UPI Full Form
Unified Payment Interface is the UPI Full Form. National Payments Corporation of India (NPCI) made UPI, which is a real-time, instant payment system, to help banks do business with each other. The Reserve Bank of India (RBI) is in charge of the interface, and it works by letting money move instantly between two bank accounts on a mobile platform. UPI started up in 2016. It is easy, free, and takes place right away.
What is UPI?
UPI is an updated version of NPCI’s IMPS (Immediate Payment Service), which can also be thought of as your financial address. Just like your bank accounts, this UPI is unique to each person and makes it easy and quick to send and receive money. The best thing about this is that you can transfer money any time of day, any day of the week. Unlike bank transfer services like NEFT, RTGS, etc., you don’t have to wait for a bank holiday or work hours. It brings together all of your banking features and services into one package. All you need for a transaction to go through is a PIN and a UPI ID.
How Does UPI Work :
For any transaction, the user will only need to use a virtual address called a Virtual Payment Address (VPA). UPI was made by the National Payments Corporation of India (NPCI), and the Reserve Bank of India is in charge of it (RBI). UPI is slowly becoming the most popular way to pay for things online. To transfer money through UPI, you need the following things:
- A cell phone with a screen.
- A bank account that works
- The bank account must be linked to a working phone number.
- Internet connection
- UPI is slowly becoming the most popular way to pay for things online. Most banks and many digital wallets can use the UPI interface, and payment apps are starting to use it. There are apps like Google Tez, Paytm, PhonePe, and others.
Features of UPI
UPI has made it possible for us to use this platform to send money up to Rs. 2 lakh. The UPI can be used to do the following transactions and services:
- Pay mobile bills, shopping bills, restaurant bills, etc.
- You can also use it to pay online through utility apps or set it as the default payment method.
- Through the BHIM app, e-commerce giants have also started offering UPI payment options (Bharat Interface for Money).
- You can also move money from one of your accounts to another using this app.
- You can ask people for money through this app.
UPI Transaction Limit
According to the rules in place now, each UPI transaction within India can only be worth up to Rs. 2 Lakh. There is no way to use UPI to do business in other countries.
Important: According to a circular released by the NPCI in March 2020, the transaction limit for payments made through the Unified Payments Interface (UPI) at stores run by “verified merchants” has been raised to Rs. 2 lakh as of April 2020. With this move, digital payments through UPI will be made easier. But this change won’t affect how people send money to each other.
Registration for a UPI-enabled application:
- You need to go to the App Store and get the UPI app.
- You can also make a profile by typing in information like your virtual id (payment address), name, and password.
- You can link the bank and account number to the virtual ID by going to the “Add/Link/Manage Bank Account” option.
Generating UPI – PIN:
You can choose the bank account from which you want to pay and then do any of the following:
Generate and Change M-PIN
- You’ll get an OTP from the bank on the phone number you gave them.
- You can put in the last six numbers of your debit card number and the date it expires.
- You should enter the OTP and the numeric UPI PIN you want to use, then click “Submit.”
- When you click “Submit,” you’ll get a message.
- You should put in both your old and new UPI PINs and then click “Submit.”
Difference between NEFT, IMPS, and UPI
| Particulars | NEFT | IMPS | UPI |
|---|---|---|---|
| Regulated By | Regulated by RBI | Regulated by NPCI | Regulated by NPCI |
| Type of Settlement | Settled in half-hourly batches | Immediate settlement | Immediate settlement |
| Minimum Transfer Limit | Rs. 1 | Rs. 1 | Rs. 1 |
| Maximum Transfer Limit | No limit on maximum fund transfer | Maximum fund transfer is Rs. 2 lakh | Maximum fund transfer is Rs. 1 lakh |
| Availability | The service is available online and offline | The service is available only online | The service is available online and offline |
| Charges | No charges on transacting online whereas charges may vary while transacting offline | It May vary from bank to bank | No charges |
What makes Unified Payments Interface special?
UPI is a very unique platform because of these things:
- There is only one mobile app that lets you get into different bank accounts.
- It makes it possible to send money right away via mobile devices 24 hours a day, 7 days a week.
- For any kind of “Pull & Push,” the customer’s virtual address provides security. The customer does not have to enter information like their card number, IFSC code, or account number.
- Two-factor authentication happens with one click. Proof of identity – Aligned with the rules set by the regulators, it also lets you pay with a single click.
- Doesn’t have to worry about cash on delivery or going to an ATM.
- Your bills are easy to split with friends.
- Payments can be made over the counter, using a barcode (Scan and Pay), or by paying a utility bill.
- You can pay a merchant with a single app or through the app itself.
- You can file a complaint right from the app on your phone.
- You can easily give money, get money, and collect money.
FAQ ( Frequently Asked Questions )
1. What is UPI AutoPay
Ans – UPI AutoPay, as the name suggests, is a service that pays bills automatically on a set date. This is used to pay recurring bills. UPI AutoPay lets users set up recurring e-mandates for things like paying mobile bills, electricity bills, EMIs, entertainment/OTT subscriptions, insurance payments, SIP payments for mutual funds, and more.
2. How to Find UPI ID
Ans – Follow the steps below to find out what your UPI number is:
Open your UPI app Tap on your picture in your profile.
Use your bank account.
Tap the bank account you want to see the UPI ID for
Under “Manage UPI ID’s,” you can find the UPI ID that goes with it.
3. I can’t find my account in the app. What do I need to do?
Ans – Make sure that the account number and your virtual financial address both have the same number. If this is done correctly, the account will be registered for sure. If you forget your password, you can reset it by clicking the “forgot password” tab and then follow the instructions sent to the email address you used to sign up.
4. What happens if I enter the wrong PIN?
Ans – The deal won’t go through. The money won’t be taken out of the account, either.
5. Is UPI Safe to Use?
Ans – UPI transactions use a highly secure encryption format that is hard to change. This means that each transaction is verified with a two-factor method, like your PIN and OTP.
6. What is the Difference Between a UPI ID and a PIN?
Ans – A UPI ID is a unique way to prove who you are, and many people use it to send and receive payments. On the other hand, a UPI PIN is a four-digit personal identification number that must be given in order to approve a cash transfer through UPI.
7. Is it possible to send money to a person who doesn’t use UPI?
Ans – Yes, you will need the bank account number, IFSC code, and the name of the account holder of the person you want to send money to.
