What is UPI?
Unified Payments Interface (UPI), as the name suggests is an interface that can be adopted to help country in cashless transactions. Raghuram Rajan in the month of April launched UPI with a view to boost digital money transfers. Watch the video to know about this new interface.
National Payments Corporation of India (NPCI) has developed this interface. It is an umbrella organisation for all retail payments in the country. The UPI is an attempt to make money transfers easy, quick and hassle free.
How does UPI work?
Imagine you are going to a supermarket to buy some stuff. When you come to the cashier for payment all you need to do is tell the cashier your virtual Identity number and he generates an invoice, now all you need to do is approve it from your phone and the payment is done. Its that simple.
All you need is a smartphone and a bank account. Once you are registered with your bank for UPI, a unique virtual address will be created. This will be mapped with your smartphone. For payments UPI refers to this virtual identity and transfers money in real time.
You can use Telephone number or Aadhar Number as a short name for your Virtual address. UPI allows you to have multiple virtual addresses for multiple accounts in various banks. There is no account number mapper anywhere other than your own bank to ensure your data privacy. This allows you to freely share your financial address with anyone.
UPI has the potential to eliminate the need for maintaining mobile wallet as the virtual address is not limited only to individuals. This is a major step towards moving into a cashless economy.
ASM believes that any innovation that adds value to the existing processes of the society is the real development. It strives to teach its students this and always motivate them to think differently and to add value to the society to make our country’s economy better than yesterday.