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  • Writer's pictureLAWGIC STRATUM


Author: Shreyas N R

In this article, we will be looking at how the concept of digital mode of payments came into India and how far it has been useful and not. The concept of UPI meaning Unified Payments Interface[1] has been in usage for the past 4 years when the National Payments Corporation of India introduced it. We will also look into the concept and how it has helped and affected the general public. From using credit and debit cards people have started using the UPI format for payments since most of the people in India now own a smartphone and a phone number that is linked to the bank account which in turn allows its users to pay through UPI.

Since people started using the UPI mode of payment it has been useful in many situations but also a headache while transferring money from one person to another person. We are in a space where all things available to us are in a digital format rather than in a physical form. These days most of the transactions take place through this digital medium either through IMPS[2] which is an immediate payment service or through UPI.

Even though there are a lot of safety measures in transferring money through digital format, sometimes there is a difficulty in transferring or the money being not being transferred at all. There is a lot of hacking and abuse of using the UPI by the users and even from an unidentified person on the internet. A few instances have been recorded by users saying that the money from their being transferred without their consent or their permission. Hence considering all this above- said information we will be looking into the concept in a detailed format and get to know about it.

Why Prefer UPI instead of physical transfer of money: -

The basic question with people using UPI is that is it better than using physical money. Since time immemorial we as people, in general, have only used physical paper money, and some of us till now do not have proper knowledge about the usage of UPI payment method. Hence this poses an immense difficulty to explain to people about the usage of digital payment type.

Some people say that digital payment of money is easier than paying with physical notes. We cannot expect all of us to have physical cash or money in hand every time. Hence by paying through digital means we can easily transfer money from one person to another with much ease. The contention that is posed by people using physical money is that each and every one cannot be expected to have an internet facility in all situations. Hence there are still advantages and disadvantages in the usage of the digital type of payments.

Advantages and Disadvantages of digital mode of payments:

Up to this point of the article, we have seen the basic idea of the digital mode of payment, from this point we will be seeing the advantages and the disadvantages of using digital mode of payments.

The first advantage of UPI or digital mode of payment is that the money can be transferred from one person to another person from one place to another place even without knowing the person payments are being made.

The second advantage of using UPI or digital mode of payment is that there is no service charge or any other unwanted extra payments that are needed to be made while transferring the money from one person to another.

The third advantage of using UPI or digital mode of payment is that there is numerous cashback offers that are provided by the various UPI paying applications.

The fourth advantage of using the UPI payment method is that it is real- time payment as said before it does not take the time or the effort that is needed for a normal money transfer from person to person.

Disadvantages of using digital form of payment:

The first disadvantage of using the digital form of payment is that the account or the digital information of the account holder may sometimes be hacked.

The second disadvantage of using UPI is that sometimes the information of certain account or the account holder might be hacked.

The third disadvantage using UPI online transfer limit. There are certain transfer limits while sending money from one account to another account hence there might be a problem in transferring the certain sum of the amount.

The fourth disadvantage in using is that sometimes the network while sending the money might be a problem and hence it might cause problem while sending money from one account to another account within the stipulated period.[3]


Hence from this article, we have seen the meaning of UPI that is Unified Payment Interface its usage and how it has changed the entire view or perspective of using virtual money to physical money. Even though we have seen the advantages and disadvantages of using UPI there are certain difficulties for using virtual money than physical money in certain situations and circumstances. The usage of UPI has changed the value of using money in a more different manner and hence it is this change that the government wants to track people who use the money for illegal purposes.


[1] [2] [3]

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