What is UPI & its Full Form?
The full form of UPI is the Unified Payments Interface. It is a real-time payment system developed by NPCI that allows instant money transfers between bank accounts using smartphones. UPI simplifies transactions by using QR codes, virtual payment addresses (VPAs), or registered mobile numbers, so you don’t need to enter bank details every time. With UPI, you can easily send money, pay bills, and shop online through one app, anytime and anywhere.
How Does UPI Work?
- User Registration: Download a UPI-enabled app and link your bank account. You’ll create a unique UPI ID (like user@bankname).
- Initiate a Payment: To pay, enter the recipient’s UPI ID or scan their QR code.
- Authentication: Enter your UPI PIN (a 6-digit code) to confirm the payment, ensuring security.
- Transaction Processing: The UPI app sends your payment request to the server, communicating with your bank and the recipient’s bank.
- Confirmation: Once verified, you get an instant notification of whether the payment was successful or not.
- Settlement: The money is transferred between the banks within a few hours, but the transaction appears instantly in your account.
What is UPI Transaction Limit?
- Per Transaction Limit: You can usually send up to ₹1 lakh in a single transaction.
- Daily Transaction Limit: The total amount you can send in one day is often capped at ₹1 lakh, but this may vary depending on your bank.
Note: For the latest limits, check with your bank as they may have specific variations.
Benefits of UPI
- Instant Transfers: You can send and receive money instantly, anytime and anywhere, in under a minute.
- Convenient Payments: Pay bills, shop, and transfer money easily from your phone.
- Secure Transactions: UPI uses strong security measures to protect your transactions.
- No Extra Fees: Most UPI transactions are free, saving you money on fees.
- Simplified Finance: UPI makes everyday financial tasks quicker and more efficient.
