What is UPI anyway ?
If you are someone like me, you have been seeing the word UPI at many places lately, but do not know what exactly it is and how it is relevant to you. Don’t worry. I got you covered.
Meanwhile, if you are someone who already knows about UPI and indeed using it, you might think ‘Does someone really need to write an article on this ? It’s really simple’. Well, you are right bro. It’s super simple. If you know it. I call myself a tech enthusiast but only recently I got myself a VPA (Virtual Payment Address) and made my roommate transfer money to that address. (btw he loved it)
Let’s say I owe you 1000 rupees (just for an example). You want me to transfer it to your account. Now what you generally do, you will give me your account no, IFSC code and type of account (savings/current). I will go and register you as a beneficiary in my bank’s website and wait for some time before making the transfer (it’s 30 minutes for HDFC bank. may differ for your bank).
It is easy, right ? Well, not really.
A few reasons why it’s painful.
- First of all, you don’t know your account no. You have to go looking for it, in the email or chat history or whatever. Copy and send it.
- If the person at the other end is a lazy guy like me, he will see the message and file it under “do it later” list. Then what? yeah you guessed it. He will forget.
- Most importantly, you are revealing your bank account details. This may be more sensitive than we might think.
Man, can’t we have an easy way to send money ? Like, entering a name/mobile no and send it. just send it, like Paytm or something but to bank account directly not to an e-wallet.
Ta-da, that’s exactly what UPI is.
Looks like somebody at the government heard our mind voice. That somebody is National Payment Corporation of India.
Okay. Let’s get to the point. Now what you need to do is go to your bank website / app. Find out UPI section. Create an ID and link your account. This is like creating a new email id / twitter username. It typically looks like this. yourname@yourbank or you can choose any alphanumeric like hello007@yourbank.
(Alternatively you can use the BHIM app instead of your bank’s app, which is directly from NPCI for all the banks.)
For example, if Virat Kholi is trying to create an id, he might try virat@hdfcbank. If that’s already taken, he might try something else like kholi@hdfcbank. Now bank is like email provider. Google, Yahoo or Microsoft. You can create under any bank, provided you have an account with them already. You get the point.
Let’s say I have created an id for me. You also have one. “Now all you have to do is share your id. That’s it.” No account number. No IFSC code. Nothing.
I will just enter your id yourname@yourbank (which is more intuitive than a long account no), enter amount and just send it. It’s instant. Yes, I have tried it.
Wow, right ? It makes our life super easy.
Another instant where UPI can come in handy is if you want to transfer urgently to an account and you are registering it as a beneficiary for the first time and it’s already past RBI cut off time like 6.30 PM. Now you are going to suffer. When you register a beneficiary for first time, you can not do IMPS for some period (48 hours for HDFC). Only option is NEFT (National Electronic Funds Transfer). NEFT won’t work after RBI cut off time. It will only get processed next day. Now UPI can save your day. If that person has UPI id (VPA) you can just send to it. No issues.
So that’s it. You are smarter than yesterday. Your life will never be the same again ;-) You can thank me later.