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UPI is not a money holding account by itself. It’s an identifier for your bank account. You can have multiple identifiers for the same bank account (like email

by wtmt 4y ago

UPI is not a money holding account by itself. It’s an identifier for your bank account. You can have multiple identifiers for the same bank account (like email aliases pointing to one mailbox). UPI is primarily available on smartphones through an app. The setup process involves the UPI app (could be bank’s app or a third party app like Google Pay) sending an SMS with a specific code to NPCI (the private consortium operating the UPI service). If you lose your device or uninstall the app or the UPI account is deactivated due to inactivity, you just fire up the app and get it to send the SMS again for authorization.

bergenty 4y ago
How do you validate yourself as the owner of the bank account especially if that validation happens over SMS? Is there a password or pin that is secret? Or do you have to go to the bank website and initiate an SMS send to your new phone? How are very rural people able to navigate all that complexity given how prevalent UPI is at this point?
- 2Gkashmiri 4y ago
  its like this. your bank account has a phone number linked to it. in normal cases here is the workflow. you install UPI. UPI app sends sms verfiying your mobile. app lists all banks. you select your "bank". you set pin. done.
- 2Gkashmiri 4y ago
  even illiterate people are able to navigate a cell phone. take for example infants or 1-2 yo kids. they cant read, cant speak but they can open youtube and even reach their favorite video.
- nmzaheer 4y ago
  It a two factor authentication system. One is your mobile number i.e. the UPI app first verifies whether the number belongs to you and it is being sent from the same device. To do that, it auto sends a encoded SMS to the NPCI server and awaits a response on the same device (no provision to manually enter the response. It has to be auto read by the app). This ensures that nobody else can claim ownership of that mobile number. Having known that you own the number, it allows you to link your bank account to the UPI ID. This mechanism involves again sending a SMS to the bank server to verify whether an account exists that is linked to the mobile number you just proved that you possess. If that is true, then you need to prove that you own the bank account. This is done by asking you to enter your debit card details along with the ATM PIN. If that is successful, then that bank account is linked to the UPI ID you just created. Further, the app now forces you to set a UPI PIN that can/is different from your ATM PIN. Now you can perform UPI transactions with your UPI PIN.
- cuteboy19 4y ago
  The phone number has to be registered with the bank in person for the first time (usually while opening the account). After that it is just 2fa. It is genuinely easier to use than to explain

by wtmt 4y ago

bergenty 4y ago

How do you validate yourself as the owner of the bank account especially if that validation happens over SMS? Is there a password or pin that is secret? Or do you have to go to the bank website and initiate an SMS send to your new phone? How are very rural people able to navigate all that complexity given how prevalent UPI is at this point?

2Gkashmiri 4y ago
its like this. your bank account has a phone number linked to it. in normal cases here is the workflow. you install UPI. UPI app sends sms verfiying your mobile. app lists all banks. you select your "bank". you set pin. done.
2Gkashmiri 4y ago
even illiterate people are able to navigate a cell phone. take for example infants or 1-2 yo kids. they cant read, cant speak but they can open youtube and even reach their favorite video.
nmzaheer 4y ago
It a two factor authentication system. One is your mobile number i.e. the UPI app first verifies whether the number belongs to you and it is being sent from the same device. To do that, it auto sends a encoded SMS to the NPCI server and awaits a response on the same device (no provision to manually enter the response. It has to be auto read by the app). This ensures that nobody else can claim ownership of that mobile number. Having known that you own the number, it allows you to link your bank account to the UPI ID. This mechanism involves again sending a SMS to the bank server to verify whether an account exists that is linked to the mobile number you just proved that you possess. If that is true, then you need to prove that you own the bank account. This is done by asking you to enter your debit card details along with the ATM PIN. If that is successful, then that bank account is linked to the UPI ID you just created. Further, the app now forces you to set a UPI PIN that can/is different from your ATM PIN. Now you can perform UPI transactions with your UPI PIN.
cuteboy19 4y ago
The phone number has to be registered with the bank in person for the first time (usually while opening the account). After that it is just 2fa. It is genuinely easier to use than to explain