UPI Full Form, Features, Benefits and Registration

Do you know the UPI Full Form? The full form of UPI is Unified Payment Interface. In this article, we have explained everything about UPI.

With India going cashless and digital, various platforms and reforms are been boosted for the process.
UPI- Unified Payments Interface is one of the digitally introduced platforms.

You can directly send money from 

  1. A smartphone
  2. Anywhere
  3. Anytime

UPI is a payment mode and the smartphone acts as a medium of virtual payment mode.

upi full form

What is UPI

UPI is identified as your financial address and remains unique to every single individual. It helps to transfer/receive/ pay funds instantly even on holidays.

Launching

UPI being introduced by NPCI ( National Payment Corporation of India) in 2005. UPI has been framed by NPCI in conjunction with the Indian Banks Association and Reserve Bank of India similar to the mechanism of RuPay.

Work Mechanism Of UPI

With transferring money with UPI you need the transferees Aadhar Number or Phone Number registered with the bank.

  1. To avail of this facility you might need the following things:
    • A smartphone
    • A working internet connection/data plan
    • A Bank Account
    • An active phone number linked to your Bank Account
      Once the following above things are achieved the next step is to set up a UPI ID. A UPI ID needs to be set with any App that supports it. Starting with the phone number and ending with the App being used for it, looking somewhat like [email protected]
  2. To avail the same you might need to follow the given steps:
    • Choose an App that works properly on your phone
    • Give out your Bank Account Details
    • Type the OTP to ensure that you are not a Robot
    • Enter a PIN to secure your ID
    • Select a contact and send/ receive money
  3. UPI Mechanism works in 3 ways to send/ receive money 
    • By scanning QR Code displayed 
    • By entering the UPI ID of the sender /receiver respectively 
    • By adding receivers Account Numbers and IFSC codes.

Features Of UPI

Any app that supports UPI can function the same way as mediums used earlier like RTGS, NEFT

  1. Overdraft Account: Current and Savings Accounts of users were only linked to their UPI ID previously but now they can access Overdraft Accounts as well.
  2. Invoice Verification
  3. One-Time Mandate:

Benefits Of UPI

There are many benefits of UPI. Some of them are mentioned below:

  1. Customers
    • Single App for all Bank Accounts
    • Single Click Authentication
    • Easy and Instant Bank Transfers
  2. Banks
    • Single Click two-factor authentication
    • Seamless Merchant Transactions
  3. Merchants
    • No Bank Details to be shared
    • Receipt of funds available instantly

Registration Of UPI

  1. Downloading The BHIM App (Bharat Interface for Money)/ Bank App / Third-Party App
  2. Creating your profile with the required details
  3. Linking the Bank Account with your Virtual Private Address and complete the procedure of Registration.

Generating UPI MPIN

  1. Selecting a Bank Account from where the transactions need to be done
  2. OTP is sent to the registered phone number and the last 6 digits of the Debit/Credit Card needs t to be entered with the Expiry Date
  3. While entering the UPI it leads to generate UPI MPIN of 4 digits 
  4. Click SUBMIT and choose SUCCESS received through a notification.

Transactions Using UPI

Below I have described the topics which would help you to understand how to transact using UPI.

  1. Transfer Money
    • The UPI App needs to be opened and logged in through using M-PIN
    • Select the “Transfer / Send Money” option.
    • Entering the beneficiary’s Account Details
    • Entering the Amount to be Transferred
    • Entering the UPI PIN to confirm the payment
    • Instant Transfer of Amount with a confirmation message.
  2. Request Money
    • The UPI App needs to be opened and logged in through using M-PIN
    • Select the “Request” option.
    • Entering the Payees VPA from the existing list
    • Entering the UPI PIN to generate a request and the same will be directly sent to the payee.
    • By clicking “Approve” the payee can directly make the payment by entering his UPI PIN
  3. Payment 
    • The UPI App needs to be opened and logged in through using M-PIN
    • Select the “Payment ” option.
    • Go to Biller Category and add a biller
    • Entering the Amount to be paid for the bill
    • Entering the UPI PIN to confirm the payment
    • Instant Payment of Amount to the Biller with a confirmation message

Why UPI Over Others?

UPIOTHER PAYMENT INTERFACES
Free transfer of money 5% charge for each transaction
Transfer InstantlyTakes 24 Hours
Requires a PIN NumberAccount Number, IFSC Code all details required.

UPI Charges

NCPI used to charge Rs. 0.50 per transaction earlier. But as of now, no nominal amount is charged. The government in order to promote digital transactions has removed all charges. The Banks providing this facility too does not charge anything since they want to promote the App.

Security Of UPI

Currently handling Rs. 8000 Crore Equivalent Transactions with bandwidth to carry it on, the App is highly been encrypted. A 4- digit UPI PIN secures the transaction in UPI App, the same way an OTP secures a Debit Card.

FAQs: Unified Payment Interface

What happens if I enter the wrong PIN Number?

The transaction will not carry forward and will fail. No amount of money will be deducted from the account.

Is there a daily limit in UPI?

Yes, you can transfer the amount up to Rs. 1,00,000 or 10 transactions in a day.

How can I send money to someone who is not registered with UPI?

You can send the money by entering the receiver Account holder name, Account Number, IFSC Code.

Summary: UPI Full Form & Details

So, we discussed that UPI’s full form is Unified Payment Interface.

UPI – a payment gateway and acts as a smartphone application based on IMPs that functions 24 x 7. Just as SMS works, UPI works in the same way by sending and receiving funds.

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