Oct 17, 2018 03:52 PM
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By far the most effective and cheapest and also instant money transfer is the UPI system. Iam not sure if money transfer is this fast in any other country. I have been using UPI almost a year now and Iam very much happy.
Recently I had a flip side of this system and a lessons learnt which I would like to share with you.
UPI allows you to both send to and also Request money from others. Normally we prefer the send option to transfer the money from our account to other account of us or others.
UPI works on the concept on alias. Lets say you have 3 accounts from 3 different banks and you have linked all these bank account to your mobile number - all three accounts are linked to same mobile number.
when you download BHIM app, after getting your mobile number, it searches for the banks and accounts that are linked to this mobile number.
after verifying that they are your account numbers you can create an alias, which is like your username. if your first name is mouth and last name is shut, you might create mouthshut@upi.
NOW, THE ISSUE:
as we saw, upi works only by aliases. you cannot deny the fact that somebody else might have an alias mouthshut123@upi or@upi.
lets say your friend wants to send money through upi and on a flash, he forgets your alias and wrongly types "shutmouth@upi"(instead of "mouthshut@upi").
when he presses verify, all he gets is only the first name & last name and NOT the account number. You also cannot deny the fact that your first name last name might coincide with many others in India(how many people will be there in India with the first name "RAMESH" and last name "KHANNA"). Your friend might quickly get confused and might assume its you and quickly send money.
The money will be immediately sent to@upi and you(mouthshut@upi) will still be expecting the money from your friend, while he will say, its already sent. Ultimately the money is gone and chances are very less that somebody might return it back to you, though upi provides a way for it.
This is a problem if you directly send it to someone.
On the other hand, always try the reverse. You first send the request to your friend and he approves that request.
instead of your friend directly sending Rs.5000 to you, you login to your upi,(mouthshut@upi) and REQUEST Rs.5000 to your friends UPI.
on his screen he will find a request from you which he can approve so that money will be sent to the right person, ie, YOU and not@upi.
ALWAYS,- ALWAYS if you are going to enter into a transaction and you know the party, dont take chances - The request for money should be sent rather that the sender directly sending the money to you.
Follow this and you will never lose money.
