In today’s world of digitalization, everything is possible online, including secure and traceable financing transactions. In the year 2023 alone, the digital transactions volume in India was recorded at an incredible 65.7 billion. The world of digital payments is ever evolving and in this digital world, clarity and transparency are most important.
Also Read:- Digital Signatures – Benefits, Types & Application Process
The Full form of UTR Number is Unique Transaction Reference, one can tackle any financial transaction problem with ease. It serves as a crucial element in ensuring a secure and traceable fund transfer. With a unique 22 character code, UTR helps for easy tracking of finances.
Read this comprehensive blog post to learn more about the UTR number, its meaning, significance, and methods of tracking.
What is the UTR Number?
The UTR number means a 22- character alphanumeric code which is unique and is assigned to each of the electronic transactions within the country through National Electronic Funds Transfer [NEFT], Real Time Gross Settlement [RTGS], and Immediate Payment Service [IMPS] systems.
You can think of it as a digital fingerprint for every transaction which allows effortless identification and tracking within the intricate infrastructure of Indian Banks.
UTR number example: ABCD123456789012345678 is a UTR number. Here, ‘ABCD’ can be the bank code, ‘123456’ can be the transaction date, and ‘789012345678’ can be the unique transaction number assigned to the transaction for that particular day.
This structure makes sure there are no two transactions with the same UTR, even from different banks.
Significance of the UTR Numbers
Unique Transaction Reference numbers are not just simple reference codes but rather hold major value in the world of the digital payments ecosystem. The importance of the UTR number is as follows:
- Enhanced Transparency
The UTR number gives an undeniable auditing history for the transactions. It is possible for both the senders and receivers to utilize the UTR and verify their transaction details. Confirming a successful completion of a transaction with minimum confusion and disputes with this number is its biggest advantage.
- Improvement in Traceability
If there is a discrepancy or delay in the digital payment, the option of UTR number tracking online lets the banks efficiently know the transaction status within the whole system.
This makes the response time quicker and the rectification of the issues easier. Minimizing the disruptions and frustrations for users, Unique Transaction Reference numbers help the bank personnel achieve efficiency in tracking transactions.
According to a report by PWC in 2021, the key to driving the adoption of digital payments in India is faster transaction processing.
- Security and Accountability
The UTR number check makes the financial environment more secure with its unique identifier. Making it hard for fraud activities to go undetected helps generate users’ trust and confidence in the digital payments system. It also helps make the user accountable for their financial transactions.
Also Read:- CIN Number : Full Form, Structure, Importance & Abbreviations
How to check UTR Number?
You can use the UTR number in various transactions from both UPI and Bank applications:
- UPI Transaction
Using apps like Paytm and GooglePay can help keep track of the payments made with the help of the UTR system. For example, after you pay for a pen using UPI, you receive an SMS stating something along the lines of “ Your account xxxx7897 has been debited by XYZ amount. UTR: 987253712563.” This UTR becomes proof of your payment.
- Bank Transfers
When you send huge amounts for any purpose via let’s say RTGS you receive a receipt from the bank with the UTR number. This UTR number is the go-to for the bank to track and verify your transactions.
- Banking Application
You can track the UTR number with your banking application used for performing transactions. The search and filter options in these applications are useful for finding details of your past transactions.
How to Use Unique Transaction Reference for Business?
The Unique Transaction Reference number is a very important tool for businesses in today’s world. Taking away the hassle of carrying cash or keeping track of cash transactions, digitalizing every transaction, and tracking the same is beneficial for many reasons:
- It helps keep track of the smallest of transactions made by the business.
- It helps in filling the taxes at the year-end and reclaiming any benefits.
- If any discrepancies or issues arise in the transactions, the transaction can be traced back. It helps in reducing any potential losses.
- In case of any disputes between the buyer and seller, the unique transaction reference number can be used to show your payments in the court of law.
Also Read:- How To Activate the GST Number If It Got Suspended?
Takeaway
Often, unexpected circumstances arise in business, leading to problems. You can lose your transaction history, have a delayed payment, or even not receive goods you paid for. In such cases, a UTR number acts as a helping hand.
Hence, a Unique Transaction Reference number is your friend in tracking and verifying your financial transactions’ security, transparency, and efficiency. It is the proof for your transactions that can help you in difficult situations.
FAQs
- What is the UTR number in full form and what does it mean?
The UTR number full form is Unique Transaction Reference number, which is a 22 character unique code assigned to each electronic transaction within the country.
- Can a UTR number be tracked?
Yes, a UTR number is traceable with the help of bank receipts, banking applications and other UPI applications without much difficulty.
- Can a UTR number be used in filing taxes?
Yes, a UTR number helps in filling the taxes at the year-end and reclaiming any benefits related to financial transactions.