What is Unified Payment Interface?
Unified Payment Interface (UPI) is developed by National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments system in India.
How does it work?
This is how new UPI will work for you. A unique UPI ID is created by using your phone number that is linked to your bank account. This ID is just like an ordinary email ID. To send money from any party, all the sender has to do is open the banking app installed in his or her phone, go to ‘Send money’ section, and facilitate transactions through UPI mode. In the recipient details, the sender needs to add id of the recipient The money gets transferred instantly to the bank account of the recipient once approved by the sender.
- UPI will turn your smartphone into a payment bank. All you need is a smartphone and your banking app to send and receive funds instantly or to make a payment while any retail purchase.
- Since it has been launched keeping cashless transaction, you no longer will have to wait for hourly batches of NEFT to send or get funds or seek Mobile Money Identifier (MMID) code for IMPS transactions anymore.
- Shopping becomes less cumbersome even if you are not carrying or credit or debit cards.
- UPI-based money transactions are available 24/7 including holidays.
The UPI app will be available on the Google Play Store in next two to three working days for the customers to download and start using for 19 banks.