UPI-Money transfer

Send money up to Rs 1 lakh to any bank account through your mobile without entering debit/credit card details, netbanking/wallet password or even knowing the receiver’s account number. This is not magic, it is called Unified Payment System.
Launched by retail payment platform National Payments Corporation of India (NPCI) – backed by the RBI, the UPI app user need not remember the 15-digit bank account number or the 11-digit IFSC code (used to identify bank branches).Instead of account details, the receiver can merely share a virtual address, which can be your name, or your phone number and the sender can transfer money. For example, if your name is abc, the your virtual address could be abc@axisbank or abc@icicibank; if your phone number is 1234567890, then your virtual address could be 1234567890@axisbank or 1234567890@icicibank and so on.

On Thursday, the RBI approved the Unified Payment System (UPI), a common platform which links your bank account number to a virtual payment address, effectively making money transfer as easy as an SMS.

 

How UPI will make money transfer super easy
How UPI will make money transfer super easy

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.

What all can you do
What all can you do

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.

Getting started
Getting started

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.

Create a virtual ID or handle
Create a virtual ID or handle

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 your account
Add your account
Connect your bank account to the downloaded app. Register your account number, name and the last 6 digits of the debit card along with the expiry date. This needs to be done only once.
How to make payments
How to make payments

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.)

How to ask for payments
How to ask for payments

Add the person’s virtual handle, fill the amount requested and also set a deadline for the alert before sending the request.

Paying on merchant websites
Paying on merchant websites

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.

Banks live on UPI
Banks live on UPI

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

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