UPI - What is UPI - Featurs, Participants, Registration, Send and Recieve Payments

What is UPI - 

Unified Payment Interface (UPI) is a system that power accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund round & merchant payments into one hood.

It also caters to the "Peer to Peer" collect request which can be scheduled and paid as per merchant requirement and convenience.

With the above context in mind, NPCI conducted a pilotproject launch with 21 member banks. The pilot project launch was on 11th April 2016 by Dr. Raghuram G Rajan, RBI at Mumbai.

Banks have started to upload their UPI enabled Apps on Google Play store from 25th August, 2016 onwards.

Features of UPI -

• One can transfer funds from one customer accounts (bank account) to another by  using the bank's UPI app in the smartphone.

• It's an advanced version of IMPS (Immediate Payment Service) where the transfer of payment takes place through unique payment id. MPIN (Mobile Banking Personal Identification Number) is used by the user to confirm payment. 

• It allows a user to transfer funds both online and offline without typing the card number and other details every time. There's a limit of 1 lakh per transaction.

• It is safer than other methods of payment, since user share only the MPIN here and not the all card details while making a payment.

• You can make payment for movie tickets, for railways & air tickets, for shopping online and almost everywhere now

How is it unique? -

• One can use UPI 24 hours and on all public holidays. 

• Single mobile application for accessing different bank accounts. 

• Single Click 2 Factor Authentication - Aligned with the Regulatory guidelines, yet provides for a very strong feature of seamless single click payment.

• Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Accounts number; IFSC etc. 

• Best answer to Cash on Delivery hassel, running to an ATM  or rendering exact amout. 

• Merchant Payment with single Application or In-App Payments. 

• Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payment. 

Participants in UPI -

The participants of UPI are Payer PSP, Payee PSP, Remitter Bank, Beneficiary Bank, NPCI Bank Account holders, Merchants etc.

Benefits for Merchants:

• Seamless funds collection from customers 

• No risk of storing customer's virtual address like in Cards.

• Tap customers not having credit/debit cards.

• Suitable for e-Com & m-Com transactions.

• Resolves the Cash on Delivery (COD) collection problem.

• SIngle click Two-factor authentication (2FA) facility to the customer - seamless Pull.

Registration in UPI enabled application -

Steps for Registration :

• User downloads the UPI application from the App Store/ Banks website.

• User creates his/her profile by entring details like name, virtual id (payment address), password etc.

• User goes to "Add/Link/Manage Bank Account" option and links the bank and account number with the virtual id.

How to use UPI while making online payment?

While shopping online, you will see an option on the payment page to choose the "method of payment". And the page where VISA/Master Card, net banking options are visible you will also see an option "Make UPI payment". 

Just choose this option and pay using your MPIN you created with your bank's UPI app.

Note: You need to install and setup your account first  with your bank's UPI app. Which you can download and install from the Play Store in your android based smartphone.

How to Make payment Using UPI? 

• Log on to your bank's UPI mobile mobile application.

• Select the option make payment/send or pay.

• Enter the beneficiary's virtual ID and amount to be transfered followed by the accoount number.

• You get a conformation message; once again check the payment details to confirm the payment.

• Enter the MPIN to authenticate your payment. Click the submit button, the amount will be transfered in seconds.

How to Receive Payment Using UPI? 

• Login to iMobile, tap on UPI and click on 'Collect with Virtual Payment Address'.
• Enter details such as the VPA of the person you would like to collect from, amount and remarks. Choose the VPA you would like to credit. Choose to receive money immediately or anytime in the next 7 days. Click on 'Submit'.
• Ensure you review the next screen carefully. 
• Click on 'Submit' to initiate a Collect payment via UPI. Once the person authorises the transaction the money will be credited to your account.