• UPI - Unified Payments Interface

    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 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:

    1. 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.
    2. Bill payments: From Utility bills to your communication bill payments can be made.
    3. Merchant transactions:This could be anything from booking movie tickets online to buying groceries on an online app.

    Know other ways of money transfer - NEFT , RTGS , IMPS

    How Do I register on the UPI App

    Here are the steps you need to follow for registering on your bank’s UPI app:

    1. 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.
    2. 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.
    3. 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.
    4. 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:
      1. Choose the bank account from which you want to pay using UPI and Mobile Banking Registration/Generate MPIN.
      2. If you tap on Generate MPIN, you will receive a One Time Password (OTP) from you bank on your registered mobile number.
      3. It will then ask you for the last 6 digits of debit card number and the expiry date of your card.
      4. Simply enter the 6 digits of OTP and the MPIN of your choice, followed by a tap or click on submission button.
      5. 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:

    1. You need to first Log on to your bank’s UPI application
    2. Once logged in choose the option for sending money or payment.
    3. You need to then enter the beneficiary’s virtual id and the amount you wish to send followed by the account number.
    4. Once you get a confirmation message, do check the payment details to confirm the payment.
    5. You need to then key-in the MPIN.
    6. 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:

    1. Once you are logged in successfully tap the collect money option that signifies request for payment.
    2. 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.
    3. On the next screen that will follow you will need review and check the payment details and then tap or click to confirm.
    4. The request money notification will be then sent to the payer.
    5. Now the payer has to tap and click on the sent notification.
    6. He or she opens his or her bank’s UPI app reviewing your payment request.
    7. Payer then can tap on accept or decline based on their decision to pay your account.
    8. He or she would have to enter the MPIN for authorising the transaction.
    9. Once you get the transaction is complete, payer gets notified if the transaction was ‘successful’ or was ‘declined’.
    10. 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)

    1. 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.

    2. Which UPI app should I download?

      There are many UPI apps and a user is free to choose any app from Google Play store.

    3. 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.

    4. What is a UPI PIN?

      This is a pin that is set during the registration process. It is used to authorise all UPI transactions.

    5. 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.

    6. 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.

    7. 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.

    8. What are the mobile platforms that UPI can be used on?

      UPI can be used on Android and iOS platforms.

    9. 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.

    10. In case I want to register a complaint, how do I do that?

      A complaint can be made on the UPI app itself.

    11. I entered a wrong UPI PIN, what will be the consequences?

      If a user enters a wrong UPI PIN, the transaction will fail.

    12. 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.

    13. Is it possible to pay merchants through UPI?

      Yes. Payments can be made online on e-commerce sites if the UPI option is available.

    14. How to pay using UPI online?

      Go to the merchant site, choose the UPI option, enter VPA and your UPI PIN.

    15. Can money transfer be made on bank holidays?


    News Related to Unified Payments Interface (UPI)

    • IRCTC Website & App Gets UPI Courtesy Razorpay

      Indian Railways Catering and Tourism Corporation (IRCTC) has teamed up with online payment solutions company Razorpay for Unified Payment Interface (UPI). As a result of the collaboration, customers will now be able to book train and flight tickets via UPI. One can already book tickets using other payment modes like credit/debit card, net banking and mobile wallets. IRCTC’s website and app is expected to process over a million transactions a month with the UPI integration. Over 65,000 large and small businesses use Razorpay as an online payment gateway. The user base is expected to hit 2 lakh by the end of 2018. Launched in 2014, Razorpay rebranded itself as a payments solution company last year in September by rolling out a number of new payment products. Launched by National Payments Corporation of India (NPCI) in 2016, UPI is a payment system that facilitates fund transfer between two bank accounts instantly via mobile. The government has been taking efforts to push digital payments in India and move towards a cashless economy.

      14 March 2018

    • UPI Usage Surges in Feb, Major Share Goes to Paytm

      The Unified Payments Interface (UPI) has yet again become one among the most fast growing money transfer systems. As per data obtained from the National Payments Corporation of India (NPCI), the number of transactions in the month of February stood at 171.40 million. This is an increase by 13.50% from the last month, which was in January.

      Meanwhile, the number of transactions made through the popular digital payments app Paytm stood at 68 million. This, according to Paytm, is almost around 40% of the total number of UPI transactions. Paytm thus claimed to have a major part of the UPI share.

      As far as numbers are concerned for the month of December 2017, Paytm transactions stood at 37 million. While, for the month of January, the number of transactions were 51.2 million. Google Tez too, is doing pretty well and overall, from the time it has been launched, the total number of UPI transactions made through the app has been 250 million. This is from September 2017.

      Though it has been a short month, the growth of UPI in February has been incredible

      14 March 2018

    • Now, Use UPI to Pay for Grofers Orders

      Popular online food retailer Grofers has now launched a UPI payment method. This service will be available on all Android platforms. Once users do their online shopping and continue to make a payment, the UPI option can be chosen. The money will be directly debited from the customers bank account and there is no need to provide bank account details or IFSC code for making payments this way. This is a very fast, easy and hassle-free way of making payments.

      UPI has gained a lot of popularity in the recent months and more and more people seem to be adopting this type of payment method.

      21 February 2018

    • UPI Transactions on a High in Jan

      The number of UPI transactions increased in the month of January as compared to the previous year in December by around 4%. This information has been obtained from the National Payments Corporation of India (NPCI).

      The total number of transactions have grown to 151.8 million, which is in rupee terms 15,571 crore. The number of transaction in the first month of 2018 was observed to be 9 times more than what it was in the last month of 2017.

      12 February 2018

    • More Than 58 Crore Transactions on UPI

      It has been more than a year since the Unified Payments Interface (UPI) was launched and the interface has helped increase digital payment volumes considerably.

      In about 1 year and 6 months, UPI has been responsible to creating 58 crore transactions that add up to a total of Rs.73, 132 crore. With UPI, money can be sent at the click of a button without IFSC code or bank account number. All you need is a Virtual Payment Address (VPA).

      UPI was introduced by the National Payments Corporation of India (NPCI) in 2016. A majority of UPI transactions were seen in the period between November and January 2017 - 18. Transactions of 14.54 crore and 10.48 crore were seen during this period.

      7 February 2018

    • Payment Apps use Digital Payment Boom to their Advantage

      Many small companies with payment apps are trying to cash in on the digital payment boom in the country. For example, Trupay has adopted the Unified Payments Interface (UPI) and has collaborated with a number of banks in the country.

      To transact using UPI, there is no need to register a beneficiary or provide details such as account number and IFSC code. All you need is a virtual payment address (VPA). In fact, UPI-based payment methods are a more economical option for merchants. Many small-time business owners and even start-ups are trying to go the digital way as far as payments are concerned. For example, a recent startup, based out of Mumbai has partnered with a number of banks.

      17 January 2018

    • NPCI Plans to Come Out with New Version of UPI

      With Unified Payments Interface (UPI) transactions seeing a healthy rise over the last one and a half years, the National Payments Corporation of India (NPCI) is contemplating of coming up with a new version. According to reports, the developers of the new version of UPI are working on allowing Aadhaar-based payments as well as mandate recurring payment authorisation through an one time password (OTP). As part of that, a user can do an Aadhaar based transaction by simply providing his/her biometric details. An official stated that the introduction of biometric will ensure that issues like having to remember multiple PINs, forgetting PIN and entering wrong PIN can be taken out of the equation. The official believes that this will enable in improving the transaction success rate done through UPIs.

      11 January 2018

    • Beware of Fraudsters Calling for Verification Code of UPI App

      With all the rush to meet the deadlines related to Aadhaar linkage, spammers and fraudsters are trying to take advantage of people’s fear. It has come to light recently in social media that spammers are calling up users asking them for a verification code that they might have received related to a UPI or PhonePe linked app. Users have further stated that the fraudsters are threatening them of closing the accounts if they did not provide the code. With no statutory body in place to look into these things, it is better for people using apps like UPI, PhonePe to stay vigilant and ignore any calls that associated with UPI apps.

      3 January 2018

    • Over 14 Crore UPI Transactions in December, 2017

      The Unified Payments Interface (UPI) has seen tremendous growth in 2017 with month-on-month growth. In December 2017 alone there were over 14 crore UPI transactions recorded. Transactions worth Rs. 13, 174 were recorded on the UPI platform during the last month of 2017. Fund transfer can be initiated through UPI without IFSC code or bank account number, using a Virtual Payment Address (VPA). VPA is like a email id that is used to both send and receive money on the UPI platform.

      In November, the number of UPI transactions stood at 10.50 crore, with the total value adding up to Rs.9,669 crore. For the month of October, the number of transactions were 7.69 crore and the transaction value added up to Rs.7,057.

      1 January 2018

    • FundsIndia and YES Bank Collaborates to Launch UPI Mobile App

      India’s leading mutual funds and equity investment distributor, FundsIndia has become the first online platform in its kind to launch a Unified Payments Interface (UPI) app for mutual funds in Google store. The company has partnered with YES Bank to offer easier and faster processing of payments and mutual fund transfers through UPI compared to NEFT, Net Banking and other methods of payment.

      The UPI platform, powered by the advanced UPI SDK and API Banking solutions of YES Bank, will support 58 banks which means customers can now complete their investment related transactions in less than a minute.

      21 December 2017

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