Unified Payments Interface (UPI) is a real-time payment system that uses a smartphone application to allow instant money transfers between bank accounts. UPI, which facilitates secure digital payments, was launched in 2016 to democratize digital payments in India. It is a safe, quick, reliable and convenient means of transferring money digitally. Due to this, UPI has gained immense popularity since its launch.
UPI is a benefit to both the regulators and the consumers. The speed and ease of transfers/receipts of funds through UPI have made it immensely popular, declining the usage of debit and credit cards to a small proportion. UPI is more common for day-to-day transactions of smaller amounts (currently, transactions up to 2 Lakh).
Before UPI was introduced, the transfer of funds traditionally required details like bank account number, branch address, bank name, and IFSC code of the recipient (known as the beneficiary).
What is UPI ID?
UPI ID is a VPA (Virtual Payment Address) that a sender must enter at the time of transferring money to a recipient’s account. It’s a unique identifier available for all consumers to facilitate fund transfers. The UPI ID, linked to a UPI-enabled bank account, allows funds to be directly received or paid into such a bank account without sharing details like account number, IFSC code, etc.
UPI ID Example
UPI ID has two parts. For example,
- 12345@okhdfcbank
- abcd@okicici
‘12345f or abcd’ can be your name, mobile number, or email address, and ‘@okhdfcbank and @okicici’ are your bank’s initials.
How to create a UPI ID?
To create a UPI ID, you must register your mobile number and bank account details with the BHIM app (Bharat Interface for Money) or UPI apps. Follow this step-by-step guide to register and create a UPI ID:
Step 1: Download the UPI app of your choice and enter your mobile number.
Step 2: Enter the OPT to verify the mobile number.
Step 3: Select your preferred bank name. Select the one which is linked with the mobile number entered in the last step. If multiple bank accounts are operated through the same mobile number, select the bank account for which UPI needs to be enabled.
Step 4: On the next screen, you must provide the details of the “Last 6 digits” and “Expiry date” of the Debit/ATM Card.
Step 5: After selecting the desired bank account, the UPI ID and a 4-digit or 6-digit UPI PIN needs to be created.
Step 6: The last step is to set up a 4 or 6-digit PIN to add another level of security while you make online transactions.
How to create a UPI ID by registering through *99#?
Step 1: Dail *99# on your phone
Step 2: Select your the preferred language
Step 3: Enter your bank’s name or the first 4 digits of the IFSC code.
Step 4: Select your bank account and enter the last 6 digits and the expiry date of the debit card
Step 5: Now, set your UPI PIN and confirm the PIN.
How to find UPI ID?
Open the UPI app and click the three-line icon on the top-left corner. Select “Profile” and your UPI ID will be displayed. You can also edit/change the UPI ID from here.
How to use UPI ID?
Say you wish to send money to someone or make a payment to someone; then you must enter their UPI ID or their mobile number linked with a UPI app.
Note: Once the mobile number is registered on a UPI app and a UPI ID is created, money can be transferred using the mobile number or the UPI ID.
If money needs to be transferred from one UPI app to another UPI between two parties, UPI ID is needed to complete the transfer. For the transfer of funds between two parties who are using the same UPI app, then the transfer can be done by entering their mobile number.
For a faster checkout experience, try Cashfree Payments as it offers the widest range of business applications for UPI including UPI Payment Gateway, AutoCollect, Cashfree Subscriptions with UPI Autopay (UPI recurring payments) with features such as UPI ID Verification, among others.
Frequently asked questions:
Who is the owner of UPI?
NPCI-The National Payments Corporation of India developed UPI, which is regulated by the Reserve Bank of India(RBI). It was introduced by NPCI on April 11 and made public on August 25, 2016.
What does UPI ID stand for?
UPI ID’s full form is Unified Payments Interface Identity.
How can I find my UPI ID?
Open the UPI app and click on the three lines icon (𝄘) > Select ‘Profile’, and your UPI ID will be displayed.
Is UPI ID different for everyone?
UPI IDs are unique, therefore, different for everyone. Also, your UPI IDs for different apps are based on the bank with which you have linked the account.
What details are required for creating a UPI ID?
First and most importantly, you must have a bank account in a member bank, i.e., a bank that allows using the UPI feature. Next, you must register your mobile number with that bank account.
How to recover UPI pin?
To reset your PIN, keep your Debit Card details handy.
Step 1: Open the UPI app
Step 2: Click on Bank account.
Step 3: Select Forgot UPI PIN option
Step 4: Next, enter the last 6 digits of your debit card number and the expiry date.
Step 5: Set up a new UPI PIN.
Step 6: Enter the OTP received on SMS.
Can I link multiple bank accounts to one UPI ID?
Yes, you can link multiple bank accounts to one UPI ID but one among them will be the primary account and that will be the default account for payments made/received.
