The Indian monetary system has improved significantly in the last 10-15 years to cater the population with numerous convenient banking options. Fund transfer has simplified with the availability of electronic methods to send/receive money without actually visiting the bank. The Reserve Bank of India has been efficient in launching fund transfer methods like NEFT and RTGS, which have been a huge success in the nation.
The most recent launch by the Reserve Bank of India took place in 2016 with the introduction of the ‘instant fund transfer’ system called UPI or Unified Payments Interface. You can count it as an immediate payment scheme which has been developed by the National Payments Corporation of India (NPCI). The model is quite similar to IMPS and has been inspired through its swift mode of fund transfer. However, with UPI, the requirement for a 4-6 digit UPI-PIN (UPI Personal Identification Number) is quite vital for carrying out money transactions. Hence, the user must always safeguard his/her UPI-PIN and not share it with anyone.
UPI Transaction Limit
As per the current guidelines and facts about UPI, the UPI transaction limit is restricted to Rs. 1 Lakh for transactions within India. There is no provision for making international transactions using UPI.
How to Access UPI App?
- In order to enjoy the benefits of UPI fund transfer, you need to download a UPI app on your smart phone. This serves as a handy medium through which money can be transferred within a single click anytime & anywhere! Since 2016, majority of the banks have introduced their own UPI Apps for assisting the huge banking population.
- To treat the customers quite efficiently, most of the banks have directly incorporated the various UPI features into their already existing mobile banking applications. For example, iMobile and Pockets managed by ICICI Bank have now been equipped with UPI fund transfer options.
Make Payment with UPI
One of the major benefits of UPI is that all bank accounts can be combined into one UPI-enabled app for transactions through this effective platform. Further, it is important to know that all UPI-enabled banks would permit their apps to be consolidated. Therefore, with the presence of just one consolidated app, all payment transactions can be managed. For new users, good knowledge about UPI transaction limit and charges is good before requesting a fund transfer.
In order to make a UPI transaction, it is necessary that both the sender and the recipient are active on the UPI platform. For making his/her first transaction, the sender has to pass a phase of two-factor authentication. Firstly, an SMS will be sent to your registered mobile number and secondly, your payment will be validated through a mobile personal identification number (MPIN), which is a 4- or 6-digit number code which you need to preserve just like your ATM PIN.
Facts about UPI Fund Transfer
UPI is a fresh scheme offered under mobile banking that still needs better understanding by many people across India. Let us discourse some of the necessary facts related to UPI & its operations for clearing the picture to some extent.
- The UPI app can be used to transfer an amount to an account or VPA. This process can be executed by entering few essential details and everything would be managed instantly.
- The NPCI acts as the link to identify the correct account. Currently, the UPI scheme doesn’t charge any fee for making fund transfers. However, there are active discussions and the UPI charges might be decided at a fairly minimum cost of Rs 5.
- Using a UPI transfer option, the money gets transferred directly to a bank account. Moreover, since it is an interbank transfer, the various banks listed under UPI scheme do not charge each other.
Let us check some of the frequently asked questions that bother the customers in context to the UPI scheme.
How is UPI better than IMPS?
UPI is capable of offering additional benefits as compared to IMPS such as:
- UPI offers P2P Pull functionality
- Streamlines merchant payments
- A solo app for all types of fund transfers
- UPI offers single click two-factor authentication
Does a customer have to register before transferring funds using UPI?
Yes! A customer is required to register with his/her PSP in order to remit funds using this smart scheme.
Does the customer have to add a beneficiary before sending funds through UPI?
There is no registration of the beneficiary under UPI for transferring funds. This is because the money would be sent electronically on the basis of Virtual ID/ Mobile No+MMID / Account+IFSC/ Aadhaar Number.
Is it necessary for a customer to hold a bank account or UPI can be linked to a card or wallet?
Wallet linking option is not available for accessing UPI services. Only bank accounts can be added to your UPI app.
What to do if your mobile phone is lost?
In case your mobile phone is lost, the primary step is to simply block your mobile number so that no transaction can be requested.
Can a customer link more than one bank account to his/her solo virtual address?
Yes, a number of bank accounts can be added to the same virtual address based on the functionalities made available by the respective PSPs.
Where to register a complaint in context to UPI transaction?
One can raise a grievance or status check request for UPI transaction directly through the UPI App of the contributing banks.
Why is my UPI transaction not processing?
There are different reasons for a UPI transaction to fail. Some of the prime issues are:
- System breakdown
- Incorrect UPI PIN
- Wrong beneficiary UPI ID
Can money be transferred abroad using UPI?
There is no provision for sending money abroad using UPI.