Unified Payments Interface (UPI) is an application to facilitate instant inter-bank transactions. Developed by National Payments Corporation of India (NPCI), UPI is a real-time payment system that is regulated by the Reserve Bank of India.
UPI allows instant money transfer between two bank accounts from your mobile device. The money transfer through UPI works 24×7. This smartphone application eliminates the need to enter bank details or other sensitive information every time a transaction is initiated.
According to the NPCI website, a maximum transaction of Rs 1 lakh per account per day can be executed. However, banks have their own different sub limits.
In order to use UPI, one has to confirm if your bank is a member and allows its customers to use the UPI facility. Some of the member banks include the State Bank of India, HDFC and ICICI, among others. One must have a bank account with the member bank and mobile number must be registered with your bank account for verification.
Now, download the UPI app on your smartphone. BHIM, developed by NPCI, is one of the most commonly used app offering UPI payment options. Paytm, Google Pay, PhonePe, Amazon Pay are some of the popular private players.
After downloading the app, select your preferred language and set-up a four-digit UPI login password using the last six-digits and expiry date of your debit card. The password will be required to access the app. Now select the name of your bank and link your account. To verify, your bank will send an OTP on your registered mobile number. After complete verification, a virtual payment address (VPA) is created.
Once the account is registered, you can link more than one bank account to UPI but a mobile wallet cannot be linked to UPI. You can send or request for money to be transferred to your account. Money can be transferred using VPA, IFSC code and account number of the receiver or by scanning the QR code.