Unified Payment Interface, the simplest way to transfer funds from one bank to another requires individuals to complete the process of UPI registration. To do so, one needs to create a unique UPI ID on any mobile payments application, such as Paytm. It is only after the process of UPI registration is duly completed that one can begin to transfer funds from one bank account to the other.
Continue reading to learn more about how you can do UPI registration and why it is important.
In simple words, UPI is a payment platform accessed through a mobile application, which allows you to transfer funds from one bank account to another. UPI is regulated by the Reserve Bank of India and the mobile applications that facilitate UPI transactions are bound to follow the guidelines laid down by RBI.
UPI, basically, allows an individual to transfer money directly from his/her bank account to the recipient’s bank account in a matter of seconds. UPI was launched as a replacement for the traditional ways of IMPS/NEFT for transferring money between banks. Using IMPS/NEFT was a lengthy process as it required the sender to provide details like the receiver’s name, Bank account number, IFSC, etc. Additionally, the sender has to first add the receiver as a payee to his bank account, which takes around 12 hours. It is only after this, that one can transfer money to the other account. The facilitation of UPI, however, has completely eliminated all this hassle. Once the sender has completed his/her UPI registration process, he/she can transfer the money with only a few clicks.
Let’s understand how you can complete the process of UPI registration.
UPI Registration- How to Complete the Process?
To complete your UPI registration process, follow these steps-
- Download a mobile payment application, like Paytm
- Just enter your mobile number. If you have a dual SIM phone you may be prompted to select the SIM slot in which your mobile number is present
- An SMS will be sent from your number to verify your mobile number
- Once this is done, you will have to select your bank name from the list that will be presented to you. Please make sure that the mobile number registered with your Bank is the same as the one you entered earlier. Your bank account details will now be fetched from the bank using your mobile number
- If you are linking your Bank for the first time, you will be asked to set up a UPI PIN. You will need your Debit card details for setting this up
- Your Bank Account is now linked via UPI and you are ready to make your first payment
Unified Payment Interface or UPI has more benefits than you can imagine. Here’s a list of a few of them-
- Simplified, hassle-free online payments
- Safe and secure mode of money transfer
- Allows you to make payments towards your bills, shop on e-commerce websites, etc.
- Lets you make payments by scanning QR codes at your nearby departmental stores, chemist shops, etc.
- Regularly paying through UPI also helps you earn discount vouchers, cash back, and other rewards