What do you need to know about UPI?

Making payments is no longer a hassle with the recently introduced UPI system by the National Payments Corporation of India with the founder, Reserve Bank of India. It came into operations on 11 April, 2016. This is a single payment platform which powers a number of banks together in order to provide services to customers. There are 30 banks that have joined this system. These include public and private sector banks such as HDFC Bank, Axis Bank, Punjab National Bank, ICICI Bank, State Bank of India and many others. The main aim of UPI is to enable transfer of money between two bank accounts with the use of a smartphone.

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With the use of UPI, you don’t have to type out all the details of your credit card or any other for the purpose of any transaction. This is because you can make direct payments through this app from one bank account, either online or offline, to different merchants. Every participating bank has its own UPI app which is available on Google Playstore. If you are wondering what kind of transactions can you make on this app, well, it could be anything such as paying for your child’s tuition fees or payment to any other person that you need to make from a vendor to a relative.

There is no time restriction when it comes to the functioning of Unified Payment Interface. There is a transaction limit on the use of UPI which is Rs. 1 lakh on every transaction. In terms of safety of the app, it is very secure and reliable. It is only the virtual address of the customer that is shared. There is no other information that is revealed. After the announcement of demonetisation, UPI comes across as a great mode of payment for many people in the country. For example, you can use Axis Pay if you have a bank account with Axis Bank for transactions.