Essay on UPI Advantages and Disadvantages | UPI Essay

In December 2022, transactions through the Unified Payments Interface (UPI) hit a new record of 782 crore with the value of these touching a new high of Rs 12.8 lakh crore. Due to its numerous benefits it has become most famous method of transaction and so important essay topics for all exams also. Lets see essay on UPI Advantages and Disadvantages.

Essay on UPI Advantages and Disadvantages

Unified Payments Interface (UPI) payments system has become most used and famous method of online financial transaction. This is easiest and fastest way of transferring and receiving money online which helped in tackling the problem of cashflow and promoted cashless economy. Even though UPI is indeed a groundbreaking innovation which made digital payments method most popular and preferred, reliability and security of UPI is still considered to be at stake.

What is UPI ?

Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application, merging several banking features, seamless fund routing and merchant payments into one hood. UPI is like an advanced version of Immediate Payment Service (IMPS) which enables round–the-clock funds transfer service to make cashless payments faster, easier and smoother. PhonePe, Paytm, Google Pay, Amazon Pay and BHIM etc. are some most popular UPI apps. Download PDF of this Essay: Click Here

UPI Advantages

There are numerous advantages of UPI which made cashless payment faster, easier and smoother and promoted cashless economy. Some benefits of UPI is given below:

UPI enables real-time money transfers via mobile devices 24X7.
Gives access to multiple bank accounts through a Single App.
Virtual UPI address provides additional layer of security because the customer is not required to enter details such as Card number, Account number, IFSC code, etc.
UPI App also allows to share bills and receipts with your friends.
QR Code, Scan and Pay
Best alternative to the hassles of Cash on Delivery making it UPI on delivery.
Easy to use and can be used in approx all platform from small amount to a moderate amount.

UPI Disadvantages

Even though UPI is a groundbreaking innovation which made digital payments method most popular and preferred, reliability and security of UPI is still considered to be at stake. Without proper awareness about to how to use UPI can be dangerous in wake of cybercrime in the global banking and financial services industry. Fraudulent claims, chargebacks, fake buyer accounts, promotion/coupon abuse, account takeover, identity theft etc through Malicious Software are emerging as challenges.

Also Read: 20 Most Important Essays for SBI PO Descriptive Paper

UPI Essay : Conclusion

In a vibrant democracy and emerging economy, a public policy-driven digital empowerment of people can help ensure responsible digital conduct in the interest of consumers and the larger public interest. Secure use of UPI payments has made the way of cashless economy possible which benefited almost every individual and participating organizations.

Hope you liked this essay on UPI Advantages and Disadvantages, UPI Essay and it helped your exam preparation.

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