Unified Payments Interface new mode of transaction

National Payments Corporation of India (NPCI) has announced that the Unified Payments Interface (UPI) is live and currently available for customers of 21 banks. UPI is a payment solution, which empowers a recipient to initiate the payment request from a SmartPhone. It facilitates ‘virtual payment address’ as a payment identifier for sending and collecting money and works on single click 2-factor authentication.

A unique UPI ID is created by using your phone number that is linked to your bank account. This ID is just like an ordinary email ID. For example if your mobile number is 123456789 and you have a bank account with the Punjab National Bank, your UPI id may be123456789@PNB. To send money from any party, all the sender has to do is open the banking app installed in his or her phone, go to ‘Send money’ section, and facilitate transactions through UPI mode.

In the recipient details, the sender needs to add id of the recipient (for example123456789@PNB). The money gets transferred instantly to the bank account of the recipient once approved by the sender. Since it has been launched keeping cashless transaction, you no longer will have to wait for hourly batches of NEFT to send or get funds or seek Mobile Money Identifier (MMID) code for IMPS transactions anymore.

A customer, for example, can also decide to use a mobile number or a short name for the virtual address such as XYZ@icici or 123456789@axis. The UPI app allows a customer to have multiple virtual addresses for multiple accounts in various banks. For making payment, the transaction will be complete once the customer authenticates the transaction through a secure PIN.

UPI offers round-the-clock availability and faster checkout. One can use the UPI app instead of paying cash on delivery (COD) on receipt of product from online shopping websites, and can pay for miscellaneous expenses like utility bills, over the counter payments and school fees.

Banks providing UPI enabled mobile app on Google Play Store, include Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank,• Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES Bank.