Unified Payments Interface

  1. Unique Payments Interface or UPI is a payment system that allows money transfer between any two bank accounts by using a smartphone. UPI can be used both to send and receive funds.
  2. UPI allows transactions between different persons, both online and offline, without the hassle of typing credit card details, IFSC code, or net banking/wallet passwords.
  3. It requires user to create a virtual payment address (VPA) with the bank e.g. ramesh@icici and then one can request or send money to other address e.g. mohan@hdfc.
  4. For example, after buying grocery the shopkeeper requests money using his VPA and the customer accepts. The payment is made instantly with bank authenticating it immediately.This is how it works.
  5. Presently popular online payment services currently like NEFT, IMPS etc, require plethora of user details to be registered on the bank’s web site e.g. add a beneficiary, and share details of bank accounts etc. UPI is hassle free. No one knows your account number.
  6. The service is available 24X7, not like IMPS or NEFT which don’t work on holidays or during non banking hours.

What benefit does Unified Payments Interface bring?

  1. The UPI is a move towards a cashless and paperless economy.
  2. Order online anything and pay using your mobile phone just like Cash on Delivery
  3. By bringing person to person payments for even very small amounts online, it would be possible to reduce the amount of cash transaction in the system and also create a trail of all transactions thus helping to check black money.
  4. On this auspicious day of Bhai-Dooj, sisters can simply ask brothers cash and order online anything their choice. Brothers would have to send or pay without any lame excuse e.g. bank is closed etc!
  5. So just go to Google play, download the UPI app offered by several banks, register details, and create a virtual address, ask your brothers to do the same, and then give them the nightmare of their life!
  6. Happy Bhai-Dooj and guys wish your sisters are not reading this !!