18th September


UPI (Unified Payment Interface)



Now you don't require to ask for bank details or card if you want to send money to your friends and relatives. What is required only UPI id i.e. Unified Payment Interface? Apart from financial transactions, you can also make necessary bill payments, online shopping, etc. UPI will ease in doing all these transactions. Initiated by National Payment Corporation of India UPI will the first cashless transaction system in the world.

NPCI COO Mr Dilip Asbe has told that UPI is the second addition of IMPS and fastest mode of payment. It has been launched with P2P access. Moreover, in the next two to three weeks, it will be launched to e-merchants as well, and subsequently, this will ease Mobile Top up, Telecom bill payment, payment to e-commerce companies and online shopping. In the coming days, government payments like electricity bill payments can also be made. Transaction limit of this app presently will be Rs.50 to Rs.100000/-.

This is to be noticed as well that in the country every month Two Lacs Crores rupees are being withdrawn, and approximately 74 crores transaction is being made. In such case, UPI will reduce the future of ATM transactions. Even additional fees will also not be levied on the customers. Facility of UPI under the platform of NPCI is initiated in 21 Banks. While 29 banks have given their acceptance for implementation.

Many experts are also of the view that implementation of UPI will affect wallet business, and it will restrict entering of black money in the circulation since it will be mandatory to keep a record of any financial transaction after entering the same in the financial system. MD and CEO of OBC Mr Animesh Chauhan has told that presently running mobile wallet and card payment companies like paytm, itzcash etc are initially taking money from the consumers and thereafter facilitates for payment but this process will be completely vanished in UPI because money will be transferred in real time basis and further consumer will also not loose any amount in kind of interest as well.


How to use it:


for facilitating UPI app one must have Bank account and Smartphone. You can also use UPI app of another bank apart from your own bank. This process of using UPI is very simple.


Download UPI app from Playstore-----> Log-in the app with details....> make your own UPI id.....> Link the same with Bank account.....> Set your m-pin.....> start making transactions.


            UPI transfers funds from a virtual id to another id. The bank will provide virtual id. For example, your phone number is 1234567890, and your account is in abc bank then your virtual id may be 1234567890@abc.

            If money is to transferred to any of the relatives anywhere then enter his virtual id and put the amount to be sent and then click on pat to button and your money is transferred.




1.UPI will reduce infusion of Black Money in the system since it will be mandatory to keep record of every transaction.

2.      It will reduce evasion of Government Taxes since a proper bill will be generated.

3.      Money can be tracked easily because there will be record of transactions at various levels.



1. If you don't have bank account then you can not access UPI while mobile wallet like paytm and its cash, the bank account is not mandatory.

2. Currently, P2P transaction is not possible like it can not be used for payment of government bills.

3. Now P2P or account two account transaction is possible. Even payment of merchants can also be made, but it will be interesting to see that how many merchants will adopt this system since most of the merchants are dealing in cash only.