In order to facilitate digital fund transfers and electronic banking options, UPI (Unified Payments Interface) was developed by the National Payments Corporation of India (NPCI). This method is basically an instant payment scheme quite similar to IMPS. UPI allows the users to make payments or receive funds instantly with a unique UPI ID and UPI PIN without providing the bank details.
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UPI Transaction Limit
As per the current guidelines, the UPI transaction limit is restricted to Rs. 1 Lakh for transactions within India. There is no provision for making international transactions using UPI.
Important: According to a circular released by the NPCI in March 2020, the transaction limit for payments through Unified Payments Interface (UPI) at stores run by ‘verified merchants’ will be increased to Rs.2 lakh from next fiscal year. This move is to boost digital payment players such as Phonepe, Google Pay, etc. However, this change will not be applicable to peer-to-peer fund transfers.
Read More: What is UPI?
How to access the UPI app?
There are numerous digital payment applications which cater to UPI transactions such as Phonepe, Google Pay, BHIM UPI, Airtel Payments Bank and many more. Similarly, several banks have introduced their own UPI portals to facilitate the users. For example, iMobile and Pockets managed by ICICI Bank have now been equipped with UPI fund transfer options.
These applications can be installed in Android and iOS devices available on Google Playstore and Apple store. Mobile applications serve as a handy medium through which money can be transferred with a single click, anytime and anywhere.
Related Article: UPI Apps for Android Device
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How to make payments with UPI?
- Login to the UPI enabled application
- Click on ‘UPI’ option
- Select ‘Pay with Virtual Payment Address (VPA)’
- Enter beneficiary’s VPA or select from the beneficiary list, amount to be sent and remarks (if any)
- Choose the VPA you would like to debit and ‘Submit’
- Check all the details and ‘Confirm’ fund transfer
Facts about UPI Fund Transfer
UPI is a fresh scheme offered under mobile banking that still needs a better understanding by many people across India. Let us discourse some of the necessary facts related to UPI & its operations for clearing the picture to some extent.
- The UPI app can be used to transfer an amount to an account or VPA. This process can be executed by entering a few essential details and everything would be managed instantly
- The NPCI acts as the link to identify the correct account. Currently, the UPI scheme doesn’t charge any fee for making fund transfers. However, there are active discussions and the UPI charges might be decided at a fairly minimal cost of Rs 5
- Using a UPI transfer option, the money gets transferred directly to a bank account. Moreover, since it is an interbank transfer, the various banks listed under UPI scheme do not charge each other
How is UPI better than IMPS?
UPI is capable of offering additional benefits as compared to IMPS such as:
- UPI offers P2P Pull functionality
- Streamlines merchant payments
- A solo app for all types of fund transfers
- UPI offers single-click two-factor authentication
Does a customer have to register before transferring funds using UPI?
Yes, a customer is required to register with his/her PSP in order to remit funds using this smart scheme.
Does the customer have to add a beneficiary before sending funds through UPI?
There is no registration of the beneficiary under UPI for transferring funds. This is because the money would be sent electronically on the basis of Virtual ID/ Mobile No+MMID / Account+IFSC/ Aadhaar Number.
Is it necessary for a customer to hold a bank account or UPI can be linked to a card or wallet?
Wallet linking option is not available for accessing UPI services. Only bank accounts can be added to your UPI app.
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What to do if your mobile phone is lost?
In case your mobile phone is lost, the primary step is to simply block your mobile number so that no transaction can be requested.
Can a customer link more than one bank account to his/her solo virtual address?
Yes, a number of bank accounts can be added to the same virtual address based on the functionalities made available by the respective PSPs.
Where to register a complaint in context to UPI transaction?
One can raise a grievance or status check request for UPI transaction directly through the UPI App of the contributing banks.
Why is my UPI transaction not processing?
There are different reasons for a UPI transaction to fail. Some of the prime issues are:
- System breakdown
- Incorrect UPI PIN
- Wrong beneficiary UPI ID
Can money be transferred abroad using UPI?
There is no provision for sending money abroad using UPI.