I) What is UPI and how does it work?
We are familiar with the real-time transfer of money by RTGS, NEFT, IMPS, etc. UPI is another enabling system of transfer more convenient, easy, and fat than these. However, unlike Internet banking UPI cannot be directly used by us. It is only a platform and for the user, a suitable app is needed to which our bank has connected or has enabled and facilitated.
Initially, some banks were having their own apps or enabled on third-party apps. Some banks started connecting to the UPI platform by some third-party apps.
ii) What are the different UPI available in India?
Popular apps linked to UPI are
Paytm, MobiKwik, Airtel Payments Bank, Google Pay, etc and many others like Freecharge directly or indirectly
iii) Which is the best and secured UPI platform from the many listed above and why?
BHIM-Bharat Interface for Money- the app is introduced by NPCI(National Payments Corporation of India) who had introduced the UPI also. As almost all banks in India are linked to UPI –BHIM now, it has become a very popular and fast-growing UPI based app.
I am using BHIM. It is an app introduced by NPCI who has initiated the UPI also. Almost all banks in India are connected to the BHIM UPI ecosystem. That makes it more convenient. And it is usable by a large section of people.
v) What details are required to make a UPI a/c or ID?
It requires a very minimum of essential details. Your mobile number (or Unique Adhaar ID) forms the basis. Your UPI Id is automatically generated. By default in BHIM, it is your mobile no@upi. If you want you can generate a Virtual Payment Address(VPA) also..
Next, you need to feed your bank account details from which you are going to transact using BHIM.
When sending money you need the a/c. no details of the beneficiary, or just the UPI id or VPA of the beneficiary. Or you have to scan the QR code.
v) What precaution should one take before and after using the UPI platform?
You need two passwords or PIN for using BHIM UPI. The first passcode is to log into your BHIM app. The next PIN is needed to transact using BHIM. You will be prompted to generate this when you do the installation .registration and transaction.
Like in similar cases of mobile banking or net banking, you have to keep these password/PIN secret and secure. Here the relative weakness is passcode and PI are only numerical digits only. It is also suggested that you use a screen lock on your phone to avoid others using your phone and misusing it. You should periodically verify your account balance a statement to check if any unauthorized transaction has happened. It is suggested to use security software also if you do frequent transactions.
vi) Is UPI app secured and easy to use?
Yes, I am a person who was using net banking. But after using BHIM I find BHIM very fast easy and convenient. It is instantaneous. The benefit is that we need not know the beneficiary's account number nor we need to tell others our account number details to others for sending money to us.
BHIM has many features and facilities we usually expect to use.
vii) Any other information related to UPI app and its usage?
Once you install and use you will come to know all features easily and will like it. In my case, I am satisfied with it to date. Even today I have made a transaction using BHIM