Before discontinuing his services, the former RBI governor, Mr. Raghuram Rajan had given the citizens of India – a parting gift which converts our Smartphones into a Bank using UPI (Unified Payment Interface) which makes cashless transactions convenient and seamless.
Quite similar to IMPS (Immediate Payment Service), UPI is also developed on same parameters and work on both Android or iOS apps in Smartphones.
UPI is integrated in your Bank’s app which will allow you to create VPAs (Virtual Payment Addressees). VPAs look like email IDs for example, if you have account in Axis bank, then your VPA would look like YourName@Axisbank, for ICICI Bank, it will be like YourName@ICICI
You can create up to Ten different VPAs and link them to any Bank Account for receiving or sending money. The minimum amount to transfer is Rs.50 whereas maximum amount you can transfer in one go is Rs.1 lac.
The most convenient part of UPI transfer is that you don’t need to add a payee with his/her bank account number and IFSC codes. All you need is payee’s VPA and do the transaction within seconds. We can easily make payments to shopkeepers, pageboys and of course to friends and family.
For further clarification, please check following illustrations of Icici Bank App: