Unified Payment Interface or UPI is a joint initiative by National Payments Corporation of India’s (NPCI), Reserve Bank of India (RBI) and Indian Banks Association (IBA) to enable secure and extremely easy way to transfer money between bank accounts. It’s a payment mechanism which allows instant money transfer without the bank details. Instead of bank account number and IFSC code, a virtual payment address (VPA) is used here. To use this payment Mechanism one needs to download the bank specific app, such as Axis Pay, on their mobile phone and create a VPA which will be linked to their bank accounts.
A virtual payment address is an identifier that can be uniquely mapped to an individual account. It can be thought of like an email ID for your money that your bank uses to transfer money and make payments.
Here are some simple steps you need to follow:
·
Download UPI app from participating banks from google play store.
· Let’s use AXIS bank’s UPI App (Axis Pay UPI App) as it has better UI compared to others. SMS will be sent by the app for authentication of your registered mobile number. Once authenticated you can set a 6 digit passcode.
· Add bank account - you’ll just need to select your Bank from the drop down list of UPI enabled banks & your A/c will show up automatically (based on your mobile number linked with your bank a/c)
· After selecting your bank a/c create a Virtual Payment Address (VPA) v.i.z suresh@axisbank for that a/c. Verify you a/c and set a pin. The suffix will be based on the app you are using. If the address is available your virtual payment address will be successfully created which you can manage under “Manage Accounts”
· To send money select your & receiver’s unique ID, enter the amount and send money by entering PIN
· To ask for money select your & sender’s unique ID, enter the amount and receive money when sender approves transaction on his app.
UPI vs. other payment systems:
FEATURE
UPI
NEFT/IMPS/RTGS
WALLETS
1
Through which device transfer can be done
Only smartphone
Website and app
Website and app
2
Transfer speed
Instant
Time consuming. But is instant & real time in case of RTGS.
Instant
3
Can you send money abroad
No
Yes
Yes
4
Can you transfer money 24*7
Yes
Only RTGS
Yes
5
Time taken for new payee registration
No need to add payee
Takes minimum 30 minutes
Less time consuming
6
Are bank account details must for the transfer
No
Yes
Yes
7
Is there any transfer charge
Yes. Rs. 0.50 per transaction
At least Rs. 2.50 & Rs. 5 for NEFT & IMPS respectively
No
8
Any transfer limit
Rs. 1,00,000
Rs. 10, 00,000
No
9
How many authentication details required
UPI app login & 4-6 digit M-PIN needed
Internet/mobile banking logins and OTP/transaction password/debit card grid
Internet/mobile banking logins and OTP/transaction password/debit card grid
10
Is OTP required for transfer
No
Yes
Yes
11
How easy is the beneficiary addition
Very easy, requiring just virtual payment address
Addition of bank account details and bank approval is needed before transfer
Very easy
12
Any payment gateway involved during transfer
No
Yes
Yes