Nowadays lots of people are used to do cashless payments with help of UPI apps, So did you ever imagine What is UPI? How does it work? what it’s full form?
If, yes then this article is going to be very useful for you.
What is UPI?
The UPI is developed by NPCI( National payments corporation of India), It was launched on April 11, 2016.
This is a type of smartphone application that allows users to transfer money between banks.
With the help of this application, we don’t need to enter the bank details for transferring the money from one place to another.
This payments system is becoming very useful amongst all of us, It’s designed to do money transfer with only two clicks.
This way of transferring money is safe and protected between two parties and it makes your information security more strong.
Full form of UPI?
It stands for Unified Payments Interface
How does it work?
Unified payment interface uses two types of system such as:
1. IMPS( Immediate Payment Service).
2. AEPS( Aadhaar Enabled Payment System).
These ways are used to assure the seamless establishment of crosswise accounts. It promotes push (pay) and pulls (receive) transactions.
And it is also very useful for QR codes or barcode payments.
When this system confirms that where to send or whom to send then after two simple steps it completes its work.
How to use UPI?
If you want to use the Unified payments method then you have to do some things.
First, you need to install its app.
There are many bank applications that support UPI such as State Bank of India, Bank of India, HDFC Bank, ICICI bank, etc.
When your bank app is installed.
NOTE: If your bank has a UPI facility then you can also use third-party apps like google pay, phone pay, etc.
After that you will receive a Virtual ID, on which you make your ID, that id can be your Aadhar card number or your phone, etc. After doing just that, your work is over there.
Why it is becoming important for a cashless economy?
It is becoming very important for a cashless economy because it is easy to use and safe.
With the help of UPI their fewer chances of corruption and bribe.
There are lots of benefits of the cashless economy like the crime rate is decreased, transfer of money becomes easier, no physical transaction, etc.