Unified Payments Interface (UPI) is a payment system that allows users to link more than one bank account in a single smartphone app and make fund transfers without having to provide IFSC code or account number. This is a real-time payment system where funds are credited instantly on a real-time basis. Apart from sending money, users will also be able to make ‘collect’ requests. A user will only have to use a virtual address, known as a Virtual Payment Address (VPA) to carry out any transaction. UPI has been developed by the National Payments Corporation of India (NPCI) and is regulated by the Reserve Bank of India (RBI).
UPI is slowly becoming the most preferred form of digital payment. The UPI interface is compatible with most banks and many digital wallets, and payment applications are embracing UPI. Some of the apps include Google Tez, Airtel Payments Bank, Paytm, PhonePe and the like. There are many apps, third-party applications and banking apps in the market that are UPI-enabled and new payments applications and social media platforms are also trying to integrate with the UPI platform. UPI makes the fund transfer process easier, faster and hassle-free. There is no need to go through the cumbersome process of entering all bank details. Users can both send and receive money using a VPA.
National Payments Corporation of India:
National Payments Corporation of India or NPCI is a unified organization for all systems for retail payments across India. This organization was created under the supervision of the Indian central bank being Reserve Bank of India (RBI) as well as Indian Banks’ Association (IBA). In 2005, the RBI set up the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) in 2005. Once that was done a organization was proposed in a vision document incorporating Retail Payment Systems across the country. The main aim was to accumulate multiple payment systems across the country that have different service levels in complete uniformity along with good standard business process being practiced for retail payment systems. But UPI was a simple effort formulated with the vision which was secondary in the creation of NPCI which was to provide the public with affordable payment platform to aid financial inclusion as well as make payment convenient for an ordinary man.
Features of UPI
The UPI interface allows users to avail a number of services. The following are the transactions that can be carried out using UPI:
- Sending and receiving funds
- Making requests for funds
- Pay merchants through QR code scanning via BHIM
- Pay for cabs
UPI Transaction Limit
UPI has a certain per day and per transaction limit on the value of transactions. Given below are the updated transaction limits that is followed by some of the top banks in the country:
|Particulars||Per transaction limit||Transaction limit per day|
|UPI||Rs.1 lakh||Rs.1 lakh|
- In most cases, the maximum number of UPI transactions that can be made per day is around 20
- While some banks like ICICI, HDFC, SBI and PNB allow you to send Rs.1 lakh per transaction, other banks may allow you to send only Rs.10,000 per transaction
- The maximum limit for BHIM UPI is Rs.10,000 per transaction and Rs.20,000 in a 24 hour window
- The transaction limit may be revised from time to time
UPI is a fast and easy to use interface and comes with a number of benefits including direct payment to any party without having the need to provide cumbersome details like account number and IFSC code. Fund transfers can be initiated on a 24/7 basis and UPI has tied up with more than 40 banks in the country.
What are the transactions that can be performed using UPI
The following are the type of the transactions, that can be conducted through UPI:
- Remittances: If you need to send or transfer money quickly to your friends or family, or somebody needs money urgently, this app this correct click or tap for the individual.
- Bill payments: From Utility bills to your communication bill payments can be made.
- Merchant transactions:This could be anything from booking movie tickets online to buying groceries on an online app.
How Do I register on the UPI App
Here are the steps you need to follow for registering on your bank’s UPI app:
- You need to first download the UPI application from the Google Play App Store or the Bank’s website. Most banks will send you the download link your phone if you try to download it from the bank’s website. The UPI app for ICICI Bank is called iMobile. Similarly, all the other banks wills have similar apps. But hereon the registration process followed by all the banks are more or less the same for most banks.
- Once you have finished downloaded the app. Open the app and create a profile.You need to entering details for the registration such as your name, a virtual id or payment address, an appropriate password, account details.
- There would be an option such as, Add or Link or Manage Bank Account which will then allow you to link your bank account number with the newly created virtual id.
- You would also need to use a M-PIN to use UPI. In order to do that you have generate it through the following steps:
- Choose the bank account from which you want to pay using UPI and Mobile Banking Registration/Generate MPIN.
- If you tap on Generate MPIN, you will receive a One Time Password (OTP) from you bank on your registered mobile number.
- It will then ask you for the last 6 digits of debit card number and the expiry date of your card.
- Simply enter the 6 digits of OTP and the MPIN of your choice, followed by a tap or click on submission button.
- You will then get a confirmation text for your new MPIN.
How to Make Payments Using UPI
This is how UPI works when sending money to another party:
- You need to first Log on to your bank’s UPI application
- Once logged in choose the option for sending money or payment.
- You need to then enter the beneficiary’s virtual id and the amount you wish to send followed by the account number.
- Once you get a confirmation message, do check the payment details to confirm the payment.
- You need to then key-in the MPIN.
- You will get a notification that will know whether the payment ‘successful’ or ‘failure’ message.
How to Receive Payment Using UPI
This will also help you to understand how to accept or decline if someone sends you a UPI payment request from their end. For this too, you need to log on to your bank’s UPI application:
- Once you are logged in successfully tap the collect money option that signifies request for payment.
- You need to then enter the payer or money sender’s virtual id, the amount as well as the account that needs to be credited.
- On the next screen that will follow you will need review and check the payment details and then tap or click to confirm.
- The request money notification will be then sent to the payer.
- Now the payer has to tap and click on the sent notification.
- He or she opens his or her bank’s UPI app reviewing your payment request.
- Payer then can tap on accept or decline based on their decision to pay your account.
- He or she would have to enter the MPIN for authorising the transaction.
- Once you get the transaction is complete, payer gets notified if the transaction was ‘successful’ or was ‘declined’.
- As a recipient also get a notification as well as text from bank once the money has been credited to your account.
Banks Which Offer The UPI Facility:
The following banks are some of the banks which offer payments through UPI from their banks accounts as of August, 2016. However, there are more to banks who are opting in for it.
- Andhra Bank
- Axis Bank
- Bank of Maharashtra
- Bhartiya Mahila Bank
- Canara Bank
- Catholic Syrian Bank
- DCB Bank
- Federal Bank
- ICICI Bank
- TJSB Sahakari Bank
- Oriental Bank of Commerce
- Karnataka Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Punjab National Bank
- South Indian Bank
- Vijaya Bank
- YES Bank
FAQs on UPI (Unified Payments Interface)
- What is UPI?
UPI, expanded as Unified Payments Interface, is a real-time fund transfer process built by the NPCI. The system works based on the IMPS interface.
- Which UPI app should I download?
There are many UPI apps and a user is free to choose any app from Google Play store.
- Is it necessary to download the UPI app of your bank?
No. Users can download any UPI app. Also, it can be your bank app or another bank’s.
- What is a UPI PIN?
This is a pin that is set during the registration process. It is used to authorise all UPI transactions.
- What should a user do if the UPI transaction fails but the money is debited from the customer’s bank account?
In such cases, the money will be credited back to the user’s account within 1 hour. If the money has not been refunded even after this time period, feel free to contact the customer care.
- Money has been debited from my account even though the transaction is still pending? What should I do?
In most instances, the transaction would have been processed. The pending status will be displayed if there are server issues at the payee/beneficiary backend. The issue will be resolved within 48 hours, if not contact the customer care.
- Is it possible to have more than 1 UPI app on the same smartphone and link them to separate bank accounts?
Yes. You can link more than one UPI same to the same bank account number or a different bank account number.
- What are the mobile platforms that UPI can be used on?
UPI can be used on Android and iOS platforms.
- What is the maximum amount you can transfer using UPI?
The maximum amount of money that can be sent is Rs.1 lakh per transaction.
- In case I want to register a complaint, how do I do that?
A complaint can be made on the UPI app itself.
- I entered a wrong UPI PIN, what will be the consequences?
If a user enters a wrong UPI PIN, the transaction will fail.
- What should I do if my bank name is not detected in the UPI app?
The first step is to ensure that the mobile number being used is linked to the same bank account. If not, the app will not be able to recognise the bank and the linking process will not be complete.
- Is it possible to pay merchants through UPI?
Yes. Payments can be made online on e-commerce sites if the UPI option is available.
- How to pay using UPI online?
Go to the merchant site, choose the UPI option, enter VPA and your UPI PIN.
- Can money transfer be made on bank holidays?