UPI (Unified Payments Interface)

Meaning :

UPI (Unified Payments Interface) is defined as a digital payment system in India that allows for instant money transfers between bank accounts via mobile phones.

It operates around the clock and does not necessitate detailed bank information - only a  UPI ID or QR code is required.

Example : 

For instance, transferring ₹500 to a friend using PhonePe, Google Pay, or  Paytm by scanning a QR code exemplifies a UPI transaction.

How to Understand : 

UPI functions similarly to sending a text message, but instead of text, you send money instantly.

There is no requirement for cash, a physical card, or a bank account number - just a  straightforward UPI ID.

Importance :

UPI facilitates fast, cashless payments, enhancing transaction efficiency.

It is designed to be safe and secure, utilizing PIN verification to safeguard financial transactions.

UPI accommodates both small and large transactions, making it a flexible payment option.

It aids businesses and shops in easily accepting payments, contributing to smoother  commerce.

UPI plays a crucial role in reducing cash dependency within the economy, promoting digital financial practices.