UPI stands for Unified Payment Interface.Through UPI we can transfer money from one bank account to other bank account.It works 24 X 7 without any interruption.
Unified Payment Interface is an initiative by National Payments Corporation of India’s (NPCI), set up with the support of the Reserve Bank of India and Indian Banks Association (IBA). The NCPI operates the Rupay payments infrastructure that like Visa and MasterCard — allows different banks to interconnect and transfer funds.
IMPS (Immediate Payments Service) is also an initiative of NCPI. UPI is the advanced version of IMPS.
According to NPCI, so far only 29 banks have agreed to start this service. If your bank is UPI-enabled, you can ask it to connect you to the system. To initiate a transaction, you can use two types of address — global or local. Global address includes your mobile, Aadhaar and bank account numbers. A local address can be a virtual address. Let’s say your bank gives you a virtual ID similar to your email ID (for instance, name@companyname). This virtual address will allow you to send and receive money from multiple banks and prepaid payment issuers
UPI will simplify your online payments. Now, we have to use NEFT, IMPS or a digital wallet such as MobiKwik or Paytm to make a quick payment to the service providers. With the UPI, you simply need to enter your details, and get a billing request on your phone — which you can accept or reject right away.
