Finance

What is UPI? What are the benefits of UPI?

Unified Payment Interface, commonly known as UPI is an instant payment method. This method of payment was developed by the National Payments Corporation of India (NPCI) in the year 2016. Even though it is a relatively new concept, it has become increasingly popular day by day. UPI allows you to instantly transfer money between bank accounts.

You can transfer money immediately from your bank account to another. It helps you utilize one app for multiple bank accounts. With the help of UPI, you can pay instantly without worrying about carrying cash.

You can send or receive money or scan a quick response (QR) code to pay an individual, a merchant, or a service provider to shop, pay bills or authorize payments. Using QR codes for payments makes payments seamless and allows users to pay whenever they want.

As long as you have an account with a member UPI bank, i.e. a bank that allows you to use UPI, you can send and receive money instantly through it. Some of these member banks are SBI, HDFC Bank, ICICI Bank, etc.

A UPI recharge app also comes with additional services like online flight booking, movie tickets, gas bills, phone recharge, and much more. Moreover, users also benefit from coupons and cashback on payments via UPI.

The maximum amount of money you can transfer through UPI is rupees one lakh per day. But different banks may have different sub-limits that may restrict your payments. UPI pins allow payments to be made securely. In case you make payment from UPI, you will not have to pay a fee because this service is completely free from the government.

It is a fast and completely hassle-free method of payment that takes little to no time. You only need a UPI ID to make the transaction and there is no need for the bank account details of either party. With this method, you never have to carry cash with you and neither do you need to go around looking for an ATM.

To make an online bank payment, a person needs to enter four pieces of information about the person to whom they will be making the payment: the bank account number, account type, name of the bank, and the IFSC code of their branch. Making the online bank payment through your mobile device can be a lengthy and difficult process since you must provide all the details. It does not always happen instantly, even after you add these details.

However, UPI does not require you to do all these things every single time. This makes it a simpler way of making the payment than online bank payment. It is much faster and easier than any other kind of payment.

UPI is easy to use and more secure than online bank payments. So, start using UPI and pay/receive payments instantly.

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