If you find yourself in a position of having to pay your friends and relatives in a convenient manner, then fret not, for we have you covered. You can avoid using cash and simply transfer the money using UPI payment. Wondering what is UPI payment? United Payment Interface (UPI) is a digital money transfer system that has gained considerable popularity. Here, it is important to understand that there are other digital money transfer options as well, like National Electronics Fund Transfer (NEFT) and Immediate Payment Service (IMPS). But, UPI payment system is hassle-free and convenient, besides providing for zero/minimal charges.
Here is a look at the features and benefits of UPI payments:
1. Transfer funds at minimal costs:
Among all forms of digital fund transfer, UPI remains the cheapest. Many banks provide for zero costs, while others could charge a miniscule amount like a 50 paise fee. While NEFT and IMPS transactions also don’t charge a heavy amount, these are typically not suited for small transactions, because a fixed charge can be levied, irrespective of the transaction amount.
2. Suitable for small transactions:
Suppose you have to pay Rs. 20 to your local grocery shop owner, will you choose to transfer funds through NEFT or IMPS? Certainly not. These transfer options can be expensive and inconvenient for the shop owner. With UPI payments, however, you can easily select from a wide range of mobile-based apps and make small payments. Just look around and you will find that almost every small shop or street vendor has printed QR codes on display, to accept UPI transfers. To opt for UPI, just scan the QR code via your smartphone, and make the requisite payment. No need to carry loose change every time, while making small purchases.
3. Enhanced security:
UPI has addressed the security and privacy concerns of people by providing for completely secure transactions. You are not required to provide your bank account number, or debit/credit card data. UPI provides for payment through a UPI Id or Virtual Payment Address (VPA). The VPA is simple and easy to remember. You can protect yourself from the risk of any fraud during digital transactions, by selecting UPI.
4. Immediate transfer:
UPI provides for round-the-clock immediate transfer of funds. The transfer is not affected by non-banking hours or days. Even in the event of a bank strike, it will have zero impact on UPI payments. So, be it odd hours or public holidays, you can choose to make digital transfers with ease. You can use UPI to transfer funds from one bank account to another, make EMI payments, transfer money to a friend, paying money to merchants, and so on.
5. No requirement for registration:
If you choose to transfer funds using IMPS or NEFT, you have to first register the beneficiary by providing the bank account details. Then there is a cooling period, ranging from 30 minutes to several hours, following which the beneficiary account will become active. In the case of UPI, however, there is no requirement for the registration process. Simply enter the VPA details, and make the requisite payment.
6. Universal payment system:
Among the key advantages of UPI is that one UPI app can access all your bank accounts. One has the liberty of linking different banking accounts with a single, universal UPI-based app, thus absolving the requirement of installing different apps for different banks. Not only can you link the different bank accounts, but also select the option of having one account as the default option for making payments.
7. Multitude of apps to choose from:
You can choose from a range of UPI-based apps, and then install it in your smartphone. Different apps have different user interfaces, and you can zero in on whichever app you find the best, based on ease and convenience of use.
8. Request for money facility:
Suppose you have lent money to a friend or colleague, how can you ask for it back? You will probably call or text. But, a unique feature of UPI is that it can request for money transfer on your behalf from any third-party. Once the person approves the request, the money will be instantly transferred in your account.
9. More advantageous than a digital wallet:
You can also use a digital wallet for making online payments. But, you would then require multiple digital wallets for different payments. Rather than opting for a digital intermediary, like a wallet, you can make payments directly and in a hassle-free manner via UPI.
10. Other benefits:
You can also get access to several benefits with the best UPI-based apps, like the RBL MoBank App. These include requests for call-back from customer care, blocking/unblocking of your debit card, applying for loans and credit cards, access to customized account statements, making standing instructions for scheduled payments, sharing transaction details, and a seamless shopping experience with partners, like BookMyShow, Urban Clap etc.
Conclusion: Now that you know the manifold benefits of UPI fund transfer option, just download the best UPI-based app that suits your need and which can allow you to do a majority of your online banking transactions on your smartphone in a fast, secure and easy manner.