Digital transactions have received a lot of encouragement during the Corona period. As a result of this, 2233 crore transactions were done through Unified Payments Interface (UPI) in the year 2020-21. A total of Rs 41 lakh crore has been transacted through these transactions. UPI was launched in India in August 2016.
Transactions grew 1200 times in 4 years, but their value increased only 50 times
UPI was started in 2016. In the first year i.e. 2016-17, a total of 1.8 crore transactions were done through it. 0.7 lakh crore rupees were transacted through these transactions that year. At the same time, in the last year i.e. 2020-21, a total of 2233.1 crore transactions were done through it. In that year, transactions worth Rs 41 lakh crore were made through these transactions. That is, in the last 4 years, the transactions have increased almost 1200 times, but through them the transaction value of money has increased only 50 times. This shows that the number of small transactions has increased rapidly over the years.
What is UPI service?
Every app providing wallet service provides direct facility to transact through UPI. That is, if you want, you can do transactions with wallet and also with UPI. Wallet services for e-payments are also available in India. Wallet app accounts for more than 50% of the online transactions happening across the country. This figure is more than 85% +-in retail payments.
How does UPI work?
To take the service of UPI, you have to create a virtual payment address. After that you have to link it with your bank account. The virtual payment address becomes your financial address. After this there is no need to remember your bank account number, bank name or IFSC code etc. The payer simply processes the payment request based on your mobile number and the payment gets credited to your bank account.
If, you have his UPI ID (e-mail ID, mobile number or Aadhaar number) then you can easily send money through your smartphone. Not only money but also net banking, credit or debit card will not be required for utility bill payment, online shopping, shopping etc. You can do all these things with the Unified Payment Interface System.
Special things related to UPI
- UPI system does real time fund transfer.
- To send money to someone, all you need is their UPI ID (a virtual identity like e-mail address, mobile number, Aadhaar number).
- By having a UPI ID, you will not need to know the name of the beneficiary, account number, bank etc. to transfer funds.
- UPI has been developed on the model of IMPS. So with this app you can do 24*7 banking.
- OTP, CVV code, card number, expiry date, etc. will not be required for online shopping with UPI.
- It is a secure banking medium.
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