What is UPI? How it Works & Benefits of UPI

It takes a lot of time to do online transaction with NEFT and also it cannot be done 24*7. But IMPS is better than this in all these cases because transactions can be done in it anytime whether it is Sunday or any holiday.

If you want to transfer money to someone’s bank account now, then all the details are needed for his Bank Account No, Account Type, IFSC Code, Branch Name.

Even after having them, adding a new account by typing in the mobile phone seems to be a difficult task. Even after you add, you have to wait a few hours to transfer the new Payee account.

This is where UPI takes the lead. UPI is such an interface with the help of which people of any bank account can send and receive money from their smartphone to others, they just have to use their aadhaar number, mobile number and VPA.

To transfer money from UPI, you just need UPI ID. You just have to fill the money as much as you have to transfer.

As soon as you transfer the money will immediately go to the next person’s account. Here neither the account number, nor the IFSC code, nor the branch name is required.

Money can be sent without knowing which bank account is being sent using UPI and what is the name of the account holder.

The overall thing here is that if you have a UPI ID, then you can transfer money at the same time without any details and it is a very safe method.

A limit has also been kept for transferring money through UPI i.e. you can send 1 lakh rupees per transaction. And for this you also have to pay a fee which is 50 paise. If seen, this is a very small amount to send money so quickly.

What is UPI address?
The address which is something like this wasim@paytm. This address is called UPI ID. It is directly linked to our bank account.

That is, only if we have such an address of any of our friends or relatives, then we can directly transfer money to them in their account.

How to create and use UPI ID?
To use UPI, first you have to generate UPI ID. To generate ID, you have to install Bank’s application in your mobile phone or you can use UPI ID generation application apart from Banks.

So you can install net banking app or UPI related application according to your bank account by going to Google Play Store.

After installing, you can sign in with the help of your net banking user ID and password. If your bank provides UPI service, then you will definitely get the option of that, you have to go there and create your ID. Like my UPI ID.

Apart from Net Banking Application, there are many apps in which you can create your UPI ID which will generate UPI ID for you by doing registered mobile number linked to your bank, then you can use that ID whenever you want to make money transactions. can give.

BHIM, Google Pay, Phone Pe are the best and secure apps for this.

How to generate UPI:
Install any app from BHIM, Google Pay, Phone Pe after that enter your mobile number.
It will check the accounts associated with your mobile number and if there is an account associated with the mobile number, then it will show you.
If more than one bank is registered with that number, then now you select the bank account.
After this you have to set 4 digit MPIN or Passcode. Which you have to use every time to login.
Now you are ready to use UPI.
Benefits of UPI
Friends, we have come to know so far what is UPI and how it works. This is a service that has been started by the Government of India and has been started especially for the convenience of the people.

We have benefits from this, so let’s know that if we want to use UPI, then what will be the benefit to us.

Cheapest money transfer service
UPI is the cheapest way to transfer funds. In NEFT and IMPS also we have to pay minimum 2.5 fees.

But to transfer money from UPI, it takes us very little money which is 50 paise.

There are also some applications that do not charge for fund transfer like Google Pay does not charge any money for fund transfer.

Relief from cash transactions
By the way, now there are many such ways in our country by which we can do money transactions. There is no need to keep cash in pocket.

So earlier there was a danger that when we had to pay a heavy amount in the form of cash, then it was very dangerous to carry it from one place to another.

Now is the time that you can send any huge amount from your phone sitting at home.

Details are not required
To transfer funds, apart from UPI, all other methods must have the account information of the person to whom you want to send money.

There are many mobile users and they do all the work from the smartphone itself, so adding the bank details of New Payee and waiting for confirmation seems very difficult.

This is the most beneficial thing in UPI that we just need ID for fund transfer and not bank details.

UPI App Selection
It is not necessary that you can use only one UPI. It is not like this at all, if you want, you can use any app that provides the service of Unified Payment interface.

Multiple accounts in one UPI ID
If you have registered many bank accounts with only one mobile number, then when you create UPI ID, you can use many banks simultaneously with the same ID.

You also get the option to choose the bank in it.

Instant Transfer
The service of UPI is based on IMPS and IMPS is instant money transfer service.

It can be used 24*7 anytime. And after paying, the money reaches immediately. Whereas in other services it takes some time after sending money.

Summary
We learned in today’s post that now only debit card, credit card, online banking is not necessary, apart from this new options have also come so that we can do money transaction.

Everyone wants everything to be done easily. Bank details have to be added to do online internet transactions.

But today just a code which is generated through UPI, the transaction is done with that. The shorter the transaction process, the easier it is for people.

Through this post, you also learned that what is UPI address, how it works and what are its benefits. Such a time has come that people have less time and want to do everything as soon as possible