Do you know what is UPI and how it works? For the past few days, all of us are facing difficulties in doing money transactions because the Prime Minister of our country, Shri Narendra Modi, has taken strict steps against corruption and has stopped the old 500 and 1000 notes.
It is obvious that due to this decision, the bribes will be getting rid of the sweat, but along with this, the common man is also facing a lot of trouble. In view of these problems, the Prime Minister has given another suggestion to us that now all of us should promote a cashless economy.
Cashless economy means that now we should make online payments except for the transaction of money by hand.
Moving towards cashless economy is not so easy, but every difficult thing becomes easy by trying. We all know the importance of Internet, but still there are many such places in our country where people do not have this facility till now.
And there are many people who know about the internet but do not know how to use it in a good way like elderly people. So in such a situation, it is the duty of the youth like us to teach them to use the internet which can be of great help in their everyday life.
Now the thing is that if we want to make online payments by leaving money transactions, then how can we do that, there are many mobile applications through which we can do online money transfer with the help of mobile like Paytm, Mobikwick, Freecharge etc.
Many of you must have used one of these to do mobile banking. Apart from these apps, there is another way through which we can easily do mobile banking, from anywhere at any time 24 hours a day, whether it is a holiday or not, you can do money transactions comfortably and its name is UPI.
Today we will know about what is UPI and how it works from this article.
What is UPI?
The full name of UPI is Unified Payments Interface. This is such a method with the help of which you can send money from your bank account anywhere at any time, to your friend’s account or relatives’ account, and even if you have to pay someone, you can easily use UPI. Will be able to give money with help.
You can make any kind of payment with the help of this, like if you have bought some goods online, then you can pay with UPI or if you have made some purchases by going to the market, you can still use UPI.
Taxi fare, movie ticket money, airline ticket money, mobile recharge and DTH recharge, you can make all these payments through UPI. And it will transfer money from your bank account to the other’s bank account very fast and immediately in front of you.
The initiative to start UPI has been taken by NPCI. The full name of NPCI is National Payments Corporation of India, this is the organization that currently manages the ATMs of all the banks in India and the interbank transactions happening between them.
For example, if you have an Axis bank ATM card, then you can withdraw your money by going to ICICI bank ATM. NPCI takes care of all the transactions happening between these banks.
In the same way, with the help of UPI, you can also send money from one of your bank accounts to the account of the other bank.
How to use UPI?
To use UPI, you must first install its apps on your Android phone. There are many bank applications available that support UPI such as Andhra bank, Bank of Maharashtra, Axis bank, ICICI bank, etc.
You have to go to the Google Play Store on your phone and find and install the UPI app of the bank in which you have an account. After installing it, you have to sign in to it, then create your account by giving your bank details there.
After that you will get a Virtual ID, there you generate your ID, it can be your aadhar card number or can be your phone number or it can be an address like an email id (like sabina @sbi) After doing just that, your work is over there.
After creating an account in your UPI, you can easily send and take money.
How does UPI work?
UPI is based on IMPS i.e. Immediate Payment Service system, which we use while using other net banking apps on mobile.
This service can be used every time, every day even on holidays. And UPI also works on this system, but here the question arises if UPI and all other types of net banking apps work based on the same system, then what is the difference between them?
UPI is different from all those apps, how? I want to tell you this by giving an example.
- What is bitcoin and how does it work?
- What is IMPS and how does it work?
Suppose that you are in dire need of money for your friend or relative and you have to send money to them as soon as possible, then what did you do in earlier apps, you log in by opening those apps, then the person to whom you want to send money He has to add.
While adding, many details have to be entered and for that, you should know all the banking details such as you should know the account number of that person, then his IFSC code, branch name, etc. It takes time.
But all these things are not required in UPI, you just have to enter the UPI ID of the person about whom I told you above and you can easily send money by selecting how much money to send.
Neither the hassle of entering any bank details nor it takes much time and the person in front does not even need to tell which bank his account is in or with which name his account is registered. Without knowing all this, we can send money quickly and safely with the help of UPI.
There is also a limit on sending money in UPI and that limit is Rs 1 lakh per transaction and the fee for sending money is 50 paise per transaction, this is a very small amount that means you will not have to spend much money to send money and You will also be able to take advantage of instant money transfer.
List of UPI Enabled Banks
- State Bank of India
- Kotak Mahindra Bank
- ICICI Bank
- Andhra Bank
- Axis Bank
- Bank of Maharashtra
- Canara Bank
- Catholic Syrian Bank
- Federal Bank
- Karnataka Bank KBL
- Punjab National Bank
- South Indian Bank
- United Bank of India
- UCO Bank
- Union Bank of India
- Vijaya Bank
- IDBI Bank
- RBL Bank
- Yes Bank
- Standard Chartered Bank
- Allahabad Bank
- Bank of Baroda