UPI (Unified Payments Interface)

Meaning :

UPI (Unified Payments Interface) is a digital payment system in India that facilitates instant money transfers between bank accounts using a mobile phone. It  operates 24/7 and does not require detailed bank information—only a UPI ID or QR  code.

Example : 

For example, sending ₹500 to a friend via PhonePe, Google Pay, or Paytm by  scanning a QR code represents a UPI transaction.

How to Understand : 

Think of UPI as sending a message, but instead of text, you're sending money right away. There’s no need for cash, a card, or a bank account number - just a simple UPI ID.

Importance :

UPI enables quick, cashless payments, making it convenient for users.

It is safe and secure, requiring a PIN for verification to ensure your transactions are protected.

UPI supports transactions of all sizes, from small amounts to larger sums.

It assists businesses and shops in accepting payments easily and efficiently.

UPI helps reduce reliance on cash in the economy, encouraging digital payment methods.