What is UPi, IMPS,NEFT, RTGS and how they work and how to use UPi?

What is UPi, IMPS,NEFT, RTGS AND HOW THEY WORK?

Today in India digitally money transfer becomes so easy from one bank account to another. One can transfer money using UPi from anywhere any time. It works even on holidays. But what is the history of this payment services and how they have grown up?

HISTORY HOW UPI SERVICES concept have been developed?

In 2005 first digitally money transfer became possible from one bank account to another bank account. In 2005 the NEFT service had launched in India. They started to transfer amount from account to another. But it was not so fast system. It took upto 12 hours to transfer. Even it only worked if that was not a holiday. It worked only in Bank works hour. 

In 2005 RTGS had launched. NEFT only transfers money in a branch means they at first makes branches of transactions which have been made in an hour then they transfer all's amount. By this process they wanted to save resources of their computer. Then RTGS concept came. They thought that if someone wanted to transfer a big amount like 1Lakh then why they should wait? That's why they started RTGS which made possible ti transfer big amount quickly from bank account to another but it is still works only on working hour.

After that the biggest improvement came in 2010. NPCI (National Payments Corporation of India) had given a us a revolutionary change in digitally money transfer system. They launched IMPS. It is called Immediate Payment System. Here you can able to transfer money any time all the time. But here you have to add beneficiary details then it gets approval and after that you can transfer.

In 2016 the best ever change came in the form of UPi service. It is called Unified Payment Interface. This service is also launched by NPCI(National payments corporation of India). Here you need not to add any kind of beneficiary details. Here just you have to get a unique virtual Id which is also known as VPA( virtual Payment address). So when you will get it you will able to receive money and transfer money immediately without waiting. This is the revolutionary change in India.

What is UPI?

Upi is known as Unified Payments Interface. This is an revolutionary change in India. Using this you can transfer money very easily from anywhere in India and any time to another bank account. This doesn't matter if your bank and receiver bank is different.

In Upi you need need to wait for Payments. Here you need not to add any beneficiary

details to pay. The person you wanted to pay you have to just collect his or her upi id which us known as VPA (Virtual Payment Address). When you pay using this address the amount will be transferred immediately. This service was launched to grow India digitally. In an UPi id your all details have been stored that's why you need not to do anything. You just need to generate a id and mPin for your security.

Why Upi is better than NEFT and RTGS?

In NEFT it is completely different service. Here you have to wait to long to transfer money. They at first take all the transactions request then make brunches and then payments have been done. But here you need to know that is only available in banking hours. You will not also transfer money in holiday.

In RTGS you can transfer big amount money quickly but still it is also not work in holidays and only works in banking hours.

In 2016 the best ever change came in the form of UPi service. It is called Unified Payment Interface. This service is also launched by NPCI(National payments corporation of India). Here you need not to add any kind of beneficiary details. Here just you have to get a unique virtual Id which is also known as VPA( virtual Payment address). So when you will get it you will able to receive money and transfer money immediately without waiting. This is the revolutionary change in India.

How UPi works?

1. Upi is powered by NPCI and all these things are maintained by them. In this purpose they have launched an application called BHIM Upi app. Here you need to registered your mobile number which us linked to your bank.

2. You just download it from playstore or appstore then make registration using the mobile number verifying OTP. 

3. Then you will be successfully logged in.

4. Just select the bank name which is registered with your number and click verify. It will be added and a unique upi id will be generated

5. Using Upi id you will able to use this upi services. 

There are a lot of application which is now promoting this services. RBI is also promoting to use these. All the different banks have launched UPi app. A lots of platform start to give offers on UPI transactions. Google has launched Google pay considering this UPi service. You can use those application to use upi service as well as Bhim upi.

Is it Safe to use UPi?

 It is maintained by NPCI. So you need to worry about that. Here you have to do two step authentication when you try to transfer money. You have to enter MPIN. The upi based app only runs when your registered number is present in your phone. They make sure about your security. So nothing to worry about that.

What is the benefits of using UPi?

Using this you can pay from anywhere and anytime and instantly your transfer will be successful. That's a great thing. If anyone in trouble and needs money you can just transfer in this way very easily.It will save your time as you can use it using your phone you need not to go to bank or anywhere .Now a days to promote this app many platforms are launching interesting offers regarding Upi. You will get cash backs also when you transfer using this.

Benefits for bank

• Universal Application for transaction
• Leveraging existing infrastructure
• Safer, Secured and Innovative
• Payment basis Single/ Unique Identifier
• Enable seamless merchant transactions

Benefits for end Customers:

• Round the clock availability
• Single Application for accessing different bank accounts
• Use of Virtual ID is more secure, no credential sharing
• Single click authentication
• Raise Complaint from Mobile App directly

Benefits for Merchants:

• Seamless fund collection from customers - single identifiers
• No risk of storing customer’s virtual address like in Cards
• Tap customers not having credit/debit cards
• Suitable for e-Com & m-Com transaction
• Resolves the COD collection problem
• Single click 2FA facility to the customer - seamless Pull
• In-App Payments (IAP)

What are charges of Upi?
The National Payments Corporation of India (NPCI), which runs the Unified Payments Interface (UPI) network, has slashed usage fees for small transactions to expand the system’s adoption among banks and payment service providers (PSPs).

For UPI transactions up to ₹1,000, the charge has been cut to 10 paise from 25 paise, NPCI said in a note to banks and PSPs that ET has seen. The charge for transactions above ₹1,000 has been retained at 50 paise.

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