The Reserve Bank of India along with the 10 largest banks in India, have introduced a UPI (unified payment interface), a smartphone application that substantially reduces the time and cost of sending or receiving money using your cell phone. The app can be used to transfer amounts ranging from Rs. 50 to Rs. 1 lakhs with just a few taps.
Currently used systems of money transfer, such as NEFT (National Electronic Funds Transfer), require you to add a beneficiary based on name, account number and bank IFSC. This new UPI app makes the sender’s job easier by using the receiver’s unique ID. The sender only has to launch the UPI app, input the amount to be sent, enter the unique ID and hit send. The transaction will have to be authorised using a mobile PIN. One of the key areas where this would help is the COD (cash on delivery) option favoured by a large proportion of online shoppers. The UPI app can be used to make this payment instead of cash after the product is delivered using the merchant’s unique ID or a QR code carried by the delivery person.
At present, 10 leading banks in India have started offering the service with many more expected to join up in the near future. Key requirements for availing the UPI benefit include:
- An account with a bank that supports this service
- A smartphone that supports the UPI App
- Access to internet in order to download the UPI app from the relevant PlayStore
Once the UPI has been downloaded, you can use it to create your own unique ID and link your bank account to it to send or receive money at lightning fast speeds.