The United Payments Interface (UPI) was launched in 2016 in India. It is an excellent way to facilitate daily payments to consumers. Consumers are embracing UPI payments in India, making it an advanced payment system than other payment systems available worldwide.
UPI users use UPI IDs to send and receive money. Users can also transfer funds via mobile apps through UPI.
India’s government aimed for a cashless economy, and UPI was among the first tools. It has enabled people to transfer and receive money without using their debit cards. Today, UPI has transformed smartphones into a tool that can act as a virtual mode of payment like a debit card. It is fast, secure, and user-friendly.
What Is UPI ID?
The traditional way of transferring funds earlier was tiresome. While transferring money, the account holder must always enter the IFSC code, account number, and other information to register a beneficiary which takes approximately 24 hours to approve. With the advent of UPI, the fund transfer process has been streamlined. The UPI ID meaning the ID generated for a bank account holder is a Virtual Payment Address (VPA).
Today, there are multiple UPI-enabled applications in the country, such as PayTM, Google Pay, PhonePay, etc. The National Payments Corporation of India has developed BHIM (Bharat Interface of Money). All these applications have simplified the fund transfers for the nation.
Banks have also developed personalized and user-friendly UPI-enabled applications for their customers.
UPI ID Full Form
The UPI ID full form is Unified Payments Interface ID. It is used to transfer funds between bank accounts across a single window. Thus, an individual can send and receive money quickly by scanning a Quick Response (QR) code for shopping, paying bills, or authorizing payments.
How to Create UPI ID?
To create a UPI ID, follow the following steps-
- Download the Paytm UPI payment application
- Just enter your mobile number. If you have a dual SIM phone, you may be prompted to select the SIM slot in which your mobile number is present
- An SMS will be sent from your number to verify your mobile number
- Once this is done, you will have to select your bank name from the list that will be presented to you. Please make sure that the mobile number registered with your Bank is the same as the one you entered earlier. Your bank account details will now be fetched from the bank using your mobile number
- If you are linking your bank for the first time, you will be asked to set up a UPI PIN. You will need your debit card details for setting this up
- Your bank account is now linked via UPI and you are ready to make your first payment!
UPI ID Format
A UPI ID follows the format of abcd@bank. In this, “abcd” can either be a user’s first name, a part of the user’s email address, or the user’s mobile phone number, and “bank” is the name/initials/shortened name of the bank that is providing services to the UPI app. There may be a prefix or suffix added in some cases.
UPI IDs in payment applications such as Paytm usually begin with the user’s phone number@UPI, i.e., XXXXXXXXXX@paytm.
UPI is a unique identifier for bank accounts in India.
How to Send Money Using UPI ID?
To send money using UPI (Unified Payments Interface) ID, you can follow these steps:
Set up UPI:
Ensure that you have a UPI-enabled bank account and a UPI ID. If you haven’t set up UPI, you can do so by linking your bank account with a UPI-enabled mobile app offered by your bank or any other UPI app available in your country.
Open UPI app:
Open the UPI app on your smartphone. If you don’t have a UPI app, you can download one from the app store and follow the registration process to set it up.
Log in and select “Send Money”:
Log in to the UPI app using your credentials or any authentication method provided by your bank. Once you’re logged in, locate the option to send money or make a payment. It is usually displayed prominently on the app’s home screen.
Enter the recipient’s UPI ID:
In the “Send Money” section, you’ll be prompted to enter the recipient’s UPI ID. This ID can be in the format of “username@bank” (e.g., john@bankname) or a virtual payment address (VPA) assigned to the recipient.
Verify recipient details:
After entering the recipient’s UPI ID, the app will usually display the name associated with that ID. Verify the details carefully to ensure you’re sending money to the correct person.
Enter the amount and remarks:
Enter the amount you want to send to the recipient. You can also add optional remarks or a note to accompany the transaction if needed.
Choose the bank account:
If you have multiple bank accounts linked to your UPI app, select the account you want to use to send the money.
Authenticate the transaction:
To authorize the payment, you’ll be prompted to enter your UPI PIN or use any other authentication method provided by your bank. This step ensures that only you can authorize transactions from your UPI account.
Features of UPI Payments
UPI (Unified Payments Interface) payments offer several features that make it a convenient and versatile payment system. Here are some key features of UPI payments:
UPI enables instant fund transfers between bank accounts, making it a quick and efficient way to send and receive money. Transactions are processed in real-time, allowing for the immediate availability of funds in the recipient’s account.
UPI operates round the clock, seven days a week, including weekends and public holidays. This ensures that you can make transactions at any time, providing flexibility and convenience.
Multiple bank accounts:
UPI allows users to link and manage multiple bank accounts within a single UPI app. This feature enables users to choose the desired bank account from which they want to initiate transactions.
UPI, launched by NPCI, offers reliable payment transfers without the risk of money loss due to internet fluctuations or issues with websites or portals.
UPI enables instant transfers, allowing customers to send payments to beneficiaries within seconds, making daily activities like buying groceries or paying friends easier.
Money transfer at any time:
Bank holidays do not affect the payments made through UPI. UPI funds can be transferred anytime, irrespective of non-banking hours or days. Bank holidays do not affect UPI fund payments. UPI enables a user to transfer funds between bank accounts over the phone, pay for EMIs, send money to a friend, pay educational fees, or make payments to businesses.
How to Find UPI ID?
To find your UPI ID, open the UPI app on your phone and click on the three lines in the top left corner. Select “Profile” and your UPI ID will be displayed at the top of the screen.
Find UPI ID in BHIM App:
- Step 1: Log in with your app password
- Step 2: On the main screen, select the “Profile” option from the drop-down menu. Now, you can view your UPI ID with your QR Code.