Before You Start Using UPI Mode of Payment You Must Know This

Sat, 09 Apr 2022 01:38:28 +0000

The Buyt Desk

Online payments have become easy with a unified payment interface (UPI). You simply have to connect your bank account with the UPI ID and you are good to go cashless. It is the initiative of the Reserve bank Of India to make online payments seamless and secure.

The instant payment method developed by the National Payments Corporation Of India and regulated by the Reserve Bank of India has millions of users.

Have you ever wondered what UPI is and how it works? Let us get deep into it. We have got all your queries related to UPI covered.

The UPI payment is similar to IMPS in operation. Like IMPS, it also allows instant money transfer from one account to another, irrespective of the banks.

The UPI merges different bank accounts into one application. The UPI merges banking features of multiple banks and facilitates doing fund transfers, merchant payments, etc., under one roof. The facility also offers “Peer to Peer” collection requests.

With UPI on mobile, a user can transfer funds anytime, and it works on both Android and iOS platforms. The format of UPI is abcd@bank. The abcd could be the user’s name, email ID or phone number. To transfer money through UPI, a user needs to enter the receiver’s phone number. Some applications asks for the UPI id instead.

How Is UPI Created, and Does It Require a Bank Account?

To create a UPI, a user must have a smartphone. Follow the steps after that.

Step One: Download any UPI payment application, such as Paytm, Google Pay, Phonepe, BHIM app, Uber etc.

Step Two: Enter the mobile number used for the UPI transaction.

Step Three: Next, select the bank name from the drop-down list. Make sure the phone number entered in UPI is the same one registered with the bank. It is because the same phone number will be used for the UPI transaction.

The application will auto-fill the rest of the bank details.

Step Four: Set the UPI pin. A few apps ask for debit card details also.

Step Five: At this step, the bank account gets linked with the mobile number and is ready to make payments.

A user must have a bank account to receive money.

How To Send Money Via UPI?

UPI is one of the fastest modes of payment at present. Here we explain how to transfer money through UPI.

Open your UPI supporting the application and click on the option “Send Money.”
Enter the receiver’s phone number or select from the contact list.
If the receiver is not using the same application, enter his UPI id.
Scan the QR code option are also an option.
Enter the UPI pin and click on the proceed payment button.

UPI and IMPS might seem the same, but UPI is better as it offers additional benefits like

P2P full functionality.
Makes merchant payment easier.
One app for all types of payments.
Two-factor authentication.

The maximum limit for UPI transactions is Rs 1 Lakh.

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How Does UPI Payment Work?

Sat, 17 Apr 2021 06:07:47 +0000

The Buyt Desk

Unified Payment Interface i.e. UPI is a digital platform that provides different types of banking and payment services to consumers. It allows you to instantly transfer money from one bank to another bank through the mobile app. This payment is possible only through apps and mobile devices.UPI is available round the clock 24 hours in a day.

To use UPI, a person must have an account with a bank that should be connected to the UPI service. If your bank offers Unified Payment Interface services, then you have to download the mobile application that supports UPI according to your smartphone. Some of the major UPI apps lists include PhonePe, Google-Pay, Paytm, Amazon Pay, WhatsApp Pay, Bhim App and others.

Setting up: Once you have selected the UPI Platform app, you should follow the steps mentioned below.

Step 1: Download the UPI app on your mobile

Step 2: Open the app and register

Verify your number first. The Unified Payment Interface system checks the details and authenticity of your bank account through the phone number associated with your bank account. Download the UPI app on the same mobile, the number is linked to your bank account. After verification of the number, enter basic details like your name and email and enter your 4 digit password (PIN). If you forget your PIN, you will need an email to log in to the UPI app and recover the password again.

Step 3: Select UPI username or virtual password address

Like your email, the UPI Virtual Password Address (VPA) is your UPI ID, which will help other people send you money.

Step 4: Add bank account

Select your bank account and link it. Set your PIN based on the last 6 digits of your debit card and expiry date.

UPI has made the process of sending money extremely easy. For this, you do not need to remember the account number, account type, IFSC code and bank name of the account to which you have to send money. You can transfer money only through UPI ID, Aadhaar number and registered mobile number. You can set your ID on any app that supports UPI service.

Maximum limit for transfer of money

Currently, the maximum limit for UPI transactions is Rs 1 lakh per day. After this maximum limit, banks can have their own separate sub-limits.

Is UPI safe?

In UPI transactions, it is done through a very secure encryption format, which is very difficult to break. It works on two authentication methods, which are similar to OTP. Which verifies your every transaction. However, the UPI PIN will be used in place of OTP to verify.

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