There used to be a time when making payments and receiving some amount from another party used to be a tedious task for both the parties involved in the transaction. But now digitalisation has brought almost all aspects of banking onto the palm of your hand. The main aim of digitalization is to bring about a digital economy that works on cashless basis. The launch of UPI (Unified Payments Interface) is one such important step taken by the government. It has made fund transfer and payments quite simple for a common man.
What is UPI?
UPI is an interactive platform that allows a person to transfer funds by using the beneficiary’s phone number/Aadhaar Number/Virtual Payment Address (VPA). UPI eliminates the need to exchange your bank account number, IFSC, etc. with any other person and overcomes a major limitation of online transaction methods like NEFT and RTGS. UPI is a single transaction method that makes the use of a UPI PIN for completing a transaction.
What is a UPI PIN in BHIM App?
A UPI PIN can be easily described as a code, which comprises of 4 to 6 digits. A UPI PIN is issued to a customer who holds a bank account and who signs up for using a mobile banking application. In order to authenticate the fund transfers, a unique UPI PIN is used. This procedure takes place over a dedicated UPI platform. A customer can authorise all banking transactions using his mobile application through UPI PIN.
What are the features of UPI?
The unique UPI PIN makes it possible for people to exchange money without the need of bank details. There are many features of the highly convenient and reliable UPI that sets it apart as one of the most innovative and easy to use payment mechanisms that the economy has seen so far:
- UPI makes it possible for a bank customer to transfer funds instantly, without any delay or inconvenience and the transfer takes place in real time.
- UPI can be used at any time of the day or at any place, to make a payment, irrespective of the hour.
- There is hardly any risk involved in making a UPI payment, since the transaction are carried out in a highly secure environment.
- Transactions can be carried out between individuals, entities or even between an individual and an entity, using a UPI PIN.
Along with these features, there are many others that make UPI a preferred payments option. As of now, there are no charges for UPI fund transfers, whatsoever, as opposed to NEFT and RTGS. Thus, for every citizen of India, transacting through UPI is quite economical.
Anyone who makes use of UPI service will be able to understand the convenience that it offers. Thus, the next time you need to make a payment to another party or receive a payment from them, you can do so using your BHIM app and approving the transaction through your UPI PIN. It is quite easy and convenient to use and also provides an assurance to the customer that his personal banking information is safe and will not be misused by another party for any fraudulent purposes.