UPI, Unified Payments Interface, is an instant payment system launched in 2016 by National Payments Corporation of India (NPCI). This mobile payment system was launched to digitise the payment system in India. Built over the IMPS framework, the payment system provides a single window to users to make instant transactions from anywhere and at any time. Unlike many other digital payment systems, this payment system allows real-time transactions, thus, facilitating users to use it even during shopping. In addition, to use UPI, users need to create virtual IDs with which they link their bank account number. The virtual ID, also known as VPA (virtual payment address), saves users from sharing their bank account details with everyone. The use of virtual IDs to transfer or receive money makes the process safe and secure. Besides virtual ID, there is another feature of the app that makes the transactions a lot more secure for users – UPI PIN.
What is UPI PIN?
UPI PIN is an abbreviation for UPI Personal Identification Number. It is a 4 to 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.
Is UPI PIN and MPIN, the same thing?
No. MPIN (Mobile banking Personal Identification Number) is a number given to a banking customer once they register for bank’s mobile banking services. On the other hand, UPI PIN (UPI Personal is Identification Number) is a set of numbers that UPI app users create/set at the time of registration at the UPI app. It is the PIN that is used to authorise all financial transactions taking place through UPI app.
What happens if a user enters wrong UPI PIN during a transaction?
If a user enters wrong UPI PIN when authorising a transaction, the transaction will not be carried forward. The transaction will fail immediately.
What happens if a user forgets their UPI PIN?
If the UPI app user forgets their UPI PIN, then they will have to 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 can a user set their UPI PIN with the bank directly?
Users can set their UPI PINs on any of the PSP (Payment System Player) application 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. Therefore, nobody except the user knows the UPI PIN. It is used to authorise transactions, which again ensures that nobody but the user is making the transaction especially in case user loses his mobile or it gets stolen.