Unified Payments Interface (UPI) based payment model

Q.  Which of the following is/are true?

1) In new Unified Payments Interface (UPI) based payment model, money transfer is possible in send mode only.
2) There is a limit of Rs.1 lakh per transaction through the UPI platform.
- Published on 12 Apr 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Only 2
 
  • In UPI, money transfer is possible in both send mode and collect mode.
  • The present system of mobile payments offers only send mode. You can send money. But, one cannot pull the money from another account.
  • Of course, approval from the person whose account will be debited, will be required to complete the transaction.
  • A merchant or an individual can send a request to the UPI user for money which will be transferred after the user’s approval.
  • The difference with the present system is that, the person who is sending is not initiating the action.
  • There is a limit of Rs.1 lakh per transaction through the UPI platform.
  • One need not give a bank account number or any code to do a transaction. “Only using the virtual address of UPI, one can send money or allow someone to pull money

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