Everything You Wanted to Know About Unified Payment Interface

The Unified Payment Interface is a new payment system launched by the National Payment Corporation of India (NPCI) which is designed to make cashless transfers easier, simpler, and safer.

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What is UPI?

UPI is a new payment system that allows you to transfer funds from your bank account to someone else’s account with just one unique ID. Thus, you don’t need to know the beneficiary’s name, bank, branch, or even the account number!  The unique ID replaces all this information and makes payments simpler.

How does UPI Work?

To use the UPI service, you have to first download your bank’s UPI app on your smartphone. Then you can create an account and link your bank account to it. Your account will be identified by a unique ID which is akin to an email address, such as YourName@NameofBank.com. This ID will be used for receiving and sending payments.

What are the Advantages of UPI?

UPI is the government’s one of the most ambitious projects in the interest of a digital economy. The following are some of its key advantages:

• Simplicity: With UPI, you don’t need to pen down the account numbers, IFSC codes, etc. of the recipients. All you need is their account ID.
• Safety: UPI eliminates the need for sharing bank account information with others, as just one unique ID conceals it. This minimizes the risk of frauds, especially on e-commerce websites.
• Seamless Payments: You don’t need to carry a lot of cash with yourself if you are using UPI, as you can make payments through your smartphone easily.

One of the primary objectives of the UPI system is to create a digital payment system that’s in line with the increasing adoption of smartphones and online payments. Today, about 29 banks are supporting the UPI system, and many (Axis Bank, SBI, ICICI, etc.) have already released their UPI apps for their customers.