Profile Image Dipen Shah

What is UPI?

How can I use it? 2 years ago

  • Knowledge Junction:Answered in 20 mins

    UPI is Unified Payments Interface

    It isa  payment system launched by National Payments Corporation of India and regulated by Reserve Bank of India which facilitates the fund transfer between two bank accounts on the mobile platform instantly.

    Its an advanced version of Immediate Payment Service (IMPS) platform designed for transferring funds using: Transfer through Virtual Payment Address (Unique ID provided by bank) or Account Number + IFSC or Mobile Number + MMID (Mobile Money Identifier) or Aadhaar Number or Collect / Pull money basis Virtual ID. A MPIN (Mobile banking Personal Identification number) is given to the banking customer once they register for UPI which is required to be entered while confirming a money transfer.


    Too much jargon?
    Let’s break it down a bit.

    Basically - it uses a combination of bank account number + IFSC code + Aadhar number OR a unique address (SIMILAR to your email address but NOT your email address) - to identify 2 individuals and transfer money between them - INSTANTLY.
    FREE. 24x7 - 365.


    So this will need one more app, right?

    Well, yes & no.
    While we are already struggling handling the apps like PayTM, Freecharge, MobiKwik, Oxigen, Pockets, Chillar and what not - UPI does not NECESSARILY need an app.
    Heck, it does not even need a smartphone!
    Even better - at times it doesn’t even need internet!

    Intrigued? Read on.

    App based: You can download your BANK app - if your bank supports UPI - to create your UPI.
    It looks something like this:
    yourname@icici or yourmobilenumber@hdfc

    Just like your email id - this depends on availability.
    Simple advice - Use the KISS principle (Keep it Simple Silly) - your mobile number @ your bank - should be easy to remember.
    Don’t worry - just guessing your UPI doesn’t mean people can take money from it!

    The following 19 banks  have an UPI app or Banking App that supports UPI on Google Play Store

     Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank and YES Bank.

    The rest might follow soon.


    Too much? Try the BHIM app !

    BHIM (Bharat Interface for Money) is named after Dr. Bhim Rao Ambedkar and has been launched by PM Narendra Modi on 30th September 2016.
    It is intended to do just this - SMOOTH payment via UPI.
    Create QR code. Send payment. Receive payment. Track payment. You name it.


    No Smartphone?
    Not to worry.

    You can use the USSD platform from any phone - with an active SIM - even without internet!

    It uses your mobile number as an unique identifier and creates a VPA (Virtual Payment Address) for you as yourmobilenumber@UPI.

    You can customise it if you want.


    Pick up your phone - any phone - Dial *99#, you have the welcome screen with seven options – send money, request money, check balance, my profile, pending requests, transactions and UPI PIN. Upon choosing the send money option – you can send money to the recipient by either entering their mobile number, Virtual Payment Address (VPA), choose from already saved beneficiaries, using IFSC code and account number, or via MMID and mobile number.

    It is really easy to follow and works well with all other UPIs.

    So, what about mobile wallets?
    Nothing - they shall continue to exist as they are. They will keep offering discounts or offers with their tie-ups and reminders for bill payments and transaction charges or processing fees.

    But if all you seek is to transfer money - it does not get simpler, safer, faster and more direct than UPI.

    A few online shopping merchant sites have started listing UPI as a payment option too!

    Just like an email id - you MUST have a UPI.

    Get one now!


    If you need any more clarification feel free to write back to us.

    P.S. Wish we could charge for this information via UPI ;)

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