How can Current Account Holders use UPI?

If you are running a business, you might be in constant need to make payments. In such cases, UPI comes in handy as it allows you to quickly make payments with just a scanner or mobile number. It is much easier as compared to traditional methods like NEFT, RTGS, IMPS, and cheques.

However, the question that may come to your mind is whether current account holders can make a payment using UPI or not. This post will guide you on the benefits of UPI and how current account holders can set up UPI on their accounts.

What is UPI?

The Unified Payments Interface is a new digitalised payment system, which allows you to transfer money online between bank accounts. It operates through mobile applications and allows people to transfer money with increased security and convenience.

It was developed by the National Payments Corporation of India for transactions between peer-to-peer as well as peer-to-merchant. In addition to that, UPI can be used on smartphones to make real-time payments easily without much hassle.

Can Current Account Holders use UPI?

Current account holders can use UPI just as savings account users do. When a person links their bank account to UPI, a virtual ID is created for their UPI account, which does not differentiate between a current and a savings account.

Any bank account can be used to transfer money through UPI. However, to double-check, you can also check with the bank you have an account with to see if they have certain restrictions regarding the current account users using UPI.

What are the Advantages of a Current Account With UPI?

UPI has now become heavily popularised nationwide. It owes its increasing popularity to the ample advantages it offers. Hence, here are the advantages of a current account with UPI:

1. Ease for Customers

Today, UPI has spread over the country and most people use this seamless money transfer system. So, keeping a UPI option for them can make the transaction more convenient.

2. Simpler Payment Collection

You can receive funds quite easily with the UPI system, and they are credited directly to your bank accounts, reducing security and settlement concerns. This also ensures the cash flow is managed properly.

3. Secured Transactions

UPI allows for seamless money transfers with security and safety. There is multi-factor authentication which cuts the risk of getting into fraud. Besides, you should always check the UPI IDs before sending money over.

4. Flexibility

UPI can be easily used by any existing business, integrated into their system and maintained with ease. You can also use any UPI app and link it with any of your bank accounts, whether a savings or current account.

What are the Requirements to Open a UPI for a Current Account?

Creating a UPI account for current account holders is relatively easier. Before starting the process, here are the basic requirements to keep in mind.

1. Bank Account

To open a UPI for a current account, you should have an active current account at a bank which facilitates UPI transactions. You may link any of your bank accounts to your UPI ID, be it current or savings.

2. KYC Documents

Know Your Customer documents might be needed for verification depending on the particular UPI app and the bank. These documents can range from PAN Cards and passports to Aadhaar cards.

3. Preferred UPI App

Before linking your bank account, you will have to choose a UPI app. You can download any UPI app on your phone, though it is usually recommended to install the one your bank provides.

4. Debit Card Details

Some UPI apps might require Debit card details to verify your bank account and identity. After this, you might also need the details to set up and secure a PIN for your UPI account.

5. Linked Mobile Number

The mobile number you have linked to your current account must be available to you. You might receive an important SMS or OTP over it. In addition to that, ensure you have a steady internet connection as well.

How can you create a UPI ID for a Current Account?

Opening a UPI ID has become a necessity today. Hence, here are the steps for creating a UPI ID for a current account holder:

1. Select UPI App: Choose your preferred UPI App and install it on your phone. Then, open the app and click on the ‘New Registration’ option.

2. Provide Necessary Details: Firstly, provide your mobile number and verify it. Then, you can fill in other important details. You can then generate a password/PIN for your account and log in.

3. Add Bank Account: After that, you can add your bank account from the list available on the app. Here, you can also mention your current account details.

4. Set up UPI PIN: As the final step, you have to set up a PIN for your UPI account to make your virtual ID. After a final verification through OTP, your account will be open for sending or receiving payments.

Things to Keep in Mind While Using UPI for a Current Account

While UPI  for current account holders is possible without many restrictions, there are certain key things to keep in mind while operating a UPI account:

1. Check for Limit on Transactions

It is best to check with your bank for any possible restrictions on such cases so that you are completely aware and safe.

2. Verify UPI ID

Verification of every UPI ID before engaging in a monetary transaction is a must. To avoid fraudulent activities and to steer clear of any malicious links, you should verify the receiver’s UPI ID.

3. Enable UPI Safety Features

UPI apps have their own safety features, which you should be able to use to acquire a shield against fraud. Every bank has its own UPI app with many such features which make you immune to fraudulent links and sites.

Conclusion

With the rising popularity of UPI across the country for its seamless and convenient transactions online, it has become a necessity to have a UPI account for yourself, too. With an active current account, you can make hassle-free transactions via UPI. It is also essential to stay clear of any fraudulent and malicious attempts. Considering ICICI Bank InstaBIZ App can be a great choice for UPI Payments for business needs.

Additionally, if you are looking to open a current account, considering ICICI Bank can be a great choice. They also offer wealth management services with efficient banking solutions to ensure you can smoothly make your business transactions.