UPI stands for Unified Payment Interface and is a payment system implemented by NPCI. It enables instant transfer of funds between two bank accounts. So we can transact through it 24*7.
NPCI – National Payment Corporation of India
NPCI is a non-profit organization that regulates retail and wholesale transactions in India. It is supported by the Reserve Bank of India (RBI) and the Indian Banks Association (IBA). BHIM – Bharath Interface for Money is an app that enables fast and secure cashless transactions through mobile phones.
How to Run BHIM APP
Download the BHIM app on the mobile and check if the mobile number is linked with the bank account Then generate a 4-6 digit secret code called UPI PIN. This UPI PIN must be used for all transactions through BHIM.
How to send money to someone?
There are three types of remittances. Send by mobile number Sending with Aadhaar Number
Remittance with bank account number and bank’s IFSC number. In the first two ways, the next node should also have this BHIM app. But in the third way, you can send money to anyone. He does not need to have this app.
Payment of fees What I consider the main benefit of this app is this payment facility.
This payment service is also available in private services like PayTM. Above a certain amount, there is a service charge on these. But there is no service charge on BHIM server. Payment can be made through Barcode and Payment Address.
Is this BHIM app safe?
All the data used in this is not personal or any other way. This app is safe. Perhaps, if your phone is lost, it is not possible to make a payment without a password. Also, by disabling the phone number, you can stop this service immediately,
All transactions will be recorded under ‘Transaction’.
If the app is left open for more than 90 seconds without activity, it cannot be used again without a password.This app is built with all such security features in mind.
I have explained as much as possible. Please share your complaints and complaints in the comments section!!
Why do free UPI payments offer to you
UPI service companies are currently adopting a strategy of keeping the entry gates open.
As of now, they do not charge any fees for cash transactions. No charging to users and banking institutions. This is a long-term vision plan for them. All the companies are focusing on converting those people into their customers to retain the Indian market which has crores of people. Jio has taken this approach.
They do not receive any income for that. Apart from direct money transfers, they earn a certain amount of revenue from different types of transactions and online services, which gives them a certain amount of profit. Their investment is at a non-returnable level.
Although there are many UPI exchange companies in India, let’s just look at how Google Pay works. Because all the companies are following almost the same revenue generation methods. Idli, Dosa, Paniyaram, and Uthappam are different but the dough is the same.
Google Pay Prepaid Recharge earns a commission from the respective telcos commensurate with the recharge amount. It is the same revenue stream as recharge shops.
DTH recharge companies also charge intermediate commissions.
Selling plans of insurance companies, selling food coupons from Zomato, swiggy, booking accommodation at premier hotels in small and big cities at a small discount, and transactions from grocery to luxury goods are being made through virtual companies through UPI. All of the above have the plan to get a commission from those companies.
Industry experts have released an estimate of Google Play’s current overall revenue and future plans.
The above is not official from Google. But almost all companies in India are following these methods.
So they now run long-distance marathons. They run slowly at first. And to maintain a huge market like India, initially, anyone is allowed to visit the zoo for as many days as they want. When they open up the lion’s share and start charging entry fees, i.e. when they charge for bank transactions, it means that those companies have taken a huge profit-making leap.
Until then, the above recharge is just like the income they get from snacks in the zoo canteen.
As of now, all the companies that have set foot in this sector in India want to be a monopoly. It is not possible. But with companies like Google Pay and Phone Pay leading the way, they are likely to capture a large share of the market shortly.
Is it true that (UPI Payments) is not available in some foreign countries?
Most Western countries (except Germany) accept cards (or their respective platforms). Combined transaction is not accepted yet.
Their growth in India is tremendous. Next Do you know how much is being transferred through such data? 25 billion dollars in 2020 in India alone. China is next at $15 billion. See the difference. 2021 and 2022 it is still growing. As of now, 40 million transactions take place every day. It is no exaggeration if India has left other countries behind in this. Reasons why this is not the case in other countries?
- It has been promoted a lot during Corona period in our country. And the announcement that you can open a bank account with no minimum amount is a plus for this. Today there are no cardless merchants like Paytm
- Our NPCI (National Payments Corporation of India) has developed guidelines for this and an integrated database called UPI.
- At the same time other countries took more time to draft such integrated guidelines. In many countries such transactions were not required as it was easy to swipe cards.
- Also, the cost of mobile internet data charges in our country is low. It is no exaggeration to say that this also played an important role in this development.
Do you think UPI is a better money transfer method? Why?
Yes. UPI is a great money transfer method.
Until a few years ago, if you want to transfer money from one bank account to another bank account online, you can do it only through Mobile Banking or Internet Banking.
But it was inconvenient for people who were not well-educated and did not have a proper understanding of banking.
Because in mobile banking and internet banking, the bank account number, IFSC Code, etc. of the person you are transferring to is mandatory. And if others know your username and password, they can see your bank account information.
It is not suitable for ordinary people.
Ever since the introduction of UPI, all people started using it. Because it makes sending and receiving money very easy. Money can be sent only with the user’s mobile number.
It is safe as transactions can be done only if you have a mobile number registered with the bank on your phone. And it does not require OTP Number. After you have already set it, you can transact with the number.
As of now, UPI services are offered by corporates for free, but over time they may charge more. Now paytm has started charging…