Prerequisites for Downloading e-Aadhaar Card using Mobile Number

Before you begin the process of downloading your Aadhaar card using your mobile number, ensure you have the following prerequisites:

Registered Mobile Number

Your mobile number must be linked to your Aadhaar. This is crucial as the OTP required for downloading the Aadhaar will be sent to this number.

Stable Internet Connection

A reliable internet connection is necessary for the download process. Ensure that your connection is stable to avoid any interruptions during the download.

Device

You will need a smartphone, tablet, or computer to access the UIDAI website or mAadhaar app.

PDF Reader

A PDF reader to open the downloaded e-Aadhaar card.

Related Read: Check Aadhaar PAN Link Status Online

Method 1. Download Aadhaar Card with Mobile Number – Using the UIDAI Website

Downloading your Aadhaar card by mobile number OTP using the UIDAI website is straightforward. Follow these steps: 

Step 1. Visit the UIDAI Website

Open your web browser and go to the official UIDAI website 

Step 2. Navigate to the Aadhaar Download Section

On the homepage, find the “My Aadhaar” section and click on “Download Aadhaar.”

Step 3. Enter Your Details

You will be redirected to a new page. Here, you need to enter your Aadhaar number, Enrollment ID, or Virtual ID.

Step 4. Enter the OTP

An OTP will be sent to your registered mobile number. Enter this OTP in the designated field.

Step 5. Download Your e-Aadhaar

After verifying the OTP, you will be able to download your e-Aadhaar card in PDF format.

Method 2. Download Aadhaar Card with Mobile Number – Using the mAadhaar App

The mAadhaar app is a convenient way to access your Aadhaar card on your mobile device. Follow these steps:

Step 1. Download the mAadhaar App

Install the mAadhaar app from the Google Play Store or Apple App Store.

Step 2. Register your Aadhaar

After downloading the app, first register your mobile number. 

Step 3. Enter OPT

An OTP will be sent to your registered mobile number. Once, you receive it, enter the OTP.

Step 4. Download Aadhaar

Once you are logged into the app, click on the ‘Download Aadhaar’ option under the ‘All Services’ section on the homepage.

Step 5. Select your Preference

Select if you want ‘Regular Aadhaar’ or ‘Masked Aadhaar’.

Step 6. Choose your Preferred Number

Select if you have an ‘Aadhaar Number’, ‘Virtual ID (VID) Number’ or ‘Enrolment ID Number’.

Step 7. Enter the Details

Click on ‘Request OTP’, once you have entered your details and the captcha code.

Step 8. Enter the OTP

Once you enter all your details, an OTP will be sent to your mobile phone. Click on ‘Verify’ after entering the OTP.

Step 9. Aadhaar Ready

Your Aadhar copy will be downloaded in a PDF format. Enter the given password details below to view your E-copy.

Method 3. Download Aadhaar Card with Mobile Number – Using UMANG

The UMANG (Unified Mobile Application for New Age Governance) app is a government initiative offering a range of Aadhar-related services. Here’s how you can use UMANG to download your Aadhar card:

Aadhaar Card Download via UMANG on Mobile

Step 1. Download the UMANG App

Go to the Play Store (Android) or App Store (iOS) and search for the UMANG app. Download and install it on your smartphone.

Step 2. Link Your Aadhaar

Open the UMANG app and tap on ‘MY Aadhaar’. The app will prompt you to link your Aadhar.

Step 3. Enter Your Details

Input your Aadhar number and the CAPTCHA code. An OTP will be sent to your registered mobile number.

Step 4. Verify and Download

Enter the OTP to verify your details. Once verified, you will be able to download your Aadhar card and access other Aadhar services.

Aadhaar Card Download via UMANG on Computer:

Step 1. Visit the UMANG Website

Go to the UMANG official website at https://web.umang.gov.in.

Step 2. Login/Register

Click on ‘Login/Register’ to access your account.

Step 3. Link Your Aadhaar

Follow the instructions to link your Aadhaar. Enter your Aadhaar number and authenticate using the OTP sent to your registered mobile number.

Step 4. Access Services

Once authenticated, you can use the UMANG website to download your Aadhaar card and access various Aadhaar-related services.

What to Do if Your Mobile Number Is Not Registered?

If your mobile number is not registered with Aadhaar, you won’t be able to receive an OTP for verification or download your Aadhaar card online. Here’s what you can do:

Update Your Mobile Number:

• Visit an Aadhaar Enrollment Centre: Go to a nearby Aadhaar Enrollment Centre with your Aadhaar number and a valid ID proof. Fill out the Aadhaar update form, and provide your new mobile number.
• Verify Your Details: Ensure that the Aadhaar number you are trying to use is correct and active. Incorrect details can lead to issues during the update process.
• Track the Status: After submitting your mobile number update request, you can track the status through the UIDAI portal. You will be notified once your request is processed and your new mobile number is updated.

Additional Information on Downloading Aadhar Using Mobile Number

1. Accessing Aadhar

To open the downloaded e-Aadhar PDF, you will need the password. The password is an 8-character combination of the first four letters of your name (as in Aadhaar) in CAPITAL letters and the year of birth in YYYY format.

2. Security Tips

• Tip 1: Always download your e-Aadhar only from the official UIDAI website or the mAadhaar app to avoid fraud.
• Tip 2: Keep your mobile number and Aadhaar details confidential and do not share them with unauthorized individuals.

3. Contact Information for UIDAI Support

For any issues or queries, you can contact UIDAI support:

• Toll-Free Number: 1947
• Email: help@uidai.gov.in
• Official Website: https://myaadhaar.uidai.gov.in/

Frequently Asked Questions (FAQs)

1. Can I download my Aadhaar card if my mobile number is not linked?

No, you cannot download your Aadhaar card if your mobile number is not linked to your Aadhaar. You need to visit an Aadhaar enrollment center to update your mobile number.

2. How to print the Aadhaar card after downloading it using a mobile number?

After downloading the e-Aadhaar PDF, you can open it using the password (first four letters of your name in CAPITAL and birth year in YYYY format). Print it using any standard printer.

3. Does the downloaded e-Aadhaar card hold the same value as the physical Aadhaar?

Yes, the downloaded e-Aadhaar is equally valid as the physical Aadhaar card for all purposes.

4. Is there a fee for downloading an e-Aadhaar?

No, downloading e-Aadhaar from the UIDAI website or the mAadhaar app is completely free.

5. I don’t remember my registered mobile number linked to Aadhaar. What can I do?

If you do not remember your registered mobile number, you need to visit the nearest Aadhaar enrollment center to update or retrieve your mobile number.

6. How many times can I download my Aadhaar card?

You can download your Aadhaar card as many times as needed. There are no restrictions on the number of downloads. 

7. What should I do if I forget the password to open the Aadhaar PDF?

The password to open the Aadhaar PDF is the first four letters of your name (as in Aadhaar) in CAPITAL letters and the year of birth in YYYY format. If you forget this, you can regenerate the password by remembering these details.

8. What should I do if I do not receive the OTP?

If you do not receive the OTP, ensure that your mobile number is linked to your Aadhaar and is active. You can also try again after some time or contact UIDAI support for assistance.

By following these steps and guidelines, you can easily download your Aadhaar card using your mobile number in 2024. Always ensure to download your e-Aadhaar from the official UIDAI website or app for security purposes. 

The post How To Download Aadhaar Card by Mobile Number in 2024? appeared first on Razorpay Learn.

What is the NEFT Reference Number?

A NEFT (National Electronic Funds Transfer) reference number, also known as a UTR (Unique Transaction Reference) number, is a unique 16-digit alphanumeric code assigned to each NEFT transaction. This code is generated by the bank when you initiate an NEFT transaction and serves as a crucial identifier for tracking and verifying the transaction.

The UTR number typically follows the format “XXXXNYYDDDNNNNNNNN,” where:

• XXXX: Represents the bank code (IFSC) of the sender’s bank.
• N: Indicates the NEFT system.
• YY: Represents the year of the transaction.
• DDD: Represents the day of the year.
• NNNNNNNN: A unique sequence number assigned to the transaction.

Must Read: NEFT Transaction Charges & Fees in 2024

How to Find NEFT Reference/UTR Number? 

You can find your NEFT reference number in several ways:

Method 1. Bank Statements

Check your bank statements or passbooks for the transaction. The UTR (Unique Transaction Reference) number listed is your NEFT reference number.

Method 2. Online Banking

Log in to your online banking portal and go to your transaction history. The NEFT reference number will be displayed for each transaction.

Method 3. Mobile Banking

Use your bank’s mobile app to view your transaction history and locate the NEFT reference number.

Method 4. Transaction Confirmation SMS or Email

Your bank may send you a confirmation message or email with the NEFT reference number after a successful transaction.

How to Check NEFT Transaction Status with Reference Number?

To check the status of your NEFT transaction using the reference number, follow these methods:

Method 1: Using Online Banking

Step 1. Log in to Your Online Banking Account

• Access your bank’s online banking platform by logging in with your credentials.

Step 2. Navigate to the NEFT Section

• Navigate to the transactions or payments section, and select NEFT from the available options.

Step 3. Enter the Reference Number

• Find the option to check transaction status or history. Enter the 16-digit alphanumeric NEFT reference number.

Step 4. View the Status

• Click on the search or submit button to view the status of your NEFT transaction. The status will display whether the transaction is completed, pending, or failed.

Method 2: Using Mobile Banking Apps

Step 1. Open Your Mobile Banking App

• Launch the mobile app provided by your bank.

Step 2. Access Transaction History

• Navigate to the transaction history or NEFT section within the app.

Step 3. Input the Reference Number

• Enter the NEFT reference number in the provided field for transaction status checking.

Step 4. Check the Transaction Status:

• Tap on the search or submit button to retrieve and view the status of your transaction.

Method 3: Contacting Customer Support

Step 1. Call Your Bank’s Customer Support

• Reach out to your bank’s customer support helpline.

Step 2. Provide the Reference Number

• Share the 16-digit NEFT reference number with the representative.

Step 3. Receive Status Update

• The customer support representative will provide you with the current status of your NEFT transaction.

Method 4: Visiting Your Bank Branch

Step 1. Go to Your Bank’s Branch

• Visit the nearest branch of your bank.

Step 2. Submit the Reference Number

• Provide the NEFT reference number to the bank staff at the counter.

Step 3. Get Transaction Status

• Request the status of your NEFT transaction, and the bank staff will assist you in retrieving the information.

Method 5: Email and SMS

Step 1. Check SMS Notifications

Some banks may send you SMS notifications with the transaction status. Check your messages for updates regarding your NEFT transaction status. 

Step 2. Send Email to Bank’s Customer Support

You can also send an email to your bank’s customer support department.

Include the NEFT reference number in your email and request an update on the transaction status.

Tips for Tracking NEFT Transactions using UTR Number

Here are some additional tips to help you effectively track your NEFT transactions:

1. Check the Estimated Processing Time

NEFT transactions typically take around 2-3 hours to process, but during peak hours or on weekends, it may take longer. Familiarize yourself with the estimated processing time for NEFT transactions in your region.

2. Verify the Beneficiary’s Details

Before initiating a NEFT transaction, double-check the beneficiary’s bank account details, including the IFSC code, account number, and name. Incorrect details can delay the transaction or lead to errors.

3. Monitor Your Account

Keep an eye on your bank account balance and transaction history to track the status of your NEFT transfer. If the funds haven’t been credited to the beneficiary’s account within the expected timeframe, you can use the UTR number to inquire further.

4. Save Transaction Confirmation

After initiating a NEFT transaction, save the transaction confirmation details, including the UTR number, for future reference. This will help you track the transaction status and resolve any issues if needed.

5. Contact Customer Support Promptly

If you encounter any problems or have concerns about a NEFT transaction, don’t hesitate to contact your bank’s customer support. They can provide assistance and help you resolve any issues promptly.

Here are popular banks customer support numbers:

• SBI: 1800 11 2211
• HDFC: 1800 1600 / 1800 2600
• ICICI: 1800 1080
• AXIS: 1800 103 5577
• Kotak Mahindra Bank: 1860 266 2666

Related Read: How to Transfer Money Through NEFT?

Frequently Asked Questions

1. Is NEFT Reference Number and UTR Number the Same?

Yes, the NEFT reference number and UTR (Unique Transaction Reference) number refer to the same 16-digit alphanumeric code used to track NEFT transactions.

2. How long does it take for an NEFT transaction to be completed?

NEFT transactions are processed in batches, and the completion time typically ranges from 2 hours to a few hours, depending on the time of initiation and bank processing times.

3. What does it mean if my NEFT transaction failed?

A failed NEFT transaction can occur due to incorrect beneficiary details, insufficient funds, or technical issues. You should contact your bank to resolve the issue and ensure that your funds are refunded.

4. What should I do if I entered the wrong UTR number?

Double-check the reference number and try again. If the issue persists, contact your bank’s customer support for assistance in locating your transaction.

5. Can I cancel a NEFT transaction after it has been initiated? 

NEFT transactions are irreversible. Once initiated, users cannot stop or cancel it.

6. Can I use the NEFT reference number to resolve disputes?

Yes, the UTR number can be used as evidence to resolve any Issues related to the transaction.

7. Can you use your NEFT Reference Number to track a transaction on a bank holiday?

Yes, you can track your NEFT transaction with the reference number on a bank holiday, but the transaction may remain pending until the next working day when banks process it.

The post How to Check NEFT Transaction Status Using Reference Number? appeared first on Razorpay Learn.

A Unique Transaction Reference (UTR) number is an alphanumeric code that uniquely identifies financial transactions in India. It is generated by banks every time a transaction is initiated, whether through NEFT, RTGS, IMPS, or UPI. It acts as a digital signature that differentiates one transaction from another, allowing banks and customers to track and verify payments.

UTR Number Example

When you transfer funds from one bank account to another, a UTR number is automatically generated to uniquely identify that transaction. For instance, NEFT transactions typically have a 16-character UTR number, UPI transactions have a 12-digit code, while RTGS transactions usually have a 22-character UTR.

Here’s a sample UTR number:

XXXXRCYYYYMMDD########

• XXXX: The first four characters represent the IFSC (Indian Financial System Code) of the sender’s bank.
• R: Indicates that the transaction was processed through the RTGS system.
• C: Represents the channel of the transaction (e.g., internet banking, mobile banking).
• YYYYMMDD: Represents the year, month, and date of the transaction.
• ########: A sequence number assigned to the transaction.

How To Check UTR Number?

Finding your UTR number is easy and can be done using multiple methods. Here are the most common ways to check it:

Method 1: Bank Statements or Passbooks

Step 1. Access Your Statement or Passbook

Obtain your recent bank statement or passbook. You can usually download your statement from your bank’s online portal or visit the bank to get a physical passbook update.

Step 2. Locate the Transaction

Look for the transaction you want to check. The UTR number is listed under the transaction details, which includes the transaction date, amount, and reference number.

Step 3. Find the UTR Number

Look for a section labeled ‘Reference Number,’ ‘UTR Number,’ or ‘Unique Transaction Reference’ in your transaction details.

Method 2: Internet Banking

Step 1. Log In

Access your bank’s internet banking portal using your secure login credentials.

Step 2. Navigate to Transaction History

Go to the ‘Transaction History’ or ‘Account Statement’ section, depending on your bank’s interface.

Step 3. Select the Transaction

Find the specific transaction you want to track. Click on it to view detailed information.

Step 4. View UTR Number

The UTR number will be displayed in the transaction details. Look for a field labeled ‘UTR,’ ‘Reference Number,’ or similar.

Method 3: Mobile Banking

Step 1. Open Your Banking App

Launch your mobile banking app and log in with your credentials.

Step 2. Go to Transaction History

Navigate to the ‘Transaction History’ or ‘Account Statement’ section within the app.

Step 3. Select the Relevant Transaction

Find and select the transaction you need.

Step 4. Find the UTR Number

The UTR number should be visible in the transaction details, usually under ‘Reference Number’ or ‘UTR.’

Method 4: Transaction Confirmation Email or SMS

Step 1. Check Your Email or SMS

Look for the email or SMS confirmation of the transaction. This is typically sent immediately after the transaction is completed.

Step 2. Find the UTR Number

Open the message and locate the UTR number, which will be included in the transaction details section of the confirmation message.

Step 3. Retrieve the UTR Number

Copy or note down the UTR number for tracking or reference purposes.

How to Track UTR Number Online?

To track your UTR number online, follow these steps:

Step 1. Log in to Your Bank’s Internet Banking Portal

• Open your bank’s official internet banking website. Ensure you’re using a secure connection.
• Log in with your user ID and password. Some banks may also use additional security steps like OTPs (One-Time Passwords) or security questions.

Step 2. Navigate to Transaction History

• Find the Section: Look for tabs or links such as ‘Transaction History,’ ‘Account Statement,’ or ‘Transactions.’
• Select the Account: Choose the account from which the transaction was made if you have multiple accounts.

Step 3. Locate the Relevant Transaction

• Search for the Transaction: Use filters to narrow down the date, amount, or transaction type to find the specific transaction.
• View Details: Click on the transaction to view its details.

Step 4. Find the UTR Number

• Check Transaction Details: Look for a field labeled ‘UTR Number,’ ‘Reference Number,’ or ‘Unique Transaction Reference’ in the transaction details.
• Note the Number: Write down or copy the UTR number for tracking purposes.

If you have trouble finding your UTR number, contact your bank’s customer support for assistance.

More Reads on Transaction Status Checks

• UPI Transaction Status by UTR Number

• RTGS Status by UTR Number

• IMPS Reference Number Tracking 

Importance of UTR Numbers

UTR numbers play a crucial role in various aspects of financial transactions. Here are some of the key reasons why they are important:

Transaction Tracking

UTR numbers serve as unique identifiers for each transaction, making it easy to track and monitor their status. They help ensure that payments are processed correctly and efficiently, providing a clear record of the transaction’s journey.

Dispute Resolution

In case of discrepancies or disputes, UTR numbers provide concrete evidence, helping to resolve issues efficiently. They allow both parties to reference the exact transaction details, facilitating faster and more accurate resolution.

Accounting and Taxation

UTR numbers play a key role in maintaining accurate financial records and ensuring compliance with tax regulations. They are crucial for reconciling accounts, preparing financial statements, and verifying transactions for tax purposes.

Security and Transparency

By providing a traceable record of transactions, UTR numbers enhance both the security and transparency of financial processes. They help prevent fraud and ensure that all transactions are recorded and visible to the relevant parties.

Frequently Asked Questions

1. What is the UTR number in GPay?

The UTR number in Google Pay (GPay) is typically displayed as the “Transaction ID” or “Reference Number”.

When you make a transaction using GPay, you’ll usually find the UTR number in the transaction details or history section of the app.

2. Can I use a UTR number to dispute a transaction?

Yes, UTR numbers can be used as evidence to dispute transactions if necessary.

3. How is a UTR number generated?

A UTR number is automatically generated by the bank when a financial transaction is processed. It includes various components such as the bank’s code, transaction type, date, and sequence number.

4. What should I do if I cannot find my UTR number?

If you cannot find your UTR number, check your recent bank statements, passbook, or transaction notifications. You can also contact your bank’s customer service for assistance.

5. How long is a UTR number?

The length of a UTR number varies depending on the type of transaction. For NEFT transactions, it is typically 16 characters long. For RTGS transactions, it is usually 22 characters long and for UPI transactions, it is 12 characters long.

The post What is a UTR Number? Examples, Importance, & How to Check It appeared first on Razorpay Learn.

As per RBI, NEFT service is available round the clock 24×7 and 365 days on all days of the year. Hence, there are no restrictions on NEFT timings during banking hours, weekends, or public/bank holidays. It is conducted in batches every 30 minutes throughout the day

NEFT transactions are conducted in batches every 30 minutes throughout the day. For example, if you ask to send money at 11:02 a.m., it will likely be done by 11:30 a.m. Even if you request it at 11:25 a.m., it’ll still be done by 11:30 a.m.

NEFT transactions at bank branches can be usually done between 8 am and 7 pm from Monday to Friday and between 8 am and 6:45 pm on Saturdays, although individual bank timings differ. Remember that the 2nd and 4th Saturdays and Sundays, NEFT is not available at the bank.

How Much Time Does it Take to Settle NEFT Transactions?

NEFT transactions are typically settled immediately or within 2 HOURS. It can take up to two hours for the amount to be credited to the beneficiary’s account.

As per RBI’s website, The actual time for a standard NEFT payment may vary depending on the bank. For example, if you’re initiating an NEFT transaction for the first time, it may take up to two hours because the Reserve Bank of India (RBI) may take up to 30 minutes to verify the beneficiary’s account.

If the NEFT transaction is initiated after banking hours, the payment will be initiated using the Straight Through Process (STP) mode. The beneficiary and the sender can both track the status of an NEFT payment using the bank’s NEFT Customer Facilitation Center (CFC) and will need to provide the required details to get an update.

How to Track NEFT Transactions?

The remitter and the beneficiary can track status of NEFT transaction by contacting NEFT Customer Facilitation Centre (CFC) of their bank, respectively. Details of NEFT CFCs of banks are available on the websites of the respective banks. The details of CFC of member banks are also available here at the website of RBI.

NEFT Transfer Timings (Old Vs. New Guidelines)

Before December 2019, there was a time limit for NEFT payments that could be processed only between 8 AM and 6:30 PM from Monday to Friday and 8 AM to 12 PM on Saturdays. In addition, on bank holidays, the NEFT payment would be on hold and processed only during official banking hours.

However, as per the new guidelines that kicked in in 2020, there are no restrictions on NEFT transfer time online.

Online NEFT transfer today can be done 24*7 and 365 days a year, maintaining thе half-hourly sеttlеmеnt batchеs. This transformation aligns with RBI’s vision of boosting digital transactions and fostеring global financial markеt intеgration, ultimately еnhancing accessibility and convеniеncе for both individuals and businesses.

What are the NEFT Cut-off Timings of Popular Banks?

NEFT transactions arе procеssеd in batchеs at fixеd intеrvals throughout thе day. The cut-off timings of NEFT vary depending on the bank and the branch. The following tablе shows the NEFT cut-off timings of some popular banks in India: 

It is important to note that the cut-off timings are subject to change without prior notice. Therefore, it is advisable to check with the respective bank for the NEFT cut-off and NEFT settlement time before initiating an NEFT transaction.

Related Read: NEFT Payment transaction and Service charges

UPDATED NEFT Holidays in 2024

NEFT transactions are not processed on holidays declared by RBI. These days are known as NEFT holidays, and customers should be aware of them before initiating any NEFT transaction. NEFT holidays can be categorised into three types: national holidays, fеstivals, and other occasions.

RBI Declared NEFT Holidays in 2024

Festivals arе thе days when banks in some states or regions are closed, depending on the local culture and traditions.

Festival Bank Holiday dates for 2024

Some of thе othеr occasions that arе obsеrvеd as bank holidays arе:

• Annual closing of banks (April 1)
• RTGS holidays (second and fourth Saturdays of еvеry month)
• Bank strikеs

What Happens if the Amount Is Not Transferred to the Beneficiary’s Account?

If, for some reason, the NEFT transaction is not credited to the receiver’s account, the bank is liable to return the sum immediately to the sender. If that is also not done within two hours of the delay, the bank is liable to pay penalty interest to the affected customer per the RBI guidelines.

The RBI LAF Repo Rate is applied for the penalty plus a 2% for delay till the time the funds are credited to your account. Customers can quickly get their grievances regarding any payment resolved with the CFC or register a complaint with the Reserve Bank of India Integrated Ombudsman Scheme. Customers can complain if the grievance is not resolved within 30 days. 

When to Use NEFT Transfer?

NEFT is thе idеаl method for transferring funds еlеctronically in India but in conditions whеrе:

• Whеn you havе an NEFT-еnablеd bank account. Transfers can only be initiated and rеcеivеd by bank accounts that are part of thе NEFT nеtwork. You can check if your bank is NEFT-enabled by visiting the RBI website or contacting your bank branch.
• Whеn your bank is part of thе NEFT nеtwork. Not all banks in India are part of the NEFT network, and some may charge a fее for NEFT transactions. You can find out thе list of participating banks and thеir NEFT payment charges on thе RBI wеbsitе or by contacting your bank branch.
• Whеn thе rеcеivеr has shared their bank account number, IFSC codе, and branch location. To initiatе a NEFT transfer, you need to provide the beneficiary details, such as their name, bank account numbеr, IFSC codе, and branch location. If this information is not known, or wrong information is input, the NEFT payment may not go through or may be dеlayеd

Beneficiary Details Required for Remitting Funds through NEFT

To rеmit funds through NEFT, thе necessary required information of a bеnеficiary identification are:

• Bеnеficiary name
• Branch namе
• Bank namе
• Account typе (Savings, Current, etc.)
• Bank account numbеr

Thеsе dеtails arе mandatory for doing an NEFT transaction.

How to Transfer Funds Using NEFT?

To make an NEFT fund transfer, follow these steps for еasy and efficient processing:

STEP 1: Log in to Your Intеrnеt Banking Account

Accеss your intеrnеt banking account using your crеdеntials.

STEP 2: Accеss thе ‘Fund Transfеr’ Option

Navigatе to the ‘Fund transfеr’ option on the main page of your banking interface.

STEP 3: Sеlеct ‘NEFT’ from thе Drop-down Mеnu

Choosе ‘NEFT’ from thе drop-down mеnu that appears on the screen.

STEP 4: Add thе Bеnеficiary

If the recipient is not already listed, add thеm as a bеnеficiary to your bank account.

STEP 5: Entеr Bеnеficiary Dеtails

Fill in the beneficiary’s essential details, including their name, branch name, bank name, account type, and account numbеr.

STEP 6: Input Transfеr Amount

Spеcify the amount you wish to transfer

STEP 7: Confirm thе Transaction

Confirm thе transaction to procееd with thе NEFT transfеr.

Offlinе NEFT transfеrs can also bе madе by complеting a form at your bank’s branch. Simply provide all the necessary details on thе form, and hand it ovеr to thе bank officials to initiatе thе transfеr.

How Secure Is NEFT Transfer?

Concerns about the sеcurity of electronic fund transfers, еspеcially NEFT (National Elеctronic Funds Transfеr) in India, arе common. NEFT transactions are widely used for transferring money between bank accounts. To address sеcurity, thе Rеsеrvе Bank of India (RBI) ovеrsееs NEFT, еnforcing stringеnt guidеlinеs and intеrnational standards. Thе RBI maintains a sеcurе infrastructurе for NEFT, incorporating dеdicatеd nеtworks, еncryption, and authentication measures.  The security measures implemented in NEFT transfers to ensure the confidentiality and integrity of financial transactions:

1. Encryption

NEFT utilisеs advancеd еncryption tеchniquеs to sеcurе data, rеndеring it indеciphеrablе to unauthorisеd partiеs.

2. Authеntication

Digital signaturеs or cеrtificatеs authеnticatе NEFT transactions, confirming sеndеr and rеcеіvеr lеgitimacy.

3. Vеrification

NEFT еmploys chеcksums and hash valuеs to validatе data accuracy and intеgrity during transmission.

4. Rеconciliation

Audit trails and rеports aid NEFT in tracking and vеrifying transaction dеtails for accountability and tracеability.

Conclusion

NEFT transaction time arе thе timе slots whеn thе RBI procеssеs NEFT transactions. Thеy arе important to know for еffеctivе financial planning and timеly fund transfеrs. NEFT transactions are not procеssеd on non-working days, such as the second and fourth Saturdays of the month and bank holidays. Thеrеforе, it is еssеntial to stay informеd about thеsе non-opеrational days and plan your transactions accordingly. 

Frequently Asked Questions (FAQs) 

How Much Time NEFT Takes to Transfer Money?

NEFT transactions are usually settled in half-hourly batches. However, it can take up to 2 hours for the beneficiary to receive the amount.

What are the NEFT clearance times? 

NEFT processing time of the first batch occurs from 12:30 am to 12:00 am on workdays, еxcеpt second and fourth Saturdays. Timing depends on initiation by the rеmittеr’s bank.

Does NEFT work 24 hours? 

Yes, NEFT money transfer time was changed to 24 hours a day, 7 days a week, and 365 days a year in December 2019 by the Reserve Bank of India.

Can NEFT take more than 2 days?

NEFT transactions typically sеttlе within two hours. Dеlays may occur on non-working days, latе initiations, slow bеnеficiary bank procеssing, or tеchnical issues. Vеrify transaction status for confirmation.

How do you know if the NEFT is credited to the beneficiary? 

To determine whether your NEFT transaction has been credited to the beneficiary, follow these steps: 

• Check your SMS and еmail
• Rеviеw your bank statement
• Contact thе NEFT Customеr Facilitation Cеntrе (CFC). 

The post Updated NEFT Timings in 2024 – How Long Does NEFT Take? appeared first on Razorpay Learn.

Read More About: What is Payment Gateway and How Does it Work?

Why do NGOs Need Payment Gateways?

In the current digital era, payment gateways are becoming an essential tool for non-governmental organisations (NGOs). They are crucial in enabling safe and effective transactions, which is necessary for establishing trust with the donors.

Here’s why NGOs need Payment Gateways to accept donations

• Secure Transactions: Payment gateways ensure safe and reliable processing of donations, building trust with donors.
• Fraud Prevention: Protect donations from unauthorized access and fraudulent activities.
• Efficient Financial Management: Streamline donation monitoring, improve liquidity, and make informed financial decisions.
• Data-Driven Insights: Utilize analytics to understand donor behavior, optimize fundraising strategies, and make mission-aligned choices.
• Diverse Payment Options: Offer convenience to donors by accepting various payment methods like credit cards, UPI, NEFT, etc.
• Enhanced Operational Efficiency: Focus on core missions by automating processes and streamlining operations.

How NGOs can Accept Donations Using Razorpay’s Payment Gateway?

1. Accept Donation Using Razorpay Payment Gateway

Razorpay is the best payment gateway for NGOs in India. Because of its extensive feature set, it is an excellent option for NGOs wishing to improve their effect and expedite their contribution process.

With the help of Razorpay’s payment gateway, NGOs can easily and securely receive donations. They can go live faster with simple integration, online onboarding, and a feature-rich checkout.

Additionally, Razorpay’s payment gateway for NGOs in India enables donors to make donations using their preferred means of payment, including credit/debit cards, EMIs, PayLater, online banking, UPI, and mobile wallets.

In addition, the platform provides excellent security with PCI DSS Level 1 compliance, a robust dashboard with comprehensive payment information, and developer-friendly APIs for customisation.

Also, Razorpay’s payment gateway’s feature to automatically generate 80G receipts simplifies the administrative burden for NGOs, allowing them to focus on their core missions rather than managing receipts manually.

2. Accept Donations Using Razorpay Payment Page

Razorpay provides a seamless platform for NGOs to accept donations securely and efficiently. By creating a personalized payment page and integrating it into your website, you can offer donors a hassle-free experience.

Razorpay supports a wide range of payment methods, ensuring maximum convenience.

Additionally, features like recurring payments and detailed transaction tracking empower you to manage your donations effectively

3. Accept Donations Using Razorpay Payment Links

Using Razorpay’s Payment Links feature, NGOs can process payments online even without a website. NGOs can generate and share payment links by email, SMS, or WhatsApp to collect funds safely and effectively.

Additionally, donations can be managed more easily with features like real-time notifications, quick refunds, and mobile app monitoring.

Razorpay Payment Links also provides insights through dashboard reports, allowing NGOs to optimise fundraising efforts and increase their effect without requiring a sophisticated setup.

4. Accept Donations Using Razorpay Payment Button

Razorpay Payment Buttons offer a simple and efficient way for NGOs to accept donations directly on their websites.

These customizable buttons can be easily integrated into any website, providing donors with a convenient and secure payment experience.

With support for multiple payment options, Razorpay Payment Buttons help NGOs streamline their fundraising efforts.

Factors to Consider When Choosing a Payment Gateway for NGOs

When choosing a payment gateway for your NGO, it is important to consider key factors to determine the best match for your needs. By assessing the following factors, you can ensure efficient, cost-effective transactions that increase your fundraising impact:

1. Security

When selecting a payment gateway, prioritise the security of donor information and funds. Choose a system that includes solid encryption and advanced detection of fraud to prevent unauthorised access and reduce the risk of data breaches.

Look for these specific security features:

• PCI-DSS compliance
• SSL encryption for data transmission
• Fraud detection algorithms
• Two-factor authentication for added security

2. Fees

Payment gateways may have a variety of cost structures, including transaction charges or tiered pricing based on transaction volume. You need to understand the related costs and select the gateway that provides the most value for your NGO.

Consider this:

• Transparent pricing with no hidden fees.
• Competitive transaction fees compared to industry standards.
• Tiered pricing based on the NGO’s transaction volume.

3. Ease of Use

• The payment gateway should have an easy-to-use interface that benefits both your NGO and its donors.
• A simple and user-friendly platform can help to speed the donation process, lowering the chance of errors and failed transactions.
• You must also ensure easy connectivity with your existing systems, including accounting software, website platforms, and donation tracking tools, for smooth operations.

4. Global Accessibility

• If your NGO operates globally or receives donations from an international audience, you must pick a payment gateway that accepts various currencies and operates in numerous countries.
• This flexibility ensures that donors from multiple areas can donate easily without the need for currency conversions or geographical constraints.

5. Integration

• The payment gateway should be simple to integrate with your organisation’s existing systems, including accounting software, donation tracking systems, and other tools.
• This interface enables effective data management, faster reporting, and easy tracking of donations and donor details.

6. Reporting and Analytics

• Detailed data and analytics on donations, transactions, and financial performance are important for making educated decisions and measuring the effectiveness of your fundraising activities.
• Choose a payment gateway that offers detailed data, customisable dashboards, and real-time insights into your NGO’s financial standing.

Advantages of Using an Online Payment Gateway for NGOs

1. Fast Approvals

NGOs require fast approvals to meet their funding requirements. Many payment gateways like Razorpay provide quick setups, allowing NGOs to begin receiving funds within days and respond quickly.

2. Mobile Optimisation

The best payment gateways for NGOs in India are optimised for mobile devices and help users complete transactions right from their mobile devices. This enhances donor convenience, as many users prefer to donate via their smartphones.

3. Minimal Paperwork

Payment gateways often need less documentation, minimising administrative stress and allowing NGOs to focus on their main activities through faster setups.

4. Easy Website Integration

Payment gateways easily integrate with NGO websites, placing donation forms directly on the site for a more user-friendly experience and encouraging more donations.

5. Optional Website Integration

Payment gateways provide options such as payment links or hosted donation pages for NGOs who do not have a website, making it accessible to even smaller organisations.

6. Seamless Tracking

User-friendly dashboards make it simple for NGOs to keep track of donations and donor information, which helps with precise record-keeping and strategic planning.

7. Bank Account Settlements

To keep their liquidity under check, NGOs must make quick fund settlements. The NGO’s bank account has to receive payments quickly, which is made possible by these payment gateways.

8. High Success Rate

A high transaction success rate is important for successful fundraising. Payment gateways reduce unsuccessful transactions, preserving donor confidence and encouraging repeat donations.

9. Multiple Payment Options

By offering various payment methods, such as debit cards, credit cards, and mobile wallets, payment gateway broadens the donor base and caters to different supporter preferences.

10. Support for International Payments

Payment gateways allow NGOs to accept donations in a variety of currencies and reach a global audience.

11. No Coding Skills Needed

User-friendly payment gateways minimise the need for technical knowledge, making setup and maintenance easier and more cost-effective for NGOs.

12. 24/7 Support

24/7 customer support guarantees that NGOs receive assistance when they need it, allowing them to run smoothly and provide a great donor experience.

Conclusion

Payment gateways are crucial for NGOs to collect donations safely and effectively. These gateways foster donor confidence and encourage consistent donations by allowing secure transactions. They increase donor confidence by providing secure transactions and making managing operations and data simple. By accepting a variety of payment methods and currencies, you may improve the donor experience and reach a larger audience.

Frequently Asked Questions (FAQs)

1. Which payment gateway is best for NGOs?

Razorpay is the best payment gateway for donations in India providing a user-friendly platform that enables organisations to accept donations without the requirement for a website.

2. What should an NGO do if there are issues with the Payment Gateway?

If you encounter issues with your payment gateway, contact the provider’s customer service team immediately. Record relevant error messages and transaction details to speed up the resolution process. If issues persist, try using another payment method to ensure the reliability of your contribution process.

3. Can donors set up recurring donations through a Payment Gateway?

Yes, donors may set up recurring donations using payment gateways such as Razorpay, PayPal, etc. These gateways enable donors to make automated, recurring contributions at regular periods, such as monthly or yearly, eliminating the need to process each donation manually.

The post Payment Gateway for NGO: How NGO Can Accept Donations with and Without Websites? appeared first on Razorpay Learn.

This article explains the difference between RTGS and NEFT, and their advantages and disadvantages.

NEFT vs RTGS: What is the Key Difference?

The key difference between NEFT and RTGS lies in their payment processing methods. NEFT is ideal for small value transactions that operate in batches while RTGS is used for high-value transactions that settle payments in real-time.

The key difference between their features is also includes:

NEFT vs RTGS: Explained in Detail

What is NEFT?

NEFT (National Electronic Funds Transfer) is an electronic payment system operated by the Reserve Bank of India (RBI) that enables fund transfers between bank accounts. You can conveniently transfer funds using NEFT through online banking, mobile apps, or by visiting your bank branch.

NEFT employs a net settlement system, meaning transactions are accumulated and processed in batches at half-hourly intervals throughout the day. This batch processing system contributes to its lower NEFT transaction charges compared to real-time payment systems like RTGS.

While there is no minimum or maximum amount limit for NEFT transactions, individual banks may impose their own charges for using the service. It’s advisable to check with your bank for any applicable fees.

What are the details required to transfer funds using NEFT?

The required details to transfer funds using NEFT includes:

• Beneficiary’s full name
• Beneficiary’s bank name, account number and branch
• Beneficiary’s IFSC
• Transfer amount

When you initiate a fund transfer, banks assign a unique UTR (Unique Transaction Reference) that can be used to check the NEFT status.

What is RTGS?

RTGS (Real Time Gross Settlement) is an electronic payment system for high-value and time-sensitive transactions. It processes funds transfers instantly on a one-to-one basis without batching. Instant settlement reduces the risk of online payment failures but requires more liquidity from banks.

You can transfer funds through RTGS via online banking or bank branches. While there is no maximum limit on fund transfer amount, the minimum transaction limit is ₹2 lakh. RTGS charges are capped at ₹50 for transfers exceeding ₹5 lakh. Though fund transfers take place 24×7, 365 days, different banks have exception hours in their RTGS timings.

What are the details required to transfer funds using RTGS?

The required details to transfer funds using RTGS includes:

• Beneficiary’s full name
• Beneficiary’s bank account number and branch
• Beneficiary’s IFSC
• Transfer amount
• Purpose of remittance

RTGS system assigns a Unique Transaction Reference (UTR) to identify the transactions. You can use this number to perform an RTGS status check.

Advantages of NEFT

1. Cost-effective

NEFT transactions are cost-effective for smaller amounts as there are no or minimal charges for fund transfers. 

2. Wide accessibility

You can transfer the funds using NEFT through various methods like net banking, mobile banking apps, and bank branches.

3. No lower limit

Unlike RTGS, NEFT does not have a minimum transaction limit.

4. Suitable for various transaction types

You can use NEFT for a wide range of transactions like personal transfers, bill payments, and business transactions.

Advantages of RTGS

1. Instant fund transfer

RTGS is a real-time, immediate transfer of funds between banks. This is ideal for high-value and time-sensitive transactions.

2. No upper limit

Unlike other electronic payment systems such as IMPS and UPI, RTGS has no maximum RTGS limit per day.

3. Low in risk

RTGS transactions are settled individually and not batch-wise. Hence, the risk of payment default or system-wide issues is minimal. 

4. Helps to improve liquidity of your business

The real-time nature of RTGS allows increased liquidity for your business, as funds are available for use immediately after transfer.

5. Suitable for large-value transactions

RTGS is useful for businesses dealing with large sums of money on a regular basis.

6. Immediate confirmation

RTGS provides immediate confirmation of successful transactions.

Disadvantages of NEFT

1. Delay in processing the transaction

NEFT transactions are processed in batches. This leads to delayed payments to concerned parties where fund transfers are required instantly.

2. Additional transaction charges

As per RBI, There is no transaction charges for savings bank account NEFT transactions. However, Some banks may charge additional fees for NEFT transactions.

3. Limited by transaction limits

Banks like Central Bank of India restricts NEFT transfers to half-hourly slots between 9 AM and 8 PM, Monday through Friday.

4. Limited use for e-commerce platforms

Many online shopping platforms prefer instant payment methods. This makes NEFT less convenient for e-commerce transactions.

5. Cool-off period

You need to wait for at least 30 min to 4 hours after adding the new beneficiary. Only post this cool-off period, you can make the fund transfer to the added beneficiary.

Disadvantages of RTGS

1. Higher transaction costs

RTGS incurs higher charges compared to other electronic payment systems like NEFT or IMPS. This makes it less cost-effective for smaller transactions.

2. Minimum transfer limit

RTGS transfers have a minimum transfer amount limit of ₹2 lakh. This is too high for everyday personal banking needs.

3. Lack of payment scheduling

RTGS system doesn’t allow fund transfer for future dates or recurring payments. This creates inconvenience if you need to make regular payments to concerned parties.

NEFT vs RTGS: Which is Faster?

When comparing the speed of RTGS vs NEFT, RTGS takes the lead. RTGS processes transactions instantly. This makes it the faster option for high-value, time-sensitive transfers. On the other hand, NEFT operates in batches, with transactions processed in half-hourly intervals.

NEFT vs RTGS: Which is Better?

The choice between the two depends on the urgency and value of the transaction. For large, urgent transfers where immediate settlement is important, you can choose the RTGS mode of fund transfer. However, for lower-value transactions where slight delays are acceptable, NEFT is suitable and cost-effective.

Conclusion

NEFT and RTGS are nationwide electronic payment systems with their unique advantages and use cases. NEFT is ideal for smaller transactions and everyday banking needs. It’s cost-effective and widely accessible. While, RTGS is ideal for high-value, time-sensitive transactions. Additionally, RTGS offers improved liquidity, it comes with higher transaction costs and a minimum transfer limit. Understanding the difference between RTGS and NEFT allows you to select the appropriate method for your specific financial needs.

Frequently Asked Questions

1. Should I use NEFT or RTGS for a ₹2 lakh transaction?”

Choose NEFT if you prioritize lower fees and don’t need an immediate transfer. Choose RTGS if you prioritize the funds to be transferred quickly and are willing to pay slightly higher fees.

2. What is the cheaper method between NEFT and RTGS?

NEFT is cheaper for everyday transactions like paying bills, transferring rent, or sending money to friends or families. However, these transactions should typically not exceed INR 2,00,000.

3. When should I use NEFT and when should I use RTGS?

Use NEFT for smaller transactions (up to INR: 2,00,000 lakh), non-time-sensitive transfers, and 24/7 availability. This is ideal for rent or bill payments. Choose RTGS for larger amounts (above INR: 2,00,000 lakh) and time-sensitive transfers.

4. Which is the preferred option for large-scale transfers, NEFT or RTGS?

RTGS is preferred for large-scale transfers, exceeding INR 2,00,000.

5. Are NEFT and RTGS secure?

Yes, NEFT and RTGS are secured electronic fund transfer systems by RBI. They use encrypted channels and require multiple layers of authentication. 

6. Which method offers faster transfers, NEFT or RTGS?

Real-Time Gross Settlement (RTGS) is faster than National Electronic Funds Transfer (NEFT).

7. Is it possible to schedule future transactions with NEFT and RTGS?

RBI does not provide payment schedule feature in NEFT and RTGS to schedule the transactions for future. If you need to schedule future payments, you might consider using other banking services or financial applications that offer this functionality. These services often integrate with NEFT or RTGS.

8. Can NEFT and RTGS be used for international transfers?

No, NEFT and RTGS are not designed for international fund transfers. It is only suitable for domestic payment systems used within India. For sending money abroad, you can use other methods such as SWIFT (Society for Worldwide Interbank Financial Telecommunication) and wire transfers, etc.

9. Are there any alternatives to NEFT and RTGS for fund transfers?

The alternative to NEFT and RTGS is IMPS (Immediate Payment Service), which offers instant 24/7 transfers through online payment methods like UPI (Unified Payments Interface), mobile wallets and traditional methods like demand drafts or cheques.

The post NEFT vs RTGS: What is the Difference Between NEFT and RTGS? appeared first on Razorpay Learn.

NRE stands for Non-Resident External Account, designed for holding foreign earnings in Indian rupees. On the other hand, NRO, which stands for Non-Resident Ordinary Account, is intended for managing income generated within India.

Both NRE and NRO are types of bank accounts offered by the Indian banking system to Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs).

This article explores their differences, benefits, and how to choose the right account for your needs.

NRE Vs NRO Accounts: Key Differences

Here’s a table outlining the difference between NRE and NRO account:

What is an NRE Account?

An NRE (Non-resident External) Account is a type of bank account in India that can be opened by NRIs, PIOs, and OCIs (Overseas Citizen of India). An NRE account is used to store overseas earnings in India in INR. It can be opened as a savings, current, recurring deposit or fixed deposit account and can be created as a joint account with another NRI/PIO or a resident Indian relative.

NRE Account Use Cases

1. Remitting Foreign Earnings

Imagine living in the UK while your parents reside in India. Each month, you need to send a portion of your salary to India. An NRE account facilitates this process by allowing you to transfer your UK earnings to India smoothly. As the RBI restricts NRIs from holding resident savings accounts in India, the NRE account becomes essential for this purpose.

2. Repatriation Benefits

One of the key advantages of an NRE account is its flexibility in repatriation. You can transfer your funds back to the UK without incurring additional charges or facing any limits. This makes it easy to manage your finances across countries.

3. Versatile Uses

NRE accounts are not only used for remitting foreign earnings but also for various other purposes. They are commonly used for saving in India, investing in Indian financial products, and handling business transactions. International debit cards further simplify transactions.

4. Tax Benefits and Considerations

The interest earned on an NRE account is not taxable in India, providing a tax-efficient way to grow your savings. However, be aware of potential conversion losses due to fluctuations in exchange rates.

What is an NRO Account?

On the other hand, an NRO (Non-Resident Ordinary) Account is a type of bank account that can be opened by NRI/PIOs to store their income earned in India as well as foreign earnings. This Indian income can be generated through rent, property sale, dividends, investments, etc. An NRO account can be opened as a savings, current, recurring deposit, or fixed deposit account and can be created as a joint account with another NRI/PIO or any resident Indian.

NRO Account Use Cases

1. Managing Indian Earnings

Now, picture yourself as a freelance tech consultant living in Canada. Most of your clients are in India, and they pay you in INR. Opening an NRO account helps you manage these Indian earnings efficiently. It simplifies compliance with local tax laws, as the account provides clear records of your Indian income.

2. Repatriation and Transfer Limits

Unlike NRE accounts, NRO accounts have restrictions on repatriation. You can only transfer up to 1 million USD of the principal amount per financial year to your country of residence. Although the interest earned is repatriable, you cannot transfer funds from an NRO account to an NRE account. Funds can only be moved between NRO accounts.

3. Tax Implications

Interest earned on an NRO account is subject to Indian income tax laws. This means you will need to pay tax on the interest based on your income tax bracket in India. This makes it essential to account for tax liabilities when managing your NRO account.

4. Compliance and Record-Keeping

NRO accounts are designed to help NRIs manage their Indian income while staying compliant with local regulations. The clear record-keeping provided by NRO account statements ensures transparency and aids in tax reporting.

Importance of NRE and NRO Accounts

Although NRE and NRO accounts have distinct differences, both are crucial for NRIs, serving different financial purposes. According to the Foreign Exchange Management Act (FEMA) enforced by the Reserve Bank of India (RBI), NRIs must convert their resident savings accounts into either NRO or NRE accounts to comply with regulations.

Benefits of NRE Accounts

An NRE account is particularly advantageous for those who need to park their foreign income in India. This account is ideal for:

• Remitting salary to India
• Saving for future returns to India
• Investing in Indian mutual funds and purchasing property

Benefits of NRO Accounts

Conversely, an NRO account is beneficial for managing Indian income and expenses. It is well-suited for:

• Collecting income from Indian clients
• Earning rental income
• Managing investments and local expenses in India

Utilizing Funds and Joint Accounts

For those primarily utilizing funds within India, the differences between NRE and NRO accounts may be less critical, as both allow deposits in INR with no exchange rate risk. Both account types also permit joint account holding, enabling account holders in different countries to manage funds together with minimal difference in this regard.

Tax Implications

Tax liability is a key factor when choosing between NRE and NRO accounts:

• NRE Accounts: The interest earned is tax-exempt in India, eliminating the need to file taxes in India if there are no other sources of taxable income.
• NRO Accounts: The interest earned is subject to Indian income tax laws, requiring tax payment based on your income tax bracket in India.

Similarities Between NRE and NRO Accounts

Despite their differences, NRE and NRO accounts share some similarities:

1. Account Types

Savings, Current, Recurring Deposit, Fixed Deposit: Both NRE and NRO accounts can be opened in these forms.

2. Joint Accounts

Allowed: Both NRE and NRO accounts allow for joint account holders, either with other NRIs/PIOs or with resident Indian relatives.

3. Currency

INR: Both accounts are maintained in Indian Rupees (INR).

4. Foreign Currency Remittance

Accepted: Both NRE and NRO accounts can receive foreign currency credits from outside India.

5. Eligibility

NRIs and PIOs: Both NRIs and PIOs can open NRE and NRO accounts.

NRO vs NRE: Which is Better?

Deciding between NRO and NRE accounts depends on your financial needs. Each account offers unique benefits, so understanding their features will help you choose the right one.

1. Source of Income

NRE: Ideal for Non-Resident Indians (NRIs) whose primary income is earned outside of India. This includes individuals working, studying, or residing abroad.

NRO: Suitable for individuals with significant income sources within India, such as rental income, dividends from Indian investments, or employment in Indian companies.

2. Repatriation Needs

NRE: Offers unrestricted repatriation, allowing you to transfer funds back to your home country without any limitations. This makes NRE accounts ideal for NRIs who need to frequently send money back to their families or for personal expenses.

NRO: Repatriation is subject to annual limits on principal repatriation, which means you can only transfer a certain amount of funds out of India each year. This makes NRO accounts more suitable for NRIs with limited repatriation needs or who intend to keep their funds invested in India.

3. Local Liabilities

NRE: Less suitable for local liabilities due to the potential restrictions on repatriation. While you can still use an NRE account for some local transactions, it may be more cumbersome compared to an NRO account.

NRO: More convenient for managing Indian expenses and obligations. If you have investments, rental properties, or other financial commitments within India, an NRO account can help you manage these efficiently.

4. Tax Implications

NRE: Interest earned on NRE accounts is tax-free in India. This means you won’t have to pay any income tax on the interest earned on your NRE account, making it a more tax-efficient option for many NRIs.

NRO: Interest earned on NRO accounts is subject to Indian income tax laws. This means you will need to pay income tax on the interest earned, similar to a domestic savings account.

Conclusion

The choice between an NRE and NRO account depends on your specific financial needs and circumstances. Understanding the key differences and the unique benefits of each account will help you make an informed decision. Whether you need to repatriate your foreign earnings without limits or manage your Indian income while complying with local tax laws, NRE and NRO accounts provide the necessary tools for NRIs to manage their finances efficiently.

FAQs

1. Who can open an NRE and NRO account?

NRIs, PIOs (Persons of Indian Origin), and OCIs (Overseas Citizens of India) can open both NRE and NRO accounts.

2. Which account is better, NRE or NRO?

The better account depends on your financial needs. NRE accounts are suitable for foreign earnings with tax benefits, while NRO accounts are ideal for income generated in India.

3. Can I transfer money from NRE to NRO?

Yes, you can transfer money from an NRE account to an NRO account.

4. Are there any tax implications for NRE and NRO accounts?

Interest earned in NRE accounts is tax-free in India, while interest earned in NRO accounts is subject to Indian taxes.

5. Can a person hold both an NRE and NRO account?

Yes, NRIs can hold both NRE and NRO accounts simultaneously.

6. Are there any minimum balance requirements for NRE and NRO accounts?

Yes, banks have minimum balance requirements for both NRE and NRO accounts, typically 10,000 INR, which may vary from bank to bank.

The post NRE vs NRO Account: What’s the Difference Between? appeared first on Razorpay Learn.

1. Identify A Niche And Define Your Target Audience

When selecting a niche for your online store, it’s crucial to align it with both market trends and your personal interests. Consider these three important factors when choosing your niche:

• Profitability: Research niches that show strong market demand but have manageable competition. This ensures that your business has the potential for good profit margins.
• Searchability: Use tools like Google Trends, SEMrush, or Ahrefs to analyze search volumes and trends. A niche with high searchability will attract more organic traffic to your store, making it easier to reach potential customers without heavy reliance on paid advertising.
• Passion: Choose a niche that aligns with your personal interests. Your passion for the topic will help sustain your enthusiasm and commitment to the business over the long term, even when challenges arise.

Once you’ve identified your niche, it’s important to clearly define your target audience. Understanding their preferences, buying behaviors, and challenges will help you create more personalized marketing strategies and product offerings that effectively meet their needs, driving higher engagement and conversion rates. Competitor analysis is a key part of this process, as it helps you see what works (or doesn’t) for other businesses targeting the same audience.

Related Read: How To Start an Online Business Without Investment in 2024?

2. Select What to Sell Online

When deciding what to sell online, it’s essential to explore a variety of product options that balance demand, profitability, and sourcing feasibility. Consider whether the products you’re interested in have consistent demand and if you can source them reliably at a cost that allows for healthy profit margins. Here are some tips to get started:

Market Research:

• Identify your target audience: Who are you trying to reach with your products? What are their interests, needs, and buying habits? The more specific you are, the easier it is to tailor your product selection to their needs.
• Analyze market trends: Use research tools to identify current trends and popular products in your chosen niche. Google Trends, Pinterest, and Instagram can give you insights into trending topics and products.
• Assess competition: Identify your competitors and analyze their strengths, weaknesses, pricing, and marketing strategies. This will help you position your products in a way that stands out.

Product Viability:

• Demand: Assess the demand for your products by conducting market research and analyzing customer feedback. Before finalizing your product list, consider running small test batches or gathering feedback through surveys to gauge interest and ensure product viability.
• Competition: Identify your competitors and analyze their pricing, product offerings, and marketing strategies. This will help you understand the level of competition and identify gaps in the market.
• Profitability: Calculate your potential profit margins, considering factors like product cost, shipping expenses, and marketing costs. Be sure to account for any unexpected expenses, such as returns or customer service.

Sourcing Products:

• Manufacturing: Consider manufacturing your products in-house or outsourcing production. In-house production gives you control over quality but may require significant upfront investment.
• Dropshipping: Partner with suppliers who handle product fulfillment and shipping. This option has lower overhead costs but may present challenges in quality control and shipping times.
• Wholesale: Purchase products in bulk from wholesalers and resell them. This offers better profit margins than dropshipping but requires managing inventory and shipping.

Product Differentiation:

• Unique features: Highlight the unique features and benefits of your products. This could be anything from superior materials to innovative designs.
• Quality: Ensure your products meet high-quality standards. Product reviews and customer feedback can be valuable in building your reputation.
• Branding: Develop a strong brand identity to differentiate your products from competitors. Your branding should reflect your values and resonate with your target audience.

3. Determine On Your Business Structure

Choosing the right business structure is a critical step in starting an online store. The structure you select will impact your legal obligations, tax liability, and ability to raise capital.

Key Considerations

• Liability Protection: Consider whether you want to protect your personal assets from business debts.
• Tax Implications: Understand the tax implications of different business structures and how they affect your tax liability.
• Management and Control: Determine who will have control over the business and how decisions will be made.
• Capital Raising: Consider how your business structure will affect your ability to raise funds for growth.

Common Business Structures

Sole Proprietorship

• Definition: Sole proprietorship is a business owned and operated by a single individual.
• Pros: Simple to set up, complete control, minimal paperwork, pass-through taxation (profits and losses are reported on your personal tax return).
• Cons: Unlimited personal liability, limited access to capital, difficulty in attracting investors.

Limited Liability Company (LLC)

• Definition: LLC is a business structure that combines the pass-through taxation benefits of a sole proprietorship or partnership with the limited liability protection of a corporation.
• Pros: Limited liability, flexibility in management structure, pass-through taxation (default), potential for favorable tax treatment.
• Cons: Can be more complex to set up and maintain than a sole proprietorship, may require annual fees or filings.

Partnership

• Definition: Partnership firm is a business owned by two or more individuals who share profits, losses, and responsibilities.
• Pros: Shared resources, expertise, and decision-making, potential for increased capital.
• Cons: Shared liability, potential for disagreements among partners, complex tax implications.

Corporation

• Definition: A legal entity separate from its owners.
• Pros: Limited liability, potential for tax advantages (e.g., C-corporation vs. S-corporation), ability to raise capital through stock issuance.
• Cons: Complex setup and maintenance, higher costs, double taxation (for C-corporations).

Additional Considerations:

• Consulting with Professionals: Seek advice from legal and financial professionals to ensure you choose the best structure for your business.
• State-Specific Requirements: Be aware of the specific requirements for your state or region regarding business structures.
• Future Plans: Consider how your business may evolve and choose a structure that can accommodate future growth.

4. Register Your Business

Legal and Tax Considerations

Registering your business is a crucial step in establishing a legal entity and complying with government regulations. This process involves several key steps:

• Business Name Registration: Choose a unique and available business name and register it with the appropriate government agency (e.g., Secretary of State in the US, Registrar of Companies in India).
• Tax Identification Numbers: Obtain the necessary tax identification numbers (e.g., EIN in the US, GSTIN in India) for tax purposes.
• Licenses and Permits: Research and acquire any required licenses or permits specific to your industry and location. This may include business licenses, sales tax permits, and industry-specific certifications.

Additional Tips:

• Consult with Professionals: Seek advice from legal and tax professionals to ensure compliance with all regulations.
• Consider Professional Services: Explore the option of hiring a registered agent or accountant to assist with the registration process.
• Online Resources: Utilize online resources and government websites to access information and complete the registration process.

Need help with company registration? Razorpay Rize offers comprehensive business registration services, simplifying the process and ensuring compliance.

5. Choose An E-commerce Platform

Selecting the right e-commerce platform is critical for your business’s success. Whether you’re just starting or looking to scale, several platforms offer distinct features tailored to different needs.

Squarespace

Ideal for those seeking an all-in-one solution, Squarespace offers user-friendly website building with integrated e-commerce capabilities. Their plans start at $25/month, providing a seamless setup for showcasing products or services online.

Shopify

Renowned for its robust features and customisation, Shopify is perfect for dropshipping businesses. With advanced tools for managing inventory, marketing, and customer engagement, Shopify’s basic plan start at ₹1,994/month, catering to businesses that prioritize scalability and growth.

Square

For businesses on a budget, Square provides a cost-effective solution with free plans. It’s particularly suited for businesses that plan to sell both online and in-store, offering a simple setup with essential e-commerce features.

Key Considerations for Selecting An E-commerce Platform

Platform Features

When choosing an e-commerce platform, consider essential features like inventory tracking, mobile responsiveness, and a user-friendly interface. These features ensure a seamless shopping experience for your customers, enhancing engagement and reducing cart abandonment.

Cost Effectiveness

Balancing features and affordability is crucial. While higher-end platforms offer extensive tools, there are budget-friendly options that still provide excellent value. Evaluate what your business can afford while ensuring that the platform meets your operational needs.

Functionality

The platform’s functionality, including order processing, customer support, and integration with third-party tools, is vital. Effective integration can streamline operations and improve customer satisfaction, leading to repeat business.

Scalability and Customisability

As your business grows, so will your e-commerce needs. Choosing a platform that can scale with increased traffic, products, and transactions ensures that your business can expand without outgrowing its platform. Customisability allows you to tailor the platform to meet your unique requirements, supporting long-term success.

6. Get A Domain and Hosting

Securing the right domain name and reliable hosting are crucial steps in launching your online store. These elements form the foundation of your website, influencing everything from brand perception to site performance.

Choose Your Domain Name

Select a domain name that is short, memorable, and reflects your business identity. A good domain name should be easy to spell, pronounce, and type, helping users find your store effortlessly. Avoid complex words, numbers, or hyphens, which can lead to confusion. Use domain registration services, such as GoDaddy or Namecheap, to check the availability of your desired domain name. Additionally, consider registering multiple variations (e.g., .com, .net, .store) to protect your brand from competitors or copycats.

Select a Reliable Hosting Provider

Your hosting provider is essential to your online store’s performance, security, and scalability. A dependable hosting service ensures your website is accessible 24/7, with fast loading speeds and minimal downtime. When choosing a provider, prioritize features like:

• Uptime Guarantees: Look for providers that offer at least 99.9% uptime to ensure your store remains online consistently.
• Speed: Faster loading speeds enhance user experience and improve your site’s SEO ranking. Hosting providers with optimized servers and caching solutions can boost your site’s performance.
• Security: Choose a host that offers robust security features, including SSL certificates, malware protection, and regular backups, to safeguard your customer data and transactions.
• Scalability: As your online store grows, you may need more resources. Opt for a hosting plan that allows you to scale up as your business expands.

Recommended Hosting Providers:

• Bluehost: Known for its strong uptime, excellent customer support, and beginner-friendly interface, Bluehost offers scalable plans suitable for growing businesses.
• Hostinger: Offers affordable hosting with fast load times and solid security features, making it a great option for new online stores.
• Kinsta: A premium hosting provider focused on speed, security, and scalability, Kinsta is ideal for larger online stores that require high performance.

Investing in a high-quality hosting provider is essential to ensure your store runs smoothly and securely, providing a seamless shopping experience for your customers.

7. Build Your E-Commerce Website 

Building an attractive, functional, and user-friendly e-commerce website is key to your online store’s success. Your website is often the first interaction customers will have with your brand, so it’s essential to make a strong impression. Focus on the following aspects to create an engaging and seamless online shopping experience:

Create a Visually Appealing Design

The design of your website should reflect your brand’s personality while ensuring a positive user experience. Choose a clean, modern layout that is easy on the eyes and ensures smooth navigation. Incorporate high-quality images and a consistent color scheme to reinforce your brand’s identity. Make sure your design is responsive, meaning it looks great and functions smoothly on all devices, including desktops, tablets, and smartphones.

Focus on User Experience (UX)

A well-designed website makes it easy for customers to browse products, find information, and complete purchases. Prioritize intuitive navigation by organizing your categories logically, creating clear calls to action (CTAs), and simplifying the checkout process. Implement search functionality and filtering options to help users find products quickly. The easier it is for customers to shop, the more likely they are to convert.

Feature a Professional Business Name and Logo

Your business name and logo are the cornerstones of your brand identity. Display them prominently on your website to establish a professional image and build trust with visitors. Ensure that your logo is high-resolution and aligns with your overall website design. Consistent branding across your website helps reinforce your business in the minds of customers.

Integrate Essential E-Commerce Features

Incorporate essential e-commerce features like shopping carts, product pages with detailed descriptions and images, and a secure checkout system. You may also want to include features such as customer reviews, wishlists, and product recommendations to enhance the shopping experience.

Optimize for Mobile Users

With a significant portion of online shopping happening on mobile devices, it’s essential to ensure your website is optimized for mobile users. A mobile-friendly site should load quickly, display correctly, and allow for seamless browsing and purchasing. Test your website on different devices to confirm that it functions smoothly on both mobile and desktop platforms.

8. Set Up Payment Gateway and Shipping Options

Setting up a reliable payment gateway and shipping options is essential for ensuring a smooth shopping experience for your customers.

Implement Razorpay Payment Gateway for Secure Transactions

Razorpay Payment Gateway offers robust encryption and fraud protection, ensuring secure transactions on your online store. It supports a variety of payment methods, including credit cards, UPI, and digital wallets, giving your customers flexibility and increasing the likelihood of completed purchases. Integrating Razorpay into your store helps build trust and provides a seamless checkout experience.

Establish Shipping Rates and Methods

Set up shipping rates based on factors such as product weight, destination, and service level. Choose from various shipping methods, including courier services, postal options, or self-delivery, depending on your business model. Competitive and transparent shipping rates can improve customer satisfaction and reduce cart abandonment.

Offer Free Shipping and Incentives

Offering free shipping is an effective way to attract customers. If free shipping is feasible for your business, consider setting a minimum order value to qualify. Strategic incentives like free returns or discounts on faster shipping can also enhance the shopping experience and encourage repeat purchases.

9. Launch Your Marketing Campaigns

Marketing campaigns are crucial for promoting your online store and reaching potential customers. These campaigns involve various strategies to build brand awareness, engage your audience, and drive traffic to your site.

Organic Marketing

• SEO: Optimising your website for search engines helps improve its visibility in search results. Effective SEO practices increase the likelihood of attracting organic traffic, which can enhance your store’s online presence and search rankings.
• Email Marketing: Use email marketing to connect with your audience through targeted campaigns. It’s a powerful tool for nurturing customer relationships, sharing promotions, and driving repeat sales by keeping your brand top-of-mind.
• Social Media Marketing: Leverage social media platforms to engage with your audience and promote your products. Platforms like Facebook and Instagram enable you to reach a wide audience with visual and interactive content, enhancing customer engagement.
• Loyalty Program: Implement a loyalty program to reward returning customers. This can include discounts, points, or special offers, encouraging repeat business and fostering long-term customer loyalty.

Paid Marketing

• Google Ads: Google Ads allows you to place ads that appear in search results and on relevant websites. This method targets potential customers based on their search queries, driving more focused traffic to your online store.
• Facebook and Instagram Ads: Use Facebook and Instagram Ads to target specific audiences based on their interests and demographics. Visual ads on these platforms can capture attention and drive engagement, helping you reach potential customers effectively.

10. Managing and Growing Your Online Store

Inventory Management

Effective inventory management helps you maintain optimal stock levels and avoid both shortages and overstock situations. Employ tools to track inventory, manage supply chains, and forecast demand accurately.

Customer Service

Deliver exceptional customer service by offering multiple support channels, such as chat, email, and phone. Prompt and helpful responses to customer queries build trust and enhance satisfaction.

Analysing Performance

Regularly review your store’s performance metrics, such as sales, website traffic, and conversion rates. Use this data to identify trends, measure effectiveness, and make informed decisions to optimise your operations.

Scaling Your Business

As your business grows, explore ways to scale up operations. This could involve expanding your product range, targeting new markets, or enhancing your marketing efforts to support increased customer demand.

Frequently Asked Questions

Q1. How much does it cost to start an online store?

The cost to start an online store can vary widely. Initial expenses typically include e-commerce platform fees, website design, domain registration, and hosting. On average, you might spend anywhere from a few thousand to several lakhs of rupees.

Q2: How can I start an online business with no money?

Starting an online business with no money is possible by utilising free or low-cost resources. Opt for free website builders or platforms with minimal initial costs. Focus on organic marketing techniques such as SEO and social media. Dropshipping can also be a cost-effective model as it eliminates inventory expenses.

Q3: Where can I find affordable products for my store?

Affordable products can be sourced from wholesale suppliers, dropshipping platforms, and manufacturers. Websites like Alibaba, IndiaMart, and wholesale directories offer a range of products at competitive prices. 

Q4: What is the best site to start an online store?

The best platform to create an online store depends on your needs. Shopify is excellent for comprehensive e-commerce solutions, while Squarespace is known for its design-oriented features. For budget-conscious options, consider Square, which provides cost-effective plans. 

Q5: Is it profitable to have an online store?

Yes, running an online store can be profitable if managed effectively. Success relies on factors such as product selection, pricing strategy, marketing, and customer service. With a well-executed business plan and strategic efforts, an online store can generate substantial profits.

Q6: Do I need a business licence to start an online store?

In most regions, a business licence is required to operate legally. The specific licencing requirements depend on your location and business nature. Consult local regulatory authorities to determine the necessary licences for your online store.

Q7: What payment methods should I offer in my online store?

To cater to different customer preferences, offer a range of payment methods. Standard options include credit/debit cards, digital wallets (such as PayPal and Razorpay), and bank transfers. Providing multiple payment options enhances convenience and security for your customers.

Q8: What is dropshipping, and is it suitable for my business?

Dropshipping is a model where you start an online store without inventory. When an order is placed, the product is shipped directly from the supplier to the customer. This model is suitable for businesses with limited upfront investment but requires effective supplier management and marketing to succeed.

The post How To Start an Online Store in 2024: A 10-Step Guide appeared first on Razorpay Learn.

A UPI ID is a unique and distinct address that identifies you and links your bank account to the UPI payment system. UPI ID serves as a recognisable address, enabling users to send and receive money effortlessly. Your UPI ID can be in the format of yourname@bankname.

UPI ID allows users to send and receive money directly from their bank account without sharing sensitive information like their bank account number, IFSC, or recipient’s name.

What is UPI ID example?

A UPI ID, or Unified Payments Interface ID, is a distinctive identifier for bank accounts in India. It typically follows a format like this:

For instance:

Your UPI ID might appear as “yourname@ybl.”

Alternatively, it could be “90876543@okicici.”

In this format, “yourname” can represent your name, email address, or mobile number, while the “@ybl” and “@okicici” parts indicate the initials of your respective bank. UPI IDs play a crucial role in facilitating seamless transactions and simplifying the payment process, including using UPI payment links.

Related Read: What is UPI and How it Works?

Related Read: What Is The UPI Reference Number?

How to Create UPI ID in BHIM App?

Step 1: Begin by downloading the BHIM app

Step 2: Select your preferred language and select “Verify Mobile Number” request.

Step 3: Select your preferred bank from the list.

Step 4: The app will automatically retrieve details like your bank name, IFSC code, and account number. If you have multiple accounts linked to the same mobile number, you can choose the account you wish to link to the app.

Step 5: To enhance security, you must set a unique UPI ID and a 4-digit or 6-digit PIN. Once this is done, you’re all set to embark on your UPI transactions securely!

How to Create a UPI ID in Google Pay?

Step 1: Open the Google Pay app on your smartphone.

Step 2: Tap on your profile picture or name at the top.

Step 3: Select ‘Add bank account.’

Step 4: Choose your bank from the list of available options.

Step 5: Google Pay will verify your phone number with an OTP.

Step 6: Once verified, select the bank account you wish to link.

Step 7: Set a UPI PIN for this account.

Step 8: Your UPI ID is now ready, and you can use it for transactions.

Related Read: How to Change UPI ID in Google Pay?

How to Create a UPI ID in PhonePe?

Step 1: Launch the PhonePe app on your phone.

Step 2: Tap on ‘My Money’ at the bottom.

Step 3: Select ‘Bank Accounts.’

Step 4: Click on ‘Add a new bank account.’

Step 5: Choose your bank, and PhonePe will verify your phone number via OTP.

Step 6: Link your bank account and set a UPI PIN.

Step 7: Your UPI ID is now created and linked to your account.

Related Read: What is the PhonePe transaction limit for 2024?

Registering UPI ID through *99#

Step 1: Dial “*99#” on your phone and place the call.

Step 2: Select your preferred language.

Step 3: Enter your bank’s name or the initial 4 digits of your IFSC code.

Step 4: Choose the bank account you want to link.

Step 5: Input the last 6 digits of your debit card and its expiry date.

Step 6: Set your unique UPI PIN.

Step 7: Confirm your UPI PIN, and you’re all set to start using your UPI ID!

Related Read – What is IFSC Code?

How to Send Money Using UPI ID?

For sending money through UPI ID, you need to have the UPI ID of the receiver with you. Hence, make sure to ask them to share it with you beforehand so you can seamlessly make the required payment. Once you have the UPI ID of the receiver, simply select the ‘Pay UPI ID’ option and enter their UPI ID.

Step 1: Open your UPI-enabled app.

Step 2: Select the “Send Money” or “Pay UPI ID” option.

Step 3: Enter the UPI ID of the receiver.

Step 4: Select the bank account from which you want to make the transfer and click on “Proceed” button

Step 5: Input the amount you want to send.

Step 6: Add an optional note or message.

Step 7: Review the transaction details.

Step 8: Confirm and enter your UPI PIN linked with the selected bank account

Step 9: The money will be sent instantly.

How to Find UPI ID in BHIM App?

Step 1: Log in to your account using your app password.

Step 2: Navigate to the main screen and select the “Profile” option from the drop-down menu. Here, you can access your UPI ID along with your QR Code.

Related Read: What is the Difference Between a Barcode and a QR Code?

How to Find UPI ID in Google Pay?

Step 1: Launch the Google Pay app.

Step 2: Tap on your profile photo at the top right corner.

Step 3: Select “Bank Account” from the options.

Step 4: Choose the bank account linked to your UPI ID.

Step 5: You can locate your associated UPI ID under the section labelled “UPI IDs.”

How to Find UPI ID in PhonePe?

Step 1: Open the PhonePe app.

Step 2: Tap on ‘My Money.’

Step 3: Under ‘UPI IDs,’ you can see your UPI ID associated with your bank account.

How to Change UPI ID in BHIM app?

Step 1: Launch the BHIM app and access your profile.

Step 2: Tap on the “Settings” option.

Step 3: Look for the option to modify your UPI ID.

Step 4: After making the required changes to your UPI ID, confirm the alterations by tapping “Confirm.”

How to Change UPI ID in Google Pay?

Step 1: Launch the Google Pay app.

Step 2: Tap on your profile photo.

Step 3: Select “Payment Methods.”

Step 4: Choose the bank account for which you wish to view the UPI ID.

Step 5: Locate the UPI ID linked to the selected bank account.

Step 6: To add a new UPI ID, tap the ‘+’ icon next to your desired UPI ID

Related Read: What To Do If Your Google Pay Transaction Fails: How To Fix Payment Problems?

How to Change UPI ID on PhonePe?

Step 1: Open the PhonePe app.

Step 2: Tap on ‘My Money.’

Step 3: Under ‘UPI IDs,’ click on your existing UPI ID.

Step 4: You can change your UPI ID by selecting the ‘Change UPI ID’ option.

How to Generate your UPI PIN?

Generating a UPI PIN is a crucial step to ensure the security of your digital transactions. Here’s a brief overview of the process:

• Launch the app on your smartphone, such as Google Pay or PhonePe, that supports UPI services.
• Look for the option that allows you to set your UPI PIN. It is usually located in the ‘Banking’ or ‘My Account’ section.
• From the list of linked bank accounts in your UPI app, select the bank account for which you want to set the UPI PIN.
• The app will send a one-time password (OTP) to your registered mobile number for verification. Enter this OTP to proceed.
• After verifying the OTP, you will be prompted to set a 4 or 6-digit UPI PIN. Choose a PIN that is unique and easy for you to remember, but not easily guessable. Confirm the PIN, and it is now successfully set for your chosen bank account.

How to Set UPI PIN?

Setting up a UPI PIN is the first step when you start using UPI-based services. It ensures the safety of your digital transactions. Here’s how to set your UPI PIN:

Step 1: Open your UPI-enabled app (e.g., Google Pay or PhonePe).

Step 2: Select ‘Set UPI PIN.’

Step 3: Choose your bank account from the list.

Step 4: The app will send an OTP to your registered mobile number.

Step 5: Enter the OTP.

Step 6: Set your 4 or 6-digit UPI PIN.

Step 7: Confirm the PIN by re-entering it

Step 8: Your UPI PIN is now successfully set.

How to use your UPI ID?

Your UPI ID, also known as VPA (Virtual Payment Address), is the information you provide to customers or family members when they need to make payments to you. It’s a convenient alternative to sharing your bank account number.

Think of it like sending a text message. To do so, you typically enter a recipient’s name or number. In the same way, the UPI ID serves as the recipient’s unique identifier.

When you want to send money to someone, all you need is their UPI ID, without the necessity of knowing their bank account number. Just input their UPI ID into your app and initiate the payment.

If you are a small business owner looking to accept payments via UPI, be sure to check out the provided link below for more information.

Related Read: How To Make UPI Payment Without Internet?

Summary

The Unified Payments Interface (UPI ID) is a unique identifier launched by the RBI (Reserve Bank of India) that allows users to send and receive money using payment apps that support the Unified Payments Interface (UPI) banking system.

The meaning of UPI ID is associated with a unique identifier for a bank account that allows users to send and receive money directly from their bank account. UPI IDs are also known as Virtual Payment Addresses (VPAs).

Related Read: Latest UPI Transaction Limit for Tax Payments 2024

Features of UPI payments

UPI payment apps provide a straightforward solution to a fundamental issue. They incorporate several valuable features, including:

Reliability:

The UPI payment gateway, initiated by NPCI, ensures the trustworthiness of payment transfers. It mitigates the risk of money loss due to internet disruptions or issues with websites or portals, making transactions more secure.

Real-time transfers:

One of the noteworthy aspects of UPI is its ability to facilitate real-time transfers. This means that users can send payments to recipients within seconds, simplifying everyday tasks such as grocery shopping or settling debts among friends.

Inclusivity:

UPI promotes inclusivity by offering options for transactions even without a smartphone or an internet connection. This inclusiveness allows individuals from all walks of life to partake in digital transactions. Furthermore, the availability of regional language support makes the process even more user-friendly.

No minimum transaction limit:

Another advantage of UPI is the absence of a minimum transaction limit. This makes it highly suitable for conducting small transactions. Moreover, as of now, UPI transactions do not entail any transaction charges, further enhancing the overall convenience and cost-effectiveness.

Related Read: What is the SBI UPI Transaction Limit Per Day?

Frequently Asked Questions (FAQs)

The post What is UPI ID? How to Create, Find and Send Money Using your UPI ID? appeared first on Razorpay Learn.

The Unified Payments Interface (UPI) transaction status indicates whether your money transfer is in progress, successful, pending, or has encountered an error.

How to Check UPI Transaction Status?

Method 1: Through your UPI App

Most UPI apps display transaction history with individual status indications like “In Progress, “Successful”, “Pending” or “Failed”.

Locate the specific transaction and expand on it to view its details, including status, date, time, and amount, and UPI reference number.

Method 2: Online Banking

Step 1: Log in to your bank’s official website or mobile app.

Step 2: Navigate to the ‘TRANSACTIONS’ or ‘ACCOUNT ACTIVITY’ section.

Step 3: Find the relevant UPI transaction and view its status along with other details.

Method 3: SMS Alerts/Notifications

Upon transaction completion, you usually receive an SMS alert or notification from your bank with the status and UPI reference number about the status of your transaction.

Frequently Asked Questions (FAQs)

How to Track UPI Transaction ID?

Open your UPI App: Open the UPI App you use for transactions.

Transaction History: Locate the “Transaction History” or “Payment History” section within your app.

Search by ID: Look for a search bar or filter option within the transaction history. You can use the specific UPI transaction ID to find the details of that transaction.

View Details: Clicking on the relevant transaction will display details like amount, date, time, beneficiary details, and the UPI reference ID

How do I verify a transaction on UPI?

There are two ways to do this.

Transaction Status: When you track the transaction using the UPI reference ID, you will see the ‘Transaction Status.’ This will indicate whether the transaction is in progress, successful, failed, or pending.

Beneficiary Details: Another verification method is to check the beneficiary details (name and virtual payment address) displayed against the transaction. Ensure these details match the intended recipient.

The post How to Check UPI Transaction Status? UPI UTR Status Check Online appeared first on Razorpay Learn.