Do you use UPI or Google Pay or any of such apps? But are you aware of the benefits of UPI? Here we are with the 10 benefits of UPI that will blow your mind.
Yes, if you start using UPI you can enjoy these benefits of UPI. I started using UPI since the launch of the Bhim App by the Government. And, it was 3-4 years back in 2016 I guess. Yes, that was the point when I first got to know about the Unified Payments Interface. It was quite fresh and attractive that got my attention. Even the Government was doing a lot of promotional activities to promote it. And, it was something new to get your attention too.
But, then we got the Google Pay (formerly known as Tez App) from the tech giant Google. They did everything quite similarly but they had huge promotions running. Initially, they used to pay Rs 51 reward for every referral up to Rs 9000 for just referring their app. So, you can imagine how big this thing was. Later on, they changed their name to Google Pay which became very popular. And, meanwhile almost every digital payments wallet or portal started providing the option for UPI Payment.
So, now we have the UPI feature on almost every application be it Paytm, Phonepe, or any of the banks’ applications. But, if you are not aware of everything that you can do with the UPI then here we have all the benefits of UPI that will blow your mind.
10 Benefits of UPI (Unified Payments Interface)
UPI is kind of a combination of both digital wallets and Internet banking where you can enjoy both. The UPI was launched in 2016 by NCPI under the guidelines of RBI. This is a mobile-based instant transfer mechanism. There is an inter-bank transfer. In the Bhim app, the daily transaction limit is Rs 40,000 and you can do only a maximum of 10 transactions with the per transaction limit being Rs 20,000.
While on the Private UPI, the daily limit is Rs 1 Lakh and the transaction limit is also the same with the total maximum transactions being 10. And, there is no limit on Merchant transaction meaning you can pay any amount if you are paying for the shopping or bills. The limit is just for the transfers. Now, let’s just jump to the benefits of UPI:
1. No Loss of Interest
If you are using a digital wallet like Paytm, Phonepe, free charge, Mobikwik, etc. or any of the wallets, they keep your money in the wallet. These wallets are like your actual wallet where you keep your expendable money. But, UPI is very different. It does not keep anything separate. ALL THE MONEY IS ALWAYS THERE IN YOUR BANK ACCOUNT ITSELF AND it’s DEBITED ONLY WHEN YOU PAY.
So, all the time you are not making any expenses your money is there in your bank only. And, they are obliged to pay you the regular rate of interest. Unlike any other payment mechanism, you will get the interest earnings there in your bank account. So, there is no loss of any kind of interest amount.
2. All Types of Payments
Now, if you are looking for what kind of payments you can make then you can make almost every kind of payment. There is peer to peer payment where you can pay to other UPI users. So, you can pay to your friends and family, someone you owe something or maybe anyone. Then there is an option to pay for bills like the DTH bill, electricity bill, phone bill, Internet bill, etc.
You can pay to merchants, do some online shopping, etc and this is not the only thing. You can also set a frequency of payment. So, let us suppose that you are paying some EMI may be for your car or bike or maybe your laptop. So, now you don’t have to remember the date of EMI but you can simply set a payment date with the UPI.
3. Instant Money Transfer
Yes, there is an instant money transfer directly from bank to bank accounts. If you do money transfers with the regular IMPS then it takes first a lot of time just to register the beneficiary. Some banks take 30 minutes to one hour and some even take a few days. So, why waste your time with such things?
You just have the UPI money transfer which will instantly transfer the money. All it takes a few seconds and your money is there in your account. So, this is one of the few benefits of UPI that makes it bigger and better
4. 24/7 Payment benefit of UPI
One more thing that is there the time when you can make the transfer. If you are making money transfers with the NEFT/RTGS then it is not available all the time. But, this is the benefit of UPI that makes it available 24/7 365 days. So, any time you want to make a money transfer use the UPI.
And, I am not saying this theoretically but I have been personally using it like this. So, anytime you want to transfer money to someone ask them to give you a UPI ID and do the transfer immediately be it day or night.
5. Multiple Modes of Payments
There is a unique UPI ID that lets you make the transactions. This is unique for every user and allows you to recognize the other person. Then you can also make payments with just the phone number as the phone number is directly linked with the bank account.
And, this is not the only option as you can also pay with the email id and even the QR code. And, if you do not have any of these details then you can also make direct bank transfers with the UPI mechanism. isn’t it great! It allows you to have multiple options to make payments online. This is the beauty of UPI that keeps you connected with so many modes and safe too.
6. Send/Request Money
No matter which payment mechanism you use all you can do is make payments only. But, here is UPI with the benefits of UPI which allows you not only to pay but also to request a payment. So, you can pay and also request money to and from your friends.
Let’s suppose you are stuck in a place and you need to pay your cab bill. In situations like this, you can ask your friends to lend you the exact amount of money you need. and all he has to do is sanction it. And, you will receive the money. So, this is great again that UPI allows you to do both pay and request the money.
7. Secured Transactions
There are tonnes of benefits of UPI that you know by now but what about the security? Yes, security is very important in every aspect. So, heer si something in the part of the security of UPI.
There is a transaction ID where you recognize the person with the UPI ID or his phone number. And, there is a PIN too where you keep a one-click security. Until and unless anyone knows your PIN, nobody can access your bank account. It has two-factor authentication too. And then you don’t have to share any of your bank details. All you do is give a UPI id and you get your money.
8. Negligible Payment Charges with UPI
We all suffer from this one thing that whenever we make a payment there is some kind of payment charge being charged by our bank. But, this is not the case with the UPI. There are no hidden charges or any kind of charge being involved with the UPI payments. Most of the time, this is true.
But, sometimes there is some kind of charges levied by the banks. And, these charges are so negligible that they do not even matter. They are generally about 50 paise per transaction. So, you can completely relax on this part of heavy transaction charges that we used to pay. Nowadays, I am booking my IRCTC tickets with Google Pay only as there are no transaction charges here.
9. Link Overdraft Account
Are you aware of the Overdraft facility given to Current Account holders? It’s a facility that the bank gives to a Current Account holder on the basis of trust. If you have an Overdraft facility activated in your account then it means that you can withdraw from your bank even if you don’t have any money. Its a kind of loan facility which is given to generally to the traders and businessmen.
So, if you have an Overdraft account and even then you can link the UPI to your current account too. So, let’s say if you have to pay an amount but you don’t have balance in your account but the Overdraft facility is there. Even then you can make a payment successfully and the amount will be shown as Overdraft withdraw from your bank.
10. Offline Transactions – amazing benefit of UPI
Sometimes we do not have Internet connectivity and let’s suppose that you don’t even have the cash. Yes, it’s possible but you do not have to worry about it as you have the UPI mechanism that will help you heer too. No matter which sim card you use, if you dial *99#, it will show you a few options using which you can make the payments. And, the amount will be debited from your bank account and will be credited to the Payee’s account.
Isn’t it amazing? It was just mind-blowing for me when first got to know about it. An online payment system that works offline too.
Conclusion – Are these benefits of UPI worth it?
I just hope that now you are aware of these benefits of UPI. It’s completely safe and make your life very easy. A lot of digital wallets were already in use but such digital wallets work separately. The UPI system gives you an option where you can get the benefits of digital wallets and Internet banking combined together.
When you make a transfer, the money gets transferred to the bank account directly without any digital wallet coming in the mid. If you start using the UPI Mechanism for all your transactions and payments it will give you a lot of benefits and also to the whole economy too. The whole economy will go cashless and easy. There won’t be any need to maintain ATMs as everyone is enjoying the benefits of UPI.
So why not start using the awesome UPI nad enjoy its benefits.
What are the “benefits of UPI” that you enjoy?