Why Is UPI The Best Payment Method?
Take a step ahead in the cashless and digital economy by learning about the newest and the simplest payment method – UPI.
December 28, 2017 / 04:42 PM IST
The thought process behind “Digital India” is to have a transparent and functional cashless economy. When you first heard of this terminology a few months ago, your immediate response was, “Except for paying the local grocery or vegetable vendors, I have always been into cashless mode for all my transactions. What is so new in this Digital India concept?”
Yes, we had NEFT and IMPS for payment options but UPI is the advanced version of the two and can serve towards complete cashless transactions. UPI, which was launched in January 2016, has changed the way payments are handled.
What is UPI?
UPI or Unified Payment Interface
is an initiative by the NPCI (National Payments Corporation of India) with the support of IBA (Indian Banks Association) and RBI (Reserve Bank of India). It is a unique identifier that the bank uses to make payments and transfer money
using the IMPS (Immediate Payments Service). You can link the UPI with the email address of the recipient, as every registered email ID is assigned to a virtual payment address.
What is the necessity of UPI when we already have IMPS?
UPI helps you to send and receive money
from your smartphone without entering the entire bank details of the recipient. All you need is the recipient’s mobile number, virtual ID or Aadhar
unique identity number.
According to NPCI, more than 29 banks have started this service, all you need to do is - request your bank (if it is UPI-enabled) to connect you to the system.
Why is UPI, the best payment option?
The ex-RBI governor Mr. Raghuram Rajan mentioned UPI as the “WhatsApp of banking”. It is considered to be the best payment option due to the following reasons:
Cheapest way of money transfer