what is UPI | UPI SBI App | UPI ICICI | UPI PNB
Unified Payments Interface is an advanced version of IMPS (Immediate Payment Service). The main aim of UPI is to make funds transfer easier. National Payment Corporations of India (NPCI) gave their permission to 21 banks for publishing their apps which will be UPI-enabled.
United Payment Interface will be useful because it will remove the need of adding payee details. An individual will be obliged to create a Virtual Payment Address or a VPA in order to receive and send payments in this system. The details of a payee such as bank name, branch name IFSC code, etc. will not be needed in this new system.
29 banks have participated in this new system and out of the 29 banks 21 have been given the green signal by NPCI. Until now 15 banks have published their UPI-enabled apps. The name of the apps vary from one bank to another. If an individual wants to download the UPI enabled app of their bank, they will be able to search for UPI on play store or they will be able to search their bank’s name on Google Play Store. If their bank is UPI enabled, it will be written in the description of the app.
The main aim of the app is to make funds transfer easy and thus it will benefit the users of the app as they will be able to avail services such as mobile recharge, DTH refill, paying bills and so on. Also, a user will be able to send payments to their friends and family through the app. These transactions or transfers happen 365 days a year and thus a user will not need to be anxious about a bank holiday.
If a user wishes to download and use the app to their benefit, they will need to have an Android smartphone with internet access. Currently, the app isn’t available on the iOS platform but it will be available very soon. Also, a user will be obliged to have a bank account where their mobile number is registered for telephone banking. A user will be obliged to have a bank account because the UPI app will fetch the bank account details of a user from their registered mobile number. In case, a user doesn’t link their bank account, they will be able to transfer money from wallet to wallet only.
Registration Process for UPI
- Firstly a user will need to have an Android Smartphone with internet access.
- Then a user will need to go to Google Play Store to download the UPI app of their bank.
- After the download is complete, a user will have to open the app and enter their mobile number.
- A user will be obliged to create a four digit secured pin number of their choice. The user will need to remember the pin number because they will need to use it every time they open the app.
- Then a user will need to select an option named UPI.
- After that a user will have to create a Virtual Payment Address (VPA). The virtual payment address is very simple. Actually the VPA is the name or mobile number of a user followed by their address. For instance, if a user’s name is John and if he is a subscriber of Yes Bank (YBL App), then their VPA will be john@ybl.
- After a user has successfully created their VPA, they will be obliged to link their bank account.
- A user will need to select their bank from the list of UPI enabled banks.
- After choosing the bank, all details will be automatically appear on the screen and the registration will be complete.
The major benefit of using UPI based apps is that a user isn’t obliged to download the UPI app of their bank. A user is free to download any UPI Based apps. If a user has an account in Yes Bank, they will still be able to download the app of ICICI bank and it’s just that a user will need to link the bank account details of their Yes Bank account to the app of ICICI bank. If a user has two accounts in the same bank, they will be able to use this feature and download another app of another bank.
Process of Transferring Money using UPI
The process of transferring money using UPI is also very simple. But a fact that needs to be considered here is that the receiver will also need to have a Virtual Payment Address. A sender will be able to send an amount of Rs 50 to Rs 1 lakh to a receiver. Below are the processes of transferring money using UPI.
- First a user will need to open the UPI app and then they will need to click an icon named UPI.
- If a user has already created a Virtual Payment Address, then they will be directly taken to manage screen.
- From the manage screen, a user will have to click on the option named Send Money.
- A user will need to provide necessary details about the transaction while sending money. A user will have to provide the VPA of the recipient. Also a user will be obliged to put the amount and transaction remarks.
- After putting the necessary details. A user will have to confirm the details of the transaction and thus the money will be transferred directly to the recipient.
Process of Receiving Money using UPI
If a user wants to receive money from their friends or family, they will be able to do it using the UPI app.
Below are the processes of receiving money using UPI.
- A user will have to go to the app firstly and then they will have to click on the UPI option to go to the manage screen.
- A user will have to select the option named Collect Money from the manage screen.
- A user will have to put required details about the transaction after clicking on collect money.
- A user will also be able to schedule a transaction. For example, if a user wants to receive a payment after 10 days, they would be able to do so with this UPI app.
- After putting all the details about the transaction, a user will need to confirm the details about the transaction.
- After a user has confirmed their details a notification will be sent to the person the user has requested the money. The person will be the sender in this case.
- The sender will also get a SMS about the request.
- The sender will have to open the UPI app and then select the option named Collect Request/Pending Transactions.
- After that the sender will have to click on the option named Pay to send the funds. If a sender doesn’t want to send the funds, they will have to select the option named decline.
- If a sender clicks the option named pay, they will be obliged to put their four digit pin. And if the pin is correct, the funds will be transferred to the requester.
The UPI apps will also cashless transactions. A user will be able to use an option named Scan QR Code in that case. For example, if a user is at some place like grocery shop, mall, etc. where UPI payments are accepted, they will be able to open the app and scan the QR code at the payments counter. Thus, money will be sent from the user’s bank account to the merchant. This will surely be very useful for a user as they will not need to carry any cash while going to the public places. These processes will make the lives of the users very easier. UPI also eliminates the need of carrying any debit/credit cards and it also removes the need of OTP. UPI makes the procedures of payment very simpler and easier.
Unified Payments Interface is indeed very promising and it is something for the next generation. If Unified Payments Interface is used properly, it will be the next biggest thing in India and the next generation will be able to enjoy the rewards of moving to a cashless economy.
Summary of Unified Payments Interface
|Name of Payment Service||Unified Payments Interface|
|Launched By||National Payment Corporations of India|
|Purpose||Making Funds Transfer easier|
|Number of Participant Banks||29|
|Number of Permitted Banks (Till Now)||21|
|Special Feature||Scan QR Code|
UPI Links of Diff Banks
|Name||UPI App Android Links|
|State Bank of India (SBI) UPI App||https://play.google.com/store/apps/details?id=com.sbi.upi|
|Punjab National Bank (PNB) UPI App||https://play.google.com/store/apps/details?id=com.fss.pnbpsp|
|Union Bank UPI App||https://play.google.com/store/apps/details?id=com.fss.ubipsp|