UPI (Unified Payments Interface) – Registration, Login, Transactions

UPI is a payment platform that allows bank accountholders to carry out low-value transactions up to Rs. 2 lakh. One can use UPI to transfer funds, make instant payments or request for money from any person. It is accessible through a smartphone or a feature phone.

The structure of UPI address is just like your email id and can be taken as your financial address. Similar to your bank account, this remains unique to every individual and will help you to transfer and receive funds instantly.

You do not need to transfer funds intrabank using old methods like NEFT, RTGS, and cheque. You can now send or receive money instantly throughout the day and even on holidays.

The UPI was launched by the National Payments Corporation of India also known as the NPCI. In conjunction with the Reserve Bank of India and Indian Banks Association, NPCI has framed this network. It is similar in mechanisms like the RuPay system through which debit and credit cards function.

UPI has enabled us to replace fund transfer up to Rs. 2 lakh through this platform. Following transactions and services can be performed through the UPI:

• Pay mobile bills, shopping bills, restaurant bills, etc.
• You can also use it online in utility apps to make payments or set it as a default payment method for payments.
• E-commerce giants have also started providing UPI payment options through BHIM app (Bharat Interface for Money).
• You can also use this app to transfer funds from one account of yours to the other.
• You can use this app to request money from others.

NPCI does not levy any fees or charges to avail UPI services. This service is free of cost. The purpose to launch UPI was to promote digital transactions making it available for all individuals.

• The maximum UPI limit per day for normal transactions is Rs. 1 Lakh
• The UPI limit per day for ATM withdrawal using UPI app is Rs. 10,000
• A total of 20 UPI transactions can be done through bank UPI apps per day
• One can carry out a maximum of 10 transactions per day through third-party UPI apps.
• Per transaction limit for every UPI transaction is Rs. 1 Lakh
• For transactions related to capital markets, collections, insurance, and foreign inward remittances, the UPI limit is Rs. 2 Lakh per transaction
• The UPI limit for IPOs and retail direct scheme is Rs. 5 Lakh per transaction

Important: According to a circular released by the NPCI in March 2020, the transaction limit for payments through Unified Payments Interface (UPI) at stores run by ‘verified merchants’ has been increased to Rs. 2 Lakh from April 2020. This move is to boost digital payments through UPI. However, this change will not be applicable to peer-to-peer fund transfers.

To use UPI as a payment mode, one has to sign-up for the service through a UPI app. This can be done on mobile banking of your particular bank or a third-party UPI app. After that, here are steps to be followed to generate a UPI PIN:

Step 1: Go to the UPI app of your choice – iMobile, SBI YONO, BHIM, Google Pay, etc

Step 2: Scroll to the ‘Bank Account’ section on the app. This section shows all the bank accounts linked with this particular app

Step 3: Select the bank account for which you want to set a UPI PIN. You will see a ‘SET’ option in case you have never set a UPI PIN for the bank account

Step 4: Enter the ‘Last six digits’ and ‘Expiry date’ of your Debit/ATM card

Step 5: Now, you will receive an OTP from your bank on the registered mobile number. In the next screen, enter the OTP and the UPI PIN you want to set for the account and click ‘submit’

You will receive a congratulatory message on the successful generation of UPI PIN. After this, you can send money, make payments from your bank account directly by authenticating using your UPI PIN.

Transfer Money through UPI

• Open the UPI-based app where you have registered on your smartphone.
• Log in to the app using the m-PIN or UPI PIN
• Select the “Transfer/Send Money” option
• Enter the beneficiary’s VPA/account details/mobile number
• Enter the amount to be transferred
• Enter the UPI PIN to confirm the payment
• Money is transferred instantly and a confirmation message is sent to the user’s mobile number.

Request Money through UPI

• Open the UPI-based app where you have registered on your smartphone
• Log in to the app using the m-PIN or UPI PIN
• Select the “Request Money” option
• Enter the payee’s VPA/Select the payee’s VPA from the existing list
• Enter your UPI PIN to generate a request
• A payment request will be sent directly to the payee
• The payee can make the payment directly by clicking “Approve” and entering his UPI PIN
• Users can also split bills using the BHIM app

Bill Payment through UPI

• Once logged in to your UPI-based app, select the option “Bill Payment”
• You will have to add a biller to avail this service
• Enter the amount that you have to pay the bill for
• Enter the UPI PIN to make the transaction
• Your payment will be credited to the biller instantly
• You can pay bills for mobile post-paid, water, electricity, DTH, broadband, gas, etc.

As the name suggests, UPI AutoPay is an automatic bill payment service that schedules a predetermined date to pay a recurring bill. UPI AutoPay allows users to enable recurring e-mandate for multiple financial purposes such as payments of mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance payments, mutual fund SIP payments, and more.

• Making recurring payments accessible and easy
• Better and newer features for increasing the proportion of digital payments and reducing the amount of cash that we use in our economy
• Introducing a convenient and safe option for UPI users for their recurring payments

To find your UPI ID, you need to follow the steps mentioned below:

• Open your UPI app
• Tap on your photo in the profile section
• Tap on the bank account
• Tap the bank account whose UPI ID you want to view
• You will find the associated UPI ID under ‘Manage UPI ID’s section

In case you forgot the UPI PIN, follow the steps mentioned below to reset UPI PIN:

• Go to your UPI app
• Tap on your photo in the top-right section
• Tap on the bank account under payment methods
• Tap on the bank account you want to edit
• Tap on the ‘Forgot UPI PIN’option
• Enter the last 6 digits of your debit card and the expiry date (MM/YY)
• You can create a new UPI PIN
• An SMS will be sent on your registered number for OTP authentication

Below-mentioned steps explain how to link your RuPay Credit Card with UPI:

Step 1: Download any UPI app from the app store

Step 2: Enter the code and select your bank account

Step 3: Add details of your bank account and select the credit card option

Step 4: Select the credit card issuer bank and select your credit card

Step 5: Confirm and click on to view the accounts from the available options

Step 6: Set the UPI PIN and start doing the transactions

Below-mentioned steps explain how to make payment through RuPay Credit card on UPI

Step 1: Scan merchant UPI or code

Step 2: Add the amount that you need to pay and select the credit card account

Step 3: Select your RuPay credit card account and enter the UPI PIN

Step 4: The transaction is now completed

Benefits of UPI for Users

Below mentioned are the benefits of the UPI service:

• Highly secure as no account detail is shared
• VPA ensures no personal details are shared with others
• Round the clock transaction facility
• Easy to use
• The transfer can be made instantly
• All bank accounts can be managed through a single app
• Single click authentication
• Money can be requested from the payee through the app
• Complaints can be raised directly as well

Benefits of UPI for Banks

• A safe and secure transaction system
• Seamless merchant transaction
• Use of the existing infrastructure ensures no additional cost is incurred by the bank
• Single-click with two-factor authentication

Benefits of UPI for Merchants

• Seamless fund collection
• Instant receipt of fund
• No need for sharing bank details
• No additional or operating cost as opposed to PoS machines
• Suitable for e-commerce platforms
• COD collection made easy with UPI payment

UPI is a digital platform that helps you transfer funds from one bank account to another without using any account number, bank name, account type or IFSC.

To use UPI to transfer funds, you need to have the following things in place:

1. A bank account
2. An active mobile number (linked to your bank account)
3. A smartphone
4. An internet connection

Once these things are with you, the next thing you need is UPI registration and UPI mPIN generation. On successful registration and generation on mPIN, you are all set to use UPI.

To send or receive funds using UPI, you need to have a UPI-based mobile app, e.g. iMobile Pay, YONO SBI, BHIM UPI, Google Pay, PhonePe, etc.

UPI transfers funds from the sender’s bank account to the receiver’s bank account without revealing bank account details to any of the parties involved in the transaction. Transfers can be done 24 x 7, irrespective of the general bank hours.

UPI can be used in three ways, viz.:

1. By entering the UPI ID (or Virtual Payment Address, VPA) of the sender/receiver
2. By scanning the UPI QR code
3. By entering the receiver’s account number and IFSC Code

The USP of this payment mode is complete privacy and instant transfer. Also, you can link multiple bank accounts to your UPI app.

The UPI service is not limited to smartphones, it has now been introduced on feature phones as well. This service is known as UPI 123Pay. Features of UPI 123Pay are mentioned below:

• The service in the feature phones does not require internet connectivity.
• It can be accessed via USSD *99#.
• The service can be accessed through an app, missed call, interactive voice response, or OEM.
• No fee is charged for using UPI 123Pay.
• Like UPI, fund transfer through UPI 123Pay is instantaneous.
• The mobile number of the account holder should be linked with the bank account.
• It is available round the clock 24×7 and 365 days.

Click to know more about UPI 123Pay

List of UPI Enabled Banks

Here is a list of all the banks that provide customers with the option of UPI-based fund transfers:

These are some of the major banks in India that customers with UPI-based transfer options. Other banks like Karnataka Bank, Punjab & Sind Bank, Standard Chartered Bank, Syndicate Bank and UCO Bank also provide UPI-based payment options. Along with it, small finance banks like Jana, Equitas and ESAF are in the list too.

Users can do low-value transactions through UPI Lite. This service allows customers to make transactions below Rs. 200. You can simply activate UPI Lite wallet in your UPI app namely BHIM, Paytm, PhonePe, etc. Customers can easily make payments from this wallet and it requires just one click. Users do not require to authenticate their transaction with UPI PIN in this facility. The service will reduce the load from the core banking system, thereby, making UPI transactions faster.

Read More: UPI Lite

NPCI has enabled UPI users to create their own UPI Circle and add secondary users who would be able to carry out UPI transactions using the paimary user’s UPI account. It is aimed at enabling such individuals use UPI who either don’t have a savings account or are not using their bank account to carry out UPI transactions.

An individual can add up to 5 secondary users who can be family, friends, spouse, children, dependents, etc. Total amount allowed under UPI Circle is Rs. 15,000 per month and Rs. 5,000 per transaction.

Read More in Detail: UPI Circle

The NPCI has issued new guidelines which will allow NRIs from certain countries to access UPI services using their international phone numbers for bank accounts which are known as NRE (Non-Resident External) and NRO (Non-Resident Oridnary) accounts. NRIs of these countries can now access UPI services even on their international numbers having the country code of the below-mentioned countries.

It is worth mentioning that NRIs will not be able to avail this facility on domestic accounts opened in India. Also, accounts opened by these NRIs in foreign countries will not be eligible for providing the facilities of UPI.

UPI-enabled banks can be categorized under three broad heads depending upon the platform they chose to adopt in order to provide UPI-enabled services to their customers. They are as follows:

• Banks with UPI apps– Almost all major banks fall under this segment. These banks have either developed a new UPI app or have integrated the UPI in their existing smartphone applications. Banks like ICICI Bank, HDFC Bank, Axis Bank, SBI and PNB fall under this category and operate their individual mobile banking applications.
• Banks without UPI app– There are still a few banks who have neither developed their own UPI app nor have they partnered with a third party application to execute UPI enabled services.
• Banks with Third-party UPI app– These type of banks lend their UPI system to other mobile app developers. These developers, in turn, create a platform such as an e-wallet where a user can create a virtual account and utilize the services of online funds transfer. Banks like YES Bank, Axis Bank and HDFC Bank have partnered with several apps in this regard.

Below mentioned are some important things to know about UPI:

• With just single app, one can access various bank accounts.
• The service allows you to facilitate immediate transfer of funds via mobile 24×7.
• Users need to create a VPA- Virtual Payment Address or handle and link their bank account to it. This is almost like a financial address for them.
• Just as you send an SMS, you can now send or receive your money from one account to another.

UPI users can register their complaints by dialling the UPI customer care number. A toll-free number has been launched by the government for queries and issues regarding digital payments. Here is the toll-free UPI customer care helpline no:

To raise a dispute related to UPI transactions, users can follow the below-mentioned steps:

• Users can raise a complaint related to UPI transaction on PSP app/TPAP app
• Users can select the relevant UPI transaction they want to raise a complaint for
• If raising a complaint related to UPI transactions, the user must raise the complaint with the relevant TPAP. In case the grievance of the customer is not resolved by TPAP, the customer can further escalate the issue with the PSP Bank. If the complaint of the customer still remains unresolved by the PSP Bank, the customer can raise the complaint with Bank Ombudsman.

Example: If the customer is using BHIM app to make UPI transactions, the complaint must be first raised with BHIM app only. IF TPAP fails to resolve the complaint, the customer can then raise the complaint with his/her bank.

It is to be noted that if customers are using their bank’s application to make UPI payments, the complaint, in that case, shall be raised with the bank in the first place.

• Users can raise the complaint for both fund and merchant transactions

Q. What is the full form of UPI?

Ans. UPI full form is Unified Payments Interface.

Q. What is my UPI ID?

Ans. A UPI ID is your address through which one can transfer funds to you or request the same. It is just like your email ID and is accompanied by an mPIN (like a password).

Q. What is VPA in UPI?

Ans. A Virtual Payment Address (VPA) refers to a unique identifier to help UPI in tracking a person’s account. It basically acts as an ID independent of your bank account number and other details.

Q. What is UPI PIN or mPIN?

Ans. mPIN is a password containing 4-6 digits that is required to send money via UPI. It works the same way an ATM PIN works.

Q. Who regulates UPI?

Ans. UPI is developed and regulated by NPCI (National Payments Corporation of India) which in turn is regulated by the Reserve Bank of India.

Q. Are UPI and BHIM same things?

Ans. No. UPI is a platform that facilitates the transfer of funds from one bank account to another whereas BHIM is a mobile app developed by NPCI. The common link between these two terms is that both are developed by the same entity of NPCI (National Payments Corporation of India).

Q. Is UPI free?

Ans. Currently, UPI is a free mode of bank to bank fund transfers. However, as per certain media reports, in the coming times, transactions may become chargeable. But it is expected to fall within 50 paisa per transaction which is quite reasonable.

Q. What is the daily UPI transactions limit?

Ans. The UPI transaction limit is Rs. 2 lakh every day. An individual can perform up to 20 fund transfer transactions in a day. This limit does not contain merchant transactions, bill payment and collect requests.

Q. Can I link my UPI ID with multiple accounts?

Ans. Yes. You can add multiple bank accounts to your UPI app provided the bank/provider approves of it.

Q. Can I send money to someone who is not registered with UPI?

Ans. Yes. To do so, you will need to enter the receiver bank account number, IFSC Code, and account holder’s name.

Q. What to do if UPI not working?

Ans. There can be various reasons why your UPI might not be working such as poor internet connection, entering the wrong PIN, or 20 completed transactions in a day, etc.

Q. Is it mandatory for the customer to hold a bank account or it can be connected to a card or wallet?

Ans. It is important to know that, even though a lot of flexible features are available under the UPI system, but a customer cannot connect a wallet to UPI. Only savings accounts can be linked for successful fund transfers.

NPCI introduces ‘UPI Circle’ for secure delegated payments with trusted users

26^th August 2024: The National Payments Corporation of India (NPCI) has launched a new feature termed as ‘UPI Circle’ on its Unified Payments Interface (UPI) platform. UPI Circle permits primary UPI account holders to securely delegate payment accountabilities to trusted secondary users. With this feature primary users can link their UPI accounts with secondary users, allowing them the access to make payments on their behalf.

UPI Transaction Limit for Income Tax Payments Hiked up to Rs. 5 lakh

8th August 2024: As directed by The Reserve Bank of India (RBI) in the recent MPC meeting, the UPI transaction limit for direct and indirect tax payments has been increased from Rs. 1 lakh to Rs. 5 lakh. This increase shall help the taxpayer to pay higher tax liability instantly. No additional fee will be charged for the transactions of the payments.

UPI Limit Raised to Rs. 5 Lakh for Hospitals and Universities

11th December 2023: The Reserve Bank of India has raised the UPI limit for certain transactions. Individuals can now make UPI payments of up to Rs. 5 lakh per transaction to hospitals and educational institutions. Earlier the transaction limit was capped at Rs. 1 lakh. However, for other transactions, existing UPI limits shall prevail.

NPCI Launches UPI ATM for Cardless Cash Withdrawal

12^th September 2023: NPCI has leveraged the UPI ecosystem by launching UPI ATMs which will enable bank accountholders to withdraw cash from the UPI ATM. Just go to any UPI ATM machine and follow the instructions. One has to generate a fresh UPI QR code, scan the UPI QR code in a UPI app and enter the UPI PIN to withdraw cash using this facility. Once you enter the PIN, your cash will be dispensed. The facility also allows a user to switch between registered accounts at the time of withdrawing cash from the UPI ATM.

10^th July 2023: Customers of YES Bank can link their YES Bank RuPay credit card on BHIM UPI and make UPI transactions just by scanning the UPI QR code of the merchant. It is to be noted that P2P payments cannot be done through UPI from YES Bank RuPay credit card. Click here to know more.

Updated Daily UPI Transactions Limit

9th June 2023: As the popularity of using UPI continues to grow, NPCI has made amends to making daily transactions. NPCI allows making transactions up to Rs. 1,00,000 in a day through UPI. However, this limit may vary from bank to bank. As per new regulations, an individual is allowed to carry only 20 transactions through the bank’s UPI app. As per updated regulations, third-party UPI apps such as Google Pay, Paytm, Amazon Pay, etc. per will let users do only 10 transactions a day. Thus, it is recommended to make note of transactions allowed on your account beforehand to avoid any inconvenience.

UPI One World for Foreigners at G20

12th May 2023: Foreign nationals/NRIs coming from G20 countries are now able to use UPI services. This service can be used to make payments at all UPI-enabled merchant locations. Foreign nationals can avail UPI One World on KYC completion. This will help them in eliminating the hassle of carrying cash and multiple foreign exchange transactions. This service is available with the mentioned partners across India namely: EbixCash, ICICI Bank, IDFC First Bank, Pine Labs, Thomas Cook and Transcorp.

Transfer Funds between Singapore and India

21st February 2023: Through a tie-up between Singapore’s PayNow facility and India’s UPI facility, citizens will now be able to transfer funds from their savings account or current account in Singapore to India and vice-versa. This will provide users with a safe, simple, and cost-effective way to transfer funds between these two nations. Residents of India can use any UPI app to transfer money to Singapore just by adding the receiver’s mobile number and citizens of Singapore can transfer money via PayNow app to Indian citizens.

This move will help Indian citizens residing in Singapore to make a cost-effective fund transfer to their friends and relatives in India. It will also benefit students studying in Singapore to receive money from India instantly.

HDFC RuPay Credit Card can now be used on UPI

16th February 2023: As per NPCI, HDFC customers can now use their HDFC RuPay credit card on UPI. HDFC Bank is the first public sector bank in India to enable this service on UPI making hassle-free payments through this credit card. The card can now be directly linked to UPI and the customers can carry payments and transactions through their HDFC RuPay credit card using any UPI app.

NPCI Starts Providing UPI Facilities to NRIs Outside India

11th January 2023: NRIs of these countries having NRE and NRO accounts in India will now be able to access UPI services on their international number. As of now, this facility will be available in ten countries namely: Australia, Canada, Hong Kong, Oman, Qatar, Saudi Arabia, Singapore, United Arab Emirates, United Kingdom and USA. Click here to know more.