Unified Payments Interface (UPI) – Learn Everything

unified payment interface
All about Unified Payment Interface

What is UPI

Unified Payments Interface (UPI) is a payment system to transfer money immediately from one bank account to another through mobile apps.

UPI is proudly Made in India and available to all Indian citizens.

Money gets credited and debited from the linked bank account as long as there is some balance.

Money is transferred using Virtual Private Address (VPA).

Who Developed UPI

National Payments Corporation of India (NPCI).

Who Regulates UPI

Reserve Bank of India (RBI).

Does UPI require KYC

No.

Does UPI Respect our Privacy

Yes. You no longer need to share your mobile number or bank account and IFSC code to send receive money.

What are the Charges for UPI

None. It’s free.

How much Funds can be Transferred through UPI

  • Unlimited funds can be received.
  • NCPI has set maximum send limit to Rs.1,00,000 per transaction.
  • Send limit varies from app-to-app.
  • Maximum time for collect request is 45 days.

What are the Requirements for UPI Registration

  • Mobile Phone.
  • Internet Connection.
  • Bank Account.
  • Registered mobile number.
  • Debit Card.

Tips for Creating UPI ID

  • VPA can be 4-to-40 characters in length.
  • Can contain alphabetic, numeric, or alphanumeric characters.
  • May not contain special characters except dot.

Example UPI ID

Listed below are some of my UPI IDs i.e. VPA.

How to Transfer Money using UPI

  1. Enter senders UPI ID.
  2. If the typed address is verified, you will that persons full name.
  3. Enter amount to transfer.
  4. Press Send.
  5. Review payment details.
  6. Enter UPI PIN to complete transfer immediately.
  7. See success or failure message.

Alternatively, you can also scan the receiver’s QR code on his/her mobile phone and transfer money.

I am very much happy to receive money from anybody.

UPI Pros

  • Free.
  • Instant.
  • Available 24*7 and 365 days.
  • Hassle free.
  • Fast.
  • Secure.
  • Privacy focused.
  • Link multiple bank accounts with a single UPI ID among which one can be set as primary.
  • Send money requests to others.
  • Make payments by scanning QR codes.
  • Also make IPO payments using UPI.
  • UPI details are not stored unlike credit card while making payments.
  • As of Jan-20, 144 banks and 38 3rd party apps are participating on UPI.

UPI Cons

  • A UPI ID once deleted will get blocked for a period of 2 years after which it can be reused again by anyone.

UPI Mobile Apps I Like

  • Airtel – set expiry date and time for collect request.
  • BHIM – 40,000 per transaction and 40,000 per day per bank a/c, set expiry date for collect request.
  • BHIM Axis Pay
  • BHIM Bandhan UPI
  • BHIM RBL Pay
  • BHIM SBI Pay
  • Freecharge – send maximum Rs.1,00,000 per transaction, set expiry date for collect request.
  • Google Pay
  • MobiKwik
  • Paytm – set your own limits.
  • PayZapp
  • PhonePe
  • Pockets

Moral of the Story

UPI is an instant payment system to transfer funds from one bank account to another using a mobile app.

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