UPI has emerged as a popular mode for receiving and sending money as it allows instant fund transfer. You can initiate a transaction with a UPI ID. Many banks also provide mobile applications, which are also UPI-enabled, through which you can transfer funds quickly.
The UPI ID system was initiated by the National Payments Corporation of India (NPCI) in the year 2016 and falls under the Reserve Bank of India’s regulations.
UPI – The Unified Payment Interface enables immediate money transfers from one bank account to another via a mobile device using an application enabling the transaction. The UPI money transfer service is free of charge, immediate, simple, and works throughout the year, around the clock.
Read more to know the benefits of making payments through UPI apps.
What is UPI ID?
Every UPI user is required to create a UPI ID, also known as a Virtual Payment Address (VPA), which is used to trace a person’s bank account. It functions quite similarly to how your account number and IFSC code do. Through the applications on your device, you can create this special UPI ID in only a few steps without the hassle of visiting a bank.
UPI IDs have the following format: mmyy@ybl (‘mmyy’ can be your name, the first half of your email address, or even your mobile number, depending on which is easiest to remember; ‘@ybl’ is the initials of your bank).
Your bank account number or any other confidential information is unrelated to your UPI ID.
How to Generate a UPI ID?
In both the App Store and Google Play Store, various UPI applications are offered to enable the UPI service. Here’s a guide on the UPI registration process and how to create a UPI ID. Just follow these simple steps:
Registering for UPI ID:
Step 1: Download the UPI application of your choice on your smartphone.
Step 2: Enter the necessary information, such as your phone number, email address, or debit card number.
Step 3: Link your bank account through the generation of an OTP received on your phone number.
Generating UPI PIN:
The next step is to generate your 4 to 6-digit long mPIN.
Step 1: Launch your smartphone’s UPI app. Choose ‘Add Bank Account’ and then select your bank from the list offered by the application.
Step 2: After selecting a bank, you will receive an SMS on your registered cell phone number.
Step 3: Once your bank account and phone number have been verified, your smartphone (device) will be registered.
Step 4: Set up your UPI PIN.
Step 5: Generate the mPIN, which can be between 4 – 6 digits long.
UPI service is now ready to use, and you can now transfer funds and make payments after your UPI PIN has been generated.
How to Transfer Money Using a UPI ID?
By entering the recipient’s UPI ID, account number, and IFSC code, or by scanning the QR code, you can send money using UPI in one of three ways. Once you’ve decided on one of these options, enter the amount to be paid for, followed by the mPIN or UPI PIN.
Payment by QR code is the most efficient payment method for everyday transactions. For simple payment, most stores and retailers now have QR codes displayed on the counter.
Your smartphone’s UPI app shows you every transactional detail as a bank would. All of this helps to make it simpler to keep track of your purchases and transactions.
The UPI platform does not have any fees or charges. To encourage digital transactions, the UPI program was introduced. The NCPI formerly marked the transaction fees to be 50 paise each transaction. To ensure that a larger audience used the platform, the Indian government later removed these fees.
Features and Benefits of UPI ID
Is available throughout the day.
Access to many bank accounts using a single application.
Eliminates the danger of storing the virtual address of a consumer, as with cards.
Quick fund transfers to pay for your meal delivery, shopping, and other services.
Online payments for utilities, mobile recharges, and rent can be made immediately.
Eliminates the need to disclose information about the bank account or IFSC code to an unidentified third party.
Includes a built-in feature that allows users to access the UPI Facility. As a result, UPI’s application and customer convenience have both increased.
The Future of Financial Transactions is UPI ID
Implementing the Unified Payment Interface (“UPI”) and other cutting-edge payment technology has shifted the public’s preference from cash to digital as India moves toward a cashless economy.
In the country’s current digital payment environment, UPI is regarded as a game-changer. It is a standard platform for all digital payments and is real-time and universal. Anybody with a bank account can use UPI to send money without paying a transaction charge from one user to another through their phone.
The UPI applications’ primary goal is to encourage digital transactions and open the door to a cashless economy. Using UPI, users can benefit from not carrying physical currency or any type of plastic money. They can use their smartphones to do all transactions.
The usage of digital payment systems is expanding rapidly in India, and consumers’ growing dependence on these systems requires creating an appropriate policy system.
To provide a strong framework and a minimum level of security to be maintained for digital payments in India, RBI, the government institution in charge of managing the payment systems in India, developed Master Direction on Digital Payment Security Controls.
Both desktop computers and mobile devices can handle the Unified Payments Interface (UPI) application system. Utilizing several bank accounts on a single UPI App benefits banking customers. The customer’s mobile number that is linked to their bank account can be used in a single UPI app to carry out a transaction of their choosing.
UPI has a lot to offer its users, going above and beyond the bounds of a straightforward financial application.
FAQs on UPI ID
Q1. Can I link multiple accounts to UPI ID?
Ans: Yes, you can connect multiple bank accounts to your ID/virtual address.
Q2. Is UPI ID unique?
Ans: For various apps, UPI IDs typically vary. Your UPI ID can be different depending on the bank you’ve linked the account to.
Q3. What details are required for UPI?
Ans: You need a bank account with a member bank to use UPI, meaning your bank should permit you to use UPI services. Additionally, your cellphone number needs to be linked to your bank account.
Q4. What is UPI ID full form?
Ans: UPI ID means Unified Payment Interface Identity.
Q5. Can I file a complaint on the UPI app?
Ans: Yes, on the UPI app itself, a complaint can be lodged.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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