UPI – Unified Payments Interface

UPI – Unified Payments Interface

UPI or United Payment Interface is a payment system that helps in instant transfer of funds between two banks through a mobile platform. In other words, it acts as a platform for different banks to get into one single application. This trending payments system in India is the fastest payment gateway and has been developed by the National Payments Corporation of India(NPCI) and regulated by the Reserve Bank of India(RBI).

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UPI is completely build on IMPS technology with an aim to instantly transfer funds from one bank account to another bank account with the help of a UPI Virtual Address(unique address given by the bank) or through Bank account number and IFSC.

Features of UPI

The features of UPI interface are as follows:

  • Bank details are required only once; after which UPI ID or VPA is required
  • Transfer upto ₹1 lakh in every transaction
  • Simple virtual address for money transfer
  • Schedule transactions
  • Linked with Aadhaar
  • Barcode based payments
  • Transfer money anywhere at anytime
  • Secure with single click
  • Available 24 *7

Benefits of UPI

  • The UPI is the cheapest form of fund transfer when compared to NEFT and RTGS. Where RTGS transactions are charged at ₹2.5 and IMPS charges are ₹2.5, UPI transactions cost less than 50 paise for every transaction.
  • UPI makes small transactions feasible. In fact, it has reduced the dependability of cash or even netbanking.
  • UPI transactions do not require too many information for a transaction. Unlike card payments where you need to provide card details, UPI transfers require only the virtual payment address. This is similar to our email address, ravishankar@sbibank, 985647564@icici.
  • As said, UPI transfers do not require any information and is therefore more safe and secure. The virtual payment address does not give any clue about your bank account. Moreover, the authentication takes place at your smartphone and requires two different PINs.
  • After a UPI app, you do not require multiple apps for your respective banks. It is simply based on the concept of One App, All Accounts. A single UPI would serve many bank accounts.

 UPI Transaction Limit

  • The NPCI has set a transaction limit and per day transaction limit for UPI transfers. At present, the UPI transfer limit per UPI transaction is ₹1 Lakh.
  • This limit is enabled as UPI is based on IMPS technology.
  • In most of the cases, the maximum number of UPI transactions is limited to 20.
  • Although the transaction limit per UPI transaction is ₹1 lakh, the upper limit depends on bank-to-bank. Therefore, the upper limit could be between ₹10,000- ₹1 lakh.
  • The transaction limit per day for UPI transaction is ₹1 Lakh.
  • The maximum limit for BHIM UPI is ₹10,000 per transaction and ₹20,000 in a 24 hour window.
  • The limit may be revised from time-to-time.

Types of transactions that can be done on UPI

The following transactions can be conducted through UPI:

  • Sending/Receiving money: You can instantly transfer or receive money just through your virtual payment address.
  • Bill payments: You can pay your utility and communication bills
  • Merchant transactions: You can also by anything, from buying groceries and booking movie tickets on an online app…Read more>>

Source:-indialends

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