UPI – Full form
UPI stands for Unified Payments Interface.
What is UPI?
It is a vastly used digital payment method through which a user can transfer and receive money instantly through a VPA (Virtual Payment Address) or UPI id .
It is developed by NPCI and regulated by RBI (Reserve bank of india).
It is a real time payment system. This system provides facilities of instant transfer of money from one bank account to another bank account . The money will be directly debited from the user bank account.
It gained popularity after demonetization and is becoming one of the most used methods of digital transactions in India. Many banks have tied up with this payment methods.
This is based on VPA( Virtual payment address) OR UPI ID.
Your UPI ID is your address. It is used to track your bank account virtually on the UPI Server.
This ID does not include bank account number and other bank details.
Format of ID
Let if your mobile number is 9990008881 and your bank is sbi.
So one of the possible format of VPA will be, 999000xxx1@oksbi .
UPI id can also be based on user registered mail-id
raxxx123@oksbi.
Googlepay, Paytm, PhonePe, Bhim app, MobiKwik, Google tez, Amazon pay etc. are most commonly used UPI service providing apps in India in 2022.
Some banks also have their own UPI service and customers can use this service through their bank apps.
Key features
- Instant transactions
- It Service is available 24/7
- One of the most safe and secure payment option
- Suitable for small transactions
- Free of cost money transfer
- It is a Universal payment system. You can access your different bank accounts with just one App. You don’t have to install different apps .
- Available almost everywhere, even a ‘rickshaw wala’ has his own bar code for the online payment transactions .
- Through this you can transfer money to any UPI registered mobile number, direct in bank account, pay to other id, pay your bills and can recharge your mobile or even self transfer money in your bank account.
- Can even transfer to a merchant if he has a id or VPA.
Thanks for reading this article. Hope you found it very insightful and eye opener.
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