What Is UPI? - Unified Payments Interface | AU Small Finance Bank
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UPI - Unified Payment Interface Guide

    In 2021, India became the global leader in real-time digital payments, as it reported nearly 38.75 billion UPI transactions during the year. The introduction of UPI (Unified Payments Interface) in 2016 has played a significant role in helping the country achieve this feat. But what is a Unified Payments Interface? Here’s everything you should know-

     

    What is a Unified Payments Interface?

    UPI is a real-time, instant online payment system. It is an interoperable system that can be used by the customers of all the different banks to transfer or receive money. With a UPI ID and PIN, you can send money to other UPI IDs and mobile numbers through your smartphone without having to enter an IFSC code or account number. 

     

    Who initiated UPI?

    The National Payment Corporation of India (NPCI), along with the Reserve Bank of India (RBI) and Indian Banks Association (IBA), introduced UPI in India. The NPCI also launched BHIM UPI app a UPI-powered mobile app, in December 2016 to encourage UPI adoption.   

     

    How Does UPI Work?

    So, how does UPI payment work? You first need to create a UPI ID using banking apps that supports UPI payments, such as AU 0101 APP. Once the UPI id is set user can do the required transactions by entering the UPI ID where required. You can do online payments for shopping, bill payments, money transfers etc. UPI transactions are instant and free of cost. You can do it anytime anywhere. The only mandate is that your linked bank must be a participant. As of today, most of the banks in India are member of UPI, with a total of 346 participating Banks.

    When you make a payment through UPI, funds are debited from the bank account linked to your UPI ID. The same is the case when you receive money on your UPI ID. 

    To register on the AU 0101 App, you need to input your name and Email ID(optional).

     

    Features and Benefits of UPI

    Here are some of the top features of UPI:

    • Instant mobile-based online payments
    • Eliminates the need to remember the recipient’s bank account details
    • Secured way to send and receive money online
    • UPI transactions are free for the users and merchants
     

    What are UPI ID and PIN?

    When you register for UPI, you receive a UPI ID. A standard UPI ID looks like ‘Mobile [email protected]/Bank Name.’ So, for instance, if you create your UPI ID on AU Small Finance Bank’s AU 0101 App, it can be ‘[email protected]’ 

    Every time you want to pay online or transfer money, you are required to enter the mPIN. mPin is a 4-digit passcode that you set while registering for AU 0101 App. You can use mPin to log in to AU 0101 App.

     

    Benefits of UPI for Banks

    • Bank-agnostic and interoperable payment system 
    • Enables easier transactions
    • Safe and secure
     

    Benefits of UPI for Merchants

    • Efficient and low-cost method to receive payments
    • Real-time account credit
    • Easier invoice management
     

    Benefits of UPI for Customers

    • Send and receive money 24x7
    • Can be used for online and offline purchases
    • UPI PIN for added security
     

    Apps with UPI Features in India

    While you can find the UPI apps list online, most leading banks have the UPI feature integrated into their Mobile Banking Apps. 

    For instance, AU 0101 App allows you to register a UPI ID for on-the-go payments. Once registered, you can use the UPI ID to send and receive funds from and to your AU Small Finance Bank Account. 

    Now that you know the benefits of UPI and how it works, you can register for AU 0101 App & start experiencing the modern world of online payments. Existing AU Small Finance Bank customers can use the app to avail a host of services like managing Credit / Debit Cards, investing in Mutual Funds/ Stocks/ IPOs, availing Retail Loans, getting insurance & much more!

    AU 0101 App is available for download from Google Play and App Store.