In our recent post we have discussed about unified payment interface UPI banking in details. In this post we are going to share how UPI Works. How unified payment system works. As we know UPI is future of payments in INDIA. In present situation if you want to make payments then first you have to enter the details of beneficiary like IFSC Code, Bank Name , Account type then Account number. Even having these all details typing through phone is just impossible and then after banks will take more than 24 hours to add beneficiary in your account. Then you will be able to make payment of that person.
The Idea behind Unified Payment Interface Platform is to do away with all of this. UPI platform interface will allow account holders to send money and to recieve money through their phones, even with basic pones also having no internet facility. The transaction through UPI take place with Aadhar unique identity number , mobile phone numbers or virtual payment address which a user can create with help of their banks UPI platforms.
The transaction through Unified Payment Interface take place with help of two types of address either global or local. The global address requires MMID , mobile number or Aadhar number and local address is just virtual address which you can create like your name@your bank name. And by sharing this address also you can get the payment with your customers or the one whom you need to pay. They will either send or request money from you with help of this virtual address and you just need to either acknowledge the payment or authenticate the payment and transaction will take place without sharing the account details with each other.
Nandan Nilekani, man behind Aadhar and now an advisor to NPCI, said: “UPI Unified Payment Interface is a layer we have put on IMPS. It (IMPS) didn’t really have the easy debit capability and that has been addressed by this platform. We think with UPI coming, it is going to be an important merchant platform. Once it is adopted by all banks, money can be transferred from a bank to any other bank using a mobile phone”.