UPI-Unified Payments Interface

What is UPI ?

You all must have heard about UPI payment and some people are also using UPI payment method. The government of India introduced UPI payment to establish the cashless economy.

UPI a new method of online payment initiated by the National Payments Corporation of India (NPCI). Which facilitates inter bank transactions. The interface is controlled by the Reserve Bank of India and works by transferring funds between the two bank accounts on the mobile platform. The full form of UPI is Unified Payments Interface, with the help of UPI you can transfer fund to any inter bank at anywhere and anytime even public holidays.


Unified payments interface or UPI is used to transfer money from mobile platform to any other bank account.

It is a concept that allows multiple bank accounts to transfer money through a mobile phone application. It is developed by the National Payments Corporation of India (NPCI). Its control is in the hands of the Reserve Bank of India.

What are the special things in UPI

1. Fund transfer in an account with the help of IMPS (Immediate Payment Service) it takes less than NEFT.

2. Due to being a digital platform it can be used anytime, even public holidays.

3. A mobile application can be transitioned from many bank accounts.

4. The Virtual Payment Address given by the bank is used in UPI payment.

5. Money transfer is done using the IFSC code and mobile number.

6. A m-pin (mobile pin) or UPI pin is required to authorize each payment.

7. You can transfer money to keypad phone by dialing *99# without any internet connection.

8. Every bank has UPI platform and UPI enabled mobile application, which has been developed according to the mobile operating system ( android, windows or apple).

9. It also has a bill sharing facility.

10. Bill-payment of any services like electricity, water etc. is very convenient for making payment.

11. Single click allows you to make a payment. Here the m-pin is used instead of the one time password (OTP).

How does UPI work ?

To get the service of UPI, you have to prepare a virtual payment address. After this you have to link it to your bank account. The virtual payment address becomes your financial address. After this, there is no need to remember your bank account number, bank name or IFSC code etc.

The payer simply processes the payment request according to your mobile number and the payment credited to your bank account.
UPI payment are being run by the government to promote online transactions and move to the country towards digital India. Nowadays, UPI is enabled in almost all wallet like Paytm, Google Tej (Google pay), Phone pay and BHIM. You can setup a UPI payment using any app.

VPA - Virtual Payment Address

A virtual payment address (VPA) is an address given to those customers who use the UPI payment system. VPA is used for fund transfer. In order to transfer money, you do not need any bank account number, IFSC code. VPA is an address used in place of bank account details. Virtual payment address (VPA) will be like your email id such as rahul@icici, raju@bob, suman@axis etc. The simplest method of UPI payment is on the basis of VPA. UPI is a mobile based fund transfer application.

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