UPI transaction is a new way to conduct financial dealings with anyone in India. This popular payment method is now trending due to its easy process, fast transaction, and accessibility. UPI payments are not only popular but also pretty hassle-free as compared to depositing money in the bank or using cheques for transactions. Today, most people from small businesses to big MNCs use UPI transactions as their primary method of cash collection or transfer since the UPI transaction limit per day is more than necessary. It has become the ideal way to go cashless and avoid bank crowds for simple money transfers.
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Unified Payments Interface or UPI is an instant and cashless payment system that has been designed for fast and easy transactions. It has been developed by the National Payments Corporation of India (NPCI) keeping in mind the need for establishing a secure online payment method. It has been immensely helpful in conducting digital payments through phones. The interface is handled by the Reserve Bank of India (RBI). This payment method uses a UPI code that is unique for every user and their respective bank accounts. The payment method can be used across various banks and can be conducted through many popular mobile applications like GPay, Phonepe, Paytm, and so on. The UPI transaction limit per day is also kept high to help people transfer money effortlessly.
UPI transactions like all other things are popular for several reasons. Some of the top reasons why people have readily chosen UPI payments as their ideal method of money transfers are:
● Fast Transactions
UPI transactions are extremely fast in transferring money from one bank account to another. This method will allow you to transfer money in a few clicks and the deposit will reflect on the recipient’s account almost immediately. It can be a huge plus for people who need to give or take money in a short time. Banks are generally pretty crowded and closed on public holidays and weekly holidays so it’s a great inconvenience for people who want fast transactions. UPI payments solve this issue entirely. With the UPI transaction limit per day being high, there is no need to visit the bank for money transfers at all.
● Reliable and Secure
UPI transactions require a user ID that is connected to a specific bank account of the recipient. Therefore you can be sure your money will reach the target recipient only. The transfer takes place from one bank account to another therefore you don’t have to transfer money by keeping it in any third-party account. Due to the UPI transaction limit per day, you may only be able to transfer a limited amount during a stipulated period, say 24 hours, but UPI is one of the most secure payment modes.
UPI payments do not require cash transactions as long as the account you are using has enough balance to make the transfer. The UPI transaction limit per day is ₹2,00,000 and can be made in 20 transactions of ₹10,000 each. It becomes difficult to withdraw and carry around such a huge amount of cash in person. It is also pretty unsafe to have that much cash lying around. Therefore, cashless transactions like UPI can be extremely beneficial in avoiding situations like these.
Payments made with UPI ID can be done from anywhere. You simply have to use your phone which contains the app that allows UPI transfers. You must only keep track of the transactions and make sure you don’t cross the UPI transaction limit per day. The transaction limit is applicable for 24 hours and gets renewed every day so that you can make payments 24/7. You can click here to know more about the UPI transaction limit per day and get a better idea about using UPI as a mode of payment.
● Great Facility for Small Businesses
Small businesses have seen a boom in numbers with people wanting to become entrepreneurs instead of doing desk jobs. For these small businesses, online payments are a lifesaver science startups and online businesses are not equipped to handle cash payments. People with online businesses especially can smoothly collect and make payments on UPI and sell their merchandise or services.
● Ideal Payment Method During the Pandemic
People have faced a huge problem during the pandemic when banks were working with low employees and physically visiting public banks was extremely risky for everyone. The pandemic had made it difficult to make payments in person and UPI has been a lifesaver in this. People could make payments and conduct their business from the comfort of their homes. If they had met the UPI transaction limit per day then they would simply wait for 24 hours to make their remaining transactions.
People have relied on UPI transactions for all financial dealings during the pandemic period. Payments made from home were a convenience that was necessary during the lockdown period which is why they have become such a trusted option. In brief, it can be said that the most important reasons for the success of UPI transactions are its fast and easy transfer, secure transactions, and hassle-free process.