Suc­cess So Far

Consumer Voice - - Bfsi Guide -

All you need are a mo­bile phone and an ac­count with one of the banks that has al­ready launched its UPI app.

Step 2:

Set lo­gin ID and cre­ate a vir­tual ad­dress. Launch the app af­ter in­stal­la­tion and cre­ate the lo­gin ID and your vir­tual ad­dress.

Step 3:

Add your bank ac­counts. While banks have, and will launch, their sep­a­rate UPI apps, they are in­ter­op­er­a­ble. This means that you can add mul­ti­ple bank ac­counts to a sin­gle bank’s UPI app.

Step 4:

Set your M-pin. As with con­ven­tional bank­ing apps, set a unique M-pin, the safety fea­ture that al­lows only you to use the app.

Step 5:

Start trans­act­ing. Do small trans­ac­tions first to un­der­stand the app and see its suc­cess.

Mo­bile Wal­lets ver­sus UPI

UPI App All that a user needs to do is to cre­ate a ‘vir­tual ad­dress’ to re­ceive pay­ments from and make pay­ments to any other sim­i­lar vir­tual ad­dress. This ad­dress can be your name or your phone num­ber. There is no need to share your com­plete bank ac­count de­tails. The user need not re­mem­ber the 15-digit bank ac­count num­ber or the 11-digit IFSC code (code used in banks to iden­tify their branch) needed for in­ter­net bank­ing.

The RBI has suc­cess­fully com­pleted a pi­lot run of the UPI with em­ployee-cus­tomers and made it pub­lic in April 2016. At present, 21 banks are its mem­bers and some other banks are us­ing mem­ber-banks’ plat­form for their cus­tomers. Dur­ing the last five years, the or­gan­i­sa­tion has grown mul­ti­fold – from about 20 lakh trans­ac­tions a day to ap­prox­i­mately 200 lakh trans­ac­tions now.

The UPI is tar­get­ing a ma­jor chunk of cash-based trans­ac­tions, thereby also help­ing the govern­ment/ RBI in clean­ing up of the black econ­omy. Also, there are plans to in­tro­duce Aad­haar-en­abled smart­phones – if that hap­pens, users will be able to self-au­then­ti­cate and the need for en­ter­ing the M-pin will be done away with. Mo­bile Wal­let A wal­let on your mo­bile phone (in the form of a mo­bile app) al­lows you to trans­fer money through a mo­bile phone to mer­chants and pay for ser­vices, util­ity bills, ticket book­ings, etc. A user can trans­fer money into the mo­bile wal­let (app) through a debit or credit card or via net bank­ing. It works more like a pre­paid card. How­ever, trans­fer­ring money from the bank ac­count is the same process as mak­ing a pay­ment via net bank­ing or via card on­line. The mo­bile wal­let does not al­low you to col­lect/ re­ceive funds.

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