UPI (full form – Unified Payment Interface), regulated by the Reserve Bank of India (RBI), enables immediate and simple fund transfers without any charges between two bank accounts using a mobile application. With a record 7.82 billion transactions in December 2022, the UPI facility is available round the clock throughout the year. Read more to know what a UPI ID is, how it works with different apps and the benefits of making UPI payments.
A UPI ID is your identification address in the UPI system, which is typically yourname@bankname or mmyy@ybl where ‘mmyy’ can be your name, the first half of your email address, or even your mobile number, and ‘@ybl’ is the initials of your bank, as per your UPI mobile application.
UPI ID is also known as a Virtual Payment Address (VPA), and you can create your unique UPI ID on your preferred UPI application (like Google Pay or PhonePe, etc.) in only a few simple steps.
Do note, your bank account number or any other confidential information is unrelated to your UPI ID. Also, you can have multiple eligible UPI IDs on different UPI apps, and you don’t need to visit your bank branch to create your UPI ID.
There are a number of UPI mobile applications available on Google Play Store and App Store. Here’s a guide to create UPI id according to your UPI mobile application.
Your UPI PIN is a 4 or 6 digit number that you must enter to authenticate or process a UPI transaction. It is extremely important as your UPI PIN could play a key role in avoiding fraudulent fund transfers and transactions. However, never share your UPI PIN with anyone, just like your ATM PIN.
UPI service is now ready to use, and you can now transfer funds and make payments after your UPI PIN has been generated.
UPI transactions using UPI IDs are extremely safe and secure as you’re not required to share confidential details like account number, credit card number or debit card details in order to transfer money. Besides, there are a number of backend security measures like facial recognition in place. Just ensure you don’t share your UPI PIN with anyone.
Neither senders or receivers need to pay anything extra to send or receive funds via UPI due to the government’s zero-fee UPI framework
UPI transactions can take place almost instantaneously; hence there’s absolutely no waiting required to send or receive funds via UPI
UPI now covers all eligible banks in India and users can choose between a wide range of UPI apps as per their convenience
There are no restrictions whatsoever in terms of minimum UPI transaction amount. Thus, this is a super-convenient method for big and small transactions alike
Besides seamless money transfers, UPI could be conveniently used for a wide range of online payments like shopping, ride sharing, food ordering, investments, insurance premiums, mobile recharges, etc.
Nothing has revolutionised the digital payments space in India like UPI as the country increasingly embraces digital payments over cash transactions. The fact that India saw a whopping 2,348 UPI transactions every second in 2022 is a testament to that end. However, while creating or modifying UPI IDs could be extremely easy, due caution must be taken to not share the key details like UPI PIN with anyone to minimise frauds.
Yes, you can connect multiple bank accounts to your ID/virtual address.
For various apps, UPI IDs typically vary. Your UPI ID can be different depending on the bank you’ve linked the account to.
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.
UPI ID means Unified Payment Interface Identity.
Yes, on the UPI app itself, a complaint can be lodged.
Ensure you share your UPI ID only with confirmed individuals or merchants and never share your UPI ID with unknown numbers to avoid any fraud.
You’ll typically need a bank account to use UPI. However, some third party apps can give you an option to receive UPI funds on your e-wallet subject to terms and conditions.
No. You can use UPI without a debit card. However, you’ll need your Aadhaar that is linked to your bank account and your registered mobile number.
No. A UPI ID is not given your bank and is independent of your account number or any other personal details.
Before you go…
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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