The banking sector has grown by leaps and bounds. Earlier for any small task such as printing a passbook or getting a new chequebook, people had to visit their banks in person. At times, they had to stand in long queues and also fill up a number of forms to get a task done. With the advent of technology, all this has changed. Banks have woken up to the fact that people want to save time and trouble of visiting a branch in person. They are busy with their day-to-day life and find it easier to use the internet to get most of their work done. Keeping this in mind UPI – Unified Payment Interface was developed. Initially, it was launched only by 23 banks. Banks like YES Bank had pioneered the UPI and other important banks like HDFC and SBI stayed put. Soon after witnessing the popularity, UPI was gaining, they went ahead by integrating UPI in their existing mobile apps. These apps are indeed helpful in more than one way. With UPI, a lot of customers have migrated to the online platform and are happy with the services that it provides. They can now transfer funds from one bank account to another anytime and anywhere.
How does UPI Work?
This is basically a mobile-based medium of initiating and receiving financial transactions. With the help of UPI, you do not need to visit a bank or enter their online portal. This is basically an application that all banks offer. You can use this application to transfer funds from one account to another without routing it through usual modes of transfer like Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), or cheques. The app allows you to transfer instantly.
What is UPI ID?
Now, when you are transferring funds from one account to another, you will need important details like bank account number, IFSC, branch name, branch address, etc. In the case of UPI, such details are not necessarily required to transfer funds from one account to another. This is because UPI users have another alternative to initiate financial transactions and that is UPI ID. UPI ID also referred to as Virtual Payment Address (VPA), is a unique address that you create to send and receive money. With UPI ID, you do not need to feed in the bank account details.
How to Download UPI App?
Almost all banks are offering UPI apps to their customers. The best part is that in the case of a UPI app you need not be the customer of the bank from whom you are downloading the app. Like, you can download the SBIPAY UPI app without being an SBI customer. Use an app that meets your requirements. All these apps are available on android and IOS stores. These apps can be downloaded absolutely free of cost and within a few minutes, you can register yourself on the app. In order to attract more customers to use the digital platform many of the banks are actually offering freebies in terms of cashback on the usage of UPI apps. You can actually browse through the offers and choose the app that meets your requirement the most.
How to Use UPI App?
UPI apps are easy to use. The best part about these apps is the fact that you can use them from any place and at any time. So even in the middle of the night when banks are closed you can transfer funds from one bank account to another. UPI app also has a unique feature of requesting money from another account. So, in case someone needs to repay you a certain amount, you can send a request to the concerned person on their UPI ID to release the payment and once the same is done, you will receive a notification.
How Safe It Is?
It is new but till now no major incidents reported. As long as you choose the right UPI ID the payment goes to the right account. It is safeguarded by the MPIN which acts like dual protection and saves you from any kind of fraud.
Things to Keep in Mind When Creating your UPI ID
Here are a couple of things to keep in mind when choosing your UPI ID:
- Register early: Just like your email ID, your UPI ID is also unique. When you register early, you stand a chance to register with your choice of name. This is critical as once the name is taken you will not be able to get the same one and may have to settle for something else
- Alphanumeric: Many of the UPI app providers have a predefined requirement to freeze onto a particular UPI ID that is alphanumeric in nature. This is important from the safety point of view
- Read through the terms and conditions: When you are trying to register an ID please ensure that you read through all the prerequisites and accordingly set a UPI ID that meets
- Keep the same handle: If you are using multiple UPI apps, then ensure that you keep the same UPI ID in all cases. This will ease the additional burden of remembering the different UPI IDs created for each app
- Keep the UPI simple: With the help of your UPI ID, anyone can transfer funds to your bank account. It makes sense to keep the ID simple so that people can type it easily and transfer funds with you
- Keep it formal: Keep your UPI ID formal and not something unusual