How Can Current Account Holders Use UPI?
The Unified Payments Interface (UPI) is one of the most convenient and secure ways of receiving and sending payments. UPI masks the bank account number and IFSC code of the sender and receiver which provides an added layer of security to transactions. Using UPI for transactions is very simple and convenient.
The first step to use the UPI is to link your bank account. Once your bank account is linked, you need to create a virtual address which becomes your identity for receiving and sending payments. To register your bank account, all you need is the bank account number and IFSC code. Once those details are input, the user needs to select a unique virtual ID for transactions. This virtual ID works like an email. To make payments using UPI, all the user has to do is to input the virtual ID of the sender and the confirmation PIN and the amount is automatically debited from the linked account.
For most users, this process is simple because they can link savings accounts to their respective UPI apps and conduct transactions easily. The question that arises is can Current Account users use UPI.
UPI as a means of transacting doesn’t distinguish between a Savings Account and a Current Account. Since the account gets masked by the virtual ID created by the user, it is not possible to say whether the account the money is getting transferred to is a Savings Account or a Current Account. To register for UPI, any bank account can be used to register. This means Current Account users can use their Current Accounts and register for UPI.
UPI for Current Account works just as well as it does for a Savings Account user. The Current Account holders just need to ensure that the bank where they have their account does not have any restrictions on registering a Current Account in UPI. To avoid hassles, it is better to use a UPI app of the bank in which the Current Account is opened. That way, processing of UPI transactions is much easier as compared to any app.
Current Account UPI is not a very well known use of the payment interface. Once this information spreads, it will become very easy to use UPI for making business payments, especially by small and medium-sized businesses which are controlled by one person. The ease and convenience provided by Current Accounts and the speed and transparency of UPI can ensure faster and smoother payments.
Current Account holders of HDFC Bank can use the bank’s UPI application to link their Current Account and conduct transactions.
To know more about the Current Account and its benefits you can click here.
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* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.