20 Jan 2021
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.
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
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7 Safe Online Banking Tips You Must Know
Indian banks are gradually edging toward having most of their processes online. From sending money to paying bills and even investing, stepping away from traditional methods has become necessary. Though almost half of India’s population have accepted the change to online and mobile banking, many are still hesitant. The main concern is internet safety, which is valid; however, it shouldn’t hold anyone back from transacting. Here are safe online banking tips you can follow to enjoy a seamless and convenient banking experience:
It All Begins with Your Passwords
The cardinal rule for transacting online or via your smartphone is, you must have a strong password and change it regularly. This is one of the most critical and necessary safe internet banking tips. Use random numbers, symbols and letters that only you will remember. Most banks will recommend a combination of all three and some will even prompt if your password isn’t strong enough. Using upper- and lower-case letters help too. Stay away from familiar things like birthdays, names, house numbers etc. Finally, do not share your passwords with anyone, no matter what. Your passwords are unique and meant only for you.
Do not save passwords / credentials on browser and/or any apps for login.
Keep a Close Watch on Your Accounts:
Monitor your accounts’ activities frequently, especially if you transact a lot. It is one of the few tips for safe internet banking of which we become careless. You have to check your bank balances and monthly statements for any debits that appear suspicious. Reach out to your bank in case you find such or similar transactions.
Use a Secure Internet Connection
To prevent anyone from misusing your private information, one of the safe online banking tips is to use a secure, internet connection. Make sure that the wi-fi is password-protected and not free; if you’re travelling, connect with your smartphone’s hotspot. You can even choose a private browser to access your bank’s netbanking platform.
One of the safe internet banking tips is to turn on your bank’s notifications from your mobile phone. You can also opt for receiving SMS alerts. Many banks allow you to customise notifications and alerts, e.g. you can choose specific triggers like in case your account balance goes below or above a particular limit.
Sign-Out, Every Time
Once your netbanking or mobile banking session is over, remember to sign out. This is one of the tips for safe internet banking that few are aware. Uncheck the ‘Keep me signed in’ box and log out. In fact, as an added precaution, clear your browser history and cache after you log off.
Sift the Real From Fake
Phishing and calling scams have increased over the last few years. Among the safe online banking tips, you may already know of this one. Your account information, passwords, card CVV numbers, OTPs etc. are confidential. Never entertain or answer an e-mail or call that requests for any or all of these details, unless you have initiated the transaction.
Do not click on the any link provided in the email / SMS message etc. Always type the bank website URL in the address link of browser to access your account.
Internet of Value: Internet 2.0
Internet in its current phase, has revolutionised almost all businesses across geographies. However, the current phase, ‘Internet of Information’ focuses solely on information exchange in the form of documents, images and videos.
Although information moves around the world instantly, a single payment from one country to another is still slow and expensive. In the US, a typical international payment takes 3-5 days to settle, has an error rate of at least 5% and an average cost of $42. Worldwide, there are $180 trillion worth of cross-border payments made every year, with a combined cost of more than $1.7 trillion a year.
With the emergence of blockchain, a new phase of internet called ‘Internet of Value’ has emerged. Internet of Value is underpinned by blockchain, which is the evolutionary technology that supports digital currency. With Internet of Value, a transaction such as a foreign currency payment can happen instantly, just as how people have been sharing information online for decades. Internet of Value can also enable the exchange of any asset that is of value, including stocks, frequent flyer points, securities, intellectual property, music, scientific discoveries etc.
Multiple startups have started working on this front. Fusion is an innovative blockchain solution created to bridge the interoperability gap between different blockchains through cross-chain transactions. It also has the potential to create off-chain transactions as the inevitability of a value-driven economy becomes more pronounced.
Similarly, Wanchain offers a unique solution for overcoming the limitations on cross-chain transactions through mass-market adoption of blockchain technology. It is developing a new distributed financial infrastructure that will connect the world’s digital assets. In order to facilitate the digitization of assets, Wanchain has built an internal private blockchain through which users can build smart contracts for a practical transfer of value.
Currently, there are various blockchain-based platforms which are not compatible with each other. Hence, assets on these platforms can’t be freely exchanged. For the internet of value to become a reality, uniform industry standards must be adopted in order to homogenize the world’s different financial systems.
We believe that this process of standardization can have a transformative impact on businesses in today’s world. This impact can be as instrumental as globalization efforts in 1950s or standardization of web protocols in the 1980s.
Unified Payments Interface (UPI) is a payment system that allows users to link more than one bank account in a single smartphone app and make fund transfers without having to provide IFSC code or account number. This is a real-time payment system where funds are credited instantly on a real-time basis.What is the UPI answer? ›
The full form of UPI is the Unified Payments Interface. UPI's instant real-time payment system helps to transfer cash immediately via a mobile interface between the two bank accounts.What is UPI and how it works? ›
A Unified Payments Interface (UPI) is a smartphone application that allows users to transfer money between bank accounts. It is a single-window mobile payment system developed by the National Payments Corporation of India (NPCI).What problem is UPI solving? ›
A system called the Unified Payments Interface (UPI) combines several bank accounts. It makes easy fund routing, and merchant payments into a single mobile application (of any participating bank).Is UPI available in USA? ›
Yes, fortunately for you, you can send money via UPI to India from the US. Currently, the National Payments Corporation of India (NPCI) allows international UPI transfers to India from the following countries: United States. Singapore.Why is there no UPI in USA? ›
Card companies like these are perhaps the main reason why the country can't have a system like UPI. Lobbying in the US is legal and they often lobby against any practices that might impact their revenue.What is the main purpose of UPI? ›
Unified Payments Interface (UPI) is an instant payment system developed by National Payments Corporation of India (NPCI). The interface facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used on Mobile devices to instantly transfer funds between two bank Accounts.What is the main advantage of UPI? ›
Here are some of the advantages of UPI: It's a secure platform. 24x7 fund transfers - without IFSC codes. Can link multiple bank accounts to the platform.What is the benefit of UPI? ›
You can start making payments instantly after a quick registration process. UPI transactions are inherently instantaneous. They reflect in the recipient's account within seconds. Hence, UPI is a time-saving payment system that enables you to conduct small and high-value payment transactions.
Request Money fraud – Many fraudsters trap individuals who do not know that for receiving money on a UPI platform, one does not need to scan a QR code or enter the UPI pin. The hackers request to scan some QR code and enter their UPI pin to receive a prize, resulting in frauds on the UPI platform.
The National Payments Corporation of India (NPCI) maintains a database where your UPI number (unique payment address) will be linked to a UPI ID (VPA).What is UPI and is it safe? ›
It is quick, convenient, and a secure way of making payments directly from your bank account or wallet to the recipient. With UPI, you can transfer funds, pay bills, and make online purchases without the need for cash or card transactions.Do you need a bank account for UPI? ›
You can use UPI without debit cards. You will need your Aadhaar number. The only caveat is that you still need a bank account, and you should link the bank account intended for UPI transactions to the registered mobile number linked to your Aadhaar Card.What is the difference between UPI and Google pay? ›
UPI is a banking system for money transfers on payment apps. To add a bank account to Google Pay, your bank must work with UPI. Your UPI ID is an address that identifies you on UPI (typically yourname@bankname).