How does UPI Work?

UPI which stands for unified payment interface has been active since 2015 but it came into limelight post demonetisation in 2016. The digital platform platform was developed by National Payment Corporation of India (NPCI). UPI is a single platform that facilites the usage of all the banking services on it. One can make real-time bank to bank payments on this platform. All you need to do is to create a UPI ID which would be same on all the UPI-enabled apps. Almost every payment bank supports UPI and there are many technical giants such as Google, Paytm, Phone Pe etc which have made their name in the market with their services. How to use UPI? Below we have answered this question in details.

Usage of UPI

UPI payment service simply works with the help of UPI ID which must be linked to your bank account. One can easily set up one’s UPI ID through apps which offer UPI service. The format of a UPI ID starts with your mobile number, followed by ‘@’ symbol and then the name of app. For example, to set up Paytm app UPI ID, you would write XXXXXXXXXX@paytm. The same UPI ID is used across all the payment platforms. You first need to provide your registered mobile number and then you need to supply your bank account details with the help of an SMS.

After this step, you could easily see your UPI enabled bank account displayed on the screen. Post this, you need to confirm your bank account and setup your four-digit PIN which would remain the same for all apps. The registered UPI ID could be easily chosen from your contact list. Some of the popular banks which support UPI service are State Bank of India (SBI Pay), ICICI bank, HDFC bank, Axis Bank, Bank of Maharashtra, Federal Bank, Karnataka Bank, Punjab National Bank, to name a few.

UPI transfer limit is Rs. 1 lakh rupees but it is expected to double in the coming time. Clearly, with the implementation of Unified Payments Interface the pace and ease of online money transfer has become manifold.