UPI (Unified Payments Interface)

Meaning :

UPI (Unified Payments Interface) is a digital payment system in India that allows you to send and receive money instantly between bank accounts using your  mobile phone. It works all day and night and does not require bank details - only a UPI  ID or QR code.

Example : 

For instance, sending ₹500 to a friend using PhonePe, Google Pay, or Paytm by  scanning a QR code is an example of a UPI transaction.

How to Understand : 

UPI works like sending a message, but instead of sending text, you send money instantly.

There’s no need for cash, a card, or a bank account number - just a simple ID.

Importance :

UPI enables fast, cashless payments, making transactions quick and easy.

It is safe and secure, using a PIN for verification to protect your money.

UPI supports both small and large transactions, making it versatile.

It helps businesses and shops accept payments easily and quickly.

UPI reduces the dependency on cash in the economy, promoting digital transactions.