What is UPI

What is UPI ?

Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is an immediate real-time payment system that helps in instantly transferring the funds between the two bank accounts through a mobile platform. Hence, UPI is a concept that allows multiple bank accounts to get into a single mobile application. UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties' bank accounts.

What is UPI-PIN ?

UPI-PIN (UPI Personal Identification Number) is a 4-6 digit pass code you create/set during first time registration with this App. Customer has to enter this UPI-PIN to authorize all bank transactions.

What is Virtual Payment Address (VPA) ?

Virtual Payment Address (VPA) is an Address which uniquely identifies a person's bank a/c. For instance, the Payment Address for BHIM customers is in the format xyz@upi. Customers can just share their Payment Address with anyone to receive payments (no need for bank ac-count number/ IFSC code, etc.). Customers can also send money to anyone by using their Payment Address.

What are the benefits of UPI ? 

Some of the features of UPI are listed below:

1. Seamless fund collection from customers - single identifiers
2. No risk of storing customer’s virtual address like in Cards
3. Tap customers not having credit/debit cards
4. Suitable for e-Com & m-Com transaction
5. Resolves the COD collection problem
6. Single click 2FA facility to the customer - seamless Pull
7. In-App Payments (IAP)
8. Less charges than card transactions

Key Features of UPI

Some of the features of UPI are listed below:

1. Instant transfer of fund through Immediate Payment Service (IMPS) which is faster than NEFT.
2. Every bank provides its own UPI for different platforms of Android, Windows, and IOS. The banks may or may not charge for the UPI service.
3. Since it is completely digital, one can use UPI 24 hours and 7 days of week and also on all public holidays.
4. Single mobile application for accessing various bank accounts and Best for doing merchant payment, utility bill payments, in-app payments, OTC payments, Barcode based payments.
5. MPIN or Mobile Banking Personal Identification number is required to confirm each transaction.
6. Also available on USSD service where users can use the service just by dialing *99# and choose the services like fund transfer, request money, non-financial services, balance Enquiry, change MPIN etc. (Service charge of 50 Paise is applicable)