Unified payments interface was introduced back on 11th April 2016 to make inter-bank transfers seamless on mobile devices. It’s been a long time, and National Payment Corporation of India (NPCI) was working on the new version of the UPI. And finally, UPI 2.0 is launched officially with a bunch of new features like overdraft account linking, transaction limit enhancement, invoice in the inbox feature and many more. So, in this article, we will discuss the new features of the UPI 2.0 which can make your experience more smooth.
What Is UPI 2.0?
As I mentioned in the beginning, UPI is a payment system which was introduced to give a boost in online transactions in India post demonetization. Before the launch of UPI, it was a bit difficult for normal users to send money from one bank account to other bank accounts, between the same bank or different banks.
But once the demonetization was announced, people started panicking, and it was very needful and important for the Indian government to introduce some quick ways to send funds and transfer money between bank accounts quickly and easily as there was a huge queue in all the ATMs.
That’s when the concept of Unified Payment Interface (UPI) was introduced. Using this, people could transfer money between different bank accounts in seconds without any hassle using their smartphone. And eventually, the UPI started becoming a convenient option for most of the users.
And now, UPI 2.0 is a new and updated version of the previous UPI. In this new version, users will get more new features which will make their experience more smooth, and some bugs have also been removed, and it’s the better and advanced version of the previous interface.
UPI 2.0 Key Features & Benefits
Some of the most useful features have been launched with the UPI 2.0. Some of the new features of UPI 2.0 are overdraft account linking, enhanced transaction limit, invoice in the inbox, one-time mandate, signed intent and QR code and many more. So, now, let’s have a look at these new features of UPI 2.0 and let’s learn how these new features work and enhance the overall user experience below:
1. Overdraft Account Linking
This feature lets you add your overdraft account to the main account. This option is very helpful when you need to give more than you have in your main bank account. Then you can use your overdraft account to spend the money. However, you can spend money from your overdraft account until a certain limit, but, overall, this feature is very helpful for users who use their current bank account on UPI.
2. Transaction Limit Has Been Enhanced
This is also a great addition to the UPI 2.0 where the maximum transaction limit has been increased up to Rs 2 lakh. So. now you can transact more money without any hassle. However, each transaction has the maximum limit of Rs 10,000. But, reportedly, the enhancement won’t reflect on every user’s account. Select users will get this feature, and the matter is not clear yet. Hopefully, we will get more update regarding this thing later.
3. Invoice In The Inbox Function
Most of the users care about their money, and while transacting online, the majority of the users want to make sure that the transaction amount is set correctly. That’s why National Payment Corporation of India (NCPI) has added this feature on the UPI 2.0. For this function, users will get an invoice in their UPI inbox before making the transaction where all the details about the transaction will be mentioned clearly so that the user can make sure the amount he or she is transferring is accurate.
4. One Time Mandate
This is the most interesting and helpful feature for most of the users who love to shop online using cash on delivery as their payment method most of the time. This feature can be used on UPI 2.0 while you purchase any product or get any service like OLA online.
If you pay using the One Time Mandate feature of the UPI 2.0, it will automatically block the amount on your account, but it won’t be deducted until you get the product or service completely. This will prevent problems which comes when you pay online but don’t get delivered to your address. If the order gets cancelled, the amount will also be unlocked from your UPI 2.0 account, and you will be able to reuse it.
5. Signed Intent And QR Code
This option let users use signed QR codes to accept payments online using UPI 2.0. This basically, makes sure that the merchant is trustworthy and verified. Then the payment will be made securely by scanning the signed QR code. This feature improves the connection between users and merchant and thus online transactions will be more easy to use for the normal public.
So, these were the major features introduced in the UPI 2.0 version. However, some small changes have also been done, but these major features will increase its usability and people will love to use it to make transactions online. Now, please let us know your thoughts on UPI 2.0 in the comments section below.