UPI is the buzzword of digital payments in India. You may have heard that it has powered most the payments apps in India. All the big names want to ride the UPI bandwagon. Every big bank has incorporated this payment system into their app. Even big names of international payments are endorsing it. Be it, Google Tez, Whatsapp or Samsung Pay, everyone is riding on the UPI.
Full Form of The UPI
The UPI Stands for the Unified Payment interface. As its full form denotes This payment system gives a common platform to all of the banks and financial institution. Using this platform, every account holder can transfer money to another account holder.
UPI = Unified Payment Interface
What is UPI? Meaning of UPI
UPI is a payment system. It facilitates the fund transfer between two accounts. In fact, it provides a platform/interface of fund transfer between two accounts. It has several unique features.
- It transfers money instantly.
- The UPI payment system is always available 24*7.
- The whole system works on the phone. The phone can be smartphone or feature phone.
- The fund transfer is based on the mobile numbers of the account holders.
- You can send money using the VPA (virtual Payment Address).
- It does not require your account details of the beneficiary.
- However, you can also transfer funds using the account number and IFSC code.
- You can also use Aadhaar number to transfer money.
The UPI payment system is available for both the Smartphone and Feature phone. Hence, you don’t need to worry.
UPI For SmartPhone
To Use UPI platform of fund transfer in a smartphone, you need a UPI mobile app. There are many UPI apps available. You can Find UPI apps for android as well as iPhone.
Once you install the app, you have to register it with the bank. Using your mobile number, the system finds out your bank account number. You can link various bank accounts with a UPI app. This linked bank account can be used to send and receive money. To send money you need the UPI PIN. You can set this PIN by using your Debit card. The Rupay Debit card is also eligible.
UPI For Feature Phone
UPI Payments system is also available for the feature phone. It means anyone can use the UPI. In the feature phone, UPI works on the USSD technology.
You have to dial a code *99# to use the UPI system. That is why it is also called as the *99# banking. It similar to the mobile balance check.
In this system, you have to follow the written instruction to transfer the fund. Initially, this *99# banking may seem difficult, but you would find it easy after few attempts.
Requirements To Use Unified Payment Interface
UPI is easy, fast and simple. But you have to fulfil some requirements to use this service.
- The sender and receiver both should have the bank account.
- The banks account should be linked to a mobile number.
- You must have the linked mobile number on the phone.
- The sender must have the debit card.
- There should be the validity/expiry date on the debit card.
Also Read: How to Use UPI Apps
BHIM and UPI Tango
The National Payment corporation has made the UPI payment system. It has also developed the IMPS. Initially, It was the responsibility of the banks to develop an app which can communicate with the UPI app. However, later the government pushed NPCI to develop its own UPI app. The NPCI made the BHIM. The government heavily promoted this app and it was a hit because of its simplicity. Now more people know BHIM than UPI.
To encash the popularity of BHIM, the NPCI added the BHIM term with the UPI. Now UPI is BHIM UPI. *99# service is now ‘BHIM *99#’. Even all the UPI based banking apps started to use the BHIM with their names. SBI pay is now BHIM SBI Pay. So if you want to download a UPI app, you should search for BHIM in the Google Play store.
Various UPI apps
The Banks can use UPI interface for money transfer. Only the can access the UPI system. That is why initially banks have launched the UPI apps.
However, banks can also let other apps use their system to access the UPI interface. That is why now there are many non-banking UPI apps are also available.
- BHIM SBI Pay
- BHIM PNB
- BHIM Baroda Pay
- BHIM United UPI
- BHIM BOI UPI
- BHIM Axis Pay
Non Banking UPI Apps
It was the Brief Introduction of the UPI payment system. You can also learn the benefits and the steps to use the UPI apps.