The Next Big Thing of Banking System in India 2021

The Next Big Thing of Banking System in India: UPI

UPI stands for Unified Payments Interface which is an interface that makes it easier for multiple banks to operate within a particular geographic territory. It is a protocol designed to make multiple bank transactions easier than ever before. 

According to NPCI, “UPI is an Internet based solution which leverages on existing infrastructure to enable instant payments.” In order to use UPI one needs to download an app and link their bank account. Banking System in India is rapidly growing with the fast changing technology.

Mandatory things related to UPI

There are various trusted UPI apps which are making Banking System in India STRONG

How to make use of UPI?
how to pay using upi id in google pay 
When you login to your bank account with a smartphone you will be redirected to a UPI interface. This enables you to make UPI transactions with just a few clicks. Through this interface, you can to make payments using UPI, a bank account holder needs to choose “UPI Banking Services”, “UPI Code” and “Wallet Access” from the three options available.  
Once these are selected, a new screen will open, offering you the option to make payments in a different currency from the one you have linked your bank account to. 
These actions are a bit confusing and require more attention than what you would like but eventually you will figure it out. And after that you can transfer money or make P2P transactions through the UI, with a single click. The feature is available on Android, iOS and Windows phones and also there is a web interface where you can make payments. 
For making payment through UPI, you can choose from a list of banks where you have a linked bank account. Each bank can accept payments from UPI account with a particular UPI code. The selected UPI code can be used by a bank to send and receive payments on behalf of its account holders and this is done through an app. 
This mobile app must be installed and activated on the bank account holder’s phone in order to make payments using UPI. A wallet on your phone would be used to store your money that is transferred using UPI. 
Another important point to remember is that all these banks belong to different banks group and hence the payment requests made through this interface could be higher than the usual.
 
How to transfer money via UPI?
google pay upi id
Let us assume that you have to transfer Rs. 10,000 to your friend through the UPI interface. In order to make the transaction you will have to enter your bank account details and initiate a payment request from your phone. Now to make the payment successful you will need to click on the next option that reads “Approve a Payment Request”. 
This would initiate a UPI payment flow, whereby the link from your phone to the bank would automatically be verified and then the request would be sent to the payment request interface on the bank’s app. After the payment request is approved, it will automatically move to the next step, i.e. the actual transaction.
However, this is not the final step where the bank takes the required action. After the payment request is approved, the payment request is opened in the bank’s app. The bank would then perform the transaction through their own app by making a payment to the beneficiary bank account. 
It is important to note here that your bank does not have to use UPI for making payments, they can also use any other mode for payments and the transaction could be made through their website, SMS, mobile banking app or ATM.
How to use P2P through UPI?
upi payment gateway
In order to make payments via P2P you need to download the correct app and then make a payment request through it. When you request to make a payment through this app, a third-party app would be able to detect it and your request would be transferred to the third party’s app where the money would be debited from the beneficiary’s bank account. You would receive an SMS with a unique link from the beneficiary’s bank, which you can click to initiate the payment.
 
You can choose from a list of payment options that are available, these include debit card, net banking, cash on delivery and direct bank account transfer. Once the app has accepted the payment request from the app on the bank’s side, it would move to the next step of making the payment. Banking System in India in 2021
 

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