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ToggleUnified Payments Interface (UPI) is gaining popularity due to the convenience it offers. It allows quick and hassle-free money transfers without requiring bank account numbers.
This payment method allows you to use your smartphone as a virtual debit card to send and receive instant funds. The use of Quick Response (QR) codes has even limited the use of digital wallets.
UPI is a single platform merging multiple banking features and services under a single umbrella. With a valid ID and PIN, you can easily send or receive funds via UPI. You can complete real-time banking transactions with a mobile number or a virtual payment address.
A UPI ID is a four-digit unique personal identification number that is used to authorize any fund transfer via this payment mechanism. You may generate the PIN as per your choice.
UPI makes fund transfers simple and eliminates the need for information, such as bank details. You can send funds via UPI using the receiver’s Aadhar number, registered mobile number, or ID.
You can set up the ID via your bank’s mobile application. You will receive a one-time password (OTP) to authorize the ID generation and PIN. On successful registration, you can send and receive money.
The Virtual Payment Address (VPA) is a unique ID and is like an email address. When you register for VPA UPI, the ID is created as yourname@yourbankname. This ID allows you to transfer funds between different bank accounts using your smartphone.
The VPA is a gateway allowing fund transfers and you can link multiple bank accounts to the same virtual address.
You can transfer funds in multiple ways using UPI as explained below:
As per the National Payments Corporation of India (NPCI), the UPI transaction limit per day is capped at INR 1 lakh. However, different banks and apps may have varied sub-limits and you should check that before transferring money
Scammers may engage you on a phone call and send a request asking you to transfer money to their account. If you are not alert and accept the request without checking it, you may fall prey to fraud.
Some fraudsters take advantage by showing interest in products advertised on social media platforms. After engaging with the seller on the phone, these fraudsters ask the seller to transfer money with the ‘request money’ option on the UPI apps.
Do not store any sensitive information like PINs and passwords on your phone to ensure it is not misused if lost or stolen. Set a strong pattern or biometric password to ensure third parties cannot access your phone to make unauthorized transfers.
Google Play and App Store. Before downloading and installing the app, check the ratings and reviews to ensure you do not get scammed by a fake application.
You may post certain issues on social media and fraudsters may approach you under the disguise of assisting you. They may ask for confidential information like card details or OTP, and if you share these, you can fall prey to a scam.
Sometimes fraudsters may create deceptive UPI handles on social media platforms like Twitter or Facebook. It is recommended you do not share or post your contact details on these media.
UPI transactions are authorized either with an OTP or PIN. Some scammers convince you to share these details on the phone and then use them to steal money from your account.
If you fall prey to online fraud or lose your phone, you must immediately contact your bank’s customer care number and block all the accounts linked to your UPI app.
You can also report the fraud/theft to the police or the cyber-crime cell. Since you do not need to provide the PIN associated with the UPI address, you will be able to receive money into the linked bank accounts even after blocking these.
UPI has made fund transfers easy and quick. However, you need to stay alert to avoid fraud. Remember that banks, government agencies, and other financial institutions never ask for sensitive information like OTP and PIN.
Moreover, you should never ignore any fraud alerts received through digital payment apps. Most of the reliable UPI apps like Google Pay and PhonePe send alerts when any request from unknown accounts is received.
The NPCI has developed a robust infrastructure to make cashless payments hassle-free and secure. Multiple safety protocols like mobile number verification at the time of installation, PIN authorization of transactions, and authenticating merchants bring security to transfer funds using your UPI ID.
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