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What are the benefits of the UPI money transfer system?

With the aim to digitise India financially, new and convenient methods to transfer funds is now being introduced into the market. One of these measures, is the introduction of the unified payment interface.

Known as UPI, this payment system allows money transfers between any two bank accounts, by using your smartphone. This is becoming a popular choice for many individuals who have settled abroad and needed to send money to India. Furthermore, there is no requirement to input any details pertaining to your card details, IFSC code or even your net banking or wallet passwords.

But how does this benefit you? You can take advantage of the following advantages:

Cheapest way to make a money transfer to India: UPI is becoming one of the cheapest methods to make a money transfer. If you are making a transfer through NEFT, you will need to pay a minimum amount of Rs. 2.5 for each transfer. Similarly, with the IMPS charge, you will need to pay a minimum of Rs. 5. But with the UPI charge, you will only need to pay less than 50 p for each transaction. Because of this low cost, UPI now offers the mean to make small money transactions without incurring a heavy transfer charge.

No requirement to submit details: One of the greatest inconvenience when it comes to making a money transfer to India or even from one bank to another account, is the task of inputting bank details. As this is a meticulous task, which requires you to carefully input all your details into the transfer, it often turns into a tedious job. Furthermore, any net banking transaction you make, by inputting the details, will increase the risk of exposing your bank account details. In the case of card transactions, you will be required to input your card number, validity period and CVV number. However, UPI solves this problem. You only need to provide the virtual payment address, which is quite similar to your email ID. Once you input this ID, there is no requirement for you to input any other details.

Comes with security features: Plenty of individuals, especially those who do not have any previous experience with this form of money transfer, are reluctant to opt for this kind of money transfer. After all, not everyone will have a card, or even use net banking for online payments. Furthermore, the lack of experience will lead to security concerns. After all, someone may take a look at your PIN number or even steal your net banking details. This is where the UPI will minimise this concern. When you want to send money to India or any local bank account, you only need to provide the virtual payment address, which gives no indication of your bank account. The authentication will take place only on your smartphone, which requires you to input two different PIN’s.

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