UPI - How it works?

UPI - Cashless Future

UPI - What is UPI? How it works? Why we use UPI? UPI conduct by whom? 
Every detail about UPI is discussed bellow. Keep reading to know each and everything about UPI.

UPI - Cashless Future

Operating in       India
Started                11th April 2016
Owner                 National payments
                              Corporation of India
Website               UPI Online

What is UPI?

Unified payment interface (UPI) is an instant real-time payment system developed by National payments corporation of India facilitating inter-bank transactions. The interface is regulated by the Reserve Bank Of India and works by instantly transferring funds between two bank accounts on a mobile platform.

UPI is built over immediate payment service (IMPS) for transferring funds. Being a digital payment system it is available 24-7 and across public holidays. Unlike traditional mobile wallets, which takes a specified amount of money from user and stores it in its own accounts, UPI withdraws and deposits funds directly from the bank account whenever a transaction is requested. It uses Virtual Payment Address (a unique ID provided by the bank), Account Number with IFS Code, Mobile Number with MMID (Mobile Money Identifier), Aadhar Number, or a one-time use Virtual ID. A UPI-PIN (UPI Personal Identification number that one creates on the UPI app of the bank) is required to confirm each payment.

UPI - Cashless Future

Services of UPI:

UPI is also available as a mobile phone USSD service where users can access the service by dialing the code *99#. The various services provided in USSD mode are categorized as follows,

Financial Services 

  • Fund Transfer 
  1. Send Money
  2. Request Money 

Non-financial Services 

  1. Balance Enquiry
  2. Change MPIN

UPI - Cashless Future

Bank Which Supports:

The website of National payment corporation of India lists the banks that facilitate UPI. Banks here are termed as Payment Service Providers (PSP) and issuers. PSP includes those banks which have their own mobile application to facilitate transaction and issuers include banks which don't have their payments interface and rely on third party software for transaction using UPI. The list of PSPs and Isssuers can be viewed here: UPI Bank Details .

Online Using Platform of UPI:

The huge surge in UPI transactions in 2017–18 were largely due to launch of PhonePe, Paytm, Chillr and then Google Tez, UPI based payments applications. PhonePe came up with attractive cashback & referral offers & Google Tez with incentives for customers which led to greater adoption of UPI platform.

These are some brief description about UPI & UPI payment or UPI - Cashless Future.

..Thanks For Reading..

UPI - How it works? UPI - How it works? Reviewed by Unknown on July 29, 2018 Rating: 5

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