UPI (Unified Payment Interface)
UPI (Unified Payment Interface), is expected to help India to make a cashless society and move towards an era of digitisation , the mobile telephony penetration is making this possible . Cashless , Chequeless Transactions coming real .
13 Q&A for a quick understanding around UPI . Try it out today its simple if you have an android handset .
- Who launched UPI?
- UPI was launched by NPCI (National Payments Corporation of India) with the guidance of RBI (Reserve Bank of India) and IBA (Indian Banks Association).
- What is UPI generally used for and what is the USP of this app?
- To make payments and receive money
- Multiple bank accounts can be linked – choose one Default Bank Account.
- What is a VPA – Virtual Payment Address ?
- A VPA is like an e-mail address used to make payments.e.g vivek23@hdfcbank
- choose your VPA depending on its availability and change it whenever you want to.
- You need only VPA address to make transactions.
- No need to reveal your Account number or IFSC Code while fund transfer
- How to collect or transfer money?
- Send a request to collect payment to the concerned person.
- The concerned person has the option to accept or deny the request.
- Once he accepts the request, you get your money immediately.
- It can be used for what purposes?
- Making payments to friends , merchants etc.
- To receive payments
- For online shopping
- Barcode payments
- g. IDFC mutual funds and PVR Cinemas have started accepting payments using the UPI.
- Which UPI app to use?
- Banks have their own UPI app.
- One can either choose to use the bank UPI app or the UPI app, in general.
- If your bank does not have a UPI based app, you can use the UPI app, in general or the UPI app of other banks.
- e.g. If you have an account in Axis Bank, then you can either use the UPI app of Axis bank i.e. Axis Pay or the UPI app of Bank of baroda .i.e. Baroda MPay. Thus, there are a lot of options available.
7. What are the steps to register for UPI?
- Download the UPI app from Google Play store. (Currently the app is only available on Google Play store) ( iOS users will have to wait )
- Enter a PIN which will act as a password every time you open the app.
- The next step is to create a VPA.e.g vivek23@hdfcbank
- Then, you have to link your bank account and submit.
8 . How is it better than NEFT, debit card or credit card?
- It does not require any account details like bank account number, IFSC Code, card number, CVV Code, expiry date, etc. while fund transfer.
9. When & How much is max limit ?
- 24*7 and 365 days
- Transactions up to maximum Rs.100000 per transaction.
10 .How much does UPI charge?
- NPCI has indicated charges of INR 50 paise per transaction.
- But some bank applications do not charge anything to make these transactions as of now.
11. How much does NEFT and IMPS charge?
- NEFT charges at least Rs. 2.5+service tax and IMPS charges at least Rs. 5+service tax for fund transfer.
12. How is it better than digital wallets?
- One does not need to put money in a digital wallet unlike Paytm, Mobikwik since UPI is directly linked to bank account.
- One does not get any interest on funds transferred to a digital wallet but since UPI is linked with bank account, we earn interest as the money is present in bank account.
13. Can payment be made to non-users on UPI?
- For a virtual ID transaction, the receiver of funds needs to be registered on UPI.
- For Account+ IFSC, Mobile+ MMID, Aadhaar number, the receiver of funds need not be registered for UPI.