UPI stands for Unified Payments Interface. UPI or UPI full form i.e. Unified Payments Interface is an instant real-time payment system that helps to transfer cash instantly using a mobile interface between two bank accounts and UPI is also a single-window mobile payment system which was developed by the National Payments Corporation of India (NPCI). The main purpose to develop UPI was to eliminate the need to enter the bank account details or other sensitive information every time a customer tries to make a transaction. As a result, UPI is a concept that enables you to link your different bank accounts to a single mobile app.
Features and Benefits of UPI
You must go through the features and benefits of UPI and see how it can play a vital role to make your payments easy.
Below listed are some of the unique UPI features:
- IMPS (Immediate Payment Service), which is faster than NEFT, allows for instant money transactions and it also allows immediate money transactions through your mobile device 24*7 for 365 days, even on public holidays.
- Single mobile application for accessing various bank accounts.
- One tap authentication for seamless transactions.
- No need to enter any bank account or any other details as UPI uses virtual payment addresses for making transactions.
- The best possible alternative for cash transactions which gives the customers complete freedom to go cashless.
- Mobile Money Identifier or MMID enables UPI to use the IFSC code, account number, and phone number.
- Every transaction requires an OTP (One-Time Password) or a MPIN to authenticate the transaction.
- You can pay the merchant bills with a single UPI application.
- Counter payments, Utility bills as well as barcode scan payments can be done by accessing different bank accounts at the same time by using a single UPI application.
- In case of payment failure, you can raise your concern within the application.
Now you know the UPI Full Form but UPI also provides a variety of useful benefits. Users can check their account balances and transaction history, as well as send and receive money just by using a single mobile application. UPI offers a lot of other benefits as well that are not just limited to one user using it but it benefits the whole ecosystem. From banks to merchants to customers, each one has their own set of UPI benefits. Some of the benefits are mentioned below:
UPI Benefits to Banks
- Two factor authentication process by a single click.
- It is a single application for all the transactions and also Safe and secure which makes it beneficial for the banks.
- Unique ID is used to identify payments.
UPI Benefits to Merchants
- A single virtual platform collects all of the customer funds.
- The application keeps a record of all transactions.
- E-commerce transactions go through quickly.
- Unlike cash transactions It eliminates the need to round off payments because payments can be made in exact amounts.
- Payments to vendors and customers can also be made easily through the app.
UPI Benefits to Customers
- Customers who do not have credit or debit cards have access.
- You can access the application anytime any day.
- You can access your various bank accounts by using a single mobile application.
- Because UPI employs virtual addresses, there is no need to share credentials.
- Customers can report a problem within the application by using the built-in transaction failure feature.
How UPI Works?
You can use a mobile application to make payments while the money gets deducted through your bank account. UPI guarantees seamless transactions by using the already existing technologies such as Immediate Payment Services (IMPS) and Aadhaar Enabled Payment System (AEPS). UPI also supports all kinds of transactions like both pay and receive transactions, as well as over the counter and barcode payments. You can even pay for your online transactions like e-commerce purchases and online subscriptions using UPI.
You can carry out digital payments without using your credit or debit cards, or even without entering your bank account details, by using your single identification. This not only increases the security of critical data, but it also allows the consumers with bank accounts to conduct transactions easily just by using their smartphones.
How to Register & Generate PIN Using UPI?
After knowing the UPI full form, you must know how to register on UPI. In order to use the UPI application and make transactions, you first need to register and generate your PIN on the application. To complete a UPI transaction, you’ll need your UPI PIN. Below mentioned are the steps to register for UPI:
- Open the play store or app store and download any UPI application of your choice either a bank’s UPI application, or third-party UPI application from play store or app store.
- Once you’ve downloaded the application, create your profile by filling in information such as your name, Virtual Payment Address, password, UPI Pin, etc.
- To complete the registration process, link the bank account to this UPI application.
Another step after completing the registration for the UPI application, is to generate your UPI PIN. Here is the process to generate your UPI PIN:
- Once you’ve downloaded the application and completed the registration process, select the bank account by which you wish to make your UPI transactions.
- You can create your UPI PIN after selecting your bank account.
- As security concern, an OTP (One Time Password) is sent to the registered mobile number.
- To generate your UPI Pin then enter the received OTP.
- Each time you use the UPI app, you must enter your UPI PIN to make a transaction.
How to Make UPI Transactions?
One can make a lot of transactions using a single UPI mobile application and you can also send or receive money or can pay your bills using the mobile application. You can make payments through a mobile number or can even scan the merchant’s barcode to make the payment.
You know the full form of UPI but you must also see the classification of UPI into two categories that are mentioned below:
- Open the UPI app on your smartphone that you previously registered with.
- Then the m-PIN or UPI Pin to access the application.
- Click on “Transfer/Send Money” option.
- Then enter the beneficiary’s VPA, account information or phone number.
- Then enter the amount that you wish to transfer.
- Enter the UPI Pin to authenticate the payment.
- Following the transaction, money is instantly transferred, and the user receives a notification on their mobile phone.
- Log-in to the UPI application using your m-PIN
- Select the bill payment category that you need to pay the bill to and then enter your details and the bill amount would be generated.
- Enter your UPI PIN to authenticate the transaction.
- The biller receives the money immediately.
- You can also pay your water, electricity, DTH, broadband and gas bills.
- You can pay your Postpaid mobile bills or even do prepaid mobile recharges.
UPI Full Form FAQ’s
1. What is UPI?
UPI is an individual platform that brings together a variety of financial services and also features them into one place. All you need is a UPI ID and PIN, to send and receive money.
2. What is UPI Full Form?
The full form of UPI is Unified Payments Interface.
3. What is the Difference Between a UPI ID and a PIN?
A UPI ID is a unique identifying proof and many people use it to send and receive payments whereas on the other hand the UPI PIN is a four-digit personal identification number that must be submitted in order to approve a cash transfer via UPI.
4. Is UPI Safe to Use?
UPI transactions use a highly secure encryption format that is extremely difficult to tamper with which means it’s each transaction is authenticated using a two-factor verification method, such as your PIN and OTP.
5. Is UPI a Free Service?
Currently, UPI is a free method of sending money from one bank to another but, things may change in the future.
6. Who is Responsible for UPI?
NPCI (National Payments Corporation of India) regulates UPI, and the Reserve Bank of India governs UPI transactions.
7. What is VPA in UPI?
A VPA is a Virtual Payment Address, is a one-of-a-kind identifier that a user creates in order to pay or receive money via UPI. A UPI ID, when linked to a UPI-enabled bank, allows a user to receive money in their bank account. They will not have to share their account number or other bank details.
8. Is it Possible to Link UPI ID with Several Account?
Yes, it is possible to link multiple bank accounts with a single UPI ID.
9. Is it Possible to Transfer Money to Someone Who is Not a UPI User?
Yes, for that You will need the receiver’s bank account number, IFSC code, and account holder’s name.
10. Is UPI Pin the Same as the ATM PIN?
No, UPI and ATM PIN are not the same. You generate a UPI PIN when you en-roll a bank account with UPI application, whereas you create your ATM PIN when you receive a Debit/Credit Card.
11. What are the various benefits of UPI?
There are a number of benefits of using UPI, like you can check your account balance and transaction history, as well as send and receive money by using a single mobile application all round the clock.
12. What is a QR Code in UPI?
A QR code is a unique code that has data encoded in them. It is a unique code as it is directly linked with the merchant’s bank account. By scanning them, you can directly make a payment to the merchant’s bank.
13. What are the two types of QR codes?
There are 2 types of QR codes. A static QR code which is generally pasted at a merchant’s shop counter. Static QR codes have data encoded in them. Another form of QR code is dynamic QR code. A dynamic QR code is generated every time a merchant has to make a payment.
14. Can you use a QR code scanner on any code to make payments through UPI?
Yes you can directly make payments from your bank account by scanning any QR code.
15. What do you mean by mPIN in UPI?
UPI PIN is also known as mPIN. It is a 4 to 6 digits password that is required to send money via UPI.
16. What to do if my UPI is not working?
There are various reasons why your UPI might not be working such as a poor internet connection, wrong mPIN, incorrect account details, etc.
17. What is the Aadhaar Pay Feature in UPI?
Recently NPCI has facilitated payments without a mobile phone where a customer can make payments at selected merchant outlets, using their Aadhar card and biometric information. Currently there is a limit of INR 10,000 on these types of transactions.
18. What is the authentication used for UPI transactions?
UPI uses a two-factor authentication technique, where an OTP and UPI PIN are used, for approving each transaction.