January 7, 2025 · 11 mins read
Santosh Kumar
As digital payments increase, financial transactions have completely changed. The widespread deployment of a leading electronic payment method, the Unified Payments Interface (UPI), is the norm in India. Developed by the National Payments Corporation of India (NPCI), UPI allows users to make instant money transfers using their smartphones. It links their bank accounts to unique identifiers known as UPI IDs or Virtual Payment Addresses (VPAs).
A UPI ID serves as an address for making payments or receiving funds without the need to share sensitive account details. Providing to such an extent reason for payment is a personal, business transaction style, as it has been made possible by UPI's ease, convenience and speed.
As the number of transactions using UPI increases, a very common question that pops up is, "Is one bank account allowed to have two UPI IDs? In this article, that question will be considered, how UPI IDs work, and whether one can have more than one UPI ID if one bank account is used.
Before examining whether it is possible for one direct bank account to hold two UPI IDs, let's first define what a UPI ID is and how it works.
UPI ID is a customer-specific ID at the UPI platform, which is permitted by the unilateral provision or receipt of funds. It's like your email but for money management. Each UPI ID is associated with a bank account, and one can use it to transfer money, pay bills, or receive money.
example@upi. Compared to the recipient's bank account number and IFSC code, performing a transaction requires less information to identify the recipient, i.e., the UPI ID of the person or entity receiving the money, for transaction deduplication and consolidation efforts.
Read More:: How to create a UPI ID and UPI PIN?
Registering for UPI requires a smartphone with a UPI-enabled application (e.g., Google Pay, PhonePe, Paytm, etc. Here's how the registration process typically works:
Download a UPI-enabled app: Get any UPI-enabled payment app on the Google Play Store or Apple App Store.
Link your bank account: Choose your bank from the app's list and link your account with your registered mobile number.
Create a UPI ID: During the configuration stage, you may be asked to register your personal Private Unique Universal Payment Interface (UPI) information (VPA) for your account.
Set up a UPI PIN: You will also need to devise a UPI PIN for approving transactions. Once your UPI ID is created, you can use it to transfer funds, pay a bill, and purchase goods instantly.
The brief answer is yes. It is demonstrated that more than one UPI ID can exist on the same bank account. This feature has been developed to provide users with greater flexibility and mobility. Here's why and how it works.
Read More:: How to Check CIBIL Score Without Mobile Number
A unique UPI ID can be assigned to a single bank account, as UPI allows a single bank account to be used to register and create a number of virtual payment addresses (VPAs). Each VPA has an identity, so it is possible to get payment through different UPI IDs despite sharing the same bank account.
For example: For example:
You can use a UPI ID, e.g., myname@upi, for private purposes.
You can also set up another UPI ID, for example, my name.business@upi, for business purposes.
The two UPI IDs below can be listed in a single bank account, and any amount transferred to either of the UPI IDs will be reflected in that account.
This versatility allows humans and businesses to manage their finances more effectively. For example, there is no requirement for a person to set up multiple identity bank accounts to differentiate personal expenses from business expenses. Similarly, a freelancer may create an independent UPI ID to receive payments into the freelancer's account and for personal expenses.
Read More:: How to Do Offline UPI Payment
There are several reasons why a person may have more than one UPI ID linked to the same bank account.
Separation of Personal and Professional Transactions: It is common for people to keep their personal finances disentangled from business/professional finances. If they curate two UPI IDs of the same bank account (i.e., one for personal goods purchases and one for work-related expenses), the users can easily categorize personal and work-related expenses.
Managing Different Sources of Income: Individuals receiving income from more than one source (e.g., salary, freelancing, business income) often require greater representation (following) of their income. The capability to use various UPI IDs based on various income sources from the same bank account can be useful.
Enhanced Security: Some people have more than one UPI ID for various reasons, which enhances security. For example, a person could have one UPI ID for trusted transactions and another for less secure transactions, such as online shopping.
For Businesses: Small businesses, freelancers, and startups can adopt a separate UPI ID for each use, e.g., customer payment, vendor payment, or charity. This way, they can maintain better organisation and transparency.
Read More:: What is UPI Reference Number?
Creating multiple UPI IDs for a single bank account is relatively easy. Different UPI-enabled apps may have slightly different processes, but generally, the steps are as follows:
Open your UPI-enabled app: Begin distributing the UPI app of your preference (Google Pay, PhonePe, Paytm, etc. ).
Go to Settings or UPI Profile: Find the option to control your UPI profile/settings.
Create a New UPI ID: You can create a new UPI ID/VPA. Type your desired name for your UPI ID (e.g., your name.business@upi).
Link it to Your Bank Account: After typing the new UPI ID, select the bank account you want to associate it with (or select the one that is not associated).
Set UPI PIN: [WHEN NECESSARY] Input a PIN for the new UPI ID. This PIN is required for authorising transactions.
Save: If you generate your second UPI ID, it will be verifed to your bank account and may be used for transactional purposes.
Read More:: How to Change UPI PIN in Google Pay
While having many UPI IDs associated with the same bank account is convenient, some limitations and items to consider exist.
No Separate Bank Account: All UPI IDs belong to the same account. In other words, no funds can be cut off, and all funds are allocated to one balance sheet. In case of required separate accounts, you have to open new bank accounts.
Different Apps and Bank Policies: There may be some UPI application specific rules or limits on the number of UPI IDs that are allowed to be created on a single bank account. Never forget to check whether any such limits are in place at your bank and the UPI app.
UPI ID Limitations: In general, several UPI IDs can be generated for the same bank account, but the number of UPI IDs that exist for the same bank account may be limited in some cases. For example, "A maximum of three UPI IDs can be attached to a single account," etc. It is recommended to check the bank policies with your (local) bank.
Managing Multiple IDs: The implication is that since you will hold multiple UPI IDs, it would be convenient for you to keep them in good condition. You will have to maintain a record of which ID you are using for which transaction so as not to be found confused.
Security and Privacy: Always be cautious about sharing your UPI IDs. If you generate a few IDs for several purposes (e.g., personal information, professional, etc.), when dealing with others, don't forget to ensure the correct ID is being passed along to the correct individuals or organisations.
In the UPI ecosystem, the multiplicity of UPI IDs may produce a mix of which some are more useful than others (and some aspects positive and some aspects negative).
Read More:: How to Reset UPI PIN
Flexibility: Multiple UPI IDs allow for more flexible financial management.
Organisation: Helps organise personal and business transactions.
Convenience: A few bank accounts are not necessary to differentiate between different kinds of payments.
Privacy: This allows for better privacy legislation because you can choose to publicly post which ID you would like to use for each transaction.
Complexity: Maintaining many UPI IDs may be difficult, especially if you cannot remember which one is for which task.
Limit on Number: There may be a limit to the numbers of UPI IDs a single account bank wise could be generated.
Shared Account: Since all UPI IDs are, in effect, connected to the same bank account, it is not feasible to physically separate funds.
Read More:: How to Reset UPI PIN on PhonePe
Yes, there can be more than one UPI ID in a single bank account. This functionality provides a wide range of flexibility to persons and businesses, both being able to dispose of personal and professional matters effectively. Nevertheless, it is necessary to take precautions so that your UPI IDs are well monitored and are updated according to your bank's policy regarding multiple IDs creation.
With different UPI IDs, not only can one provide more financial structure, but it will also be possible to establish the user's/business cost and money security. Despite some input restrictions, the advantages are such that this could be a very valuable tool well suited as an option for many use cases.
If you want to simplify your financial transactions and separate different types of payments, creating multiple UPI IDs for one bank account is definitely a helpful feature. Just keep track of your IDs, and do not get mixed up in who is using them.
How many UPI IDs can I have for one bank account?
The number of UPI IDs you can have for a single bank account depends on the bank’s policies and the UPI-enabled app you are using. Typically, most banks allow up to three UPI IDs to be linked to a single account, but this may vary. It's best to check with your specific bank or UPI app for the exact limit.
Can I use one UPI ID for different purposes like personal and business transactions?
In fact, it is possible to create different UPI IDs for different purposes (for example, for intrinsic and commercial use) and link them to the same bank account. This helps to keep transactions separate and organised.
Is there any fee for creating multiple UPI IDs for the same bank account?
No, generating multiple UPI IDs using the same account is free of cost. Generating a UPI ID (pay unified interface ID) is free, and banks/UPI applications charge no fees to their users for registering subsequent IDs as long as the bank verifies such.
What is the UPI PIN for the UPI ID that is linked to the same bank account?
No, you are not required to use a different UPI PIN for each UPI ID. The same UPI PIN can be used to access all UPI IDs linked to the same bank account. The PIN is employed for transaction authorisation in order to be operated at any UPI ID under which you might be signing in (i.e.
Can I associate a UPI ID (from one app, e.g., Google Pay) with a different UPI ID (from a different app, e.g., Paytm) to the same bank account?
Yes, the same bank account can be linked to more than one AP, each with a different UPI ID. To that effect, you can use myname@upi on Google Pay and my name.business@upi on Paytm, both routing to the same bank account.
Do all banks in India support multiple UPI IDs UPI ID for different mobile numbers belonging to the same bank account?
No, the same mobile number can be affiliated only with one UPI ID at a time. However, you are not restricted to using different UPI IDs for the same mobile number in other apps/platforms, provided that the UPI IDs are linked with the same bank account [3].
Can more than one UPI ID be supported by all banks in India?
Most of the major Indian banks allow the creation of multiple UPI IDs for each account, although verification is advised before generating any supplementary UPI IDs if with your bank. Other banks or UPI apps have their own policy or boundaries.
Download the app now
Download the app from PlayStore
