Let’s get information about UPI. First of all, let’s know what is the full form of UPI? UPI means  Unified Payments Interface , it is the latest means of making internet-based payments.

To use UPI, you need a bank account, a mobile number linked to it and a mobile app. If you have a UPI App in your smartphone, you can easily transfer money.

Various modes of payment prevalent before UPI

Currency transactions have been taking place for trade since ancient times. With time, the form of currency has also changed. At different times, cowries, leather coins, precious metal coins like gold and silver, paper notes etc. have been used.

As technology developed, the methods of payment also changed. The time of cheques, demand drafts, pay orders, money orders etc. came and went. In today’s time, the emergence of the Internet has provided new dimensions for payments like ATM , NEFT, RTGS, SWIFT , IMPS  , BHIM and UPI.

All these mediums have reduced cash transactions to a great extent (cashless), and with a few clicks and taps of the mobile screen, we can transfer or receive money in a jiffy.

Since the use of UPI has increased, some new types of frauds have also started happening, further we will also read how you can protect yourself from online fraud?

What is UPI?

In the year 2008, the Reserve Bank and other big banks together formed an organization called National Payments Corporation of India  ( NPCI ). The main objective of this non-profit organization is to facilitate money transactions in the country’s economy. In this series, NPCI launched UPI in 2016.

Your bank’s UPI app allows you to register a Virtual Payment Address (VPA), using which you can transfer payments.

The format of a VPA is similar to that of an email address, for example something like this:

VPA Example: username@bankid 

You can make instant payments to any beneficiary by entering their Pay ID on your UPI app. This facility works 24 hours a day and 7 days a week. You can transact money through it even on Sundays and other holidays.

Benefits and limits of UPI

• This facility works on real time basis, meaning money is transferred instantly
• UPI works 24 hours a day and even on holidays
• To transfer money you only need to know the VPA address. You do not need to remember the IFSC code, bank account number or MICR etc.
• You can transfer upto Rs 1 lakh per day through UPI, but all the banks have set different limits per transaction.
• In case of emergency, immediate payment can be made through UPI. Apart from this, bill payment, online shopping and payment to shopkeeper can also be made through UPI by scanning QR code.
• UPI facility is available in almost all banks. At the time of writing this article, about 150 small and big banks are providing  UPI facility.

How to use UPI safely?

With the advent of digital payments, fraudsters also keep finding new ways to cheat. Let us tell you how to make safe payments with your UPI App?

These rules will help you keep not only  UPI  but also other types of online payments safe.

• Always keep your mobile and UPI apps updated
• Do not give your mobile phone to any stranger
• Avoid spelling mistakes while typing VPA address
• When you enter someone’s VPA address to transfer money, the full name of the person is displayed in the app. Verify the name before making the payment
• Do not share any type of OTP, card number, account number, CVV number etc. with any stranger
• Some fraudsters transfer small amounts like 10 or 100 rupees to lure you. After that, they try to trick you into transferring money. Please do not get tempted otherwise you may get cheated.

We hope you have got information on the topic related to UPI, if you still have any questions, you can ask by writing in the comments. This article can also be shared with your friends and relatives through the share buttons given below.