December 26, 2024 · 16 mins read
Santosh Kumar
UPI - Unified Payments Interface is a digital payment system application that allows users to transfer money between bank accounts through mobile phones. UPI simplifies the transaction process by using QR codes, UPI-registered mobile numbers or VPAs (Virtual Payment Addresses). This system integrates multiple functions of a bank that are combined into one mobile payment system that was created by the NPCI (National Payments Corporation of India). The application's main aim is to eliminate the need to enter bank details and other account information each time there is a transaction. The transactions are protected by a PIN that ensures safe and secure transactions. The UPI payment system is regulated by India's central bank, RBI (Reserve Bank of India).
1: UPI is a unique payment system that enables a seamless transfer of funds between merchants and other users
2: There is no minimum transaction limit to transfer through UPI.
3: UPI enables peer-to-peer transactions free of cost. There is no fee or charge for making payments or requesting payments through UPI.
4: Financial transactions can be carried out 24/7, 365 days a year through UPI
5: UPI has the option of autopay by NPCI for regular payment of utility bills
6: There is a 2-factor authorization, which allows users to make single-click payments easily.
UPI ID (Unified Payment Interface Identifier) is a unique identification address linking the UPI application and the user's bank account. UPI ID serves as a Virtual Payment Address that simplifies the payment process for users to make secured and hassle-free transactions directly from the bank account without the need to go through different banking procedures. The format of UPI ID is username@bankname or usernumber@bankname
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The user must follow the below-given steps to understand how to create a UPI ID:
Step 1: Select the UPI app and Open it
The user has to install a UPI app that is compatible with their mobile phone and can be linked with the bank. There are a number of UPI apps available
Step 2: Register with a mobile number that will be linked to the UPI app
After installing the UPI app, the user must register and verify with the mobile number that is to be linked with the UPI app
Step 3: Link bank account to transfer funds using UPI
The next step after the registration is done is to link the bank account with the UPI app. There will be an option to link the bank account, select the bank and enter the necessary details.
Step 4: Create UPI ID (also known as the VPA (Virtual Payment Address)
After the bank account has been linked to the UPI, the user has to create a UPI ID in the format {username}@{bankname}. Set the username as desired and instructed.
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Step 5: Verify UPI ID
The UPI ID will be verified through the UPI app after creation.
UPI ID (Unified Payment Interface Identifier), also known as the Virtual Payment Address (VPA), is the unique identification address created for the UPI app for making or receiving payments through UPI. UPI ID is an essential component for initiating payments without the need for bank account details like account number, IFSC code, etc., which had to be given for the traditional transaction method. The UPI transaction system requires the UPI ID, a mobile number linked to the UPI or the QR code to make transactions. The recipient's UPI ID is the unique identifier to send or receive money through UPI. It is important to note that UPI ID and UPI PIN are 2 different things. UPI ID can be shared to enable transactions, but UPI PIN must not be shared with anyone. Sharing a UPI ID or the registered mobile number or QR code enables transactions to make or receive payments, while a UPI PIN is only for the user to authorize payments made through the UPI app.
UPI PIN (Unified Payments Interface Personal Identification Number) is a 4 - 6 digit security code set by the user to enable and authorize transactions through the UPI app. It allows users to send and receive money instantly from bank accounts and provides an extra layer of security to safeguard sensitive information from unauthorized access.
The UPI PIN is an important element and adds security to UPI transactions. However, it must be kept confidential to prevent unauthorized access or other cyber crimes.
Authentication of transactions: The UPI PIN ensures authentication of digital transactions that are initiated through the UPI app.
Prevention of fraud: UPI PIN adds an extra layer of security for all payments made through UPI that protects and safeguards all transactions from potential fraud or unauthorized access
Secured transfer of funds: Transactions made through UPI are secured and safe because of the use of UPI PIN, which is regulated and governed by the NPCI
Confidential: The UPI PIN must be kept confidential and not shared to maintain security and prevent unauthorized access.
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UPI PIN is a 4 - 6 digit numerical code that is an added security measure for making transactions using UPI to prevent unauthorized access and fraud. Given below are the steps on how to create a UPI PIN
Step 1: Install UPI application
Download and open the UPI app, which is compatible with the mobile phone and can be linked to the bank account
Step 2: Choose a Bank account
Select the bank account which is to be linked with UPI and search for the PIN generation option
Step 3: Provide details
Enter the necessary details asked, after which the user will receive an OTP on the registered mobile number for verification
Step 4: Verify UPI PIN
After the verification, the UPI PIN of the user’s choice has to be entered and confirmed
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1: Avoid using passwords such as birthdays, phone numbers or that contain any personal information
2: Select a PIN that will be easy to remember but is difficult for others to predict
3: Never share UPI PIN with anyone, and keep it confidential to ensure the safety and security of transactions.
The following steps can be followed to change or reset the UPI PIN
Step 1: Open the UPI application
Step 2: Select the option ‘UPI/send money to anyone’
Step 3: Go to the Settings option and search for the bank section
Step 4: Choose the ‘Change PIN’ option after selecting the bank account for which the PIN has to be changed
Step 5: The next step is to enter the last 6 digits of the debit card along with the expiration date of the card
Step 6: After that, the current UPI PIN must be entered then the new UPI PIN
Step 7: The user will be asked to re-enter the new UPI PIN and confirm
Step 8: UPI PIN will successfully be changed
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UPI PIN is a unique passcode that authenticates transactions, which is why the UPI PIN must be kept highly confidential. Set and change the UPI PIN to something that is easy to remember but should not be easy to guess.
UPI enables the transfer of funds directly from bank accounts by authenticating those transactions with the help of a UPI PIN. UPI PIN acts as an added layer of security during transactions made through UPI. Given steps below can be followed to send money through the use of a UPI PIN:
Step 1: Open the UPI application that is linked to the bank account
Step 2: Select the ‘Send money’ option
Step 3: Enter the receiver's UPI ID sc and their QR code, or enter their mobile number to proceed with the payment
Step 4: Enter the desired amount which has to be transferred
Step 5: Select confirm and enter the UPI PIN, after which the money will be transferred to the recipient's account.
MPIN: MPIN is a 4 - 6 digit code used to authorize banking transactions through apps. It can be generated through ATMs, bank apps, UPI, or by visiting the bank branch. MPIN is most commonly used for mobile banking services. It provides high security for mobile banking and digital transactions.
ATM PIN: A 4-digit code to authenticate debit cards for cash withdrawals or to check account balances through an ATM. ATM PIN generation can be done using the instructions provided by the concerned bank. ATM PIN provides moderate security for ATM use compared to MPIN.
UPI PIN: A 4 - 6 digit code for authenticating transactions through banking or UPI apps. UPI PIN is mostly used for making and receiving payments or checking banking details through UPI apps. The PIN can be set using net banking apps or UPI apps. UPI provides high security for online transactions compared to both MPIN and ATM PIN.
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Prior to creating a UPI ID, specific conditions will need to be satisfied. If you do not satisfy these conditions, the UPI system will not enable you to authenticate your account.
Mobile number associated with bank account: Your mobile number must be registered with the bank account you wish to associate with UPI. All UPI transaction authentication occurs through SMS-based verification, if your mobile number is not associated with your bank account, you will not be able to move forward.
Aadhaar and debit card requirements: Most apps will allow setup using your debit card associated with the bank account to set up UPI. Typically, the last six digits and expiry date of the debit card are all that is needed. Further, some banks may also allow you to authenticate using Aadhaar ID linked one-time password (OTP) for authentication.
Smartphone and internet connection: You need to use your smartphone with your chosen UPI app downloaded, and a stable internet connection to use UPI. In general, you can only use UPI on your smart phone. There are no feature phones and can only be used when provided through services based on USSD.
Active bank account: You may only use UPI if you have a savings or current account that is also active. If your account is dormant or inactive, you may not be able to use it for UPI authentication.
The various UPI apps, like Google Pay (GPay), PhonePe, Paytm, and BHIM, run on the same NPCI infrastructure but differ slightly in how they set UPI IDs and handle PINs.
PhonePe:
1: UPI ID formats - mobilenumber@axl (e.g., 9876543210@axl)
2: Allow you to have multiple UPI IDs linked to the same mobile number & bank account.
3: PIN set-up requires the debit card information, and OTP verification.
Google Pay (GPay):
1: UPI ID formats - username@okbank (e.g. rahul@okaxis)
2: Allows custom IDs, in addition to the standard ones.
3: The PIN involves debit card details, and you must have a device lock, as an extra safety feature.
Paytm:
1: UPI ID format - mobilenumber@paytm
2: Emphasis on the wallet more than UPI usage.
3: Resetting your PIN is easy, with a debit card verification.
BHIM App:
1: UPI ID format - mobilenumber@upi
2: Basic access, for simple UPI navigation.
3: Aadhaar accounts are highly emphasized here, as a safe government-approved feature.
UPI ID unavailable or already exists: If the default ID is taken, most applications will let you personalize your UPI ID. You can try initials or numbers at the end.
UPI PIN forgotten: You will need to reset the PIN by using your debit card details and an OTP, and most banks will require a debit card to reset a PIN.
SMS verification unsuccessful: Make sure you have enough balance in order to send an SMS, and make sure your SIM is in the active SIM 1 slot.
Your UPI ID isn't working on another device: Many applications will restrict that a single UPI ID can work on a single device for security reasons. You may need to deregister the app on the old device before enabling it on the new one.
Not activated: UPI IDs typically shouldn't take longer than 24 hours to activate. If longer, reach out to your bank or the application for support.
As UPI transactions experience growth, so do risks associated with fraud and phishing. Following these security tips will ensure that your account is safe to use:
Never share your UPI PIN: Banks or apps will never ask for your PIN. Sharing your PIN puts your account at risk.
Use device lock and app lock: Use strong passwords or biometric locks to secure your phone, and your UPI apps.
Always verify recipient's details: Always double-check the UPI ID to make sure it matches with the account number before sending money.
Never click unverified links: Do not click on any payment links, sent by someone unknown to you, scammers disguise requests.
Enable transaction notifications: Keep SMS notifications and notifications on your app turned on so you can track all activity in real time.
Set a limit for transaction: Many UPI apps allow you to set self-imposed transaction limits, which is a helpful way to make yourself safer.
UPI ID and UPI PIN are the 2 most essential components of UPI, without which transactions through UPI are impossible. UPI ID is the VPA (Virtual Payment Address) that enables sending and receiving money without sharing any other bank account details. UPI PIN is a passcode that is used to authorize each transaction made through the UPI application. Once the procedure on how to create a UPI ID and UPI PIN is clearly understood, it is very convenient to use them to transfer funds. These main features of UPI have made it convenient and safe to make and receive payments as UPI ID enables payments, and UPI PIN adds an extra layer of security to protect the transaction against any unauthorized access.
UPI PIN is a secured code that has to be entered before transferring funds to a bank account through the UPI application
If forgotten, the UPI PIN can be reset by logging into the UPI app and selecting the 'UPI PIN' option. After that, the user must select the 'Forgot UPI PIN' option, provide the necessary details, and reset the UPI PIN.
No. The UPI ID is the Virtual Payment Address that enables transactions, while the UPI PIN is a 4 - 6 digit code that authorizes transactions made through the UPI application and must be kept confidential.
UPI PIN (Unified Payment Interface Identifier) is the code used to initiate transactions through the UPI application. It is a unique code that safeguards transactions from unauthorized access.
The format of the UPI ID is specifically given by the user's bank, and it typically looks like username@bankname, such as xyz@sbi.
UPI PIN can be set by going to the UPI application's Main Menu, selecting the Bank Account, and choosing the 'Set' option. After that, the user will be asked to enter a PIN and select Confirm or Submit.
No. UPI PIN and ATM PIN are used for completely different procedures. ATM PIN is used for debit/credit cards to withdraw money from an ATM or make related transactions, while a UPI PIN is generated to authenticate transactions made through the UPI app.
UPI transaction limit is up to 1 lakh per day or up to 10 transactions.
To create a UPI ID, the user must have a UPI-enabled app that can be linked to the bank account, after which the user has to log into the app and create a UPI ID and UPI PIN.
Due to security reasons, it is not possible to check all UPI IDs. However, the user's UPI ID can be viewed in the UPI app profile.
You may register more than one UPI ID linked with the same bank account on different applications. Most banks will allow at least 2 to 3 UPI IDs to exist per app, or more, depending on the app or bank.
Usually, no; you will typically need a debit card associated with your account to reset a PIN. There are a few Aadhaar-enabled bank accounts that allow the reset of a PIN using an Aadhaar OTP.
In order to get access to your UPI ID again, you will need to either deregister it from the other device, or contact customer service. Some applications will automatically unregister the UPI ID from the old device once the new device is registered.
Activation is usually instantaneous; however, in rare circumstances when there are network or server-related issues, it may take up to 24 hours.
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