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Navigating digital payment methods: A look at Net Banking & UPI
Digital transactions have become the norm, making it essential to understand the different methods available. Among the most popular options are net banking and UPI. While both offer convenience and efficiency, they cater to different needs and preferences.
Understanding net banking
Net banking, also known as Internet banking, allows you to perform various banking activities online. By logging into your bank's online portal with a unique user ID and password, you can access a wide range of services without visiting a physical branch.
Key features of net banking
- Account management: View account balances and transaction history and download statements.
- Fund transfers: Transfer funds between your Savings Accounts or to other bank accounts via NEFT, RTGS or IMPS.
- Bill payments: Pay utility bills, insurance premiums and Credit Card bills.
- Investment services: Invest in Fixed Deposits, Recurring Deposits and Mutual Funds.
- Loan services: Apply for various types of loans and check loan statuses.
Net banking is ideal if you require comprehensive banking services, as it provides a one-stop solution for all your financial needs.
Exploring UPI
UPI, or Unified Payments Interface, is a real-time payment system developed by the National Payments Corporation of India (NPCI). It allows you to link multiple bank accounts to a single mobile application, enabling seamless fund transfers and payments.
Key Features of UPI
- Instant transfers: Send or receive money instantly using a mobile number or virtual payment address (VPA).
- Merchant payments: Pay for goods and services at various merchants, both online and offline.
- Request money: Send payment requests to other UPI users.
- QR code payments: Make quick payments by scanning QR codes.
UPI is perfect for those who prioritise speed and convenience, especially for day-to-day transactions and small payments.
A quick look at net banking and UPI
| Feature | Net banking | UPI |
|---|---|---|
| Account access | Requires user ID and password | Requires mobile number or VPA |
| Fund transfer speed | NEFT (2 to 4 hours), RTGS (real-time), IMPS (immediate) | Instant |
| Transaction limits | Higher limits for transfers | Lower limits, suitable for small payments |
| Security | Secured with OTPs, PINs and passwords | Secured with UPI PIN |
| Service range | Comprehensive banking services | Primarily for fund transfers and payments |
Also Read: 6 easy steps to add Credit Card to Google Pay
Wrapping up
In the debate of UPI vs net banking, there isn't a one-size-fits-all answer. Each method has its own strengths and is suited for different types of users and transactions. Whether you prefer the comprehensive services of Internet banking or the swift and easy transactions of UPI, both methods can significantly enhance your banking experience.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
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