Unified Payment Interface

UPI (Unified Payment Interface)

A Unified Payment Interface (UPI) is a smartphone application which allows users to transfer money between bank accounts. It is a single-window mobile payment system developed by the National Payments Corporation of India (NPCI). It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction. UPI (Unified Payments Interface) is a unique payment system through which you can link your bank account to a mobile application and make transactions safely


A UPI ID is a unique identification for a bank account that can be used to send and receive funds. UPI PIN is a 4-digit personal identification number that must be entered to authorize the transfer of money via UPI. The PIN can be chosen by the account holder. 

Key Features of UPI

Some of the features of UPI are listed below:

  • Instant transfer of fund through Immediate Payment Service (IMPS) which is faster than NEFT.
  • Since it is completely digital, one can use UPI 24 hours and on all public holidays.
  • Single mobile application for accessing various bank accounts.
  • Uses Virtual Payment Address which is a unique ID as given by the bank .
  • Uses Account Number with IFS Code and Mobile Number with MMID or Mobile Money Identifier
  • Every bank provides its own UPI for different platforms of Android, Windows, and IOS. The banks may or may not charge for the UPI service.
  • Bill Sharing facility.
  • Best for doing merchant payment, utility bill payments, OTC payments, Barcode based payments.
  • One can file a complaint from Mobile App directly. 

Registration in UPI enabled application

Steps for Registration:

  • User downloads the UPI application from the App Store/Banks website.
  • User creates his/her profile by entering details like name, virtual id (payment address), password etc. 
  • User goes to “Add/Link/Manage Bank Account” option and links the bank and account number with the virtual id.

Working of Unified Payments Interface (UPI) 

UPI uses existing systems, such as Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS), to ensure seamless settlement across accounts. It facilitates push (pay) and pull (receive) transactions and even works for over-the-counter or barcode payments, as well as for multiple recurring payments such as utility bills, school fees and other subscriptions.

Sending Money vs. Receiving Money

Sending money on the UPI is called a "push." For sending money, the user logs into the interface and selects the Send Money/Payment option. After entering the recipient's virtual ID and the amount desired, he chooses the account from which the money will be debited. The user then enters a special personal identification number (PIN) and receives a confirmation 

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