UPI is a dedicated platform which allows users to make fund transfers without providing one’s account number and IFSC Code. UPI transfers are made with the user’s mobile number and a Virtual Payment Address (VPA) also known as UPI ID.
By eliminating the need to provide the bank account number, IFSC code or address, UPI secures the individual from the major drawbacks of online transactions methods i.e, online theft of identity and misuse of crucial information. It is a secure, seamless and efficient way of performing monetary transactions with the use of a unique UPI PIN.
What is UPI PIN?
UPI PIN is an abbreviation of Unified Payments Interface Personal Identification Number. It is a 4 or 6 digit passcode that users set when they register themselves for the first time on the UPI app. It is a very important set of numbers that users must always remember. UPI PIN must never be shared with anyone as it is used to authorize all bank transactions.
How to generate a UPI PIN?
To use UPI as a payment mode, one has to sign-up for the service at the bank. This can be done on mobile/net-banking of your particular bank. After that, here are steps to be followed to generate a UPI PIN:
- Go to the UPI app of your choice- BHIM, Google Pay, etc.
- Scroll to the ‘Bank Account’ section on the app. This section shows all the bank accounts linked with this particular app.
- Select the bank account for which you want to set a UPI PIN. You will see a ‘SET’ option in case you have never set a UPI PIN for the bank account.
- Enter the ‘Last six digits’ and ‘Expiry date’ of your Debit/ATM card.
- Now, you will receive an OTP from your bank on the registered mobile number. In the next screen, enter the OTP and the UPI PIN you want to set for the account and click ‘submit’.
You will receive a congratulatory message on the successful generation of UPI PIN. After this, you can send money, make payments from your bank account directly by authenticating using your UPI PIN.
How to send money using UPI PIN?
Follow the given instructions to send money using UPI PIN in a UPI application-
- Log in to the UPI application which has been linked to your bank account.
- Click on the option to ‘Send Money’.
- Enter the UPI ID of the beneficiary or Scan the QR code, if it’s a payment to a merchant.
- Enter the amount you wish to send.
- Click on confirm, enter the UPI PIN on next screen and submit to complete the transaction.
You and the receiver, both will receive notifications on your UPI apps as well as SMS on your registered mobile numbers.
Ι Know More: All About UPI
Difference between UPI PIN and mPIN
MPIN (Mobile banking Personal Identification Number) is a passcode that is used to make any kind of mobile banking transaction like IMPS, NEFT or National unified USSD Platform whereas UPI PIN is needed to authenticate UPI-based payments.
Know more: How to generate mPin
On the other hand, UPI PIN (UPI Personal is Identification Number) is a passcode that is used only to make UPI-based transactions.
You can set the same code as your mPIN and UPI PIN for ease but it not suggested for security concerns. Just like you are not advised to keep the same password for different email IDs and social networking accounts, you are also not advised to keep your mPIN and UPI PIN same.
Benefits of Using UPI
- It is a real-time payment system which allows the user to transfer funds instantly on a real-time basis, without any delay or inconvenience
- Funds can be instantly transferred on a 24*7 basis. This eliminates the traditional ways of transferring funds and waiting for any form of confirmation before the funds are transferred (e.g. NEFT)
- Transactions can be completed simply by using a Virtual Payment Address and the need to provide banking details to the other party is excluded
- It is one of the most effective ways of promoting cashless transactions. UPI Apps can be download and used easily on smartphones
- Reduces the chances of losing a bank card or stealing of your crucial banking information
- UPI Pin is unique to every bank account, ensuring that it can be used only by the intended person
- Funds can be transferred to any payee at any given point of time. There is no need to add the receiving party in a specific payee list before they can receive funds from you
- UPI is one of the cheapest ways to transfer money. The cost of one transaction of up to Rs.10,000 is Rs. 0.50 only
Frequently Asked Questions
What is UPI Pin number?
UPI Pin is a unique 4-6 digit number which you enter while adding a new payment account or making a transaction on mobile applications such as PhonePe, Google Pay, BHIM UPI, etc.
Is UPI Pin and ATM Pin the same?
No, UPI and ATM Pin are not the same. UPI Pin is created while registering the bank account in UPI apps. And ATM Pin is the unique 4 digit number which is associated with your Debit/Credit Card.
How do I set up my UPI Pin?
UPI Pin can be set using the applications which allow UPI transactions. You can go to the Main Menu of the app and then click on Bank Accounts. After this, select the bank account for which you want to set the PIN and click on SET. On the next screen, enter the PIN which you want to set and click Submit.
Is there any per day transaction limit for using UPI?
Yes. There is a capping of Rs. 1 lakh per day or up to 10 transactions in a day, whichever is reached first.
Can I use multiple UPI applications on the same mobile if they are linked to different bank accounts?
Yes, this is possible. However, the UPI Pin should be different for every account.
Can my UPI application be misused if I lose my phone?
No, the UPI transactions cannot be processed without entering the UPI Pin. Therefore even if you lose your mobile phone, unless the person misusing your account knows your UPI PIN, your money is safe.
Can UPI auto-deduct from my bank account?
No, payments are not automatically deducted from the bank account.
What happens if a user enters wrong UPI PIN during a transaction?
If a user enters wrong UPI PIN, the transaction will fail immediately.
What happens if a user forgets their UPI PIN?
If the UPI app user forgets their UPI PIN, they can re-generate a new UPI PIN using their debit card details such as the last six digits and expiry date of their debit card.
How UPI PIN provides more security?
UPI PIN is an important feature of every UPI mobile app as it makes the app safer and secure. It is a set of digits, which is not provided by the banks but set by the users when registering for the first time on the UPI app. Just like your ATM PIN secures your ATM transactions, UPI PIN secures your UPI transactions. This is why it is advised never to share your PIN with anyone (not even your bank).