UPI

Why Are UPI Transactions Best For Truck Drivers

UPI transactions for truck drivers

Group of trucks parked in line at truck stop.

The trucking industry has undergone an unprecedented change. What are some of the changes you’ve been observing? Did you notice how from the days of using cash, it has now evolved into a digitized sector that makes use of UPI transactions? We bet you did. 

The fast and quick transfer of funds is one of the many advantages of UPI that has made its way to the transport and logistics industry, replacing physical cash. And why not? UPI transactions are one of the ways to keep up the pace with the digitization of the transport and logistics sector.

You might be wondering why a truck driver should use UPI transactions. How will a truck driver benefit from the advantages of UPI? Well, continue reading and you will soon have all your questions answered.

What Are UPI Transactions?

UPI or Unified Payment Interface transactions have taken the world by storm and are commonly used in almost every business sector. Post-pandemic, the world has accepted a new norm–contactless payments.

UPI is a way of transferring funds in real time. Hence, you can use any smartphone either to pay or receive cash from anyone, any time of the day, from any part of the world.

You can link your bank account with your UPI and use the same for every transaction. And the next time you are paying a client, you can simply put in their UPI id, enter the amount, and verify the same with a security code to complete the process.

What Are The Advantages Of UPI For Truck Drivers?

  1. UPI offers cash transactions that have digital invoices. UPI eliminates the need to keep a track of bills, invoices, papers, or cash-in-hand. As a truck driver, you are already handling a lot–there will be permits, work papers, vehicle documents, consignment details, etc. It is obvious to lose important things amidst all this. With UPI, you can do away with the stress of managing all the transaction-related documents or even cash.

  1. UPI makes for instant payment. You can receive your payment instantly, without any delays.

Mr. Shah, a truck driver, delivered his consignment on Friday, late into the night, after a road mishap delayed his delivery. He was to receive a payment of Rs. 14,750 which got delayed because the banks were closed on weekends. He had to wait till Monday to get his dues. With UPI, on the other hand, there is no such delay in payments. Had Mr. Shah been using a UPI, he would have gotten his payment right after the goods were delivered.

  1. UPI transactions leave no scope for operational or human errors, unlike some other payment methods. It also eliminates the chances of not having sufficient cash in hand, no change available, or a difference in the accepted mode of payment. Thanks to UPI, there is no such scenario.

Take, for instance, the incident with the owners of M/s Gupta, a transport and logistics startup. While M/s Gupta accepts only cash, their client in the other city had a cheque ready with them to clear their dues. As their couriered cheque was received by M/s Gupta on the 8th day after the delivery of cargo, they had to clarify their accepted mode of payment which in turn delayed the entire transfer of funds. UPI transactions, on the other hand, are accepted by most banks, merchants, and vendors, leaving no room for such operational errors.

4. With UPI, every single penny is safe, unlike cash in hand which runs a risk of theft, especially during night trips. 

Is There Any Limit of UPI Transactions In A Day?

Yes, the National Payments Corporation of India (NPCI) has set a limit on UPI transactions. Even though it makes for an easy and secure mode of transactions, it is not without restrictions.

Although the government has set the limit of UPI transactions in a day to an amount of Rs. 1 lakh, the number will vary from one bank to another. While small banks might allow a person to pay a sum of Rs. 25,000 in a day, others can allow upto Rs. 1 lakh as payment.

Along with the limited amount of transfer, the number of transactions carried out in a day is also subjected to present limits. A truck driver, or any person for that matter, can use UPI transactions 20 times in a day. So, once you have completed 20 UPI transactions for the day, you need to wait for 24 hours to be able to use UPI again. This limit is irrespective of the money transfer amount limit on UPI transactions. That is, even if you have done a transaction amounting to a total of Rs. 89.000, (less than the limit of Rs. 1 lakh) you cannot use UPI for another 24 hours after crossing the limit of using UPI 20 times.

What Are The Charges On UPI Transactions?

As of now, the government of India has not levied any charges on UPI transactions. Anyone is free to avail of the benefits of UPI without paying any extra amount. This gives UPI another feather in its cap.

The Bottomline

We can conclude by saying that UPI transactions are a boon for the masses in general, and particularly for transporters, for all the little ways in which it adds comfort and convenience to their transport and logistics business.

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