Umesh Kurmi is a semi-qualified Chartered Accountant from the Institute of Chartered Accountants of Nepal. He has seven years of experience.
UPI Full Form & Meaning in Banking
The full form of UPI is the Unified Payments Interface.
The Unified Payment Interface (UPI) is a platform that allows online and offline payments to be made between two or more banks. This platform was created in light of the rising number of bank-to-bank exchanges, which was causing a significant degree of processing and settlement costs. The UPI facilitates these payments by creating an open, standard payment protocol.
With this platform, customers can make payments using their bank account, mobile phone number, or UPI-enabled merchant account. This service is helpful for clients who need to make consistent and secure disbursements without inputting various data each time they make a buy.
If your business processes a high volume of transactions, then you need to be using the Unified Payment Interface (UPI). UPI applications are quick, simple to utilize, and secure. Figure out how to get everything rolling with the UPI in this blog.
Who started UPI?
The National Payments Corporation of India (NPCI) started UPI. Reserve Bank of India and the Indian Banks Association (IBA) likewise assumed a significant part.
NPCI, which is similar to MasterCard and Visa, manages the RuPay payment infrastructure. It enables various banks to communicate with one another as well as transfer funds.
Another NPCI initiative is the Immediate Payments Service (IMPS). UPI is presently considered a further developed form of the IMPS office.
UPI Full Form in Hindi
Unified Payment Interface (UPI) apps allow you to make payments from your smartphone without having to open any additional apps. To use UPI apps, you need an account with one of the participating banks and a UPI-enabled bank account.
How to make payment with UPI is dealt with in the subsequent sections.
The apps that support UPI are listed below:
- BHIM app
- Google Tez
- Paytm Payments Bank
- SBI Pay
- Axis Pay
- BOB UPI
How to make UPI Payments?
Through the UPI application, you can send money, pay bills, and make money requests.
PUSH transaction implies sending cash utilizing a virtual location
- Client logins to UPI application
- Chooses choice for installments
- The client enters the recipient's virtual location and adds up to send.
- The client enters a PIN to permit the exchange.
PULL transaction implies requesting cash utilizing a virtual location
- Clients sign in to the UPI application.
- Makes choices for gathering cash
- The client enters the payer's virtual id, sum, and record to be credited.
- Payer gets a warning for mentioning cash.
- The payer taps on acknowledging or declining after checking on the solicitation.
After a fruitful exchange, both the client and payer get affirmation from the bank.
How to Use UPI?
Why is UPI Unique?
- It permits prompt cash exchanges through cell phones 24*7 for 365 days.
- One requirement is a solitary portable application for getting to various bank accounts
- Single tick confirmation permits consistent exchange
- Clients need not enter account no. and other details as a virtual address is utilized in UPI payments
- Exchanges can be shared right away
- It is an option for cash exchanges and clients need not rush to ATMs for cash
- Vendors can be paid with the utilization of a solitary UPI application
- Service charges, Utility bills, counter installments, and barcode-based payments all should be possible through a solitary UPI application getting to various account balances in no time
- On account of payment, disappointment concerns can be raised inside the application as it were
The following participants are needed to accomplish a UPI transaction:
- Payer PSP (payment system player)
- Payee PSP
- Remitter Bank
- Beneficiary Bank
- National Payment Corporation of India
- Bank account holder
UPI has many benefits. The benefits of UPI are listed in the following sections:
- Single click two-step confirmation process
- General application for exchanges
- It is protected, secure, and innovative
- The remarkable identifier for transactions
- Consistent merchant transactions
- 24X7 accessibility
- Single mobile application for getting to various bank balances
- No accreditation sharing is expected as UPI utilizes virtual addresses
- Single-tick application
- Clients can raise a worry through inbuilt exchange disappointment highlights
- Seamless fund assortment from clients through a solitary virtual location
- No requirement for storing clients' identity ie. Virtual locations
- Admittance to clients not having credit or check cards
- Appropriate for online business and m-commerce organizations
- Settle the issue of adjusting payments as an accurate sum can be paid through advanced mode
- In-application element of installments to sellers and clients
Registration in UPI Application
In the first place, download the UPI application from any bank's site.
Make your profile by entering subtleties like an account number, secret key, UPI pin, and so forth.
Finally, you can add/connect/deal with your bank through the UPI application.
See also UPI In Nepal: How to use UPI in Nepal?
UPI Supporting Banks
The banks that offer the UPI services are given underneath:
- Airtel Payments Bank
- Andhra Bank
- Bank of Baroda
- Allahabad Bank
- Bank of India
- Canara Bank
- City Union Bank
- DBS Digibank
- Federal Bank
- HDFC Bank
- Indian Bank
- ICICI Bank
- IndusInd Bank
- State Bank of India
- Kotak Mahindra Bank
- Union Bank of India
- Paytm Payments Bank
- YES Bank
- Punjab Nation Bank
What is UPI 2.0?
UPI 2.0 is a new and impending form of the UPI payment framework that incorporates upgraded elements and advantages. It is promoted as a safer and far-reaching facility with a less difficult verification process.
Upcoming Features of UPI 2.0
Even though the UPI application is packed with highlights, UPI 2.0 vows to be a preferred instrument over its ancestor. Here is a part of the new features set to be introduced in UPI 2.0:
Users can currently transfer funds via the UPI system to anyone who has a bank account. However, UPI 2.0 promises to include the ability to pay utility bills through the UPI app. Electricity, telephone, insurance, mobile, credit cards, and even EMI collection bills can be paid off using this app at any time and from any location. According to recent reports, two banks are planning to launch the feature very soon. To facilitate bill payments, UPI will integrate the Bharat Bill Payment System.
By introducing the pre-authorized transaction feature, UPI 2.0 eliminates the problem of forgetting about pending bill payments. For bill payments that must be made regularly, the user can authorize those billers to withdraw the bill amount before the bill due date, allowing for stress-free bill payments. The number of automatic payments can likewise be confined, with the choice to indicate the maximum sum limit and the relevant date. Pre-Authorized Transactions are also applicable to EMIs.
With the introduction of fingerprint mapping technology and an iris scanner in UPI 2.0, UPI-based payments will become more secure. With the help of the Aadhar service, the facility of biometric payment authentication would be introduced. Because UIDAI has already collected biometric identification for the majority of Indian citizens, that database can be used to authenticate a user's identity. Phones equipped with fingerprint scanners and high-quality cameras capable of capturing iris images can be used for biometric authentication, effectively replacing the less secure MPIN.
Keep an eye on Speed of Transaction:
UPI 2.0 intends to include velocity checks for UPI transactions. These checks are in place to ensure that fraudulent transactions are detected and, ideally, prevented from taking place. Some banks in India are already using velocity checks to improve security. Including this feature in UPI 2.0 would greatly improve its dependability. A suspicious transaction can be reported to the bank and the client via the UPI application.
If your mobile number is linked to other people's bank accounts, such as those of family members, the current UPI app displays an error. The phone number must be unique to a person for UPI to function. This problem is being addressed by UPI 2.0.
Currently, the UPI payment system does not support payment schedules. However, UPI 2.0 is set to include this feature, providing much-needed flexibility to the current system.
Aadhaar Based Payments:
UPI 2.0 would allow payments to be made using Aadhaar numbers. Aadhaar numbers are more unique to an individual than mobile numbers, which may have been owned by multiple people before you. In addition, various banks have begun to link accounts to the account holder's Aadhar, making it easier to facilitate transactions directly from bank accounts.
e-RUPI Launch in India
PM Narendra Modi launched e-RUPI, a contactless, prepaid, electronic prepaid framework. e-RUPI will be conveyed straightforwardly to recipients of expected government assistance plans by government organizations and partnerships as SMS strings or a Quick Response (QR) code.
It went into effect on August 2, 2021. The goal of e-RUPI is to reduce corruption by ensuring leak-proof delivery of welfare services. The service can be used by the private sector for its own corporate social responsibility initiative (CSR). e-RUPI is a type of e-voucher that is delivered via mobile phone and is based on a QR code or SMS string. e-RUPI will serve as a forerunner for the future Central Bank Digital Currency (CBDC) that the RBI will launch, as it will aid in identifying gaps in the national digital payment infrastructure.
On December 1, 2021, Financial Software and Systems (FSS) integrated e-RUPI for financially underserved segments of society. The Government of Karnataka has partnered with NPCI to offer student scholarships via e-RUPI, which can be received on feature phones as well.
E Rupi's cashless and contactless payment system is available to users. A division of India's National Payment Corporation is responsible for all aspects of computerized payment processing and settlement. The Indian government has implemented an electronic e-voucher framework in our country because this was done through the internet. As a result, you won't need a debit or credit card to make payments.
There were, however, a variety of other payment options. Nonetheless, residents have previously reported cases of online extortion. As a result, the government should now try to implement a leak-proof method of paying its clients. Currently, an individual can make a payment with little difficulty or risk of fraud. Furthermore, India's central government has made all payment processes for residents straightforward.
Most assuredly, the UPI application has made payments much more straightforward than previously. It wouldn't be inappropriate to say that with such an application, we are gradually moving towards the paperless economy and digitalization that will assist us with achieving our objectives.
Please give your answer
For each question, choose the best answer. The answer key is below.
- What is the full form of UPI
- Unified Payment Interface
- United Payment Information
- Both of the above
- None of the above
- Unified Payment Interface
FAQ's on UPI
What exactly is UPI?
UPI is a standalone platform that brings together a variety of financial services and makes them available in one location. To send and receive money, all you need is a UPI ID and PIN.
What does UPI stand for?
UPI stands for Unified Payments Interface in its full form.
What makes a UPI ID distinct from a UPI PIN?
A UPI ID is a special identifier for a bank account that can be utilized to send and get cash. The UPI PIN is a four-digit personal identification number that must be entered before a money transfer via UPI can be authorized. The account holder can choose this PIN.
Is UPI safe to use?
UPI transactions use a highly secure encryption format that is difficult to decrypt. Every transaction is also verified using a two-factor authentication method, such as an OTP.
Is the UPI a free service?
UPI is at present a free method for sending cash starting with one bank then onto the next, however, this could change from here on out.
Is it necessary to download your bank's UPI app?
No. Any UPI application can be downloaded by clients. It could also be your bank's or another bank's app.
What should a user do if a UPI transaction fails but funds are debited from their bank account?
The money will be credited back to the user's account within one hour in such cases. Please contact customer service if the money has not been refunded after this period.
Even though the transaction is still pending, money has been deducted from my account? All in all, what would it be a good idea for me to do now?
In by far most cases, the transaction would have been finished. If there are server issues at the payee/beneficiary backend, the pending status will be displayed. On the off chance that the issue isn't settled in somewhere around 48 hours, contact customer service.
Is it possible to have multiple UPI apps on a single smartphone, each linked to a different bank account?
Yes. A bank account number can be linked to multiple UPIs, each of which can be linked to a different bank account number.
What mobile platforms are UPI compatible with?
Both Android and iOS devices
What steps do I need to take if I want to file a complaint?
A complaint can be made directly through the UPI app.
What will happen if I enter an incorrect UPI PIN?
The transaction will fail if the user enters an incorrect UPI PIN.
What should I do if the UPI app does not recognize my bank name?
The first step is to double-check that the mobile number and bank account are linked. Otherwise, the app will be unable to recognize the bank, and the linking process will fail.
Is it possible to make payments to merchants using UPI?
Yes. If the UPI option is available, payments can be made online on e-commerce sites.
Is it possible to make a money transfer on a holiday?
In UPI, what is VPA?
A Virtual Payment Address, or VPA, is a one-of-a-kind identifier that a user creates to send or receive money via UPI. When a user's UPI ID is linked to a UPI-enabled bank, they can receive money in their bank account. They will not be required to share their account number or any other financial information.
Is it possible to link a single UPI ID to multiple accounts?
Yes, a single UPI ID can be used to link multiple bank accounts.
Is it conceivable to send cash to somebody who doesn't have a UPI account?
Yes, the receiver's bank account number, IFSC code, and account holder's name are required.
Is a UPI pin the same as a PIN for an ATM?
No, UPI and ATM PIN are not interchangeable terms. A UPI PIN is generated when you enroll a bank account with the UPI application, whereas an ATM PIN is generated when you receive a Debit/Credit Card.
What are the advantages of using UPI?
UPI has several advantages, including the ability to check your account balance and transaction history at any time, as well as send and receive money using a single mobile application.
In UPI, what is a QR Code?
A QR code is a one-of-a-kind code that contains data. It's a one-of-a-kind code because it's linked to the merchant's bank account. You can make a direct payment to the merchant's bank by scanning them.
What are the differences between the two types of QR codes?
A static QR code is usually pasted on the counter of a store. Data can be encoded in static QR codes. Another is dynamic QR code. Every time a merchant needs to make a payment, a dynamic QR code is generated.
Is it possible to make UPI payments using a QR code scanner on any code?
Yes, you can scan any QR code to make a payment directly from your bank account.
In UPI, what do you mean by mPIN?
mPIN is another name for UPI PIN. To send money via UPI, you'll need a 4- to 6-digit password.
What should I do if my UPI doesn't work?
There are several reasons why your UPI isn't working, including a bad internet connection, an incorrect mPIN, or incorrect account information.
What is UPI's Aadhaar Pay Feature?
NPCI has recently made payments without a mobile phone possible by allowing customers to use their Aadhar card and biometric information to make payments at select merchant outlets. These transactions are right now dependent upon a constraint of INR 10,000.
What authentication method is used for UPI transactions?
Each transaction is approved using a two-factor authentication method involving an OTP and a UPI PIN.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2022 Umesh Kurmi