In this Guide, we will explore about Unified Payment Interface (UPI) and what is UPI Id? in this technology.
UPI Technology has developed to transfer money from one mobile to another from on bank to another bank quickly without any change.
And UPI Id and mobile number Play a crucial role in this UPI technology for faster and more secure transactions.
What is UPI Id?
If you have a question about what is UPI Id? or what is your UPI ID? then you need to understand it is a unique key or number or id used to transfer or receive money through UPI Application.
The Unified Payment Interface (UPI) is a system that powers multiple bank accounts into a single mobile application using a unique identifier known as UPI ID or payment address (typically in the format of yourname@bankname).
The UPI enables instant fund transfer between two bank accounts on any Bank’s UPI-enabled app.
With the launch of UPI, you can make payments to anyone with a bank account anywhere in India instantly and securely over the smartphone – It’s just like sending an email or a text message! But much more effective!
What is uPI full form?
UPI is Unified Payments Interface created by NPCI
The full form of UPI is Unified Payments Interface (UPI) is an infrastructure created by National Payments Corporation of India which facilitates instant fund transfer between two bank accounts on a mobile platform.
UPI’s operation and maintenance costs will be shared by banks. The system is available for public use after completion of its testing phase and finalization of add-on features.
Currently, it’s only possible to link one bank account per mobile number but in future more than one account may be linked to a mobile number through additional KYC norms.
What is a Unified Payment Interface (UPI)?
The Unified Payments Interface (UPI) integrates multiple bank accounts into a single mobile application.
This revolutionary payment solution created by NPCI enables you to access your bank account through applications such as BHIM, PhonePe and Google Pay.
Similarly, you can get money or accept payment to your bank account directly with the help of UPI ID in UPI Applications.
The application uses the Unified Payment ID or UPI ID, which acts as a virtual address for all transactions that are made via apps built on top of it.
Your UPI ID is an address that identifies you on UPI (typically yourname@bankname) or
mobineno@upi or yourname@upi
When you create a new transaction using an app linked to your bank account, you will be asked to enter details like Beneficiary name and amount. You can also add additional information like IFSC code, MMID, etc.
Once entered, these details will be passed onto the National Payments Corporation of India’s servers where they are verified before being processed further.
Read More: How UPI Works? : Comprehensive Guide On UPI
What is a UPI Pin?
The UPI pin is a temporary password that is valid for a pre-defined number of transactions.
The number of transactions depends upon your bank and their security settings, typically between 5 and 20 transactions before you need to authenticate yourself again.
In addition to your permanent virtual payment address or VPA, you will be issued a temporary VPA or T-VPA that you can use for immediate payments with zero balance in your bank account.
Read More: What Is UPI PIN? – Guide On UPI Security Pin
What is BHIM UPI Id?
Bharat Interface for Money, also known as BHIM, enables you to send and receive money using your mobile device securely.
To start using BHIM, all you need to have is a bank account linked with your mobile number and an app installed on your phone.
The Unified Payments Interface (UPI) is a payments system launched by National Payments Corporation of India in 2016 to facilitate easy, quick and secure transfer of funds between two bank accounts on mobile devices without any internet or mobile connection.
It has been developed by NPCI in partnership with Indian Banks’ Association (IBA).
Creating a UPI profile
In order to create a UPI profile, you have to open an account with your bank. A minimum balance of Rs 10,000 will be required at opening an account.
To generate a barcode and link your Aadhaar card to your bank account, you will have to go through Know Your Customer (KYC) authentication.
After that, you can generate a barcode linked to your Aadhaar number and link it to all other linked bank accounts for easy transfer of funds.
You also need to provide details such as phone number and email address while creating a UPI profile.
The mobile app of your bank will ask for OTPs from time-to-time for additional security purposes.
You can add multiple beneficiaries by entering their mobile numbers or email addresses in your registered mobile number or email address book respectively.
Read More: What Is VPA In UPI? – Virtual Payment Address
How to use UPI App?
After downloading and installing any of these apps, create a UPI ID.
It will be a combination of your bank name and account number in that particular bank.
After adding your personal details, you’ll receive an OTP (one-time password).
If it’s linked to your phone number already, enter your mobile number and select ‘send OTP to mobile’ option.
If not then enter your mobile number and tap ‘send OTP to mobile’ option, you will receive OTP on your registered mobile number.
Enter that into app for verification. You can also use Google or Facebook accounts for authentication purposes.
This process is called 2FA – Two Factor Authentication – which ensures additional security for your app.
This means even if someone gets access to your username and password, they won’t be able to log in as long as they don’t have access to your smartphone or tablet device with 2FA enabled.
After logging in, add/link your bank account by entering details such as IFSC code, Account Number etc.
Then click Link Bank Account button. Now you are ready to send and receive money through UPI payment system.
Read More: What Is BHIM UPI? – Ultimate Guide On BHIM UPI
What are the benefits of using BHIM App?
BHIM app stands for Bharat Interface for Money. this is the first app in the world built on UPI technology and you use it freely for money transfers.
BHIM app comes under the PMJAY scheme that was launched by Prime Minister Shri Narendra Modi in December 2016.
This app enables you to send or receive money directly from your bank account.
All you need to have is a mobile phone with internet connectivity and then through BHIM App, you can send and receive money instantly, right from your mobile phone itself.
You don’t need to download any other third-party apps as everything is available in one place.
You just need to register yourself using your Aadhaar number and mobile number, link it with your bank account, verify it using OTP sent on your registered mobile number, and then start sending or receiving money.
How does UPI Technology work?
In India, there is a new banking system for money transfers on payment apps.
Your UPI ID Is An Address That Identifies You On UPI (typically yourname@bankname).
A Unified Payments Interface (UPI) Is A System That Powers Multiple Bank Accounts Into A Single Mobile Application.
The main goal of Unifying Payment Interface or UPI Technology was to make electronic transactions easier and quicker.
Transaction limits In BHIM App
Before you send money through BHIM App, set a limit for your transaction, This will help you avoid accidental payments.
A maximum of ₹ 20,000/- per transaction can be sent through BHIM App at present and a maximum of ₹ 1 lakh/- in a day.
For receiving funds, no limit exists. However, if you receive more than ₹ 10,000/- in a single transaction or more than ₹ 50,000/- in a single day from any one person then your account becomes an ‘Account under Report’ which means that all transactions above these limits have to be reported to the Income Tax Department.
You may also need to get KYC details updated with your bank.
What is the UPI Customer Care Number?
For registration, you have to contact your bank’s customer care number as that bank only know about their customers.
When you get any technical issue in future, then you can directly contact with your bank by calling on customer care number.
You will get good and professional help from them, So don’t forget to take your customer care number while registering.
You can go to BHIM app where you can get the UPI Customer Care Number or you can connect with this number (18001201740)
Also, you can get the information from the BHIM website as well – https://www.bhimupi.org.in/get-touch
How can I create an UPI ID using the BHIM app?
Step 1: To open BHIM, and choose the language that you prefer.
Step 2: Type in your banking mobile number
Step 3: Password set to four digits (Set your 4 digit password)
Step 4: Connect your bank account
Step 5: Type in the last 6 digits of your debit card in order to set up your UPI PIN.1
Step 6: The account will be created once the PIN has been set up
FAQ about UPI – BHIM App
Can I transfer money from my bank account to other person’s bank account using the UPI ID/Bhim App?
Yes. You can send money to anyone having an account with any bank in India by entering their mobile number or email address, or scanning their QR code.
The sender will be charged a nominal service fee of ₹0.50 and ₹1 for payments below ₹1,000 respectively
Can I use the BHIM app on multiple devices at a time?
No. You can only use one device with a single mobile number or email address at any given point of time.
Can I transfer money to my friends and family outside India using UPI ID or BHIM App?
Yes, you can send money to anyone having an account with any bank in India by entering their mobile number or email address, or scanning their QR code.
Conclusion
Unlike other methods of fund transfer, such as online banking and NEFT/RTGS, UPI does not require that you have an existing bank account.
The Reserve Bank of India states that one can register for a UPI app using only their Aadhaar number.
Your biometric data will then be used to authenticate your identity in order to make payments.
Once you’ve registered for a UPI-based payment system, it’s important to understand how it works before sending or requesting money.
You should also take care when sharing personal details with third parties or giving out your UPI ID to others.
Once someone has access to your ID, they could potentially use it to transact on your behalf without your knowledge.