Understanding of UPI

UPI is a payment system made for the digital world. You can make immediate payments at any time without waiting. UPI PINs work as a security net against all UPI payment frauds that might originate. To understand UPI fully, read this article further.

Some key features of the Unified payment interface (UPI):

It enables the immediate transfer of funds which makes it faster than NEFT.

It provides 24-hour transaction service even on holidays.

You can access various accounts through a single mobile application.

To initiate transfers you need a virtual permanent address which is a unique ID provided by the bank.

To set up the bank account in the application, One needs to put the information of the bank account like IFSC code, mobile number, and account number in the application.

To confirm each payment, mobile banking personal identification number (MPIN) is necessary.

UPI payment also allows USSD service where you can dial *99# and choose any services to send money or request money, fund transfer, balance inquiry,non-financial services, etc., with a service charge of 0.50 only.

It enables bill sharing service.

UPI is a perfect choice for utility bill payments, merchant payments, OTC payments, Barcode-based payments, in-app payments.

In the mobile application, one can directly complain or report an error.

One can transfer up to 1 lakh in a single UPI transaction.

What is the UPI pin?

UPI pin unfolds as a unified payments interface for personal identification. It is a 4 – 6 digit long identification number created by the user while registering in the application. Users use this pin to confirm the payments. It is meant to not be shared with anyone to avoid the chances of theft or fraud.

How to make UPI payments?

UPI payments allow you to transfer money immediately without any cost. There are multiple ways to transfer money. All you need is another party, whether a mobile number, UPI ID, QR code, or account number. Each method is explained below:-

Using a mobile number – Through the UPI payment application sending money is incredibly simple. You can send it just how you send a message. Just select the contact or enter the contact number of the receiver. Next, enter the amount you want to transfer, then your UPI PIN, and that’s it!. Your transaction will be completed in a few seconds.

Scanning QR code – Many shopkeepers or traders use QR codes in daily business now. You can even send money using these QR codes. To make the payment, first, open your UPI payment application. Click on “pay,” then click on “QR code.” Scan the QR code provided by the receiving party, enter the amount, confirm the payment by using your UPI pin, and you are done; payment will be made in a few seconds.

Using UPI ID – open your UPI payment application, enter the UPI ID of the receiver. After this, enter the amount you need to send, verify the transaction using your MPIN. Click on “enter,” and your translation will be done in a few seconds.

Using account number – This is the most traditional way of sending money using a UPI pin. After opening your UPI payment application, you need to enter the account number and IFSC code of the receiving end. Enter the amount and your UPI PIN and send.

Is UPI a safe platform?

The National payment corporation of India claims UPI is the safest platform for cashless transactions. As it follows safety guidelines features:

Safety while verification – mobile number verification in initial registration is acknowledged as an identification for the UPI account. In case of changing the mobile number, one has to reinitiate the verification process again. In the case of mobile phone theft or loss, one can block the mobile number to prevent further transactions from the bank account. It is like a safety net for identity errors.

Safety while transactions – During registration, one has to create a 4-6 digit long pin or mobile pin. This pin will be used to confirm every transaction. It helps authenticate the transactions and prevents someone else from using your app to make any transaction from your account, as only you know the pin.

Safety while authentication of other accounts: Another safety feature installed in the UPI system is to verify the authentication of the merchants, so one can prevent themself from fraud. You can find out if the other party is UPI verified or not through the application signed intent option. The QR tampering frauds are very low which enhances the security of UPI transactions.

Conclusion

In the above article, we learned how UPI made our payment system easy, safe, and cashless. We also learned how only a six-digit PIN can save us from troublesome situations like theft and loss. So make sure you don’t share your pin with anyone.