How UPI Transaction Works

UPI’s transaction is growing rapidly after the Demonetisation. With the government incentives, the bank and other financial institutions are developing platforms for digital transactions along with private areas. UPI (Unified Payment Interface) from many platforms of digital transactions is emerging as a better platform. The government is also appealing to transactions through the UPI. Below we are telling you what the UPI is and how digital transactions are done through it.

What is UPI?

UPI (Application) is a mobile app, through which you can easily transactions of money. With the aim of making online banking simple and convenient, Raghuram Rajan launched the UPI in April 2016. Development of this platform of digital transactions has been done by NPCI (National Payment Corporation of India). Transactions through UPI can be done with any bank. For this, you need neither the account number nor other information related to the account. Only you should have that person’s UPI ID, whose money is to be sent. Not only money transactions from the UPI platform, but you can also make utility bill payments, online shopping, etc. You also have to create your UPI ID to avail the UPI facility.

How to make UPI id?

To create a UPI ID, you must first install the UPI app on your smartphone. Keep in mind that to take advantage of this feature, you must have an internet facility on your smartphone. You can download the UPI app from the Google Play Store or on the phone from your bank site. To create an id in the app, you have to fill the form according to the details demanded. Then you have to register your mobile number on the app. After this, your UPI ID will become ready. After creating an ID, you have to generate a mobile pin (MPIN). Mobile PINs will get you through SMS from the bank. After this, the option of “Add / Link / Manage Bank Account” will come. From here you will be able to link your ID to your base number and your bank account.

How will your UPI ID look like?

Actually, the UPI is a way to send money to another virtual ID from a virtual ID. Virtual ID on the UPI platform meets you from your bank. Your ID will be your mobile number and your bank’s name. As such, if your mobile number is 1234567899 and your bank account is in Punjab National Bank, your UPI ID will be 1234567899 @ PNB.

How to transfer money from UPI

Now, when you have to send money to someone, you will have to put the UPI ID in your app and the amount you spend, the amount will be filled in the prescribed column. After ensuring both the information, the pe to option will be suppressed. Then this the mobile pin will be asked. After marking the mobile pin, there will be a transfer in the account from your account that you are sending.

How much money can be sent through UPI?

At least 1 rupees and a maximum of 100000 rupees can be sent by UPI or you can ask for it.

UPI app features

  • Through this, the facility of banking service is available at any time through mobile phone and money can be transacted instantly.
  • Payments are made with a single click using Virtual ID.
  • Neither OTP nor any card number, account number nor bank branch code ie IFSC is required for payment from UPI ID.
  • Through the UPI app, you can easily share any kind of bill with friends or any other people.
  • With this app, utility bill payment, online shopping, barcode scan payment and even small purchase of counter purchases are also available.
  • The biggest feature of UPI is that you can lodge a direct complaint of any problem encountered in the transaction on this platform.

Who will be responsible for transactions under UPI?

  • Payment Service Provider
  • Remittance bank
  • Money bank
  • NPCI (National Payment Corporation of India)
  • The merchant
  • Bank account holder

Who will benefit from UPI?

Banks benefit

  • Cash withdrawal and deposit reduction.
  • The controlled crowd at the cash counter in the bank.
  • Secure transactions with accounts.
  • No separate infrastructure required.
  • Verification of customer with a single click.
  • Effortless and efficient in business transactions

Merchants benefit

  • Collection of money easily and securely from customers
  • Profitable and suitable for e-com
  • Access to customers deprived of credit cards, debit cards, and online banking.
  • Freedom from the lineup in banks.
  • Freedom from the worries of online fraud.

Benefit individual customers

  • Easy and secure banking round the clock.
  • Identity verification with a single click.
  • Freedom of any kind of card or OTP hassle for payment.
  • The facility to file a complaint from the UPI app itself.
  • Protection of real identity using virtual IDs.
  • Transaction facility with different bank accounts from a single app.

UPI bank list

At present, 21 banks, including many big banks of the country, are connected with the platform of UPI. These are – SBI, ICICI, HDFC, Andhra Bank, Axis Bank, Bank of Maharashtra, Bharatiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank Of India, United Bank of India, Vijay Bank, South Indian Bank, Yes Bank, Punjab National Bank. UPI apps of all these banks are available for smartphones with Android facility.

What to do if you lose your mobile?

  • When the phone that has your UPI app is lost, then you first block that mobile number. Anyway, no one can transfer money from your account without a mobile PIN.
  • Never share your UPI app’s mobile PIN with anyone.
  • When you get a new mobile, you will have to reset the mobile PIN and generate a new PIN number after downloading the app once again.


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