UPI (Unified Payments Interface) has changed the payment environment globally by making the process a lot simpler and easy to execute. Anyone with a smartphone and bank account can transfer the money instantly with less than 5 clicks. For using the UPI option, one needs to link their bank account with the UPI payment system, which could be either a third party application or the bank itself. UPI ID is created, which is unique to each person and while sending money, the sender needs to enter the UPI ID of the recipient. It is to be noted that the sim number should be the same with the bank account number for the UPI system to get into sync.
UPI is a real-time payment system whose interface is regulated by RBI (Reserve bank of India). The security of UPI has been tested many times and have been deemed safe for public use. UPI was accepted in India in 2016 and since then has gained immense popularity at many levels.
Benefits of using UPI: -
Many of the e-commerce platforms and other applications give out UPI payment offers, wherein a cashback amount or some discount is presented to the user if they pay the final bill via the UPI method. Most of the offers are presented by Zomato and Swiggy, which millions of people in India use. As many e-commerce and other platforms provide good deals and discounts on UPI payment options, the use of UPI has been skyrocketed in the last couple of years.
Many people use the UPI system to pay for their credit cards or personal loans. One needs to just scan the QR code presented on the bank page and scan it with their UPI application. The application shall read the QR code and present the amount that is to be paid, and within 3-4 clicks, the amount will be debited from the senders account and will be credited instantly to the bank for clearing the credit card dues or the personal loan EMI.
Anyone can change their bank account associated with their UPI ID as well. In this scenario, a new UPI ID will be generated for that particular user, and they will have to verify their bank account and mobile number for the new id.
UPI ID is being used by many vendors, including small businesses as well. Most of the restaurants and malls also now accept payment via UPI ID. Many third-party applications provide many offers for people to use the UPI system, like some cashback offers or deals for future purchases.
Once the sender sends the money via UPI, it is instantly reflected in the receiver’s bank account, and they get a notification from their bank indicating the same. There is a limit on the UPI transfer amount; users can only send up to 1 Lakh in a day. This is per account; if the user changes his bank account, then he or she can send an additional 1 lakh as well.
A sender can also send money using UPI via the receiver's account number and IFSC code if the receiver doesn't have a UPI ID. User should carefully note the UPI id of the sender because if there are some human errors while typing the UPI id, the amount would be sent to someone else as well, which is why it is always preferred to scan the QR code and send the money directly.
All UPI codes are 4 digit codes that needs to be entered while sending any amount. This 4 digit code should not be given out under any circumstance as attackers could use this code to get funds out of your account. No Bank employee will be asking your 4 digit UPI code as this is private to just the user.
With the coronavirus pandemic, many small businesses have also switched to UPI as they won't have to touch money given by the customer. The government also encourages more people to use UPI as this is highly useful in this situation and is quite easy to use as well.
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