The National Payment Corporation of India-NPCI developed UPI, a mobile payment system. UPI full form stands for Unified Payment Interface and enables real-time payment settlement. This happens with a mobile interface between two bank accounts. With the introduction of UPI, the customers need not enter sensitive details like the bank account details every time a financial transaction has to be done.
A Virtual Payment Address has to be used for the user to carry out any financial transaction. The pre-requisites for financial transactions through UPI Full-Form are
To transfer the funds using UPI, all you need will be a mobile number of the beneficiary linked to bank account, UPI ID, Aadhar Number. With the details mentioned, the funds can be transferred to the beneficiary either through IMPS or Aadhar Enabled Payment Service-AEPS.
For the process of funds transfer using UPI, you should download a mobile app that supports UPI Service set up a UPI ID. You can send and receive money using UPI and also conduct online as well as across the counter transactions.
Following are the features of UPI.
Having understood the UPI Full-Form, the next step is to know how to register for UPI. Registering for the UPI App and creating the UPI ID is necessary for transactions using UPI. Follow the simple steps given below to register for the UPI App and create the UPI PIN.
On successful registration for UPI, you can proceed to generate the UPI PIN by selecting the bank account for the UPI transaction.
You can do various types of transactions using the UPI. Just knowing the UPI Full Form is not adequate. You should also know that you can send and receive funds using UPI. You can make barcode-based payments or transfer funds just with a mobile number or Aadhar Card Number. The procedure to be followed for these transactions using UPI is given below:
Payment of Utility Bills
With the UPI Full-Form, you can send as well receive funds. The procedure for receiving funds is given below:
UPI Full Form is a Unified Payment Interface that enables the transfer of funds between two bank accounts through a mobile. This payment system was developed by the National Payments Corporation of India.
UPI ID is an identification for bank accounts through which funds can be transferred or received. It normally begins with the registered mobile followed by @ and ends with the app you are using—for example, 9720456000@G Pay.
UPI PIN is necessary to authenticate the transaction.
Funds transfer up to Rs. 1.00 lakh can be done per day using UPI.
It means that there is a delay at the beneficiary’s end. The amount will be credited within 48 hours.
VPA is a Virtual Payment Address, i.e., an identifier that a user creates for sending and receiving money from a bank account using UPI. Transfer of funds from and to a bank account will be enabled only when the UPI ID is linked to UPI enabled bank. Providing sensitive details like a bank account will not be necessary, which make UPI the most secure payment option.
Unlike NEFT and RTGS, UPI is the most economical mode of funds transfer as there are no charges involved for transactions using UPI.