February 22, 2025 · 11 mins read
Santosh Kumar
In India’s economy today, digital payment methods are the latest, instant, and efficient way to send and receive money. Today, making payments in and around the country has become efficient and convenient. Users can now make payments for utilities, rent, loans, electricity, etc., hassle-free and quick.
To use UPI apps for making instant payments, users are required to hold an Aadhaar card and/or A Bank Account in order to link their accounts to UPI apps. UPI apps such as PhonePe, BHIM, Google Pay, and PAYTM are among the biggest digital payments platforms for Indian citizens. Using these apps, citizens can efficiently make payments by entering their UPI PIN to initiate the payment to the receiver.
To create a UPI ID, users are needed to:
1: Download the UPI App of your choice and open the app.
2: Register on the app with basic information like name, date of birth, bank account, etc.
3: Click on Bank account and select the user’s bank account.
4: In the drop down list, a list of Banks shall appear, the user is required to select their respective bank.
5: Enter details such as Name, bank account number and Expiration Date.
6: The user shall receive an OTP, which must be entered in order to follow the instructions on the screen.
Users can then make their UPI ID, which will look like, for example, 1234567890@xyz or yourname@ybl.
To generate a UPI ID PIN, users are required to follow the following steps:
1: Download any preferred UPI App on the Smartphone and open it.
2: A profile photo will be at the top right corner of the app screen. Click on the profile photo.
3: Tap "Edit Bank Account" or click on the account that must be edited.
4: Click on “More”
5: Continue to Create a UPI ID PIN
6: Re-Enter the new PIN ID
To know how does a UPI ID work, consider the following:
Usually, the UPI is in the format of yourname@yourbankname. The bank part of the UPI ID refers to the bank names, initials or even shortened names. The “your name" part includes your contact number or an email address.
The user is required to open the UPI app and search for the receiver's UPI ID, Bank details, or even a contact number. Click on the contact name and enter the amount on the tab, then click pay. On clicking pay, the user is required to enter the UPI PIN to initiate the payment. After entering the UPI PIN, the user has successfully made the money transaction.
Banks known to support UPI are Union Bank of India, IndusInd Bank, Federal Bank, HDFC, BOB Financial Solutions Ltd, and many more.
A complete list of the RuPay banks that support UPI apps for payments are as follows:
1: Axis Bank
2: Bank of India
3: Airtel Payments Bank
4: HDFC Bank
5: ICICI Bank
6: Canara Bank
7: Federal Bank
8: Indian Bank
9: Punjab National Bank
10: City Union Bank
11: State Bank of India
12: IndusInd Bank Ltd
13: PAYTM Payments Bank
14: Union Bank of India
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It is often natural to enter the wrong UPI PIN, and no harm is caused, guaranteed. If, in any case, the user enters the wrong UPI ID PIN during a transaction, the payment will simply not be successful. The app will show "Payment Failure."
The app will send the user a message conveying that the PIN entered is incorrect. In order to continue, the user must re-initiate the transaction and enter the correct UPI PIN this time.
A few points to remember if, in any case, a wrong UPI PIN is entered are:
Payment Failure: The user needs to be aware that entering the wrong UPI PIN only results in a payment Failure.
A re-attempt is recommended: The user must attempt to initiate another transaction by entering the same amount and ID and, this time, entering the correct UPI PIN.
Potential Account Lock: If the user enters the wrong UPI PIN multiple times, the account can be temporarily locked for use.
Resetting UPI PIN: After the temporary block, the user is allowed to reset the UPI PIN via the UPI App to regain access.
It is strictly not advised to re-enter a wrong UPI PIN multiple times, as it can lock your account for up to 24 hours. After the temporary block, the user is permitted to reset their UPI PIN in order to continue making payments.
If none of the above factors work well for the user, the User must contact customer support to raise a complaint.
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The NPCI, National Payments Corporation of India, has set a UPI transaction Limit of Rs. 1Lakh per day for most banks and UPI apps in India. However, a few factors may affect the UPI transaction limit, and they are as follows:
Type of Transaction: Some banks can set a lower transaction limit for a particular transaction type. Examples of such transaction types are P2P (peer-to-peer) and merchant payments.
Payment Recipient: The transaction limit may be higher if payments are made to education or Healthcare institutions.
Bank: Different banks offer different transaction limits. For example, if one bank has a transaction limit of Rs 1 Lakh per day, another Bank may have a transaction limit of Rs 50,000 per day. If, by chance, the user reaches their Transaction Limit of the day
1: The user is required to wait for 24 hours in order to make another transaction.
2: The user can contact the bank or payment app provider for more information.
For UPI applications, where payments can be made efficiently and quickly using a UPI ID & PIN, rules and regulations exist as more than half of the nation has gone digital for payment transactions. Security and safety matter the highest while making money transactions online on an internet application; hence, the rules and regulations as of the year 2025 for UPI apps are as follows:
Transaction Limit: The Standard Transaction Limit for most banks and UPI Apps is Rs. 1 Lakh per day, but this could change for some banks and UPI apps.
High Limit For Particular Transactions: Certain categories, such as Hospitals or education institutions, may have a higher Transaction Limit of up to Rs. 5 Lakhs.
Secure UPI PIN: The UPI PIN must be secured and not be shared with anybody. This is strictly for the user.
Verification Before Payment: Before initiating the transaction, it is a must to verify and check the receiver's ID and Name.
Two-Factor Authentication: The users must utilize the feature of Two-Factor Authentication for higher security.
Suspicious Activity Report: An immediate report must be registered or reported if suspicious or fraudulent activities are suspected.
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India is a "less cash" economy, which is why UPI apps were created for citizens. Various UPI applications exist for citizens of the country to make instant, easy, and efficient money transactions to any other bank account online. Unified Payments Interface UPI also helps users receive cashback and earn Rewards for certain transactions on e-commerce websites.
Shopping anywhere without a wallet is the new way to go about this. Be it shopping, paying bills, especially electricity bills, and much more, can be done via UPI payment apps. A few applications that are big in India for making digital payments are as follows:
1: PhonePe
2: Google Pay
3: PAYTM
4: BHIM
5: Amazon Pay
6: State Bank of India
7: Pockets By ICICI Bank
8: MobiKwik
9: CRED
The above-mentioned apps and a few banks allow UPI payments to other bank accounts. The cashback offers and rewards that users can earn by making money transactions to other bank accounts are as follows:
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PhonePe: PhonePe is a popular app for payments that offers its users rewards on Recharges.
Google Pay: Google Pay is a secure app for payments that offers users cashback for money transactions.
BHIM: For successful money transactions, BHIM is an app that offers cashback to its users.
There are a few steps to consider in order to calculate cash back, and they are as follows:
1: It is important to be aware that cashback rewards can be based on a percentage, fixed, cumulative, or only available for specific categories.
2: The earning limit of cashback and rewards depends on the duration of the offer, eligibility, and terms and conditions set by the provider.
Now, to claim the cashback rewards and offers, users are required to follow the steps below:
1: Once the user has made the money transactions, the cashback amount will be transferred to the UPI-linked bank account.
2: Users are meant to use the rewards and cashback amounts for future transactions if needed or can be transferred into the primary bank account.
1: MobiKwik
2: Google Pay
3: PhonePe
4: Freecharge
5: CRED
6: PAYTM
7: Dineout
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Unified Payments Interface (UPI) applications are usually considered safe, secure, and encrypted to name digital transactions in India. Thanks to the multiple layers of security features available on the applications, making payments online or offline to any merchant is simple, quick, and efficient. A few points to keep in mind in order to maintain the safety of the application are as follows:
1: Users of UPI and UPI Apps must make sure to switch on their "Two-Factor Authentication," which involves the user's mobile number and PIN.
2: Unauthorized users are disabled from accessing sensitive information as UPI transactions are encrypted.
3: In order to identify and prevent fraudulent activities, transactions are monitored in real-time.
4: Users are known to be protected under the Reserve Bank of India, RBI, guidelines. This automatically limits the liability in any case of unauthorized transactions.
The best way to practice safe UPI transactions are in the following:
1: Stick to reputable and trusted known applications.
2: If available, use features such as biometric authentication.
3: For any unauthorized activities, keep an eye on Bank statements and transaction history.
4: Avoid making transactions over unsecured networks like the airport Wi-Fi, for example.
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To enter all wrong PINs while making a transaction does no harm other than claiming a failed payment. If a user enters the wrong UPI PIN once, another transaction can be processed, and the payment can be done by entering the correct UPI PIN & Amount. On the contrary, if, in any case, the user enters the wrong UPI PIN multiple times, the account shall be temporarily blocked for 24 hours. For 24 hours, no transactions can be made or no money can be received. Post the 24 hours temporary block, the user can reset the UPI PIN in order to make a transaction.
UPI applications have made money transactions easier to another Bank account or to a merchant. No matter where the money has to be sent, it can be done via the UPI Apps. Most UPI applications offer their users cashback and rewards with every transaction daily, which can also be used during the payment process or to save for big purchases.
UPI security is maintained as digital payment networks are usually heavily encrypted and secure with sensitive user information that hackers or any unauthorized fraud cannot touch. It sure is a platform that looks like there is a lot of Risk in making payments online on apps. Still, such apps are government-regulated and have a systematic background score to maintain a smooth interface, helping users to make quick and smooth payments online.
Q1. Will my account be suspended if I enter a wrong UPI PIN?
Ans: No, the account will not be suspended if a wrong UPI PIN is entered once. Another transaction can be re-initiated.
Q2. Can I add 2 bank accounts to my UPI ID?
Ans: Yes. Multiple bank accounts can be added to a single UPI ID.
Q3. What is the per-day transaction limit on UPI Apps?
Ans: The per day transaction limit on UPI apps is RS. 1 Lakh
Q4. Which UPI apps are approved by UPI?
Ans: The Unified Payments Interface application UPI apps that UPI approves are Google Pay, PhonePe, PAYTM & BHIM.
Q5. Can I use multiple UPI apps?
Ans: Yes. Multiple UPI apps can be used on the same mobile by one user.
Q6. Which specific transactions involve a higher Transaction Limit?
Ans: Specific transactions that may include a higher Transaction Limit are Healthcare and education institutions. The high limit for such institutions is RS. 5 LAKHS per day.
Q7. What is the full form of UPI?
Ans: The complete form of UPI is the Unified Payments Interface.
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