What is UPI ? The Payment System in Details

What is UPI?

UPI is basically known as Unified Payment Interface. As I told you the full form of UPI the meaning is also related with it. NPCI (National Payment Corporation of India) has introduced UPI for real time instant payment system.

What is UPI ? The Payment System in Details
Image Credit-- commons.wikimedia.org


Basically UPI is directly regulated by RBI (Reserve Bank of India) and used in inter bank transactions.

You can directly and easily send or receive payment from any bank using UPI. And now, in these days the use of UPI transactions are getting huge.

In India, All the payment gateways which accepts payment are now started using UPI payment system. And due to this, the digital transactions in India has led to a lot.

As you have heard or used the payment systems like Google Pay, PhonePe, Bhim, Amazon Pay etc, all these apps are using UPI system to transfer amount from bank to bank.

What is UPI ID?

Basically UPI id is a digital id or address to recognize a UPI connected with any bank account. As if you use any apps like Google Pay, Bhim etc, then these apps provides you an UPI id ending with their name. For example @ybl @upi, @apl, @paytm etc.

And the starting phase will be used as your phone number connected with your bank account or email address also.

UPI id provided by any app will be always unique as they can not assign single id to two people. Because these are used to transfer money and also they are connected with bank.

One bank account can be connected with multiple UPI apps and can have multiple UPI id but one app can provide only single UPI id. Which means if you created your UPI id on PhonePe then you can not create another UPI on PhonePe for that bank account.

What is BHIM?

Bhim is a mobile app which is based on UPI payment system and it is controlled by NPCI. BHIM is basically known as Bharat Interface for Money.

What is UPI ? The Payment System in Details
BHIM App


Using BHIM app you can easily send money to any bank account with the help of UPI id and also with account number and IFS Code.

You would be surprised to know one thing that whenever there was a money to be sent to someone, then you could take the bank account number and IFS code and then go to the bank branch and send the money after filling the form and that too after Sunday or office time. We could not send it after, but after UPI arrival, you can send money anytime in 24 hours.

What is UPI Pin?

When you start using BHIM app or any other payment apps based on UPI payment system, after installation you have to setup UPI pin for login or security verification before payment transfer or transaction.

What is UPI ? The Payment System in Details
UPI Pin

UPI pin used when you try to transfer money from your bank to another using UPI then pin is asked before payment to verify that it is you who is transferring amount and no one can use your credentials. 

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6 Comments

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