UPI – Unified Payments Interface
UPI registration, Benefits, Charges, Push and Pull UPI, Tips to make fraud free UPI transactions
Unified Payments Interface (UPI): The Government of India has taken an important step toward digitalization of Indian Financial Transactions. The government has introduced UPI to achieve a cashless economy. You can easily use UPI from mobile phones online or offline. You can set up an offline UPI Payment to make transactions without the internet by using basic feature phones.
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UPI is developed by the National Payments Corporation of India and is regulated by the Reserve Bank of India (RBI). UPI is slowly becoming the most preferred form of digital payment.
Lets get more information about UPI in this article.
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Table of Content
- What is UPI and What is UPI Full Form
- What is UPI ID and UPI Pin, How to get UPI ID
- UPI transaction Process
- UPI Limit Per Day
- UPI Benefits
- What is UPI Pull and UPI Push
- UPI Fee and UPI Charges
- UPI 2.0 and UPI 2.0 Features
- Tips to make Secure UPI transaction
What is UPI and What is UPI Full Form
UPI Full Form is Unified Payments Interface which is introduced by Prime Minister Narendra Modi Government. Unified Payments Interface (UPI) is a payment system to link bank accounts in smartphone apps and make fund transfers without having to provide IFSC code or bank account number.
Unified Payments Interface (UPI) is a real-time payment system where funds are credited instantly on a real-time basis.
Many countries now accept Unified Payments Interface around the world. This shows the popularity of UPI.
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What is UPI ID and UPI Pin, How to get Unified Payments Interface (UPI) ID
The UPI ID is a unique alpha-numeric number. Banks and financial companies allocate the UPI ID to receive and send money online. Unified Payments Interface (UPI) is an identification for a bank account which you can use to make financial transitions.
The Unified Payments Interface (UPI) PIN is a 4-digit personal identification number. You need to enter UPI Pin to authorise the transactions via UPI. A person can choose this PIN and reset whenever required for free.
You can get UPI ID from your bank or mobile apps like PayTM, Phone Pe, Google Pay, etc. To know your UPI ID, you need to login to the mobile app and go to the UPI section.
How to Generate UPI Pin and Change Unified Payments Interface (UPI) MPIN
You can follow below step by step process to generate UPI PIN or change UPI MPIN
- Download the UPI app from the App Store.
- Create your profile
- Go to ‘Add/Link/Manage Bank Account’ option and link the bank account number.
- Submit OTP received on registered mobile number in your bank account.
- Enter the last 6 digits of your debit card number and the expiry date.
- Enter the OTP and your preferred numeric UPI PIN and click ‘Submit’
- Now login again and enter your old UPI PIN and new UPI PIN.
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UPI transaction Process
To make a UPI transaction you need to have a virtual address, which is also known as Virtual Payment Address (VPA). You can set up UPI Payment system by using following –
- Mobile Phone
- Bank account
- Active mobile number which is linked to your bank account
- Internet connection to make online UPI transaction
You can access Unified Payments Interface (UPI) interface through banks, digital wallets, and payment applications.
The UPI transaction is completed by Remitter bank, Beneficiary bank, NPCI, Merchants, Bank account holder, Payer PSP, Payee PSP.
UPI Limit Per day
The NPCI has set a transaction limit and per day transaction limit ₹1 Lakh. The maximum number of UPI transactions is limited to 20. However, the upper limit depends on bank-to-bank, which can be between ₹10,000- ₹1 lakh. The maximum limit for BHIM UPI is ₹10,000 per transaction and ₹20,000 in a 24 hour window.
Unified Payments Interface (UPI) Benefits
UPI is beneficial to merchants, banks as well as customers. Let’s see how it is benefitting to each of them.
| Benefits of UPI for Banks | Benefits of UPI for Merchants | Benefits for UPI for Customers |
| A universal application for one transactionThis is a single click TransactionSecured with Two Factor authenticationEasy transactions Process | Easier transaction ProcessSuitable for e-Commerce and m-Commerce transactionsNo need of credit cards / debit cardsIn-App Payments | Single application for accessing various bank accounts24 X 7 transactions Raise a complaint from the mobile appSafer and secure payment interface |
What is UPI Pull and UPI Push?
While transferring fund through UPI we use UPI Push and UPI Pull terms. Let’s see both the term in detail –
- PUSH –
When a person sends money using a virtual address, it is called UPI Push. To know UPI Push status, log into the UPI application, enter the beneficiary’s/payee virtual id and other details, enter the UPI PIN, Now you will get a message on the registered number.
- PULL
When a person requests money, it is called UPI Pull. To know the UPI Pull Status, log into the UPI application, enter the beneficiary’s/payee virtual id and other details, enter the UPI PIN and you will receive status on your mobile number.
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Unified Payments Interface Fees and Charges
To ease the process and promote digital transactions, the government of India has decided not to charge on UPI payments. There are no fees and charges to use the UPI platform.
Who initiated UPI?
Most of the people in India have this question in their mind about who is the owner of UPI. Unified Payments Interface is an initiative of National Payments Corporation of India (NPCI) and Reserve Bank of India and Indian Banks Association (IBA). Hence government of India is the owner of Unified Payments Interface.
What is UPI 2.0, UPI 2.0 Features
The government of India is planning an upgraded version of Unified Payments Interface. The new version of UPI is referred to as UPI 2.0. Let’s see the features of UPI 2.0
- UPI 2.0 will have the facility utility bills payment via UPI app.
- UPI 2.0 will have feature of pre-authorized transactions. Users will be able to pre authorize bills which they need to pay every month.
- UPI 2.0 will have feature of biometric authentication which will make it more secure.
- To detect fraudulent transactions, Velocity check feature will be added to UPI 2.0
- Error free interface.
- Feature to Schedule Payments
- Option of Aadhaar Based Payments
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Tips to make secure UPI transactions –
- Verify UPI of the receiver.
- Never share UPI PIN with anyone.
- Check debit message / SMS after payment.
- Use the help section for transaction related issues.
- You must verify the UPI of the receiver.
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