26 thoughts on “Benefits of UPI

  1. Unified payments interface(UPI) was launched by National payments corporation of india(NPCI) in 2016 to enhance the digitisation of payments and inter-bank transactions. It has been a huge success since it’s launch. It’s easy to use and operate.
    UPI comes with a three layered data security. It has been linked with all the banks and this makes it easy as it reduces the limitations of interoperatibilty to do transactions among the different banks and the user doesn’t have to login different ID’s because this one application lets u link all your bank accounts with one UPI account.
    After the demontisation in November 2016, huge csh crunch was seen in the market and so it became necessary to use digital platforms for transactions. But consumers used to had problems because of onlu wallet based applications working where they had to load money in the wallets and then do the transaction. The money which was transferred to wallet could not be transferred back to the bank and there was no interest generation on the money lying idle in wallet. UPI dealt with this problem properly because there’s no need to load money into wallet as it directly gets deducted from your source bank account.
    UPI has made a huge success in “Digital India” intitaive and has helped the citizens become part of financial inclusion.

  2. Too short(218 words)
    You can add some data like how many transactions were taking place using digital medium before Demonitization and after Demonitization.
    You can compare it with neft/rtgs and differentiate. As they can also be used digitally.
    You can mention about the upi id which hide the account details.
    There are some spelling mistakes.
    Overall good attempt, read more about the topic and try again.
    Keep practicing.

  3. Launched just months before the demonetisation, Unified Payments Interface (UPI) proved to be a godsend to the citizens of this nation. People were looking for various modes of transaction, including the barter system. Apart from being a boon in a national crisis, UPI has been a positive development in many different ways.
    It is worth noting that making payments in cash had it’s benefits i.e., no transaction cost, instant payment, sense of security and privacy etc. All these benefits beg the question ‘Why UPI?’

    1. No transaction cost: UPI transactions are free of cost.
    2. Instant Payment: UPI works on National Financial Switch (NFS) of NPCI(joint venture of RBi and IBA) – the same network on which ATMs operate and are instant.
    3. Secure: 3 layer verification ensures that no transaction on UPI platform is unauthorised and/or accidental.
    4. Privacy: Transactions on UPI happen through a Virtual Payment Address (VPA) and do not reveal or require ones bank account details, although one can transact via bank details also.
    5. Interoperability: Almost all banks offer their own UPI apps and one can use any one of them to connect multiple bank accounts on one UPI app.

    Although, these benefits make it a better alternative to cash, there exists some challenges which hinder it’s acceptability among the citizens.

    1. 1 lakh UPI transaction limit coupled with 2 lakh cash transaction limit means that one needs to make payments through RTGS etc. if amount is greater than 2 lakh which incurs a cost on transaction.
    2. Multiple Apps, while do offer interoperability, they also create confusion among citizens who already have reservations about online payments.
    3. UPI demands internet and smartphone to make payments in a country where 1/5th population lives below poverty line.

    UPI crossed half billion transactions in November 2018 proving that it is not only a viable successful initiative towards digital economy but also that it is a working framework that has been accepted graciously.

    1. Upi does not work on nfs. There is two factor authentication not 3.
      The limit of upi has been changed to 2 lakh.
      Overall good but the factual data is incorrect. Please refer the official NPCI website for this.
      You can also include some more features of upi 2.0
      The conclusion can be better. You can say that gov should promote upi and make upi popular at retail level like paytm etc.
      Keep practicing.

  4. Unified payment interface is an instant real-time payment system developed by National payment corporation of india.

    The interface regulated by the RBI and works by instantly transferring funds between two bank accounts on a mobile


    Main Idea : ‘Less cash’ India.

    Benefits of UPI :

    1. Bank details required only once; during registration for UPI, After you only have to provide your UPI ID, or VPA for


    2. You do not have to wait to add the payee before you can transfer money . The funds are credited/ debited

    immediately from the respective accounts.

    3. You can transfer upto 1Lakh RS.in every transaction.

    4. UPI is available 24*7.

    5. Transaction can be made with anyone who has UPI ID.

    6. UPI App also work as mobile wallets and hence can be used to make purchases both offline and online .

    7. It is not necessary that you use the UPI app offered by your bank. For example you have canara bank account, you

    can still use SBI UPI App, and even link your various bank accounts with it.

    Although there are many alternative mobile payment platforms available, UPI is came out fastly. Moreover, the

    demonitization move by the government , where 500 and 1000 notes were banned as legal tenders, has given UPI a

    significant push in respect to usage.

    1. It looks like a copy paste material. You described the process of sending money which is not needed. Do not write in points.
      The transaction limit is 2 lacs.
      The main body and conclusion can be better.
      The topic is benefits of upi, not features of upi

      You can use some real data.
      Practice more.

    UPI is a real-time payment system that helps you to instantly transfer the funds between the two bank accounts through a mobile platform. It was developed by the National Payments Corporation of India NPCI) and is controlled by the RBI and IBA (Indian Bank Association).
    It was launched on 11th April 2016. BHIM UPI recorded transactions worth Rs 45,845 crore and 235 million in terms of value and volume in the month of July 2018.
    Features Of UPI:
    1) It is an instant transfer process using IMPS. Hence, the fund transfer is faster than NIFT.
    2) Using UPI, you can transfer the fund 24*7*365 (including holidays also).
    3) Using your mobile, you can access various bank accounts.
    4) MPIN or Mobile Banking Personal Identification number is required to confirm each payment.
    5) All banks provide their own UPI for different platforms of Android, Windows, and IOS. They may charge or it may
    be fully free for you.
    6) Your bank details are required only once (only during registration). After which, you only have to provide your UPI
    ID or VPA for transferring.
    7) You can transfer up to Rs.1 lakh in each transaction (It again depends on bank to bank).

    NPCI’s UPI 2.0 :

    After small updates, finally, NPCI launched UPI 2.0 on 16th August 2018.

    NPCI added four new features to UPI 2.0

    One Time Mandate:
    With this feature, you can pre-authorise (Mandate) a transaction, for debit from your bank account later. UPI mandate is to be used in scenarios where money is to be transferred later, however, the commitment towards that is to be done now.
    For example, you have to pay some bills on a future date. Instead of paying it instantly on that particular day, you can keep aside that money using One Time Mandate feature.

    Linking Over Draft Account to UPI :
    Earlier you are allowed to link your savings account and current account. Now onwards, you can link your Over Draft Account (OD Account) also to the UPI.

    Invoice in the Inbox (View and Pay) :

    Earlier, when a collect request was sent, you could only verify the amount being paid and make the payment post entering the UPI PIN.
    However, from now onward, prior to making the payment you will be able to check the invoice being paid via a link and verify the details of the transaction before you pay for the same. This functionality is only available for the invoices of verified merchants.
    By this facility, before you pay the bill, you can cross the bills for the details like any mismatch in amount, or for a wrongly sent bill.

    Signed intent and QR Code:

    With this option, while making payment using the intent or through scanning QR, the user will get additional security in the form of signed QR / intent. With the signed QR, issues related to tampering QR as well as having non-verified entities shall be reduced.
    This will cross-check the authenticity of the receiver (merchant) and will be informed if the QR is not secured. Hence, it is a one more security layer for you.

    Member banks of UPI 2.0 :
    There are 10 Banks are the member of UPI.

    Advantages of UPI :
    1) Currently the service is absolutely free in some banks. Whereas others charge very low amount (50 paise to Rs.1/-) which is way cheaper than any other platforms.
    2) The service is available 24/7 whereas other services such as NEFT are limited to bank working hours and holidays.
    3) You do not need to spend time searching for IFSC, typing username, password and other details for adding the payee or for the transaction.
    4) The payment is instant. There is no delay time as you see in NEFT and other online transactions.
    5) UPI platform also provides ‘Pay Request’ facility. In this feature, a request is sent to another person requesting for payment. The other person just need to approve the request and the amount is automatically debited from his or her account.
    6) You can link multiple bank accounts to a single VPA.

    1. First of all, try not to write essay in points.
      You described the whole upi functioning, that is not asked. You just explained each function of upi in detail.
      You should write the benefits that upi is providing now and what it might provide in future and how it can help us become a less cash economy.
      Keep practicing.

  6. UPI-Unified Payment Interface is a unique and innovative method of peer-to-peer fund transfer using a mobile application. UPI is launched by National Payments Corporation of India(NPCI) in 2016. Now almost all the banks launched their own UPI mobile application based on its security and response from customers. Let us just discuss about the benefits of UPI.

    First of all it is very secure application because the end user need not to share any of their account details to both known and unknown persons. The user can create a virtual address through that he can send or request money and also the user can generate a QR code based on the amount he want to get from the payer (i.e) he can use any type of payment and need not to share his account details. The Payment is on real time basis(24*7) and the Payee need not to wait for long time for credit in his account, this will be very useful in case of merchant transactions because the merchant will get instant credit in his account and both the parties(i.e) customer and merchant need not to keep exact change for purchasing/selling a product. This again will boost the cashless economy, because in future almost each and every citizen of India will have a smartphone in his hand and he/she will use this digital payment method in every possible places. UPI will be very useful for the government to monitor the cash flow between accounts and so major portion of black money will be eradicated from the economy. As of now it is free of cost and the end user need not to pay a single rupee as service charge. Finally it is a one stop solution (i.e) you can link any number of bank account you have in your name linked to your mobile number. You can order a product for COD but you can pay without cash.

    Since UPI is developed by NPCI it will not only boost digital economy but also it will make our Indian Organizations stronger and Greater. In future UPI will replace many of the mobile applications and wallets and will become the one stop solution with more security and easy accessibility.

    1. Don’t use sentence like let’s discuss, you have to write it formally. You are not giving a speech. Try to avoid this.
      Don’t correlate upi and black money. Write digital payment methods such as upi will help in eradicating black money. As upi is not the only way.
      The ending paragraph can be better. Don’t write negative words like replace them. Mention it will complement other methods and help our economy become less cash economy in the long run.
      You have written, since upi is developed by NPCI, it will… This means that if upi is developed by some other organisation it would have been a failure. So avoid sentences like these.
      Overall great attempt. Your efforts are visible. Keep practicing.

  7. UPI stands for Unified payment Interface which was introduced in India on 11th april 2016.It was developed by NPCL (National payment corporation of india) under the supervision of RBI.UPI is an client app which is used for linking different back accounts under single app there by providing interbank facilities to the consumers as well as for the merchants. The money can be sent using the app with different methods like the virtual payment address, mobile number, aadhar number , QR code , bank account number with IFSC .
    Its a real time app that provides 24hr service of interbank facilities mainly fund transfer. It provides linking different type of accounts whether its savings current or even over draft type under a single app. Some of the key features of this app are :
    One time mandate: which provides pre authorised transaction on specified dates given by the user.
    Invoice in the inbox: this is a pre step before making payment by sending the invoice to the user by the merchant thereby ensuring that the funds are to be transferred properly.
    Signed intent & QR: Provides verification and genuity of the merchants and also reduces the tampering of the QR code
    These UPI features has made digital payments safer, made payments smoother and more efficient, increased person to merchant adoption and made it consumer friendly
    Based on the survey from the launch date around Rs45,845 crore transactions are made with 235 million in volume of successful transaction. With the UPI frequent updation on its features and with increase in transaction data it can be seen that ,it can very well help in transforming India digitally and reduce the cash flow burden.

    1. Good essay.
      You wrote NPCL instead of npci..
      Also, UPI is a platform and bhim is the name of app developed by npci for using it.
      In main body instead of explaining all the features, you can compare it with neft and tell that upi is easy to use than them for transactions.
      Still, these are not 400 words.

      Concluding paragraph is good.

      Significant improvement in comparison to the last essay. Keep up the good work.
      Keep practicing.

  8. Unified Payment Interface (UPI) is a payment system developed by National Payment Corporation of India (NPCI) and regulated by Reserve Bank of India. It is a real-time payment system by which one can transfer money between two bank accounts. UPI was released on 2016 to ease the process of digital payment and to promote a cashless economy. Some of its benefits are as follows:
    1. UPI ensures instant and hassle free transfer of money. One can also make payments without any need of physical interaction with anyone.
    2. UPI is safe to use as it is developed by NPCI and is regulated by RBI.
    3. UPI provides IDs to its users with the help of which the user can make payments without any need for disclosing his bank account details, ensuring security of every transaction.
    4. One does not need to remember multiple bank accounts details as only UPI id is required of the bank account to which he/she wants to transfer money.
    5. Transactions from UPI can be done at any time from anywhere through mobile phone regardless of whether the bank is open or not.
    6. It requires no transaction fee for transfer of money, making it accessible to every bank account holder.
    7. UPI provides a hassle free instant transfer of money to any bank account therefore promoting people to go cash-less.
    8. UPI works with and between bank accounts of all the private and public banks.
    9. Unlike other mobile payment apps like Paypal or Paytm, one does not requires to maintain a mobile wallet to transfer and make payments from. Every transaction is done directly from the bank account.
    UPI is surely a revolutionary and a step in the forward direction in digitalization of the country and promoting the benefits of a cashless economy. It also provides 24×7 banking facility to every person in the country. And most importantly it encourages people to open bank accounts and deposit money into there accounts rather keeping it with themselves, leading to more money coming into the economy.

    1. Your introduction is good.
      But in the main body, it seems that you are just promoting UPI. There is no need to mention all the features, just the important one and compare upi with existing payment system and how it is beneficial over them for retail customers. Also, try to avoid writing in points.
      Conclusion is good but can be better. You should write the cash less economy line at the last instead of starting of the last paragraph.
      Overall good attempt. A visible improvement.
      Keep practicing.

      1. You are so right. This does look like a promotion of UPI. I will try to focus more on bringing good point while writing an essay. Thanks for reviewing.

  9. Unified Payment Interface is an instant real time payment system launched by National Payment Corporation of India(NPCI) in August, 2016 to facilitate interbank transfer of money.Since then UPI has been the catalyst in the retail payment system of India.in August 2016,when it went live the volume and value of transaction through UPI was 93000 and Rs.3.1cr respectively while as per NPCI official data the number of transaction rose to 620Mn (RS.1 lakh crore in value),taking count to 3 billion mark in the year 2018.
    Taking into consideration the numbers released by NPCI,it is evident that the UPI transaction has revolutionised the retail payment segment of India. UPI has many advantages for which it has been the first choice among consumers.Firstly, the transaction through UPI is cheaper than NEFT and RTGS.while cost of the transaction through NEFT and RTGS is rs 2.5, for UPI transaction a nominal 50 paise is charged.Secondly, for transaction through UPI the user doesn’t have to part with sensitive information like bank details,IFSC code, CVV as required for card payment or internet banking fund transfer.This ensures safety and hasselfree transaction for the users.Thirdly, UPI is a mobile based platform integrating multiple bank accounts in one place. An user can make transaction from whichever account he wants without remembering any particular account details. He has to remember only the virtual payment address generated for the particular user.Fourthly, UPI being regulated by RBI, has 2 layer authentication factor for ensuring safe transaction for it’s user.Fifthly, since all the transaction are made through the portal it is easy to track the value and volume of the transaction which ensures elimination of black money. Further the recent guidelines released by RBI for interoperability among wallets will further boost the ease of UPI transaction.after 2 years of it’s inception UPI 2.0 has also been released in August 2018 with added features like view of invoice in inbox for authentication,one time mandate facility for repetitive payments,addition of overdraft account for UPI transaction etc.
    While the huge success of UPI will facilitate further financial inclusion in our country, NPCI and the regulator should ensure enough financial literacy among the users as well as the robust and secure infrastructure of the portal for the smooth and safe transaction.The higher acceptance of UPI among member banks, merchants and customers will further accelerate the efforts to make INDIA move towards near cashless economy.

    1. Very nice essay.
      Write in paragraphs. UPI transaction fee is nil as of now. You can avoid using words ‘first’ second,third etc.
      Conclusion is good.
      Overall very good. Keep it up.
      Keep practicing.

      1. Thanks.will keep in mind while writing next essay..your feedback is very much valuable for me..since I don’t have anyone to review my essay..(actually I have 3 paragraphs in this essay..1st para-unified…..marks 3 bn mark in 2018.2nd para-taking into consideration…..overdraft account..)

  10. Benefits of the UPI:
    India has witnessed a radical change in its growth as the fastest growing economy with digitization as one of the basic pillar. With many reforms around the corner in every sector, the introduction of UPI based instant payment system by NPCI, a not for profit organization, set up by RBI and IBA with 10 promoter banks, in 2008. UPI is basically an umbrella institution to streamline all retail payments in the country.

    With the introduction of UPI which aims to touch every Indian with at least one payment service by 2020, we have witnessed the increase in the digital transactions in our economy, hence leading the country towards Financial inclusion, a leap towards Digital India. Also resulting in an increase in the literacy rate of the rural India. As per World bank’s Global Findex Report, out of 51.4 crore bank accounts opened from 2014-17, the whopping 55% is from India. This has led to a drastic increase in the Foreign Direct Investment. Even smart-phone based apps like Google’s Tez, Samsung Pay too utilize UPI technology for Indian transactions. Interoperability, means transferring money to any banks’ accounts is the most important function that lacks in money wallets, like PAYTM or Mobikwik. The value of notes and coins in circulation is 12.04% of the India’s GDP. Once the physical transactions are lessened more, there would be more money available for different projects of the people welfare, like infrastructure, education or health, even on the subsidies.The direct transfer benefits to the accounts of the poor directly, has resulted in the reduction of poverty from India, as per the recent discussion in the World Economic Forum.

    Till Dec 2018, UPI based apps crossed total of 3 billion transactions, the growth has been increasing exponentially. Though there may be many security based challenges in making the economy cashless, nevertheless more inventions are resulting, with growth and ‘Make in India’ on rise, a way to go for our economy.

    1. Your essay is good. The introduction is to the point but in the main paragraph you shifted more towards digital payment systems rather than upi. You have not mentioned any significant features of upi over other payment methods. Mention those. Your facts and figure knowledge is good but try not to deviate from the topic.
      Conclusion can be better. As you are ending it like more inventions will come, that means they might replace upi or better that it (although that is not our concern), but the essay do not demand that. You should conclude like UPI can be promoted and can help replace cash.

  11. UPI which stands for United Payments Interface is a platform which enables instant transfer of funds between bank accounts by using mobile phones. It was developed and launched by National Payments Corporation of India (NPCI) in 2016. UPI works 24/7 and can be used anywhere and by anyone within the country.

    UPI has enabled a convenient, fast and secure way of transferring funds between any two bank accounts. It is the an innovative and major step in the process of digitization of the banking services. Currently there are multiple applications like BHIM, Google Pay and PhonePe which are working on UPI. These applications are being used extensively by all kinds of people for fund transfer, payment of bills, recharging of phones and DTH etc. UPI is driving digital payments and has contributed to financial inclusion by providing an easy and simple mechanism for banking activities. It is also contributing towards a cashless economy.

    UPI is regulated and monitored by RBI through the payment and settlement system act 2007. The pre-requisites to use UPI are that the parties should have bank accounts and a mobile phone. The mobile number must be linked with the bank account. The mobile number and account details of the person is verified by the respective bank before payments can be done. Each application working on UPI provides its own way of security usually through a 4 digit or 6 digit PIN which must be entered before making any payment. There is a minimum limit of just Re.1 and a maximum of Rs.2,00,000 per transaction.

    UPI is without a doubt an important milestone in the banking industry of India. It is the step in the right direction especially in a developing country like India where extensive efforts are being made to achieve financial inclusion and bring the massive population under the banking net. But, the innovation should not stop here. There is a lot of room for improvement in the current version of UPI and efforts need to made to add more features according to the needs of the people. UPI should work hard to achieve that and should be considered as an inspiration to develop newer and better payments services moving forward.

    (360 words approx)

    1. Upi is Unified Payment Interface not United.
      2nd para can be better. You wrote in first para ‘ transfer of fund between bank account’, you are writing the same thing in the 2nd para.
      You can compare it with other methods like neft and tell benefits over neft.
      3rd para is good. You can mention about upi 2.0
      In last para, npci should work hard, UPI should work hard does not make much sense.

      Overall, great attempt. Keep practicing.

  12. Unified Payments Interface (UPI) is a platform developed by National Payments Corporation of India (NPCI). The platform aim is to provide interoperability among various banks. Using a UPI based application, customers can perform financial transactions. The UPI platform assigns a unique UPI ID for a given user’s bank account. The user should setups a Personal Identification Number namely (MPIN) while setting up the application. While performing a transaction both the sender and receiver should have UPI IDs set. Additional bank details such as bank account number, branch IFSC code are not required. The UPI platform only requires UPI ID and MPIN as two-factor authentication for performing transactions. The two-factor authentication makes UPI based transactions safe and secure. NCPI’s BHIM application and Google’s Google Pay are some applications which utilize the UPI platform in India.

    The bank customers, merchants, and banks are the end users of the UPI. With existing infrastructure, the banks can offer a safe and secure way of performing transactions to their customers. It will cut infrastructure costs. The concept of a unique transaction number helps banks to find any fraudulent transactions in less time. With their smartphones, users can make transactions reducing the time to visit their respective bank branches. The UPI service provides round the clock availability. The users can do financial transactions instantly using a single application. There is no need to install multiple bank applications. The sender needs only UPI ID of the receiver for the transaction. There is no need for additional credential sharing.

    UPI based applications are not the same as electronic money wallets. There is no need to add money into the application for transactions. The applications don’t facilitate to add money. It only acts as a gateway for transactions. The UPI helps the merchants in seamless fund collection from customers. There is no need for providing several payment options. With the help of UPI, the merchant can receive money from the customer of any bank. There is no risk of storing customer’s financial information. Even though the customers don’t have cash, credit or debit cards still the transactions are possible. It resolves the Cash On Delivery (COD) collection problem especially in the case of E-Commerce. The concept of UPI helps in providing Financial inclusion in the country. It helps in reducing the cash-based economy and promotes digital economy in India. Improving Digital Literacy in the country is key to promote UPI in India.

    1. Your essay is great. Your writing skills are good.
      You can add some data regarding increase in upi payments. Rest is good.
      Keep practicing.

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