There were times when making payments and receiving money used to be a hectic and prolonged task for both the parties involved. Since the conventional modes of money transfer used to very unreliable and the possibility of frauds were quite high. Also, with the intervention of people involved in the process of money transfer, there was also a high possibility of money theft.
One of the most important targets of digitisation was to bring the maximum number of transactions on a digital platform, which would make them easy to scrutinise and make the relevant assessment. Another possible goal was the achievement of a digital economy that moves on a cashless platform. Having manifested these aims quite clearly, the Indian economy has moved quite steadily towards innovative applications and digital means of transacting. Eventually, with the introduction of UPI, which has been regarded as an integrated and sophisticated move in this direction, has made it quite simple to make and receive payments.
What is the UPI Pin?
A UPI Pin can be easily described as a secret code, which is composed of 4 to 6 digits. UPI Pin is issued to a customer who holds a bank account and signs up for using a mobile banking application. In order to authenticate the fund transfers, by making use of mobile banking, a unique UPI Pin is used. This procedure takes place over a dedicated UPI platform or IMPS. A customer can authorise all banking transaction using his/her mobile application, through UPI Pin.
UPI Pin can easily collaborate with mobile baking applications and banks. Indeed, UPI succeeds in promoting a cashless economy to a large extent.
What is UPI?
A UPI (Unified Payment Interface) is a dedicated platform that allows a person to make a transaction by using a few simple parameters, such as his/her mobile phone number and a virtual payment address. UPI eliminates the need to exchange bank account number, IFSC code or address, with any other person and overcomes a major drawback of online transactions methods, which is online theft of identity or misuse of crucial information. UPI is like a one-step transaction method that entails the use of a single UPI Pin for making a transaction. In its essence, the process involved in making use of a UPI is seamless and very efficient.
What are the features of UPI that make it entirely effective?
The unique UPI Pin makes it possible for people to exchange money at ease. There are several features of the highly seamless and reliable UPI that sets it apart as one of the most innovative payment mechanisms that the economy has seen so far:
- Capable of working in real-time, UPI Pin makes it possible for a bank customer to transfer funds instantly, without any delay or inconvenience.
- UPI Pin can be used at any time of the day or at any place, irrespective of the hour, to make a payment.
- Since the transaction is carried out in a highly secure environment, there is hardly any risk involved in making a UPI payment.
- Using a UPI Pin, transactions can be carried out between individuals, entities or even between an individual and an entity.
Along with these features, there are many other points that make UPI a successful endeavour of the government. For effecting a transaction between two parties, the fee charged is nominal as compared to the fee charged by Visa or Mastercard for this service. Moreover, upon transacting through Visa or Mastercard, money moves out of the country while the fee received by the NPCI (National Payments Corporation of India) for the transaction, remains within the country, thus moving the Indian economy further. Thus, for every citizen of India, transacting through NPCI enabled applications and UPI is beneficial and time-saving.
What are the benefits of transacting through UPI?
Customers who hold bank accounts and are equipped with a workable smartphone, find it extremely easy to operate a mobile banking application on their phone and enjoy the benefits of UPI associated service. It had been commonly observed previously that people were generally quite sceptical about using any mobile related banking functions. Their belief was common due to the possibility of theft and frauds. However, an introduction of services like UPI Pin have significantly lowered numerous doubts of such customers and reinstated the trust of people in the banking institutions of the country. Following are some of the benefits of UPI Pin that have enabled people to use it with ease and stay confident about its authenticity:
- UPI Pin is one of the cheapest ways to transfer money. It only costs 0.50 per transactions up to Rs. 10,000 and further can exceed to 1 Lakh, which is significantly lower than any other mode of payments. Owing to its low cost, it is highly preferable for people.
- Roam around cashless and use your UPI to make even the smallest transactions with ease. It is easy to lose a card or to suffer stealing of your crucial banking information but UPI is easily downloadable on your mobile phone, something that each of us carries around regularly.
- There is no need to give any banking details to the other party. Transactions can be completed simply by using a virtual payment address. Thus, UPI Pin makes the task of fund exchange between random parties very easy.
- UPI Pin is unique to every bank account, ensuring that it can be used only by the intended person and as long as you keep it safe with you, there is no reason why anyone should be able to use it against your will.
- Using UPI, one can have their funds transferred instantly on a 24*7 basis. Thus, there is no need for either party to wait for any form of confirmation before the funds are transferred.
- UPI Pin is very flexible and amenable to customer preferences. It is not necessary to be bound by the choice of an application based on your current bank account. You could have a bank account with one bank and may use another bank’s application for UPI purpose.
- Any funds can be transferred to any payee at any given point of time. There is no need to add them in a specific payee list before they can receive funds from you.
- Through the use of UPI, one can also receive any number of payments without having to wait endlessly or meet uneven excuses of the payer.
- Since UPI is a direct fund transfer mechanism, it gains more prominence automatically.
UPI has abundant benefits for its users, through its simple and convenient interface and payment mechanism. It can be brought to use anywhere and at any point of time in a day. It eliminates the inconvenience and some of the most constructive hurdles that one comes across while making use of conventional online modes of payments. However, UPI has been designed to provide a seamless and effortless mode of transaction. Hence, by using a UPI Pin, users can definitely benefit and enjoy faster, reliable and secure payments that can be performed between any two entities and entails the lowest fee charge that our economy has observed till date in the digital sphere of financial industry.