What is UPI Payment Method?

UPI is a payment system that is very popular in India. Its acronym stands for United Payment Interface or Unified Payment System, and it enables instant payment between two banks via a mobile device. Transfer of funds is faster when compared to other payment methods and according to reports its one of the most used payment methods in India. The upi transaction limit per day is  Rs 1 lacs per day.

It was developed exclusively by the National Payments Corporation of India (NPCI) and the Reserve Bank Of India. It is built on an IMPS technology with a goal to provide quick transfer of payment. The transaction is possible via VPA or Virtual Address, that is provided by the bank. Each account holder has a unique Virtual Address. In this article, we will explain the benefits of UPI and the most important of UPI.

The important of Features of UPI

  • Transfer up to Rs 1 Lakh per transaction.
  • Only VPA is required for money transfer.
  • Can schedule transactions.
  • Payment is based on barcode.
  • Transfer of money is possible at any time.
  • The secured transaction with single clicks.
  • It is available 24*7.

The Benefits of UPI

  • UPI is one of the best and cheapest way to transfer money when it is compared with other types of transfer such as NEFT and RTGS.
  • UPI transfer does not require tons of important to transfer money. However, in case of transferring money to another bank account might require information such as the name of the bank, account number, IFS Code etc. Therefore, if you know a person’s phone number and VPA then you can transfer money.
  • Most of the transaction of UPI is carried out with the help of UPI app. There are important apps such as Google Pay, PhonePe, Apple Pay which are quite famous in the market today. However, one app can be used to add the multiple bank account as a single UPI can serve many bank accounts.

Types of UPI Transaction

  • Sending/ Receiving:

Sending money and receiving money is very simple just with a simple click.

  • Bill Payments:

You can pay bills such as electricity bills, college fees etc with UPI.

  • Merchant Payments:

Payments to merchants can be possible to with UPI.

Conclusion:

UPI or Unified Payment Interface is gaining huge popularity however if upi transaction limit per day has crossed then you to use other kinds of payment methods such as bank transfer, NEFT or RGTS etc.