The Top 7 Benefits of UPI and how does it work?
What is UPI?
“UPI” stands for Unified Payments Interface. It is an instant payment system that helps you transfer money from one party’s bank account to another party. An RBI-regulated entity named NPCI (National Payments Corporation of India) has developed UPI on the infrastructure of IMPS. The best part of this system is that the user can use any UPI client app and add multiple bank accounts to a single app.
How does UPI work?
The UPI interface allows you to make or receive payments to or from any account holder in a bank. From the convenience of your smartphone, you can access UPI and make payments without entering bank account details. Payment can be transferred or received by providing any one of the following: mobile number, Aadhaar number, virtual payment address, or other.
There are two types of UPI addresses for transactions; global addresses and local addresses. While VPA (Virtual Payment Address) or UPI ID is considered a local address, the Aadhaar number, mobile number, and bank account number are considered global addresses.
What are the benefits of UPI?
UPI is widely accepted in India
The same UPI app can be used for different bank accounts. All you need to do is link your multiple bank accounts with your UPI-based application. You can use any bank account to make payments as all the accounts can be accessed from one place.
Select your favorite bank or app
You can use any UPI to access multiple bank accounts. If you are using the Axis Bank UPI app, you can access any other bank account (e.g., SBI account or ICICI account). While choosing a UPI app, check the ease of use, interface, and availability of the desired virtual payment address.
Paying through UPI is easy
For Paying Merchants: You just have to give the VPA to the merchant and a message will be sent on the smartphone. Now, you just have to accept the payment amount after entering the PIN. Payment is made to the merchant.
To transfer funds: First of all, open the UPI app and enter the 4-digit passcode. Select the recipient you want to make the payment to, enter the payment amount, and enter the mPIN.
Round-the-clock availability and instant transfer
You can make instant payments or transfer funds with UPI 247. It is faster than both NEFT and IMPS. While NEFT can take up to 12 hours for money transfer, there is a minimum waiting period of 30 minutes for IMPS registration in IMPS. However, UPI is available immediately.
The transaction is completely free
There will be no extra charges. There are many places where we have to pay some Percentage for using cards. But on UPI payments Finance Minister Nirmala Sitharaman has said that no fee will be charged for payment.
There is no need to carry cash
There comes a time when we cannot carry much cash. Jet time is traveling for me somewhere. In today’s world, the fear of money theft remains with us. That’s why carrying cash from job to job can be the best plan. So, without carrying more cash than Asana, we can go anywhere from Asana.
Rescuer in an Emergency
Many times it happens that we have gone but, for some reason, we need more money. But if we do not have the aspiration for such an emergency, we do not go with so much cash. At such times, UPI transactions can definitely appear as a lifesaver.
UPI is better than carrying a wallet.
Wallets do not pay any interest for holding your money. When you use UPI, the money stays in the respective bank account. So you keep getting interested in the money you keep in the bank account. Hence, UPI is better than a wallet.
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