Quick Summary
- Unified Payments Interface (UPI) is a mobile payment method payment that you can use to transfer money from one bank account to another.
- You will just need to provide your bank name and mobile number to create a UPI id.
- In a nutshell, sending money has become user-friendly and can be done in a matter of seconds.
Table of Contents
With Rapid Digital Transformation, sending money from one bank account to another is no longer a difficult task. And UPI has played a huge role in bringing about this change. To create a UPI ID or sending money through UPI is fairly simple. It requires only a UPI ID/mobile number/QR, which is unique to every user. Therefore, you don’t need to provide details like the IFSC code and bank account number while making transactions
Unified Payments Interface (UPI) is a mobile payment method payment that you can use to transfer money from one bank account to another. The system brings multiple bank accounts under a single mobile application
This quick, safe, and hassle-free process has made it a popular choice among Indian citizens. The number of UPI payments in India is constantly on the rise. For instance, in November 2022, UPI recorded 730.9 crore transactions worth Rs 11.90 lakh crore
Thus, UPI has given the necessary push to ‘cashless’ payments that the government has been professing through its Digital India initiative.
What is UPI ID
A UPI ID means Unified Payment Interface Identity. A UPI ID acts as a virtual payment address (VPA) for online transactions/money transfers. It acts as a way for the banks to track the user’s account.
A UPI ID format is:
xyz@bank (where, ‘xyz’ can either be your first name, a part of your email address, or your mobile phone number, and ‘bank’ is the name/initials shortened name of the bank).
In this article learn the benefits of payment using a UPI ID and create one following a few simple steps!
Steps to Create a UPI ID
Step-By-Step Guide on How to Create a UPI ID
To a create a UPI ID is not a difficult task. Just follow the steps below to create a UPI ID. To create a UPI ID, you must follow the steps mentioned below:
- Download a UPI payment application of your choice such as Paytm, iMobile, SBI YONO, BHIM, Google Pay, etc.
- Enter the mobile number that you wish to register for UPI.
- Following this, a verification SMS will be sent to your number.
- Next, you will have to select your bank name from the list.
- Ensure that the mobile number registered with your Bank is the same as the one you entered earlier. This allows for your bank account details to be retrieved using your mobile number.
- You will be asked to set up a UPI PIN in case you are linking your bank for the first time. You will need your debit card details for setting this up.
- Your bank account is now linked via UPI. You can make your first payment right away!
Different Platforms to Create a UPI ID
The first step for using UPI to make payments is having a UPI-based mobile app. The various apps you can use to create a UPI ID, include:
- Paytm – Paytm is one of India’s most popular digital wallets and payment platforms. To set up a UPI ID on Paytm, first download the Paytm app from your device’s app store. Once installed, go to the ‘Paytm UPI’ section and follow the steps to link your bank account and create your UPI ID.
- Google Pay- Google Pay (GPay) is another popular platform for UPI transactions, thanks to its simplicity and convenience of use. After downloading the Google Pay app, sign in with your Google account and follow the prompts to link your bank account and generate your UPI ID.
- iMobile Pay – ICICI Bank’s mobile banking app, iMobile Pay, offers a comprehensive array of banking services, including UPI. To set up a UPI ID on iMobile Pay, download the app and log in with your ICICI Bank credentials.
- YONO SBI – YONO SBI, State Bank of India’s digital banking application, provides a straightforward way to handle your banking needs, including UPI transactions. After installing the YONO SBI app, log in using your SBI credentials and go to the UPI section to create your UPI ID.
- BHIM UPI – BHIM (Bharat Interface for Money) UPI is an app developed by the National Payments Corporation of India (NPCI) to support UPI transactions. Download the BHIM app from your app store, register your account and the you can easily create a upi id.
- PhonePe – PhonePe is another popular UPI app that allows users to perform transactions with ease. After installing the PhonePe app, you can sign up using your mobile number, link your bank account, and create your UPI ID.
While these platforms are some of the most widely used options for creating a UPI ID, there are many other apps available as well, each catering to different preferences and banking needs. Exploring these options can help you find the UPI app that best fits your requirements and enhances your digital payment experience.
Details and Documents Required to Set Up UPI ID
You will just need to provide your bank name and mobile number (the one linked to your bank account) while you create a UPI ID.
When setting up a Unified Payments Interface (UPI) ID, there are certain details and documents you’ll need to provide.
Mobile Number: The first requirement is a valid Indian mobile number registered with your bank account. UPI relies on your mobile number for verification and transaction alerts. Make sure the number you provide is active and accessible to receive SMS notifications.
Bank Account: You must have an active bank account with any participating bank that supports UPI. Ensure your account is in good standing, as you will link your UPI ID directly to this account for seamless transactions. Note down your bank account details, including the account number and the Indian Financial System Code (IFSC) of your branch.
KYC Documents: To comply with the Know Your Customer (KYC) regulations, you’ll need to provide certain identification documents. The commonly accepted KYC documents include your Aadhaar card, Permanent Account Number (PAN) card, Voter ID card, or passport. Choose the document that is most convenient for you to provide as your identification proof.
How to Send Money Through UPI
You can transfer Money using UPI on the various apps through the options listed below:
Using UPI ID
To send money using UPI ID, you just need to enter the UPI ID of the receiver and enter the amount. Next, you will be required to enter the pin. The transaction will be completed in a few seconds.
Through contact/mobile number
Sending money is as simple as sending a message. You can send money by selecting a contact or entering a mobile number on the app. Next, enter the amount and the UPI pin and the transfer will be made
Scanning a QR Code
You can also transfer funds by scanning the receiver’s QR code. All you need to do is scan the receiver’s code from the app, specify the amount to be paid, and enter the UPI Pin and your payment will be made
Using bank details
To make transfers using bank details enter the details needed, like the bank account number and IFSC code of the receiver. Next, mention the amount to be paid and enter your UPI pin. Your payment will be made in a few seconds
| Method | Description | Pros | Cons |
| UPI ID | Send money using a unique ID linked to a bank account | Convenient and easy to remember | Requires sharing UPI ID with the recipient |
| Mobile Number | Send money by entering the recipient’s mobile number | Simple and widely accepted | May not work if the recipient’s number is not linked to UPI |
| QR Code | Scan a QR code to initiate a payment | Quick and efficient | Requires a QR code scanner |
| VPA | Use a Virtual Payment Address for transactions | Unique and personalized | Requires setting up and remembering the VPA |
| Account Number & IFSC Code | Transfer money using the recipient’s bank account details | Can send money to any bank account | Requires entering and verifying bank details |
| Aadhaar Number | Send money using the recipient’s Aadhaar number | Supports direct Aadhaar-based payments | Requires Aadhaar linking and verification |
UPI Transaction Limits: What You Need to Know?
In today’s digital age, the Unified Payments Interface (UPI) has transformed how we do transactions. It provides a simple and effective way to transfer money, pay bills, and make purchases using only a few touches on your smartphone. However, as with every financial system, UPI has its own set of restrictions and limitations that users must be aware of.
- The maximum UPI limit per day for regular transactions is Rs. 1 lakh.
- The UPI limit per day for ATM withdrawals using the UPI app is Rs.10,000.
- Bank UPI apps allow for a maximum of 20 UPI transactions per day.
- Third-party UPI apps allow for a limit of ten transactions per day.
- The per-transaction limit for each UPI transaction is Rs. 1 lakh.
- The UPI limit for capital markets, collections, insurance, and foreign inward remittances is Rs. 2 lakh per transaction.
- The UPI limit for IPOs and retail direct schemes is Rs 5 lakh per transaction.
Benefits of Using UPI ID for Transactions
The digital way of transactions in general and UPI in particular has made transferring money a very easy job. It has therefore provided a level playing field for all kinds of users, thus taking a big step towards a modern, cashless economy
- UPI has enabled users to make payments at any time, 24X7.
- Sending money through UPI is very safe and secure.
- It is a fast process, and the payment can be made in seconds.
- UPI gives access to multiple bank accounts through a single mobile application.
- UPI has eliminated the complex process of visiting banks and transferring money through bank accounts
- It is a great alternative to cash payments.
- It allows you to make all your bill payments.
Precautions to Take While Making UPI Transactions
With cases of fraudulent activities through UPI and instances of cybercrime, it has become important to stay alert. Here are a few things you should keep in mind while making a UPI payment
Never Share Your UPI Pin With Anyone
You should never share your UPI Pin, without which you will not be able to make payments. Therefore it is necessary to keep the UPI Pin personal. Even while making a payment make sure nobody can peek into your phone. In case you feel, that it has been compromised, change it immediately.
Make Sure Your Phone Has a Lock
While setting up an ID you are required to have a screen lock. This ensures safer transactions and is also safe for your phone. Your smartphone holds sensitive personal and financial information, including UPI app data, contact details, and banking credentials. A phone lock acts as the first line of defense against unauthorized access to your device and the data it contains. By having a lock on your phone, you can significantly enhance the security of your UPI transactions.
Cross-Check the Receiver’s Details
While making payments via contact, UPI ID, or QR code, the details, such as the name and bank name appear. You must not fail to check whether the details are the same as those of the person to whom you would want to send money.
Have a Strong Internet Connection
Make sure you are well connected to the internet while making a UPI transaction. Check your phone’s internet connection or wifi before making a UPI transaction. The transaction might not be made successfully if you have a poor connection
Avoid Using Multiple Apps
Having multiple UPI payment apps does not provide any advantage. It may get confusing if you have to use different apps. You can use a single app to send money to any bank account.
Using UPI to Pay
UPI Payments have completely transformed the process of making transfers online. In a nutshell, sending money has become user-friendly and can be done in a matter of seconds. UPI has brought big changes on the individual level as well as on a large scale. With increasing users, we are steadily moving towards a cash-free economy.
The steps to create a UPI ID are simple. Sending money through UPI is a simple and safe process. With numerous benefits, UPI has become a go-to choice for users. However, like any other system, we also need to be careful and take a few precautions to avoid fraud.
Conclusion
Creating a UPI ID and transmitting money online is a simple process that streamlines financial operations. Begin by picking a UPI-enabled mobile app like Paytm, Google Pay, PhonePe, BHIM UPI, iMobile Pay, or YONO SBI. Download and install the app you want from your device’s app store. Open the app and sign up with your bank account’s mobile number, which will be verified via an OTP (One-Time Password) delivered to your phone. Once registered, link your bank account by providing your banking information, which the app will verify for UPI transactions.
Next, create your unique UPI ID, typically formatted as yourname@bankname or a similar variant, following the app’s instructions. Set up a secure UPI PIN (Personal Identification Number) that will be used to authorize transactions; ensure this PIN remains confidential. To send money, open the app, select the ‘Send Money’ or ‘Transfer’ option, and enter the recipient’s UPI ID along with the amount you wish to transfer. Add a note if necessary, confirm the details, and authorize the payment using your UPI PIN. By following these steps, you can efficiently create your UPI ID and execute secure transactions, streamlining your financial management and making everyday transactions more convenient.
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Frequently Asked Questions (FAQs)
How is UPI ID different from other digital payment methods?
UPI has benefits over other digital payment methods like- net banking, debit cards, etc. It is a much simpler process than the rest. In the case of debit cards, we need to provide, the cardholder’s name, card number, expiry date, etc. Whereas using UPI ID we just need to enter a pin and we’re done. Also, there are no extra transaction charges.
What are the benefits of having a UPI ID?
Having a UPI ID has made the money-transferring process extremely simple
1. Users to make payments at any time.
2. Sending money through UPI is very safe and secure.
3. UPI gives access to multiple bank accounts through a single mobile application.
4. There is no hassle of cash payment.
5. The QR code has made making payments even quicker
Can I create multiple UPI IDs for the same bank account?
Yes, you can have multiple UPI IDs for the same bank account. For different platforms, you can create different UPI IDs.
UPI ID Example: The UPI id of the same bank account can end with @kotak, @paytm, or @oksbi depending upon the app
How do I ensure the security of my UPI transactions?
Though UPI transactions are a safe method of transferring money, we must not forget to take some precautions.
a. Never share your UPI Pin with anyone
b. Make sure your phone has a lock
c. Cross-check the receiver’s details
d. Avoid using multiple apps
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