5 Reasons Why Upi Is The Best Mode Of Electronic Fund Transfer

By Author: Arjit
Total Articles: 22
Comment this article

Following demonetization and the country’s shift to digital payments, the National Payments Corporation of India or NPCI came out with a new mode of electronic fund transfer that was restricted to mobile smartphones i.e. Unified Payments Interface or UPI.
The UPI meaning is quite simple. The interface provides for a mode to transfer funds 24x7 electronically using the Virtual Payment Address of the recipient. This mode has become extremely popular and has even outscored NEFT, RTGS and IMPS. UPI is multipurpose and can be seamlessly integrated by both businesses and individuals.
Here are 5 reasons why UPI is the best mode of electronic fund transfer:

1.Free:

UPI is excellent because currently there are no charges on transferring funds using this mode of transfer. It is possible to use UPI without incurring any charges or extra debits from the bank to receive or send the payments.

2.Instant fund transfer:

With NEFT and RTGS, there is always a lag between the time when the payments are made and the time when the funds are transferred. If any transfer is made outside of banking hours ...
... then it takes time to get the transfer processed. However, with UPI, the transfer is immediately executed even outside of banking hours. UPI runs on IMPS interface which allows payments to be made at any point of time outside of banking hours.

3.Bank details masking:

One of the biggest reasons why UPI is the best mode of fund transfer is that it masks the bank details of a person. The UPI meaning is a unified payment interface which doesn’t use bank account details to make transfers. Instead of a bank account, it uses the Virtual Payment Address or the VPA to make transfers. This masks the bank account details while making transfers and provides a layer of security against misuse of banking details.

4.Multiple bank linking:

It is possible to use any UPI app to do multiple bank linking. It is possible to link payments to one bank account and receipts to another bank account. This means funds from one account will be used to make payments and all the receipts will be credited to another bank account. It is also possible to have multiple VPA linked to one UPI account.

5.Multipurpose:

UPI can not only be used to make fund transfers. It can be used to make payments at e-commerce stores. This makes it very convenient for people to checkout using UPI.

Arjit is a finance student who loves to write in his free time. He has spent a considerable amount of time researching about UPI meaning. Through his work, he has listed reasons why UPI payments are the best mode of electronic fund transfer