In this post, we have provided you with all the details related to UPI’s full form in English, how UPI is used, the advantages and disadvantages of UPI, and how to create a UPI account. Read the post carefully till the end to get complete information.
Full form of UPI in English
The full form of UPI is ‘Unified Payments Interface’. UPI is a popular payment system used in India. Now most people in India use UPI to pay or receive money.
Unified Payments Interface (UPI) is an instant payment system developed in India by the National Payments Corporation of India (NPCI). The interface of UPI helps achieve inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used to pay and receive money instantly between two bank accounts on mobile devices
Uses of UPI
UPI links your bank account to your mobile number with the help of a unique UPI ID. UPI payments are instant (unless there’s a server issue) and without charge. UPI interface is a real-time payment system. It facilitates inter-bank fund transfers through a simple two-factor authentication process. The interface is regulated by the Reserve Bank of India (RBI), India’s central bank.
This system is a secure and reliable way to transfer money between two parties and drastically reduces the need for physical cash exchange or transactions through a bank. UPI was launched in India on 11 April 2016.
UPI uses existing systems such as Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS) to provide seamless financial settlements in accounts. You can simply scan a UPI code to make fast and easy payments at shops and also pay monthly utility bills and subscriptions conveniently through a single UPI app. You can also use UPI for online shopping as well as to add cash to digital wallets and even online real-money online gaming sites
Advantages and disadvantages of UPI
✅ Easy and safe
✅ No need to add payee bank details
✅ No transaction fee, no hidden or extra charges
✅ High upper limit of daily transactions
✅ Easy and instant transactions for merchants
✅ Users can use different bank accounts
✅ No hassle of carrying cash or wallets
❌ Delay in payment due to network or bank server problems
❌ It may take up to 7 business days for the deducted money to be credited again.
❌ Only 6 digit PIN may not be strong enough
❌ Transaction cannot be cancelled if sent to a wrong numbe
How to create UPI account:
Step 1: Download a UPI application. The best UPI apps are Paytm, Google Pay, PhonePe and Bhim.
Step 2: Set your language.
Step 3: Create a virtual ID by providing basic information like name, address and password.
Step 4: Go to “Manage Bank Account/Add Link” option to link your bank account number to your Virtual ID.
Step 5: Now generate the MPIN by sending a request to your bank for a PIN.
Step 6: Enter the OTP that your bank will send you in the appropriate box.
Step 7: Enter the last 6 digits of your debit card number and expiry date.
Step 8: Create a PIN and remember it for future transactions.
Step 9: Click on submit.
Sending money through UPI:
Step 1: Log in to your UPI account.
Step 2: Select “Send Money/Pay” option.
Step 3: Enter the UPI transaction ID of the beneficiary’s account (or scan a QR code).
Step 4: Enter the amount you want to send.
Step 5: Enter your UPI PIN.
Step 6: The transaction will take place, and the information about the deducted money will appear on your mobile number.
Requesting money through UPI:
Step 1: Log in to your UPI application.
Step 2: Click on “Request Money/Payment” option.
Step 3: Provide the Virtual ID and amount to be debited from the beneficiary’s account.
Step 4: Click on the confirmation message and enter your UPI PIN.
Step 5: If the recipient accepts the request, you will get the money.
You can also click here to read about UPI in Hindi.
