What is Unified Payments Interface, or UPI?
It’s a hassle-free way to pay someone or receive money. All you need is smartphone and the recipient’s virtual ID.
It’s a brand-new way of enabling person-to-person money transfers.
Payments can be made across all participating banks and all accounts.
Make payments to friends, to shopkeepers, to the delivery boy instead of cash on delivery, and on merchant websites.
Set a reminder for making a payment or receiving one.
UPI allows you to load money on to mobile wallets.
Available only for Android-based smartphones, you’ll have to download an UPI app from the Google Play Store.
This app can be of any bank. It is not necessary to download an app from your own bank to join UPI.
The next step is to authenticate your mobile number through an SMS (will be done automatically by the app).
Create a passcode to restrict access to the application.
What is a virtual ID?
This the biggest advantage of UPI:
It does not require an account number, or bank details, or IFS code for payments.
Users will have to create a virtual handle (with the UPI application) which will read as (for example) yourname@AxisBank or MobileNumber@AxisBank.
The virtual ID will be enough for funds transfer.
Add the beneficiary’s virtual handle, put in the full name and fill in the transaction amount.
Money transfer happens in real time. (This means the recipient also needs to be on the UPI platform.)
Add the person’s virtual handle, fill the amount requested and also set a deadline for the alert before sending the request.
While checking out from the shopping site, UPI will also be displayed as a payment option along with debit card, credit card and net banking.
Select UPI to get an alert on your mobile phone, punch in your M-Pin to authenticate the transaction from your phone and transaction will go through.
Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES Bank.
IDBI Bank and RBL Bank do not have their UPI apps yet but their accounts can be connected to UPI apps of any of the other banks.
For more details: http://www.npci.org.in