What is UPI and how secure is it

What is UPI and who is behind it?

UPI full form is Unified Payment Interface that can be thought of like an email ID for your money. It is basically a unique identifier which the bank uses to transfer money and make payments using the IMPS (Immediate Payments Service). Actually, IMPS is faster than NEFT and it allows you to transfer money immediately and unlike NEFT, it works 24*7. Through this, the online payment system has become much easier than before without requiring a digital wallet or credit/ debit card. UPI is an initiative by National Payments Corporation of India's (NPCI) set up with the support of the RBI and Indian Banks Association (IBA). The Rupay payments infrastructure like VISA and Master card operates by NCPI allows different banks to interconnect and transfer funds. Even, IMPS is also an initiative of NCPI and UPI is the advanced version of IMPS.

How does UPI work?

Typing all the details such as Account number, account type, bank name, and IFSC code on your phone while making an online bank payment is really a painful job. Most of the banks take up to 12 hours to add a new payee and only then you can make the transfer. To take away all your pain of doing such a lengthy process, this idea of UPI has been introduced. Now, the interface will allow the account holders to send and receive money from their smartphones using their Aadhaar unique identifying number, mobile phone number or virtual payments address without entering bank account details. But currently, only 29 banks have agreed to start this service as per NPCI. If your bank provides you Unified Payment Interface facility then you can ask it to connect you to the system. There are two types of address to initiate a transaction:

1. Global
2. Local

The global address consists of Mobile number, Aadhaar number, and bank account numbers. Whereas a local address can be a virtual address. For an instance, let us assume that your bank has given you a virtual ID similar to your email ID (say name@companyname). Then, this virtual address will now allow you to send and receive money from multiple banks and prepaid payment issues. Therefore, there is no need to use any particular app to send and receive money. Let's take an example to throw more light on this topic. If you are using a taxi service, at the end of the journey you just have to give your virtual address and the driver will request money from it. A message will be sent on your mobile phone asking for authentication. Now, all you need to do is just enter the password to authenticate the transaction, it will be completed. So, this process doesn't require either the driver or you to share bank details. Since Unified Payment Interface has been introduced on IMPS, the service is available real-time and 24*7.

Other benefits of using Unified Payment Interface

• You can immediately make payments to Uber & Ola aggregators without having cash on your pocket.
• Can avail online benefits of special offers provided by Zomato, Food Panda, Uber eats, Swiggy etc.

 

• You can easily register your identifier on this system and receive funds from your customers' bank account if you are running a company.
• You can easily send money to your family and friends instantly.
• You can get your mobile number recharged in a jiffy by seeing various plans through different modes of using UPI.
• You can book your show online.

How secure is UPI?

The security is fool-proof. The transaction under this system is in a highly encrypted format. The IMPS network of NPCI handles more than Rs. 8000 crore worth of transactions a day, which will exponentially increase with the use of mobile phones. Similar to OTP, there is two-factor authentication as it's mandated by RBI. Here, MPIN is used instead of OTP number.

Links to Download UPI Apps

1. SBI Pay: Android
2. HDFC Bank MobileBanking: Android, iOS
3. ICICI Pockets: Android, iOS
4. Axis Pay UPI App: Android
5. Union Bank UPI App: Android
6. PNB UPI: Android
7. PhonePe: Android
8. Canara Bank UPI – eMpower: Android
9. United UPI: Android
10. Andhra Bank ONE – UPI App: Android
11. UCO Unified Payment Interface: Android
12. Bank of Maharashtra – Maha UPI: Android
13. Vijaya UPI: Android
14. South Indian Bank – SIB M-Pay (UPI Pay): Android
15. KBL SMARTz (UPI): Android
16. OBC UPI PSP: Android
17. UPI Bank Transfer with Friends: Android
18. DCB Bank UPI App: Android
19. Lotza – UPI: Android
20. TranZapp – UPI: Android
21. CSB UPI: Android

What are the charges for using UPI?

It will charge only Rs. 0.50 per transaction. It will appear as IMPS transaction on your bank statement.

Conclusion

Unified Payment Interface has set an example of efficient and effective mobile wallets and promoted cashless payments faster, easier and smoother for millions of people in India. It is a great step in the right direction to make micropayments cashless which will the perks to both the buyers and sellers. If you are seeking information about register a company in India then you can visit our website: LegalRaasta and follow our blog. Our experts will guide you regarding business issues and take you to the next step of Company registration process. So, hurry up! Give us a call at 8750008585 and feel free to send your query on Email: [email protected] 

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