UPI (Unified Payments Interface) helps users to link more than one bank account to a mobile app. It helps to transfer funds without mentioning the IFSC Code and account number.  If you want to transfer funds to an Andhra Bank account, you don’t need to provide Andhra Bank IFSC Code. UPI ensures that the funds are transferred in real-time. Users can send and receive money with the help of the UPI system. The payment system was developed by National Payments Corporation of India (NPCI) and it is regulated by the Reserve Bank of India (RBI).

Benefits of UPI

Here are the Benefits of UPI:

• Convenience - UPI has become one of the most convenient modes of money transfer.
• Simple Interface -The UPI interface is designed to transfer funds very quickly. New users will be able to adapt to the system very easily.
• Compatibility - The UPI interface is compatible with various banks, digital payment systems and payment apps.
• Support - The app is supported by third-party applications, apps and banking apps.
• Easy - The funds can be transferred easily with UPI. By using VPA (Virtual Payment Address), the fund can be transferred seamlessly and effortlessly.

Features of UPI

Here are the features of UPI.

• It enables an individual to send and receive funds.
• It enables an individual to request funds.
• It enables an individual to make merchant payments using the QR code or BHIM.
• It enables an individual to pay for cab rides.

Now that you know about the features, have a look at the transaction limitation of UPI.

• There are transaction limits for UPI payment.
• The maximum transaction per day is Rs. 1 lakh.
• The maximum number of UPI transactions per day is 20.
• While some banks such as ICICI Bank, SBI and HDFC allow individuals to send up to Rs. 1 lakh per day, many banks put a restriction of Rs. 10,000 per day.

What is UPI 2.0?

UPI 2.0 is the latest version of UPI. It comes with the following features:

• Bill Payment - The UPI 2.0 enhances the facility by enabling the bill payment facility. You can pay utility bills such as telephone, electricity bills. With the integration of BBPS, bill payments can be made in a very efficient manner.
• Pre-authorized Transaction - With the implementation of the pre-authorized transaction, users will not have to deal with pending bill payments. The billers can withdraw funds automatically as per the user’s authorization. It is possible to set the maximum permissible deduction and number of transactions for a specific period of time.
• Biometric Authentication - By using the fingerprint mapping technology and iris scanner, users can make secure online payments. The authentication of the identity of a person is based on the Aadhaar The Aadhaar database collected by UIDAI is used for verification of details.
• Check on Speed of Transaction - By performing velocity checks, the speed of transaction can be detected so that fraudulent transactions can be prevented. Some banks have already implemented velocity check to enhance the security of transactions. If any suspicious transaction will be detected, it will be reported by the UPI app. Additionally, a notification will be sent to the bank as well as the user.
• Error Resolution - The current UPI interface requires a unique mobile registration number. If the same mobile number is used by your family member, it will display an error message. The UPI 2.0 will resolve the issue.
• Scheduled Payment - It is not possible to schedule a payment with UPI. With UPI 2.0, you can schedule a payment with much-needed flexibility.

Apps with UPI compatibility in India

The following are some of the apps which are compatible with UPI:

• Paytm
• PhonePe
• BHIM
• MobiKwik
• Airtel Payments Bank
• Uber
• SBI Pay
• Axis Pay
• iMobile

Over to You

The UPI transactions can be done quickly and easily by using the app on your smartphone. The system facilitates direct payment to third-parties without providing the IFSC code and account number. It means if you want to transfer funds to an Andhra Bank account, you don’t need Andhra Bank IFSC Code. The system is implemented by more than 40 banks in the country and the service is available on 24/7 basis. UPI is the cheapest and reliable mode of making payment. Hence, it may take over other payment systems such as NEFT and IMPS. You can make payments in a matter of a few seconds.