So to know and understand it well, read this information with patience and understand -

 

What is UPI?

 

The full form of UPI is “Unified Payments Interface” and it is a system in which transactions can be done easily between two banks with the help of a mobile application. To do the transaction through UPI, you get a Virtual ID from which you can also send money to someone and also ask for money.

 

This system of payment was launched by NPCI i.e. NationalPayment Corporation of India and Reserve Bank of India (RBI) on 11 April 2016. The main work of this technique is Instant Money Transfer between two bank accounts and in this, money is transferred from one account to another in Real-Time.

 

Overall, UPI is perfect for online payment and it is very easy to use it because in this you do not need to remember any user ID and password. Just you have to remember the UPI Pin which is 4 or 6 digits and from this, you can pay anyone. In some cases, Virtual ID may also be required.

 

How does UPI work?

 

This Fast and Secure system of payment regulates NPCI and RBI. It was made for the mobile platform and you can use it by installing any UPI application on your mobile.

 

UPI apps like BHIM App, Paytm, Google Pay, etc. support UPI. Through these mobile applications, you can do Banking Transaction from UPI. UPI does something in such a way that Directly Bank to Bank Money Transfer is done in it and that too in few seconds.

 

As of March 2019, about 142 banks have been associated with UPI to provide good facilities to their customers, which is a very good thing. UPI holders can make 24 × 7 Online Payment means anytime and anywhere. Whenever you have to transfer money from your UPI account to someone, all you have to do is to enter a UPI PIN and this PIN you have to make yourself while creating an account and it is of 4 - 6 digits.

 

After creating an account in this, you get a Virtual ID which is unique like 123 @ Paytm, 1234 @ sbi. You can also transfer money to someone with a virtual ID and with this ID, someone can send money to your account as well. Next, we will know in this article UPI and how to send money from it.


Where and how to use UPI (Use of UPI)?

 

If we talk about the time when there was no UPI and we used to give payment cash to someone or use our debit or credit card. But not everyone had the facility to take money from Debit Card. Because of all these problems, the concept of UPI was brought which works on the mobile platform.

 

In today's time, most people are with mobile, so it is said that you can use UPI anywhere and anytime. Even if you do not have internet for any reason, you can do transactions with UPI *99#, let us see where we can use UPI-

 

1. Online Shopping: If you buy any goods on Flipkart, Amazon, Paytm, or any other company, then you can pay them from UPI and buy your favorite goods.

 

2. Money Transfer: If you want to transfer money to your friend, relative, or anyone's bank account, then you can do it in a pinch from your mobile through UPI.

 

3.Bill Pay: With UPI, you can do various types of Bill Pay like DTH, Broadband / Landline, Electricity, Piped Gas Bill, FAS Tag, Mobile Recharge, etc.

 

4. Offline Stores: Many big and small shoppers take payment from UPI. For this, they keep the QR Code of their UPI ID at their shop and you can easily pay them by scanning these codes. Although UPI is used less in the village areas, now with the accessibility of the internet, UPI is also being given importance there.

 

How to send money in UPI (How to transfer money in UPI)?

 

The best feature of Unified Payment Interface i.e. UPI is that it has the support of multiple payment methods. In this, you can send money from one bank account to another in many ways. The second best thing is that money is transferred instantly without any delay.

 

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How to use UPI

With a UPI App, you can send money to another account by Direct Bank Account Number and IFSC Code and Name. Apart from this, if the bank account of the user is registered in UPI, then money can be sent to him through UPI ID and Mobile Number. And at the time of sending money, you only have to enter the UPI PIN for security and it is the same PIN that you create while setting up the account.

 

 How to use UPI without the internet?

 

The most advanced feature is that you can use it without the internet. Suppose you have gone to a place where you’re mobile has a network but no internet. In this case, with the help of a USSD Code *99# Can avail many services of. It is an official code made available by NPCI i.e. National Payments Corporation of India.

 

*99# is called Magical Number because it allows you to do a variety of banking tasks like checking your balance without the internet, transferring funds, maintaining your UPI account, etc. Before banking with this USSD code, you have to set up your bank account on BHIM UPI App and after that, you will be able to use this service.

 

List of UPI App -

 

There are many payment apps in the market at this time that support UPI. Out of these, you must already know many applications like Paytm, BHIM App, etc. Apart from this, there are many apps whose names are written below -

 

 

Frequently asked questions-

 

Is UPI completely safe?

Yes UPI is completely safe as it is an initiative of the Government to promote the Digital India Mission. There is Encrypted Communication between the client and the server so that no one can steal your payment information.

 

Is there a limit to Transaction?

In this, you can do every transaction up to one lakh rupees, but there are some other rules in the case of the merchant. You can send up to one lakh rupees to someone and the Transaction Fee in UPI is also very low which can be 50 paise or 1 rupee on every transaction.

 

Who manages UPI?

 

UPI has been launched by NPCI but it is regularized by both RBI and NPCI. You can learn more about UPI by visiting NPCI's website. You can get much important information related to UPI from this website.

 

Conclusion

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