Digital payment and cashless is the new and upcoming way of payment system and the recently launched Unified Payment Interface (UPI) is likely to gain popularity with the government's recent move of banning Rs500 and Rs1000 notes.
UPI enabled apps allows transaction to be done through any smartphone, using VPA-Virtual Payment Address. It reduces the cost of transaction compared to ATM or cheque. It is to make payments convenient and enable users to complete transactions in lesser time by reducing the number of steps. The transactions done through UPI app can be done 24/7 with immediate transfer of money from one bank account to other. The main attractive point of UPI is the money is all these transactions can be done without sharing any personal details like bank account or credit/debit card number. UPI-enable app allows transfers up to Rs.1 lakh and charges 50paise per transaction.
We tell you how to transfer money using UPI enabled apps
Steps to use UPI
- To use UPI, download a UPI-enabled bank app or update your existing banking app to the UPI enabled app.
- Login to the app using your bank details
- To use UPI, first the email like virtual address (VPA) needs to be created.
- To create the virtual id, after logging in, go under the 'UPI' option, 'manage' and select 'create virtual payment address'
- After entering your account number, select 'create new VPA' option and type in desired virtual id address (eg: xyz@bankname), check its availability and click the 'submit' option.
- After this you have successfully created the virtual payment address, and ready to make transactions using UPI.
Send money using UPI
- Login to the UPI-enabled bank app and select the UPI option.
- Click on 'pay to virtual payment address' and make sure you have the receivers virtual id.
- Then enter the receivers virtual ID, the amount that needs to be sent and from which account number (if one has multiple accounts).
- After the confirmation screen appears to review the payment details, select 'submit' to make the final payment.
Receive money or request for money using UPI
- To receive money or request for collection of money using UPI, login to the UPI-enabled bank app and select the UPI option.
- Click on 'collect from virtual payment address' and make sure you have the sender's virtual id.
- Then enter the sender's virtual ID, the amount that you want, and remarks.
- Choose the 'collect now' or collect later' option, and click on 'submit'.
- After the confirmation screen appears to review the receiving payment details, select 'submit' to send the request.