Definition
Aadhaar-based UPI allows users to send or receive money using their Aadhaar number linked to a bank account. The Aadhaar number acts as a financial identifier, eliminating the need to remember bank details or mobile numbers.
How It Works
To use this service, your Aadhaar must be linked with your bank account. Once linked, UPI apps that support Aadhaar-based payments allow you to make transactions using just the 12-digit Aadhaar number.
Benefits
- No need to share bank account details
- Useful for people in rural areas without smartphones
- Promotes secure and easy access to digital banking
UPI full form is Unified Payments Interface, and Aadhaar-based UPI is one of the many ways to access its features securely and efficiently.
Also Read: Aadhaar Enabled Payment System (AEPS)
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