Unified
Payments Interface
Unified Payments Interface (UPI) is a real-time
payment system developed by National Payments Corporation of India (NCPI) to
facilitate inter- bank transactions. It is simple, secure and instant payment
facility. This interface is regulated by the Reserve Bank of India and used for
transferring funds instantly between two bank accounts through mobile
(platform) devices. http://www. npci.org.in/
Unlike traditional e-wallets, which take a
specified amount of money from user and store it in its own account, UPI
withdraws and deposits funds directly from the bank account whenever a
transaction is requested. It also provides the “peer to peer” collect request
which can be scheduled and paid as per requirement and convenience.
UPI is developed on the basis of Immediate Payment
Service (IMPS). To initiate a transaction, UPI applications use two types of
address - global and local.
● Global
address includes bank account numbers and IFSC.
● Local address is a virtual payment address.
Virtual payment address (VPA) also called as UPI
-ID, is a unique ID similar to email id (e.g. name@bankname) enable us to send
and receive money from multiple banks and prepaid payment issuers. Bank or the
financial institution allows the customer to generate VPA using phone number
associated with Aadhaar number and bank account number. VPA replaces bank
account details thereby completely hides critical information.
The MPIN (Mobile banking Personal Identification
number) is required to confirm each payment. UPI allows operating multiple bank
accounts in a single mobile application. Some UPI application also allows
customers to initiate the transaction using only Aadhaar number in absence VPA
UPI is also available as an Unstructured Supplementary
Service Data (USSD) service. Users who don’t have Internet can dial *99# and
get UPI services within India. The financial services like transferring fund,
payment request and non-financial services like changing MPIN and balance check
are currently available through the USSD.
● Immediate money transfers through mobile device
round the clock 24 x 7.
● Can use single mobile application for accessing
multiple bank accounts.
● Single Click Authentication for transferring of
fund.
● It is not required to enter the details such as
Card no, Account number, IFSC etc. for every transaction.
● Electronic payments will become much easier
without requiring a digital wallet or credit or debit card.
Related Topics
Privacy Policy, Terms and Conditions, DMCA Policy and Compliant
Copyright © 2018-2024 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.