Reserve Bank of India have just launched a Unified Payments Interface (UPI), a Mobile Application enabled payment system for making transaction online to any bank 24X7 without using the account number.Customer of any bank may transact through UPI apps any transaction below Rs 1 lakh, even something as low as Rs 10.
Unified payment Interface, UPI services are currently launched by State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC
How Does Unified payments Interface (UPI) system work ?
National Payments Corporation of India (NPCI) who is the controlling authority for Mobile Based Unified Payments Interface has provided the Rupay Based platform for making transaction.
It will be as like the existing Visa and MasterCard transaction application which will allows different banks to interconnect and transfer funds through Mobile Banking.
In order to send or receive the money through Unified payments Interface (UPI) one need not to have the account number or any MICR or IFSC code. Even Aadhar enable is also not required.
Money will be send using the unique virtual ID. The virtual ID could be anything varies as per the requirement of different banks.
The common process of sending money through UPI, Unified Payments System will be as like below.
1. Download and Install Your Bank UPI Apps from Google Play Store or through Bank’s Specific sites
2. To send money to someone, you need to know only their UPI Virtual ID, Virtual ID will be created depends on any unique parameters like EMAIL, Registered Mobile Number. For an example if account number is 777555 and the bank is SBI then unique virtual ID would be 777555@sbi or 777555@syndicate, if your bank is Syndicate bank.
Through UPI payment there is no need for knowing the recipient’s name, their bank account number,and IFSC code (or bank branch).
3. Generate Mobile Pin or Mpin
4. Make transaction to any of the bank in India even to Online e shopping or mobile recharge.
Benefit of using Unified payments Interface (UPI)
There are many major benefit of using the Unified Payments Interface as like
5. There is no need for providing the account details or CVV code etc. This will save the hacking of account or phishing transactions.
6. UPI is immediate and 24X7 through out year. One can transfer any time.
7.The UPI can also be used for shopping online – instead of entering your debit card number, expiry date, and CVV code, One need to just enter UPI ID, and get an alert on phone to verify the transaction.
NPCI member 29 banks have already agreed to provide UPI services.
Read for More Specific documents on NPCI UPI : Here