India has taken a huge step toward achieving a cashless economy with the implementation of the Unified Payment Interface (UPI). With the new payment mechanism, you may now use your smartphone as a virtual debit card. This article will define the UPI Meaning, UPI Transaction Limit, UPIPin, and UPI Charges.
What is UPI
UPI is a unified platform that unifies numerous banking services and functionalities. To send and receive money, all you need is a UPI ID and PIN. Payments between banks can be made in real-time using a cellphone number or a virtual payment address (UPI ID).
UPI, which was established in 2016, is the brainchild of the National Payments Corporation of India (NPCI), the apex body that regulates India’s retail payment systems. The NPCI is managed by India’s central bank, the Reserve Bank of India, and its principal objective is to accelerate India’s transition to a digital economy.
Features of UPI
Essentially, anything that could previously be done using RTGS, NEFT, or a check can now be done with this app. The following transactions and services are possible with the UPI:
- It enables mobile device-based real-time money transactions. 24 hours a day, 365 days a year.
- A single mobile application is required to access several bank accounts.
- One-click authentication makes transactions go smoothly.
- Customers do not need to input their account number or other identifying information because UPI transactions use a virtual payment address.
- Transactions can be instantly shared.
- It functions as a cash substitute because customers are not required to visit ATMs to receive cash.
- Payments to retailers can be made using a single UPI app.
- Utility bills, counter payments, and barcode-based payments can all be made with a single UPI app that connects to many bank accounts.
- If a payment is declined, the issue can be rectified entirely within the app.
- All transactions are carried out in complete secrecy.
How to register for UPI
- To use UPI’s cashless payments and instant money transfers, you must have a smartphone and a bank account that is a member of UPI.
- Your phone number must be included in your bank account’s information. Currently, the vast majority of Indian banks are members. In 2016, 21 banks accepted UPI. By 2021, the United States will have 216 banks.
- Then, on your smartphone, download and install any UPI-compatible app. Among the most popular UPI apps are PhonePe, Paytm, Google Pay, BHIM, MobiKwik, Uber, SBI Pay, and BOB UPI.
- Following the download, the application will prompt you to create a virtual ID (identity). You’ll need your one-of-a-kind ID to make or receive a UPI payment. Your bank will then send you an email containing a one-time password (OTP) to verify that you are indeed using your bank account.
- After you’ve passed the verification process, create your Virtual Payment Address (VPA).
Steps to Generate UPI PIN
To create your UPI PIN, you must first install a mobile payment application on your phone, such as Paytm. Following installation, you must create your own UPI profile/account. To do so, you will need to enter some information such as your name, phone number, and bank account information. After you’ve followed the instructions displayed on your mobile device, you’ll need to complete the following steps to create your UPI PIN;
- Open a UPI application on your mobile phone, such as Paytm.
- Navigate to the ‘Bank Account’ section of the application.
- This section will reveal any bank accounts associated with your application.
- From the menu, select the bank account to which you wish to link your application.
- If this is your first time creating a UPI PIN, you will see a ‘Set’ option after selecting the bank account for which the UPI PIN should be established.
- Now, input the final six digits of the card’s serial number, as well as the expiration date.
- Following that, a one-time password (OTP) will be given to the mobile number associated with your account.
- Enter the OTP and the UPI PIN of your choice on the succeeding screen.
- Your UPI PIN will be generated once you click ‘Submit.’
- After appropriately configuring your UPI PIN, you will receive confirmation through email.
UPI Transaction Process
- Steps to Send Money via UPI
- Log in to your bank’s mobile application that supports UPI. It can be BHIM UPI, Paytm and Amazon Pay, etc. – Go to the UPI section (E.g. UPI Money Transfers, Send Money, etc.) – Click on Make Payment/Send/Pay.
- Scan the payee’s UPI QR code or enter the payee’s Virtual Payment Address (VPA).
- Enter the transfer amount.
- To validate your payment, enter your mPIN.
- Once you click the Send button, the funds will be transferred in a matter of seconds.
- Steps to Receive Money via UPI
- Access your UPI-enabled smartphone application.
- Choose Collect/Request Money (with Paytm, this is called Money Transfer “To Self Account”).
- Enter the payer/VPA remitters and the credit amount.
- When you submit the request, the payer will receive a notification.
- If he accepts the request, he will enter his mPIN to authenticate the transaction.
- Upon completion of the transaction, both the payer and payee will receive notification of the debit and credit.
Transaction Limit for UPI
You can conduct transactions worth up to Rs. 1 lakh each day via UPI. The limit per transaction is likewise the same as what every bank in the country must adhere to. However, in the majority of circumstances, the maximum number of UPI transactions each day is 20. While certain banks, like ICICI, HDFC, SBI, and PNB, enable you to send up to Rs. 1 lakh for each transaction, others limit you to Rs. 10,000 per transaction.
Although the maximum amount that may be transferred via BHIM UPI is Rs. 10,000 per transaction and Rs. 20,000 in a 24-hour period. However, this transaction limit is subject to revision from time to time.
FAQ’s related to UPI
- What is a UPI PIN number?
A UPI PIN is a password that the user must supply in order to authorize a UPI transaction. It is a one-of-a-kind, four or six-digit passcode that the user can build according to his or her preferences.
- What is the entire form of UPI PIN?
Unified Payments Interface PIN is an acronym for Unified Payments Interface Personal Identification Number.
- Is UPI a secure method of payment?
Yes, UPI is entirely secure. All mobile payment applications that accept the UPI service, such as Paytm, are required to adhere to the Reserve Bank of India’s rules. As a result, the risk associated with UPI payments is negligible.
- What steps should I take to configure my UPI PIN?
To create your UPI PIN, you must first download a mobile payment app that supports the UPI service, such as Paytm. After installing the application, navigate to the ‘UPI’ or ‘Bank Account’ section and select the ‘UPI PIN’ option. While doing so, you will be prompted to enter the last six digits of your card number and the expiration date of your card in order to create your UPI PIN.
- What happens if I misplace my UPI PIN?
If you forget your UPI PIN, simply login to the application and reset it. To obtain your UPI PIN, navigate to the ‘UPI PIN’ option and click on ‘Forgot UPI PIN’. You can reset your UPI PIN by entering a few of your personal details.