1. Unified Payments Interface goes live with 21 banks; 5 things to know how it works for customers

Unified Payments Interface goes live with 21 banks; 5 things to know how it works for customers

Unified Payments Interface (UPI), which will help move India towards a cashless economy, is now live and will be available in next two to three working days with all 21 banks

By: | Updated: August 25, 2016 4:21 PM
"In high growth markets, such as India and Brazil, mobile broadband experience is twice as important in driving smartphone user loyalty compared to voice experience," the study said. (Reuters) Unified Payments Interface (UPI), which will help move India towards a cashless economy, is now live and will be available in next two to three working days with all 21 banks. (Photo: Reuters)

Unified Payments Interface (UPI), which will help move India towards a cashless economy, is now live and will be available in next two to three working days with all 21 banks. The UPI app will be available on the Google Play Store in next two to three working days for the customers to download and start using for 19 banks – Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES Bank.

Unified Payments Interface (UPI) is developed by National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments system in India. According to BankBazaar CEO Adhil Shetty, “In the long run, UPI may replace the current NEFT, RTGS and IMPS systems as they exist today.”

This is how new UPI will work for you. A unique UPI ID is created by using your phone number that is linked to your bank account. This ID is just like an ordinary email ID. For example if your mobile number is 123456789 and you have a bank account with the Punjab National Bank, your UPI id may be 123456789@PNB. To send money from any party, all the sender has to do is open the banking app installed in his or her phone, go to ‘Send money’ section, and facilitate transactions through UPI mode. In the recipient details, the sender needs to add id of the recipient (for example 123456789@PNB). The money gets transferred instantly to the bank account of the recipient once approved by the sender.

Here are 5 things to know about Unified Payments Interface and how it makes customers life easy vis-a-vis payments

1. Since it has been launched keeping cashless transaction, you no longer will have to wait for hourly batches of NEFT to send or get funds or seek Mobile Money Identifier (MMID) code for IMPS transactions anymore

2. As RBI Governor Raghuram Rajan has said during its soft-launch in APril this year, UPI will turn your smartphone into a payment bank. All you need is a smartphone and your banking app to send and receive funds instantly or to make a payment while any retail purchase

3. Presently, sending or receiving money is done through either NEFT, RTGS, or IMPS system, which needs mandatory information of the recipient like bank account details of the recipient, the IFSC code of the bank, bank account number, etc. With UPI, only mobile number of the recipient is required for an instant transfer any time or day of the week using just your Smartphone

4. Shopping becomes less cumbersome even if you are not carrying or credit or debit cards. It allows you send and receive money as well as make use of its integrated payment system to make merchant payments. Transfer of money from your bank account can happen to merchant’s account instantly using UPI

5. UPI-based money transactions are available 24/7 including holidays. One can transfer money from India to any other country using UPI by just opening the banking app or UPI app. Once the app is downloaded you need to select the amount to be paid, add the unique id of your beneficiary, and select ‘Send’. After a confirmation password on your phone and you approval, funds gets instantly transferred to the recipient’s bank account.

  1. S
    Shweta
    Jan 6, 2017 at 1:38 am
    Our rural economy is basically based on cash transaction. There is a need of such app which can transact money through conventional phones. Otherwise you can be changed to SMS application.
    Reply
    1. A
      Asish Anthony
      Aug 30, 2016 at 10:20 am
      These days most of the people are doing cashless transactions. Websites like Paytm, MobiKwik, FreeCharge are providing coupons like Axis Bank Coupons, HDFC Bank Coupons, ICICI Bank Coupons and many more. But providing an app and making Transactions completely Cashless may or may not work. For that we have to wait and see.
      Reply
      1. R
        Rajesh A
        Aug 26, 2016 at 3:18 am
        Sounds good but I still see a lot of risistance by all th Marwari and Gujju shops and business owners who even frown at accepting creditcards even today! They in some cases say bank transaction fees of 3% or more!! What about them?
        Reply
        1. Raja Kumar
          Aug 25, 2016 at 12:24 pm
          Not sure how they handle it, if there are more than one account with the same bank and both accounts have been updated with same mobile number..
          Reply
          1. Sagar Mali
            Aug 26, 2016 at 6:35 pm
            UPI is a payment system that allows you to transfer money between any two parties.
            Reply
            1. S
              Shubhayu Khedia
              Aug 25, 2016 at 8:48 pm
              What will be the limit of amount that can be transfered in one day ... generally IMPS has less limit now a days ... and Will it require only OTP for verification
              Reply
              1. R
                Ranjan
                Aug 25, 2016 at 5:45 pm
                Any way the person intended is receiving money
                Reply
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