All You Need To Know About UPI

With the booming Digital Payment Ecosystem, India’s Financial Sector is soaring new heights. The newer payment models, sophistication in the acceptance infrastructure multiplied with customer’s need of convenience coupled with reliability has given an unrivalled thrust to the economy. In this digital age where mobile applications & payment systems are ruling over the masses, Unified Payments Interface (UPI) is placed in the top-drawer of all payment models.

Not only the ease but also the robustness of UPI has enticed users from all strata and demographics of the society to use this remarkable application.

What is UPI?

Unified Payments Interface is a real-time payment system that channels multiple bank accounts into a single application mobile application. This concept was developed by National Payment Corporation of India (NPCI) for facilitating instant fund transfer, merchant payments and collection of funds. The unique feature of this application is the “Peer to Peer” collect request which can be scheduled as per desire and convenience. The application offers a two factor authentication (2FA) which enhances the security and protects the interest of the customers. Customer will create Login PIN as well as UPI PIN in UPI. Customer has to use Debit Card credentials like Last 6 digits of the card and card expiry and create the UPI PIN by authenticating the same with OTP received on the registered Mobile Number.

Digital on-boarding process in BHIM Baroda Pay UPI APP

• Please go to Google Play Store (Android Users) or iOS AppStore (iOS Users) for downloading - BHIM Baroda Pay UPI application.
• Post complete download, the application will install on the device.
• Click on the installed application to register and accept all app permissions to start the registration process.
• Enter your registered mobile number and select the SIM Slot in which your registered mobile number is placed.
• A silent SMS will be sent from your registered mobile number. Make sure sufficient mobile balance is available for sending silent SMS.
• After mobile number verification, application prompts to enter name and proceed.
• Select the Bank where your Bank account exists under the same registered mobile number.
• Post selection of account, application will display the list of all eligible accounts for UPI.
• Select any one / all the accounts and create a VPA (UPI ID).
• Create login PIN, select security question and create answer.
• Accept the Terms and Conditions and proceed, which completes the registration in BHIM Baroda Pay UPI.
• Post registration, generate UPI PIN to be used for transaction.
• In the home screen under added accounts, UPI PIN status will be displayed (Set / Not Set)
• Click on the three dots icon under desired account.
• Select the option -> Set UPI PIN. On the next screen-> Enter last 6 digits of debit card issued in the same account.
• Enter the card expiry and proceed.
• An OTP will be received on registered mobile number. The same will be auto read by the application. In case of devices where auto read facility is by default disabled, manually key in the OTP.
• Now create UPI PIN and reconfirm the same.
• UPI PIN is successfully set. Now you are ready to do UPI transactions…….

UPI for Collection Purpose

Merchants can use UPI channel for receiving / collection of payment from their customers. Customer can pay to the merchant either by sending money to merchant’s UPI ID or by scanning the QR code displayed at merchant location/ website.

Bank’s UPI platform is having capability to provide customized UPI based payment solution to merchants. Bank’s UPI platform supports low integration and transaction cost to merchant to enable UPI as a payment mode for transaction in addition to debitcard, credit card, wallet and net banking to accept the payment from the customer in convenient, easy and hassle free manner.

Risks, Vigilance & Prevention

The emerging digital payment channel comes with its own fair share of risks. Recent events give insights to the lack of awareness and negligence on the part of the customer which has resulted in huge loss of money to the customers. From Vishing to suspicious app download to spoofing, the socially engineered techniques to dupe customers has evolved drastically. Major Modus Operandi are as under

• UPI SMS Spoofing Fraud
• UPI Collect Request Fraud
• UPI AnyDesk Fraud

Branches and staff are required to educate customers regarding the risks associated with the application used. More the clarity about the product, less will the unauthorized transactions in the accounts. As it is rightly said, “With more power comes more responsibility” and this is true in case of a payment channel so convenient and easy to use, UPI.

Significance & Future

UPI as a collection medium is growing drastically. The recent pandemic has helped to propel the transaction and usage of the application as it promotes contactless payments and with Government bringing in key initiatives driven by Digital mode, this product is said to shatter all known barriers and emerge as the most used payment mode in the ecosystem.

The interoperability is vital to facilitate transactions in a financial world of different account types. This has been made possible by the most advanced form of digital payment i.e. Unique Payment Interface (UPI) which justifies its name - “UNIQUE”.

UPI is a game-changer for Bank as an organization and which is laid out insightfully can consolidate Bank’s brand and enhance acceptance & penetration among masses and classes.