In today’s world everything is turning towards a digital zone. The approach to switch and adopt the digital route has made making payments also quite easy. One of the best and biggest breakthroughs in the economic sector of our country is the introduction of something known as UPI.
In today’s times, people have limited the usage of cash and cards, ever since UPI as a system was made live. In 2016 this concept was officially launched for public use. Under Reserve Bank of India’s (RBI) guidance, a new government owned company was given the responsibility of developing a new payment system that is simple, secure, and operationally advanced.
If you use a smartphone today, high chances are that you have either used UPI or at least heard about it. In order to procced further in life and advance as the world is, this article talks about what UPI is, how it works, and most importantly, how you can stay safe while using it.
UPI stands for Unified Payments Interface. It is a financial system developed by an Indian public sector company called National Payments Corporation of India (NPCI). This association permits the transfer of money in an instant between two bank accounts, through a mobile app of the respective interface name.
With UPI, one doesn’t need to remember long bank account numbers or IFSC codes anymore. Instead, using a Virtual Payment Address (VPA) or even just a mobile number linked to the UPI app can be used to receive or transfer any money. Some popular UPI apps used widely today by people are Google Pay, PhonePe, Paytm, Amazon Pay and more.
How Does UPI Work:
Though UPI as a system may seem complicated or heavy, the usage is relatively easy to learn and operate. There are a series of steps to be followed and with that anybody can become a master of it.
Step 1: Download any UPI-enabled app, which the user seems comfortable with.
Step 2: Link your bank account with the app by entering the necessary details (Name/Account Number/Card Number)
Step 3: Set up a UPI PIN (Personal Identification Number) — a 4 or 6-digit code to authorize and approve all the transactions.
Step 4: Once the confirmation is done, one can easily send or receive money and make all the payments directly through the phone, without the need of actual cash or plastic money (debit or credit cards).
The best part with UPI is that anybody’s money gets transferred instantly, at any time of the day and on any occasion, unlike the traditional modes of payment such as RTGS and NEFT. There is a reason UPI has gained such immense popularity amongst the masses –
- Convenience – Just a phone device can do all the work and avoid any tension of carrying liquid cash.
- Rapidness- The real time payment transfers allow transactions to happen with high speed and instantly.
- Simplified Process – Just a mobile number, QR code scanner, or the virtual UPI ID is required. This makes the payment transfer a simple process.
In today’s times, a cart seller, grocery store owner, retail shopkeeper or mall outlet managers – every person accepts UPI. Every individual has the choice and flexibility to have more than one app, link one or more bank account and make the money transfer process hassle free.
Important Safety Tips While Using UPI Apps:
As easy as UPI is to use, it also comes with certain risks if you are not careful. Fraudsters often try to trick people into giving away their money. With the digital age, the number of frauds and cyber scams have become highly rampant. Fraudsters can trick people with spam calls, hoax messages or fake links and extract money out of people’s bank accounts in moments. To ensure UPI transactions remain secure, there are certain safety tips that must be followed and adhered to, which will help the people to remain vigilant and keep their money intact.
One must be careful of any unwanted or suspicious links and false communication.
- Verify UPI ID: Before making a payment, double-check the receiver’s UPI ID to ensure its correct and you’re sending money to the intended person. On can do a test transaction of 1 rupee to cross-check.
- Keep your PIN Private: The PIN must be kept a secret no matter what. It is a confidential numerical code, which is required to transfer any money. Use strong passwords with a two-factor authentication for added security and never share it with anyone.
- Don’t Share OTPs: One-time passwords (OTPs) should never be shared with anyone, even if they claim to be from a bank or someone claims to be a family member relative.
- Update Regularly: The phone device’s operating system and UPI app’s software must be updated on a periodic basis to ensure the latest security features are added.
- Beware of Phishing: Be wary of any suspicious SMS, email, or call asking to click on a link or share your personal information. Fraudsters create fake websites or apps to steal your UPI details.
- Monitor Your Transactions: Regularly check your transactions and enable message notifications so that any unauthorized activity can be caught and stopped.
- Avoid Public Wi-Fi: Public Wi-Fi networks can be insecure and have malfunctions, so avoid making financial transactions using them.
- Scan QR Codes Carefully: Only scan QR codes for making payments, not for receiving money. Use genuine UPI apps (Google Pay/ PhonePe/ Paytm) which are downloaded from official app stores only (Google Play Store or Apple App Store).
- Use Secure Networks: Always use a secure and trusted Wi-Fi network for UPI transactions.
There is no denying that the introduction of UPI as a system has made India a world leader in this regard and several other countries have tried to follow our model in their nations too. It has made our lives so much easier by making payments quick and simple. However, as with any other process too, one must take simple measures while using UPI and be on high alert to avoid any fraud. Use UPI smartly and the safety will remain intact.