All about UPI transactions for you to know
UPI stands for Unified Payments Interface. Introduced by the NPCI (National Payment Corporation of India), UPI allows you to transfer funds to another account within seconds. In contrast to IMPS, RTGS, and NEFT, UPI is far more standardised and well-defined across banks. It means you can use the UPI money transfer service from anywhere at any time to perform a quick transaction with a click.
The significant benefit of using the UPI facility is that it permits you to pay directly from your bank account. UPI eliminates the need or hassle to input your card or bank details for transactions.
With zero hassle, you can use the UPI money transfer option to transfer funds to your companions, family, and even between your bank accounts. Much wider utilisation of the UPI app or this facility occurs when you require paying merchants.
mPIN in the UPI system
An essential advantage of using UPI is you can do away with the requirement of waiting to receive an OTP to input the same to make your money transfer. UPI requires you to input mPIN, a four- or six-digit password that you require inputting every time you make a transaction.
In UPI, mPIN is extremely important and valuable as you do not need to input the IFSC codes and other vital details every time you want to receive or send money. Note that mPIN is the detail that any UPI app would need to confirm your identity.
What are the critical features of UPI?
UPI facility is useful owing to its easier and simpler use than debit or credit cards. Besides being a convenient and easy transaction system, UPI comes with other crucial benefits and features. These include:
- Reliability – As the NPCI introduces UPI, one of the significant features linked with it is reliability. With the UPI facility, you get enhanced control over fund transfers and can rely on this service as it is backed by NPCI, an initiative of the Reserve Bank of India (RBI).Additionally, every major bank in India, including IDFC FIRST Bank, offers the UPI payment facility to help you quickly transfer funds.
- Real-time fund transfers – The next crucial feature linked with UPI is that all transfers happen in real-time. You, as a customer, only need to unlock your UPI app using the mPIN. Once you unlock the app, you must input the fund you want to transfer and hit the send button, and the concerned beneficiary will receive the payment in a few seconds.As an outcome, daily activities like purchasing groceries, taking a cab or auto from work, or paying your companion are convenient and simple.
- Zero minimum transaction limit – UPI does not have a minimum transaction amount. After your bank registration on the UPI app, you can make payments of varying amounts. Using the IDFC FIRST Bank mobile banking app, you can transfer any amount using the UPI feature.
In India, UPI is used widely by many for receiving and sending money, making merchant transactions and bill payments. Introduced in 2016 by the NPCI, UPI has made life simpler and easier than before. Now, making payments instantly is possible around the clock.