Unified Payments Interface (UPI)

The Unified Payments Interface (UPI) is a platform that consolidates multiple bank accounts into a single mobile application from any participating bank. It facilitates various banking features, smooth fund transfers, and merchant payments using a mobile device.

Requirements for UPI:

• Your mobile number must be linked to your bank account.

• You need to have an ATM or Debit card.

• You can use the BHIM app, a bank's mobile app, or a third-party app to perform UPI transactions.

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Benefits of UPI:

• Enables instant money transfer through a mobile device, available 24/7, every day of the year.

• Provides a strong Single Click 2-Factor Authentication aligned with regulatory guidelines for secure transactions.

• Supports utility bill payments, over-the-counter payments, and QR code (scan and pay) transactions.

• Allows the use of a virtual address for security, eliminating the need to enter card numbers, account numbers, or IFSC codes.

Setting Up UPI with BHIM App:

1. Download and Open the BHIM App:

   • Upon opening, an SMS is sent to register your device.

2. Create Login Passcode:

   • After logging in, select your bank account.

3. Set Up Virtual Payment Address (VPA):

   • Your VPA or UPI ID will be formatted as mobile number@upi.

4. Create UPI PIN:

   • Enter the last 6 digits of your ATM card, the expiry month and year, and the OTP received on your mobile.

5. Transfer Funds:

   • Use your UPI PIN to transfer money to any beneficiary with just their virtual address. Alternatively, transfer funds using IFSC and account number if the beneficiary doesn’t have a virtual address.

Performing UPI Transactions:

• PUSH - Sending Money:

  1. Login: Open the UPI app and log in.

  2. Select Option: Choose "Send Money/Payment."

  3. Enter Details: Input the beneficiary's virtual ID, the amount, and the account to debit.

  4. Review: Confirm the details and press "Confirm."

  5. Enter PIN: Enter your UPI PIN.

  6. Status Message: Receive a message indicating transaction success or failure.

• PULL - Request Money:

  1. Login: Access your bank’s UPI app.

  2. Select Option: Choose "Collect Money" (request payment).

  3. Enter Details: Provide the payer's virtual ID, amount, and account to credit.

  4. Review: Confirm the details and press "Confirm."

  5. Notification to Payer: The payer receives a notification for the payment request.

  6. Payer Actions: The payer opens the UPI app, reviews the request, and decides to accept or decline.

  7. Authorize: If accepted, the payer enters the UPI PIN to authorize the transaction.

  8. Completion: Both payer and payee receive notifications of transaction success or decline, and the payee gets an SMS credit notification.

UPI simplifies banking by offering quick and secure transactions through a mobile device, enhancing convenience for users and businesses alike.

*The information in this document has been adapted from articles available on https://www.rbi.org.in/FinancialEducation/Home.aspx and https://www.npci.org.in/what-we-do/upi/product-overview. The original articles can be accessed directly for more comprehensive insights.