Exploring UPI: Can Current Account Holders Utilise It?

Posted on Wednesday, April 17th, 2024 | By IndusInd Bank

Payments are an important aspect of banking. In earlier days, most bank transactions were made by visiting banks and filling out a form, but the process has got much faster now. The Unified Payments Interface (UPI) transformed global transactions just as the internet revolutionised computing. Convenience and fast-paced technology led to millions of transactions worth a billion rupees.

Understanding UPI: Making Payments Simple

UPI was introduced in 2016 by the National Payment Corporation of India (NPCI). It is a technology-driven payment method that allows transactions between banks using smartphones. It can be used to make peer-to-peer and peer-to-merchant payments. You can use IndusPay, the UPI app offered by IndusInd Bank. It enables customers to make instant payments from any bank account simply using a Virtual Payment Address, eliminating the need to recall beneficiary details.

Why Businesses Should Embrace UPI: Unlocking Efficiency and Growth

Businesses should opt for UPI payments for several reasons, as detailed below:

• Convenience: UPI for current accounts offers businesses and customers a convenient and hassle-free payment experience. Transactions can be initiated and completed quickly through mobile phones with internet connectivity.
• Cost-effective: Accepting payments via UPI incurs no transaction fees, making it a cost-efficient option compared to other payment methods.
• Instant Settlement: Businesses receive funds instantly settled directly into their bank accounts. This enhances cash flow management and reduces reliance on manual reconciliation.
• Secured transactions: UPI transactions are secured through multi-factor authentication, reducing the potential risk of fraud
• Flexibility: UPI can be easily integrated into existing business systems and platforms, including websites, mobile apps, and point-of-sale (POS) terminals.

Also Read: Can Current Account Holders Use UPI

Do current accounts offer the UPI facility?

Yes, current accounts in India can have UPI functionality. Businesses and individuals with current accounts can register for UPI services provided by their respective banks. The UPI platform does not differentiate between a Savings and a Current Account. Many business owners use UPI for current accounts.

How to create a UPI ID for a current account?

Now, let us understand how to create a UPI ID for your current account by following the steps given below:

1. Download the BHIM UPI App on your smartphone.
2. Open the app and choose ‘New User Registration’.
3. Provide your mobile number to receive an OTP
4. To verify your number, key in the OTP received
5. Fill in the necessary details as prompted.
6. Create a 6-digit login password for your account.
7. You can now log in to the UPI account
8. Now you can ‘Add Bank account.’
9. Select your bank from the list provided.
10. Input your Current Account details.
11. Set a 6-digit UPI PIN to create your virtual address and a verification OTP will be sent to your registered mobile number.
12. Enter the OTP and can now send and receive payments through your UPI ID connected to your Current Account.

UPI Transaction Limit: Understanding Your Financial Boundaries

The UPI transaction limit for current accounts in India varies depending on the bank and your current account type. The National Payments Corporation of India (NPCI), which governs the UPI framework, has set a default limit of Rs. 1 lakh per day per bank account across all UPI transactions, including sending and receiving money. However, check with your bank for the most accurate and up-to-date information regarding UPI transaction limits for Current Accounts.

Also Read: BHIM Induspay: Making Payments Easy

UPI facilitates seamless and instantaneous fund transfers, revolutionising how businesses manage their finances. Its popularity is evident from its broad reach.  Whether it is salary disbursals, vendor payments, or utility bill settlements, not only individuals but also merchants and retailers can register for UPI at the time of current accounts opening, unlocking the benefits of this innovative payment platform. If you want to open a current account equipped with advanced features and UPI compatibility, IndusInd Bank is an excellent option.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author 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.