UPI stands for Unified Payments Interface and is a real-time system for making payments. It is majorly used in the region of India.
How Does UPI Work?
The UPI was mainly developed by the NPCI (National Payments Corporation of India). The UPI works as a smartphone tool that effectively allows users to facilitate mobile payments without needing to use any debit/credit cards.
The UPI works by making P2M (peers-to-merchants) and P2P (peer-to-peer) transactions.
How Do The Transactions Get Done?
For sending money through the aid of a UPI ID, an individual just has to open their mobile payment application and then enter the UPI ID of the receiver. After that, they need to enter the amount that they want to send and that’s it!
But wait there’s a bit more! The users before finalizing their payments need to enter their MPIN – such is the safe and secure nature of UPI payment apps.
The daily limit of sending money for each account is set at a max of 1 lakh rupees only. However, it is also to be noted that the daily limit of sending money might vary greatly from bank to bank.
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