UPI-Everything That You Should Know

UPI At A Glance

It stands for UNIFIED PAYMENTS INTERFACE (UPI) that has been developed by the National Payment Corporation of India.

• Allows the user to transfer money
• It is standardized across banks and well-defined
• It initiates bank transfers at any time from anywhere
• It allows the user to pay directly from the bank account

mPIN in UPI

Another significant benefit of using UPI is that you need not wait for an OTP for transferring money.

• It is a 6-digit passcode that you need to enter every time when you make a transaction.
• This code is highly valuable because customers need not enter the IFSC code every time to send or receive money.
• It has proved to be great for confirming the identity of the user.
• It is impossible to make transactions without this pin.
• With the help of this pin, if your phone has landed in the wrong hands, then your financial account will remain safe.

Features Of UPI

This mode of payment is easier as compared to debit or credit cards. Other than being easy and convenient, it boosts other features as well.

• Reliability- because it has been launched by NPCI, it is one of the biggest features available with this mode of payment. With its help, people have great control over transferring their funds and do not worry.
• Real-time transfer– another feature associated with this payment method is that transfer occurs in real-time. Customers need to send the press button and the receiver will receive the payment within seconds.

Due to this, daily life activities, or taking an auto has become much simpler than before.

• Inclusivity- this mode of payment does not always rely on the internet. It offers an option to perform transactions without using a smartphone or the internet.
• No minimum transaction limit– there is no minimum transaction limit with this payment mode. You can even pay Rs 1 by using this payment mode.

Using A UPI ID

Its ID works in the same manner as your name does.

• This mode offers a virtual payment address for senders that needs to be entered while transferring money.
• For creating your ID, you need to begin by downloading any app of your choice and registering yourself.

Download And Register BHIM

Though various apps are available you can use BHIM. It has benefits for both customers and merchants.

• With the help of a QR code, customers can simply scan it and pay to shopkeepers.
• This code helps people to scan and receive P2P payments.
• The app is equipped with fraud prevention features like timeouts following 90 seconds of no activity.
• One can get both Hindi and English language support.
• It holds transaction histories, so you can have a look at them whenever you feel the need.
• Money gets transferred in real-time straight into the user’s bank account.
• It has in-built strong security measures such as 2-factor authentication.
• It allows both sending and receiving of payments.
• There are no traditional banking restrictions like working hours.

Highlighting Features Of UPI 2.0

The first version was launched in 2016 and the latest one has been released in order to increase digital adoption within the business sphere. The upgraded version has the following features:

• Use of draft accounts– under the new version, merchants have the facility to withdraw money even when there is a cash deficit.
• Capture and hold facility– those merchants who accept payments through UPI can block certain amounts on their user’s card and refund the same later.
• Support for invoicing– it means that a business can make use of a single platform for sending invoices and receiving payments.
• Easy resolution of refunds– merchants can initiate refunds on the same transaction through which they have got money.

Charges On UPI

You will be amazed to know that there are no charges!

As of now, there are no charges on UPI transactions, both P2P, and P2M.

• After viewing the user base, some banks have announced charges for P2P UPI transactions.
• Kotak Mahindra Bank is the first one to announce charges for P2P transactions.
• The above bank is not going to charge for up to 30 transactions in a month.

What If You Pay To Wrong UPI ID?

Though it is the simplest way to make payments, it comes with some constraints.

• Usually, it is tough to get money back if you transfer money to the wrong ID.
• You can write an application to the branch of your bank mentioning your ID details.
• The information will be sent to the UPI backend team and they will contact the beneficiary branch for the refund.

Again, we would like to mention that there is no guarantee for your refund.

That’s why it is advisable to send Rs 1 to the receiver before transferring the bulk amount. Doing this will help you to cross-check and avoid such incidents.

Use UPI wisely and make your life easy!

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