UPI stands for Unified Payments Interface. It’s a system developed in India that lets you transfer money between bank accounts using your smartphone. It’s kind of like a digital wallet, but it can be linked to multiple bank accounts and works across different apps.
Before 2016, India utilised various systems for interbank money transfers, such as RTGS, IMPS, and NEFT. The complexity of these systems, along with their differing rules and increasing paperwork, highlighted the need for a unified and automated payment platform.
In 2016, the National Payments Corporation of India (NPCI) embarked on a mission to transform the country’s payment systems.
NPCI developed the UPI, a comprehensive architecture framework with standardised Application Programming Interface (API) specifications, designed to streamline and facilitate online payments.
UPI’s smooth transactions have fueled the digital economy. It’s simpler for businesses to accept digital payments, which has boosted e-commerce and other online activities. However, keeping the usage safe has also become important while doing day-to-day transactions.
While UPI is a fantastic innovation, it’s important to be aware of safety precautions
5 UPI Safety Tips
- Enter UPI PIN only to deduct money from your account. UPI PIN is NOT required for receiving money
- Check the receiver’s name on verifying the UPI ID. Do NOT pay without verification.
- Enter UPI PIN only on the app’s UPI PIN page. Do NOT share UPI PIN with anyone.
- Scan QR only for making payment and NOT for receiving money.
- Do not download any screen sharing or SMS forwarding apps when asked upon by any unknown person and without understanding its utility.
Here are some more broad safety tips for using UPI:
Protect Your PIN:
Never share your UPI PIN with anyone. It’s as confidential as your ATM PIN or internet banking password. Always enter your UPI PIN in a private setting to prevent others from seeing it.
Beware of Phishing Scams:
Be cautious of emails, messages, or calls claiming to be from your bank or UPI service provider asking for your PIN, OTP, or other sensitive information.
Do not click on suspicious links or download attachments from unknown sources.
Use Official Apps:
Download UPI apps only from official app stores like Google Play Store or Apple App Store. Avoid using third-party websites or unverified sources to download apps.
Verify Transaction Details:
Double-check the recipient’s UPI ID or mobile number before confirming a transaction. Ensure the amount entered is correct to avoid accidental overpayments.
Keep Your App Updated:
Regularly update your UPI app to the latest version to benefit from security enhancements and new features.
Monitor Your Transactions:
Regularly check your bank statements and UPI transaction history for any unauthorised transactions. Immediately report any suspicious activity to your bank.
Set Transaction Limits:
Set daily transaction limits to minimise the risk in case your UPI account is compromised.
Use App Lock:
Enable app lock features available in most UPI apps to add an extra layer of security.
Avoid Public Wi-Fi:
Avoid performing UPI transactions over public or unsecured Wi-Fi networks. Use a secure and private internet connection.
Educate Yourself:
Stay informed about the latest UPI scams and fraud techniques to recognise and avoid them.
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