Lately, a lot of changes have been happening around us especially in
the way our country’s economy is functioning. Every new day brings new
announcement about the way we transact our daily money requirements. The
whole hungama started with the announcement of starting of UPI by our
ex RBI Governor Raghuram Rajan. He stressed for the need of making
simple money transfer rather having to use multiple loaded applications
or digital wallets. Having discussed the simplicity of digital wallets
let us this week look at how simple is the working of UPI.
What is UPI?
UPI
stands for Unified Payment Interface. It is arrangement to transfer
money between any two bank accounts using a smartphone launched by NPCI
(Authority responsible for all retail payment system in India).
Currently is available on Android platforms but would soon be seen on
Apple platform also. It is expected to replace the need to store
multiple applications and widgets in the phone. RBI has mandated all the
banks to make the UPI available to all their customers and currently
around 19 banks have already introduced this system. It is expected to
redundant all the digital transaction tools including digital wallets
and reduce the usage of physical cash too.
The main motive of
introducing this system is to focus on aam aadmi, who doesn’t use debit
cards or credit cards on large scale or doesn’t have any digital wallets
to make payments. It is to bring more people inclusion in the financial
world. It would create a universal money transfer system, where money
can be seamlessly moved across. It is a big revolution in banking which
is expected to over the time even replace NEFT, RTGS and IMPS services
which require various details for making fund transfer.
Mission Statement
To
ensure payment and settlement systems in the country are safe,
efficient, interoperable, authorised, accessible, inclusive and
compliant with international standards.
Vision
To proactively encourage electronic payment systems for ushering in a less -cash society in India.
Source – NCPI / RBI Payment System
a) Easy to use- as simple as sending a text message to someone via your mobile
b) It is mobile based application- with around billion users of mobile phones in India and expected to double users in next years, this first on mobile payment system is very useful.
c) Quick and 24 x 7- the transfer of funds happens in few seconds of initiation and is available for all day long.
d) Interoperable – the system can be used to transfer funds across any bank accounts without need of any major account details of the receiver.
e) The UPI allows receiving and sending funds using the application. The use can create various MPIN logins from the registered mobile number across multiple bank accounts.
f) It is useful for making remittance, payment to relatives, useful for online merchant payments or even for making payment of your utility bills.
b) It is mobile based application- with around billion users of mobile phones in India and expected to double users in next years, this first on mobile payment system is very useful.
c) Quick and 24 x 7- the transfer of funds happens in few seconds of initiation and is available for all day long.
d) Interoperable – the system can be used to transfer funds across any bank accounts without need of any major account details of the receiver.
e) The UPI allows receiving and sending funds using the application. The use can create various MPIN logins from the registered mobile number across multiple bank accounts.
f) It is useful for making remittance, payment to relatives, useful for online merchant payments or even for making payment of your utility bills.
Steps to start with UPI?
(Source – NCPI website)
So go ahead and make your plunge in the digital world. Enjoy the newly discovered joy of easy transactions.
Thanks and Regards
Team
Email: saarthifp@gmail.com
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