UPI – Unified Payment Interface

What is UPI?

We have been using various platforms to make payments and carry out transactions. All these platforms have their own pros and cons. Another such platform is UPI that comes with far more pros than cons. So what is UPI? How does it work? UPI stands for Unified Payments Interface. National Payment Corporation of India (NPCI) announced that Unified Payments Interface (UPI) is officially operational. Now you can download UPI app for transactions. It is an interface that help users to transfer money between any two bank accounts without using sensitive data such as credit card details, IFSC codes, net banking passwords etc. This is a round-the-clock transfer mobile application where different bank accounts can be accessible on Smartphone by using this single app.

What are the transactions performed using UPI?

• Barcode scan and pay bills, Utility bills and school fees.
• Instead of Cash on Delivery one can transfer money using UPI.
• Donations, Collections, Disbursements Scalable.
• Bill sharing among friends.
• PUSH and PULL payments for various purpose.
• Merchant Payment with Single Application or In-App payment.

Banks with UPI app facility

In upcoming days 29 banks are going to provide UPI app for the customer. Andhra Bank, 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, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES Bank will available this app on google play store to download.

Registration on UPI app

1. Download UPI app from google play store or from bank website.
2. Create profile by providing details like name, virtual id, password etc.
3. Link your bank account number with virtual id.
4. Set M-PIN.
5. Start transacting using UPI.

How does UPI work?

UPI provides bank customer email like virtual address also called as virtual id. Customers have different virtual addresses for different bank accounts. Customer’s own bank is the only account number mapper in order to ensure customer’s data privacy. So it is safe to use UPI as we are not providing any credentials than virtual id. The maximum per transaction amount is Rs.1,00,000.

How to make payments using UPI?

1. Log into UPI application.
2. After successful login select option Send Money/ Payment.
3. Enter Payee’s virtual id, amount and account to be debited.
4. Confirmation screen to review payment details.
5. Now enter M-PIN.
6. You get a message indicating the status of transaction(success or failure).

How to receive payment using UPI?

1. Log into UPI application.
2. Select option of collect money (Request for payment) after successful login.
3. Enter payer’s virtual id, amount and account details.
4. Confirmation screen will be seen to review payment details and click on confirm.
5. Payer will get notification on his mobile screen.
6. Payer will open his UPI account and review payment request.
7. Payer will decide to accept or decline the request.
8. In case of payment acceptance he will enter M-PIN.
9. Transaction is completed. Payer gets notification.
10. Payee gets notification and SMS from bank for credit of his account.

NEFT, IMPS, RTGS are high value payment money transfer modes available today. UPI targets small digital payment modes. It focuses on small peer to peer payments. This app can be used by both bank's customers as well as non-customers. Let us hope UPI will get what it is supposed to achieve. More banks should provide this facility to their customers in future.