What is UPI Full Form

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 )