Unified Payments Interface (UPI)
UPI is an abbreviation for Unified Payments Interface. It is a revolutionary mobile payment system initiated by the National Payments Corporation of India (NPCI) in a bid to promote digital payments across India. NPCI founded UPI in April 2016 and was set up with the support of RBI. There are various modes for cashless transaction; however, UPI is the latest and one of the most preferable modes of fund transfer.
UPI, in simple words, is a mobile application that provides its users a platform to make transactions on their smartphones. The mobile application has empowered multiple participating banks to move forward with the changing technologies. It has helped various private as well as public sector banks to offer their customers an instant payment option.
The instant UPI payment platform offers more than just fund routing to its users. As per the bank’s requirements, a lot of banking features can be integrated in this platform. Another feature that makes this mobile app better than the most other modes of digital payment is the “Peer to Peer” money collect request. This collect request can be scheduled and paid by users as per their convenience and need.
Last but not the least; UPI also enables its users to transact without having to enter the beneficiary’s bank account details every time during the transaction. Users are only required to enter the payer’s or payee’s VPA (Virtual Payment Address) to initiate transactions.