Future technology for money transaction through UPI
Now you will be able to make all your money transactions through this latest future technology called UNIFIED PAYMENT INTERFACE (UPI)
Last month India moved a step further in making whole country as a cashless society,which is noticed by whole world.If this new idea will click than in near future we will be able to make payments even to our milkman,plumber or grain merchant with the help of UPI and smart phone
UPI will simplified all yours needs for making any transaction which involved money.
Know How UPI will simplified your money transactions
This one example will clear all your doubts regarding payments through UPI
Say for example,
you visited any shop or mall or super markets for your daily purchases and say your cheque amount comes to Rs 786.
So to make payment you don’t have to take your wallet out and searching for the change and nor even the shopkeeper have to worry about giving the change to its customer.HERE UPI WILL TAKE CARE OF ALL YOUR TENSION.
For making the payment of Rs.786,you just have to provide your unique ID to the shopkeeper (example: Rameshbhai@SBI).
In turn shopkeeper will feed your unique ID (Rameshbhai@SBI)in his phone and will send you payment request for Rs.786.
Immediately you will receive the payment request confirmation message in your smart phone,
In return you just have to provide your secret PIN number ( just like ATM CARD PIN) and confirm the payment request.
This will transfer the amount of Rs 786 from your bank account to the shopkeepers bank account Immediately !!!
In the same way,instead of giving your UNIQUE ID to the shopkeeper you can feed shopkeeper’sUNIQUE ID in your phone and send the payment directly to that shopkeeper and he will receive the amount of Rs 786 after he confirmed the money request received.
ALL THIS TRANSACTION DONE JUST THROUGH UNIQUE ID without taking more time.
After reading this one, IMMIDIATELY question which will come in your mind that why should I use this system as I already using PAYTM,MOBIKWIK,OXYGEN,ETC.
The answer is,all the above app has very limited use and it is not necessary that the app which you are using is also be used by your customer or supplier and there is a restriction by RBI in the amount of transaction.
What We are talking about is the full fledge system of making money transaction which will be covered all over India and has already supported by many big banks in India and in near future all the banks in India will be joining this system.
Guys mark my word this payment structure will change the way of making money transactions in near future.
This service has been launched by NATIONAL PAYMENTS CORPORATION OF INDIA (NPCI)
NPCI:Currently it’s playing a very vital role in all the transactions involved in between the RESERVE BANK OF INDIA (RBI) and all other Banks.
So this payment through UPI is going to achieve a big success in coming days.
Last month this system was announced by the previous chairman of RBI,Raghuram Rajen.
Please do not search for this UPI APP in your Google play store or iOS app as there is no such app for making the transaction through UPI.
UPI is not an app but it is a system itself.As it is UNIFIED SYSTEM,it joins all the different banks in its systems.
We can make all the transaction under UPI through our own BANK APP only.It will be made available for public in a month or two.All The bank app will make changes in there respective app for using it to there customers.
The person who have their account in any bank and he must be the owner of a smart phone can use this UPI SYSTEM.
Why India needs the system like UPI and what difference does it makes in Indian economy ?
According to the RESERVE BANK OF INDIA and NPCI in INDIA
- On an average a person residing in India making transactions without cash i.e. Making payments through debit or credit cards or any other payment gateways for only six times in a Therefull year and this is very low as compared to other nations
- There are minimum 1 crore Retailers in India,and out of which only 10% are accepting payments through cards which needs machines for swiping the cards
- Out of 6 lakhs villages in India,banking facilities have not reached to even 1 lakh villages also.
THIS IS ONE SIDE OF OUR COUNTRY’S SITUATIONS REGARDING CASHLESS PAYMENT TRANSACTIONS.
SECOND SIDE,NOW A DAYS MORE AND MORE PEOPLE ARE NOW STARTED OPENING THEIR BANK ACCOUNTS IN RURAL AS WELL AS IN URBAN AREA DUE TO THE VARIOUS ANNOUNCEMENTS OF GOVERNMENT’S SCHEME LIKE PRADHANMANTRI JAN-DHAN YOJNA AND VARIOUS INSURANCE SCHEME WHERE THE AMOUNT IS DEPOSITED DIRECTLY TO THE BANK ACCOUNT OF A CONCERN PERSON.
THIRDLY,IN THE COMING 5 YEARS,THE PEOPLE IN INDIA USES A SMART PHONES WILL CROSS MORE THAN 50 CRORES.
AND LASTLY TO STOP GENERATING BLACK MONEY THE GOVT. OF INDIA HAS NO OPTION BUT TO COME OUT WITH THE SYSTEM LIKE UPI WHERE ALL THE TRANSACTION WILL BE DONE CASHLESSLY.
To get success in this type of cashless transactions,the system of UPI should be simple and users friendly so that it can reach to a common man.To get success it should be
- Easy to operate
- New and latest technology
- inexpensive or free
- covered more area
- can take help of Google macro reach more people
As of today in India there are 3 system running for making electronic online transactions.
- NEFT (National Electronic Fund Transfer)
- RTGS ( Real Time Gross Settlement)
- IMPS ( Immidiate payment service or Interbank mobile payment service)
Above 3 are also popular mode of transfer money but they have their own limitations.
In case of NEFT and RTGS you can make transactions in bank hours only and it stops working on bank holidays and on Sundays.
In case of NEFT,it takes time to get the funds transfer from one account to another as all the bank transfer the funds batchwise.
But in case of IMPS,you can transfer the funds 24*7 and also it gets credited instantly in the account.
Incase of NEFT and RTGS,to send the money you need the receiver’s name,his account no.,bank name,IFSC code,etc.
After this you have to log in to your bank account from your computer and have to feed all the above data of receiver and after feeding all the information it takes about half an our to get activated and than you can transfer the funds to the beneficiary.
But in IMPS you don’t need any computer or internet connections.You just have to generate one code called MMID ( Mobile Money Identifiers) and you should know the code of the beneficiary too.Above this you should also have to go through the procedure of feeding all details of the beneficiary same as in NEFT/RTGS.Uptill now more than 100 banks joined hands with the IMPS SYSTEMS.
So this new UPI SYSTEM is the extension of the above IMPS SYSTEM in a more simplified and users friendly manner.In this you don’t have to add any beneficiary details to transfer or receive the funds.
HOW WE CAN USE UPI SYSTEMS
Uptill now around 19 big banks like STATE BANK OF INDIA,ICICI,AXIS,HDF ,etc have joined the UPI SYSTEMS.
All these banks have their own banking app in smart phones.These all bank will connect or upgrade their current app with the UPI STRUCTURE,and if you are using that bank app than you will be asked if you want to take the service of UPI SYSTEM or not ?
After confirmation you can start using UPI.All other service of that particular bank will remain as it is.
To use the UPI SYSTEM,we can self generate the virtual email addresses to get started.For example Atratatra@AXISBANK.
You can generate more than one address also.
This address is similar to our bank account number.With this one address you can receive as well as send the money.
The biggest advantage of this system is today or tomorrow almost all the banks in India will join in this UPI system so all the customer of different bank also be interconnect automatically.
And we also don’t have to use app now and than to make any transactions you just need to remember your virtual address generated in starting in your bank app.
So if you need to pay any money to taxi driver,
you just have to give your virtual address to that taxi driver,in return driver will send request in your mobile about transaction,
you just have to confirm that transaction by giving PIN (you will receive it in your confirmation message).
Done!!!Your money will get transfer from your account to taxi driver’s account instantly!!!
HOW TO USE UPI (UNIFIED PAYMENT INTERFACE)
- Download or update the upgraded version with UPI in your bank app
- Create your virtual address (example Atratatra@SBI) by giving your name or mobile number.This is one time only.
- After purchasing any product or any service like taxi,rickshaw,etc,choose your checkout method of payment as UPI
- Give your virtual address created in step 2 above to the person you have to pay
- Do not give any other information except your virtual address in any case
- Now you will receive the message from your bank app about PAYMENT REQUEST AUTHENTICATION along with one time PIN
- Enter you PIN and confirm the request
- DONE !!! You will get instant message about your payment done and the amount will be debited from your bank account and gets credited to the seller’s bank account.
FUTURE USE OF UPI
The plan of the Reserve Bank Of India and the payment corporation is to expand and further simplified the roots of UPI SYSTEM to AADHAR CARD also by interlinking your Aadhar Card with UPI.
AADHAR ENABLED PAYMENT SYSTEMS
You must be knowing that,at the time of taking out Aadhar card we had along with paper documents like PAN CARD,RATION CARD,ETC,given our FINGER PRINTS and the SCAN of our EYES too.
With this procedure 100 crores people of India got the unique identification number called Aadhar number and in turn the government got all the biometric information of all the 100 crores people of India with the help of UNIQUE IDENTIFICATION AUTHORITY OF INDIA.
So in near future we can also make the payments without the help of smart phones,just with the help of our finger prints which is linked with our bank account with the help of Aadhar card.
Currently for withdrawing money from ATM (Any time Money Machine),we should have with us Debit Card and its Pin provided by our bank but in near future with our linked Aadhar card with our bank account you can withdraw the money just by giving your finger prints.(Currently,If you noticed,almost all the ATM machines in India have the finger print scanner in built in it but it’s of no use but in very near future we will be able to use that function easily).
The main advantage of UPI SYSTEM is that you can create more than 1 virtual address.For example for making payment to your groceries bill address can be Atratatra.groceries @ SBI OR for making Railway reservation make your virtual address as Atratatra.irctc@SBI.
You can even restrict your payments for various virtual address by setting the upper limit for that particular address and can even set that virtual address to run in that particular site only.
Now say you have created your virtual address which runs in IRCTC SITE only, in the bank app settings.NOW
- Go to IRCTC website
- Give your created virtual address to IRCTC (This is only for one time only)
- Now whenever you want to booked the tickets for railway reservation just press BUY TICKETS,Immediately IRCTC will send the request via their bank account with the help of NPCI on our smart phone
- In return we just have to confirm the request by giving PIN NO.
- This will debit the particular amount of the tickets from our bank account and
- IRCTC will issue a ticket immediately
- Done !!! All this will happened in very few minutes,all the time of feeding your debit or credit card number will be saved and the ticket will be generate faster than before
WILL UPI GET SUCCESS ?
As of now it is difficult to give the answer because majority people of India has still not accepted the system of IMPS also.
But with the introductions of UPI all the things are simplified so people can opt it easily but with the introduction of the UPI system,it cuts most of the revenue currently generated by banks through NEFT and RTGS,So as of now it’s all depends upon the bank’s interests,how they will accept the UPI SYSTEM as a whole.
But one thing is sure that Banks will get the great push ups with the help of the UPI SYSTEMS because as of now it faces the immense competitions from private companies !!!