How UPI will turn your mobile phone into a bank
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.
- Aug 30, 2016,
- Updated Aug 30, 2016 5:27 PM IST
The government announced the Unified Payment Interface for 21 banks last week.
The app is a boon for cashless payments to be made by the customers from their mobile phones.
The app has been developed by National Payments Corporation of India (NPCI)
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.
Here's how UPI works.
- You need to have a bank account and a smartphone to operate UPI.
- Download the UPI-enabled app from the bank's website or Google Playstore.
- To make a unique id, you will have to enter details such as name and age. The unique id can contain your name, phone number and Aadhar number.
- Create your profile with bank name, account number, IFSC code and link it to your mobile number.
- Select the bank account. Generate M-PIN, enter last six digits of debit card and expiry date. Enter OTP received on mobile and secret M-PIN. Press submit button.
- Use the UPI app to send money and requesting funds by sharing your virtual id.
The per transaction limit is Rs 1 lakh and it will cost you 50 paise per transaction.
A consumer can make the payments for products brought online through the UPI app. Merchant payments, paying utility bills, over the counter payments, bar-code based payments, donations, school fees and remittances are among other transactions facilitated via UPI.
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The government announced the Unified Payment Interface for 21 banks last week.
The app is a boon for cashless payments to be made by the customers from their mobile phones.
The app has been developed by National Payments Corporation of India (NPCI)
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.
Here's how UPI works.
- You need to have a bank account and a smartphone to operate UPI.
- Download the UPI-enabled app from the bank's website or Google Playstore.
- To make a unique id, you will have to enter details such as name and age. The unique id can contain your name, phone number and Aadhar number.
- Create your profile with bank name, account number, IFSC code and link it to your mobile number.
- Select the bank account. Generate M-PIN, enter last six digits of debit card and expiry date. Enter OTP received on mobile and secret M-PIN. Press submit button.
- Use the UPI app to send money and requesting funds by sharing your virtual id.
The per transaction limit is Rs 1 lakh and it will cost you 50 paise per transaction.
A consumer can make the payments for products brought online through the UPI app. Merchant payments, paying utility bills, over the counter payments, bar-code based payments, donations, school fees and remittances are among other transactions facilitated via UPI.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine