Using UPI payments system users can link more than one bank account into a single smartphone app and transfer funds without providing IFSC code or account number. It is one of the simplest ways of transferring money and making payments
UPI turns your smartphone into a virtual debit card. It allows the user to receive and send money.
Using UPI payments system users can link more than one bank account into a single smartphone app and transfer funds without providing IFSC code or account number. It is one of the simplest ways of transferring money and making payments.
The UPI interface is compatible with most banks. Several payment applications too have embraced UPI. Payments app such as PhonePe, Paytm have adopted UPI.
How does UPI work?
The UPI interface allows account holders across banks to send and receive money from their smartphones using just their Aadhaar that is their unique identity number, mobile phone number or virtual payments address. There is no need to enter the bank account details.
For carrying out a transaction, users have the option of choosing from two types of address—global or local. Global address includes user’s mobile, Aadhaar and bank account numbers. A local address can be a virtual address. Let’s say your bank gives you a virtual ID similar to your email ID (for instance, email@example.com). Using this virtual address a user can send and receive money from multiple banks and prepaid payment issuers.
How to use UPI?
The first step towards adopting the real-time payment mode is to complete the UPI registration process and generate mPIN.
Here’s your step-by-step guide to using UPI service.
Registering for UPI
A number of UPI applications are available on the App Store and Google Play Store. You can follow these steps to register and setup your UPI ID:
Step 1: Download an UPI application of your choice.
Step 2: Enter the required details such as your bank details, mobile number, email ID, or Debit Card number.
Step 3: Link the bank account through the generation of an OTP.
Generating UPI PIN
Once the UPI registration process is completed, you will be required to generate the mPIN.
Follow these steps to set up UPI PIN:
Step 1: Open the UPI app on your smartphone. Select the ‘Add Bank Account’ option and choose your bank from the list provided in the application.
Step 2: Once you choose the bank, you will receive an SMS on your registered mobile phone number.
Step 3: Once the bank account is verified with the phone number, your smartphone (device) will be registered.
Step 4: Create your UPI PIN.
Step 5: Create the mPIN which can be 4 to 6 digits long.
Once the UPI PIN is generated, you are ready to use UPI service to transfer funds and make payments.
Ever since its launch UPI has contributed to digital payments rise in the country.
It is one of the easiest and safe modes for transferring money. There is no hassle of remembering the receiver’s account number, account type, IFSC, and bank name, etc.
With UPI you can transfer money if you have the recipient's Aadhaar number, mobile phone number registered with the bank account, or UPI ID.