Know the benefits of UPI
India is well on its route to become a cashless economy with UPI facility. UPI means Unified Payments Interface, a quick, real- time payment system that helps you instantly transfer funds from one bank account to another with ease, through the BHIM app or though Paytm. UPI was developed by the National Payments Corporation of India to help facilitate stress- free, inter- bank transactions. UPI thus offers a revolutionary way of banking with allowing you carry transactions by allowing your smartphone double up as a virtual debit card.
Advantages of UPI:
- UPI is easy to access, you can use 24x7 hours a day, at any time and any place; even on public holidays.
- Why have many mobile applications for accessing your bank account? UPI offers access to all your bank account through a single mobile application.
- You can use any UPI app that you wish. Just because you may have a bank account in a certain bank, it is not necessary to use only that bank’s UPI app. Although, you must keep in mind to check the interface and ease of the UPI app you plan to choose. Use a UPI app that gives you your desired Virtual Payment Address.
- Transfer your funds instantly through Immediate Payment Service (IMPS) rather than through NEFT.
- Your UPI ID is a unique ID given by the bank called the Virtual Payment Address.
- UPI provides a cashless service and also makes small transactions very feasible in nature. Here, small transactions include going to a nearby grocery vendor or to a food stall, where we rarely make card payments and instead use apps like Paytm to make transactions. Thus, smooth and low- cost transactions by UPI have made conducting business very easy between customers and small vendors. Along with UPI, you also make fewer visits to the ATM.
- You need not provide your details to use UPI. Most of us may feel uncomfortable with online transactions and card payments because they ask us for our bank details. But, with UPI, you need not worry about giving your bank details. All you need to do is provide your Virtual Payment Address.
- UPI allows a new payee register and transfer funds immediately as opposed to other online fund transfer services that take some time.
- UPI makes sure the biller get their due money from their client, without the biller having to remind the client to pay his dues. UPI’s money collection facility sends a message for the payment directly to the client which is sent via their bank.
- If you are someone who is not entirely comfortable with the services of online stores, like for example getting stones instead of a new phone in a box, you can avail UPI’s cash on delivery services. This helps even if you do not have the required cash at home. With the online seller using the fund collection facility of UPI you can make the required payment through UPI.
Disadvantages of UPI:
Along with its many benefits, UPI also has a few disadvantages. They are:
- Unlike other modes of transfer, UPI has a transaction limit. This transaction limit generally varies from bank to bank, but in most banks this limit is Rs. 1 lakh. Whereas, on the other hand, an individual can transfer any mount that he/she wishes through services like online banking and RTGS. Thus, UPI can be used for small transactions and online services can be used for larger transactions.
- Many people may prefer the traditional means of conducting transfers and transactions through offline means rather through online means. Thus, it may be difficult to convince potential customers to use Unified Payment Interface a way to carry out their payments. Moreover, growing awareness of online frauds and hacking may make customers uncomfortable. The technical terms like Virtual Payment Address, associated with UPI can also prove to be difficult for a traditional section of society to comprehend.
- A problem with Unified Payment Interface is that it cannot be accessed by someone without an internet connection or a smartphone. Thus, this rules out a major section of India’s population who might not be able to use internet and smartphones to carry out transactions through UPI.
To conclude, just like other banking facilities, UPI comes with its advantages and disadvantages. By weighing its pros and cons, UPI provides a large variety of payment tools which can your transactions quick and hassle- free. Be a part of this revolutionary service by availing the UPI service as soon as possible!