The Unified Payment Interface (UPI) is a real-time payment system that allows the user to send or request money from one bank account to another. The use of UPI has been a blessing to lakhs of Indian residents as it has simplified  the payment process.

The UPI id can now be linked with several apps and the client app can be used in multiple bank accounts and still be linked to a single app. 

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What exactly is an UPI Id though?

- UPI ID, which is also called Virtual Payment Address or VPA is basically an unique ID that is needed to create in order to send and accept money via UPI .

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How to create an UPI id?

1. To get started, you need to download your preferred UPI-enabled application from the App Store or Play Store. After you download the application, you will receive a prompt to set a four-digit app code.

2. Following the above said step, select the number that is linked and registered with your bank. The verification will be done by the app on it’s own.

3. The next step will be to select your bank. After your mobile number and bank accounts both are identified, your phone screen will show your UPI id. This will be in sync with the mobile number that is  registered with the bank. 

4. For example if your mobile number is 111116666; your UPI ID will be 111116666@upi.

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How a does UPI id work?

Money through the UPI id is sent or requested by using a user-created Virtual Payment Address (VPA) that is used to send or request money from a bank account using the Know 

Your Customer (KYC) linked mobile number. 

UPI also generates a specific QR code for each user account for the purpose of contact-less payment.

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How to get started with UPI?

In order to start making making payments through UPI, follow the steps given below

1. The first step that will get you started is you will first have to Log into your bank’s UPI application.

2. After you have logged in, you will have to choose the option for sending money, make a payment or pay a particular bill.

3. Post that, you will have to enter the beneficiary’s id or the number linked with the UPI. Then add the amount you wish to send to the beneficiary.

4. After completing the above mentioned step,  you will get a confirmation message, ensure that the payment details are correct to confirm the payment.

5. Now you will have to enter the pin that was chosen by you when you created the account. Make sure you enter the right one in order to not get locked out.

6. Once all the above said formalities are done, you will be notified if your payment has been successfully completed or has failed.

In order to receive money through UPI, follow the given below steps 

How to Receive Payment Using UPI?

1. After you successfully logged in the app, tap the collect money option that has popped up on the screen.

2. You need to then enter the payer’s virtual id or the number. Then request the desired amount that you are expecting from the sender.

3. You will get a notification to confirm if the details are correct.

4. The request money notification will be then sent to the money sender. He/she will then receive a notification to proceed with the payment.

5. The one sending the money will have to tap on accept or decline based on their decision to pay your account. To proceed further with the transaction, they will have to enter the MPIN for authorising the transaction.

6. On completion of the payment transaction the one who has sent you the amount gets notified if the transaction was successful or was declined.

7. You being the recipient, you will also get a notification as well as text from the bank once the money has been credited to your account.

What is UPI pin?

- Any UPI pin is a 4 or 6 digit passcode that the user sets when he/she has registered for the very first time on the UPI app. It is essential that the user knows his UPI pin as it will be required at every step, whether to send money, receive money or scan to make a payment. It is highly recommended that the UPI PIN is never shared with anyone as it is used to authorize all bank transactions.

Throwback to when UPI was first launched-,

UPI was brought into use from January 1, 2019 and is a system that was developed by the National Payments Corporation of India (NPCI).

In recent times, UPI has become one of the first choices for payment of the Initial Public Offerings (IPOs). The transaction limit was increased from Rs.100,000 to Rs.200,000 in March 2020. 

From December 2021 it was again upped by the Reserve Bank of India and the limit was increased to Rs.500,000 for Retail Direct Scheme and IPO applications.

Note to keep in mind-

The ease of using digital service with your mobile has also cautioned safety concerns. Your mobile in case of sending and receiving payments typically acts as a virtual money wallet and therefore it can be a vulnerable target for financial frauds. There are fraudsters out there who wait for you to make one wrong move so they can steal your money. It is crucial for you to be cautious and adhere to safety tips while using mobile apps facilitating financial transactions.