Full Form of UPI, What is UPI ID

What is UPI?

The UPI or Unified Payments Interface is a real-time payment system that helps in cash transfer with the help of a mobile interface between two bank accounts. The UPI concept is to enable multiple bank accounts to join a single mobile application (of any participating bank). 

The National Payments Corporation of India (NPCI) developed UPI to prevent customers from submitting bank account information and other sensitive details at the time of every transaction. 

Thus, the UPI is an idea that will help them to link their different bank accounts in a single mobile application.

It also serves peer-to-peer collect requests, which can be planned and paid as per the ease and requirements. Previously, NPCI developed pilot programmes with 21 member banks. 

On 11th April 2016, the pilot programme was introduced by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. On 25th August 2016, the banks started uploading their UPI-authorized Apps on the Google Play store.

What is UPI ID?

UPI ID is a unique address that identifies the customers on UPI. Generally speaking, it represents a Virtual Payment Address that the senders are required to submit when transferring funds to the recipient's account.

Customers can easily create their unique UP ID through their bank mobile apps or other UPI-compatible digital payment apps.

Features of UP ID

The list of the features of Unified Payments Interface (UPI) Identification is shared below.

• Immediate cash transfer by using a mobile at any time.
• 2 Factor Authentication with Single Click follows all the regulatory guidelines while providing a well-built feature of uninterrupted single-click payment.
• QR Code is the best answer to the Cash on Delivery trouble or running to an ATM or paying the exact amount.
• Single mobile application to use multiple bank accounts.
• The customer does not have to submit information like Account number, Card no,  IFSC, etc. The Virtual address for Pull & Push customers provides additional security.
• A Pin or Personal Identification Number is needed to make any transaction whether using Mobile Banking or MPIN for security.
• Utility Bill Payments, In-Person Payments, and payments are done through QR codes (Scan and Pay).
• Merchants can be paid with the help of a Single Application or In-App Payments.  
• Complaints can be raised directly from Mobile App.

Who are Participants in UPI

The participants of the Unified Payments Interface (UPI) include:

• Payer PSP
• Bank Account holders
• Beneficiary Bank
• Payee PSP
• Remitter Bank
• NPCI
• Merchants

Benefits of UPI ID

• Some of the UPI benefits for bank includes two-factor authentication in a single click, a universal application to make the transaction, and allow smooth merchant transactions.
• The benefits of UPI for the customer include 24*7 availability, the single app to access multiple bank accounts and the usage of Virtual ID is safe as it does not require credential sharing.
• Some of the UPI benefits for merchant includes In-App Payments (IAP), smooth fund collection, and resolving the COD hassles.

How to Register in UPI Enabled Application

• Firstly, download UPI App from the App Store/Banks website.
• Then, creates a profile by using details like name, password, virtual id (payment address), etc.
• Choose the “Add/Manage/Link Bank Account” option and then link the bank & account number with the virtual id.
• After that, select the bank account from where the transaction will be initiated.
• Next, you need to select the given option to generate UPI PIN.
• Now, submit the last 6 digits number and the expiry date of the Debit card.
• Then, users will receive OTP from their bank on their registered mobile number.
• Lastly, they need to enter the OTP and UPI PIN and press the submit button.

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