Importance of UPI for banking operation

Posted by sonal deo on February 27th, 2017

Upi is unified payment interface is a payment system similar to cheque, debit card and mobile wallet. UPI is a revolution in the field of banking as you can now send and receive money by using your smart phone which saves lot of time and makes banking less tedious. You could use UPI app to transfer money and send money within your friends, family and any monetary, transaction.  The money will be  debited from your account and transferred instantly. UPI has not only made fund transfer easy but it is also done in a secure way. Unified payment interface apps are backed by IMPS ( Immediate payment service ) which makes UPI similar to net banking. The best feature is that though your bank must be closed on holidays the unified payment app operates on holidays and Sundays too 24*7.

With Upi just open the linked account, enter your unique ID (yourname@bankname) enter the amount and click on transfer. You don’t need to enter the beneficiary details like bank account number, the IFSC code which makes the app an easy handle.  You don’t have to remember your passwords and your related accounts.  It is really simple to use the UPI app you just need a smart phone where you need to download the app from the Google play store. Once you are done downloading you need to verify your phone number, a message will be sent on your number. You’ll receive a VPA code on your number VPA is the virtual permanent address. Now instead of sharing bank account details you can share the VPA for the transactions.  Once you are done confirming your bank account details you are ready to use the app and can send as well as receive money instantly.

The biggest plus point of the UPI app is that it is interoperable between banks it means you don’t need to have a new account to transfer money to an account which is in different bank.  UPI is a convenient option for paying rents, paying shopkeepers etc. hence, Upi operates over a large diaspora making it more favorable for people. While using UPI you just have use your VPA code and then enter your password you have set that is called as MPIN and transfer funds. It is still safer, simple, easier and less time consuming than other available options.   It is preferable to use interface app than using debit cards, credit cards as while using these cards you need to remember your passwords etc.

Banks do not charge any extra charges for using UPI making it more appealing to the customers. In addition wallets have a transaction limit which makes it more cluttered as there transaction limit is relatively less. Unified payment interface app has a transaction limit of around 1 lakh rupee. Hence, the open benefits have proved that Upi is one of the best apps in the banking sector. And also UPI is comparatively vast than mobile wallets which makes the app more user friendly.