Retail Remittances
NEFT, RTGS and IMPS are the most popular retail remittance channels offered by banks to transfer money. They can be availed at the bank branch or through online channels like internet banking, mobile banking, etc. offered by your bank. Here’s a graphic that explains the three channels:
Unified Payments Interface
Unified Payments Interface or UPI is a platform that allows transfer of money between two bank accounts using a smartphone which has access to the internet. You can use
the BHIM app or any of the banks’ app or any third-party app for facilitating UPI transactions.
How does it work
Requirements:
You need a bank account, a mobile number linked to that bank account, and a smartphone with internet connection. Debit card linked to the account is required onetime for setting-up UPI on mobile phone.
How to activate UPI
- Download the App on your smartphone and link bank account and create a UPI PIN by following the instructions given in the App.
- Use of UPI: Using your UPI PIN, you can transfer funds seamlessly to any beneficiary by just knowing the beneficiary’s virtual address.
- If the beneficiary doesn’t have a virtual address, the option of transferring funds to the beneficiary through IFSC and account number is also available.
What are the benefits of UPI
- Can send and receive money instantly
- Can transfer money 24/7, 365 days even on holidays and Sundays using a smartphone
- Use of virtual id makes it easy to transfer money and obviates the need to share sensitive bank account information
Remember the following ‘Dos and Don’ts’ with respect to UPI
Dos
- Keep UPI App updated
- Always review the merchant/person’s collect request before accepting it
- Recheck and re-confirm the amount and beneficiary before effecting the transfer
Don’ts
- Never share your PIN with anyone
- Refrain from transferring money without verifying/reconfirming the recipient first
