The Reserve Bank of India has taken a huge step toward making India a cashless economy by introducing the single payment interface of the National Payments Corporation of India (NPCs) (UPI). The change is a boost to the economy where there are growing numbers of e-commerce and mobile wallet players.
Not only would UPI make e-commerce purchases smoother, but it will also allow micropayments and transfers from person to person. Using a single identifier that would act as a web address and eliminate the need to share personal information such as bank account numbers, clients will be able to immediately pass money between various banks.
19 banks have collaborated with NPCI as a starting point. NPCI will serve as an umbrella body for all networks of retail payments and will provide UPI-based services. It is claimed to be one of the Indian finance sector’s greatest inventions. Raghuram Rajan hailed this move as one of the many developments taking place that will help retail clients in the financial sector. It is also projected to improve the country’s mobile banking ecosystem.
Post Contents
Free Fund Transfer
It was days where you were expected to split 5 percent of the transfer number. Mastercard and Visa also bill the dealer for 1-2 percent of the volume. NEFT and IMPS are not expensive, but the transaction will definitely be minimal. However, UPI is less costly. The cost is so poor it is liberated by the banks. Paysa is not a fee for most banks and payment applications.
But let me tell you that this payment form includes expenses. However, it’s just to facilitate the UPI Fund transfer that banks, NPCI, and smartphone apps pay. So, any changes can occur in the future. It is however sure that the conversion fee from the UPI Fund will be lower.
Privacy of Bank Account
You accept that there is a risk of theft in the convenience of an online transaction. Therefore, we are diligent to share our details of the account and card with everyone. This problem was solved by the UPI. It had found a way to move the funds without the bank number or card information being revealed.
You must exchange the bank account details with the IMPS and NEFT in order to receive the currency. The UPI scheme uses a UPI ID or VPA instead of the number of a bank or passport. But in this way, you don’t have to share the money account number.
All you have to do is enter the virtual payment address or UPI ID. Our email ID is identical to the virtual payment address. Ramesh45@icicibank, axis 9876543210@. Remembering this UPI ID is easy. In fact, by using the contact information, many mobile applications locate the UPI ID. Therefore, you don’t even need to know the charity’s UPI ID or VPA.
More Secure
Not all use the credit card. Not all use online transfer net banking. Citizens are hesitant because of security concerns to use cashless processes. What if you punch the PIN at the POS terminal and someone overlooks it. What if the credit card details were stolen from the website and used for the overseas purchase.
This problem has been solved by the UPI. It is actually safer than the current transaction mode. You never disclose your bank account data in the transaction via the UPI. Your credit card number or CVV is not reached. All you offer is a virtual payment address that gives no hint of your bank account. Authentication is also carried out on your mobile. You can quickly discover this by typing on your mobile. It is achieved by punching the UPI PIN.
Request Money
What is the way you can ask for the money if you have given a service or product and want to pay? You’re going to send or call a person. You’d agree it’s always difficult to get money from a person. Many reasons can be given. However, the UPI would give the biller more power and the client’s apologies would not be easy.
A message is sent to the party from UPI’s “Request Money.” It is sent via the bank. It just needs payment consent. The money would be transferred immediately if the client approves. If the consumer does not accept, it means that he/she will not pay. It will now be handled differently by the biller. Watch out, some fraudsters can send you an unwanted payment request. Therefore, accept only such genuine fees. Upon absolute guarantee just punch UPI PIN.
Smooth Transaction and No Loss of Interest
Although net banking and mobile banking enable the customer to take some tentative steps from a payee or beneficiary registration, OTP generation, etc. The same happens to smartphone and digital wallets, and money must eventually be exchanged through bank accounts via a long and repetitive process. UPI has an outstanding advantage over net banking because it reduces the hassle of transfers from third parties. UPI transfers money between bank accounts via smartphones in real-time. UPI places it under a single application instead of downloading various applications for many banks.
It just requires a unique ID that contains all information together with a PIN in an encrypted way. This means that each exchange does not need the client to provide information and therefore makes processes simpler and safer.
You spend money on your mobile wallet to pay the refund, paying the bill, shopping, etc. In advance. But it won’t gain any interest if you place your money in the mobile wallet. You will lose the amount of interest to ~$100000 in a mobile wallet for a month. In your bank account, you will have gained this number.
You won’t lose this confidence in the UPI because your money doesn’t leave your bank account. At the time of the transaction, the balance will be debited from the account. The wallet isn’t in the middle. The money moves between banks.
Final Words
Although banks were initially wary of payment wallets, the new digital wallets would undoubtedly have an upper hand over this UPI and streamline the entire process. On the other hand, along with the existence of UPI, the ATM sector will further improve, as it will carry more users into the digital era while maintaining their ATM accounts.
It is a guest post by Vishal Chaurasiya. He is head of content at Bestopdia and regularly publish product reviews with the help of experts. He has 5+ years of experience in content creation.
