How to Use UPI to Transfer Funds?

The facilitation of UPI, explained as Unified Payment Interface has eased the financial lives of more people than one could ever imagine. The hassle of remembering the account numbers, IFS codes, mobile numbers, and bank branches is long gone. With UPI transfers, all you need to do is save the contact number in your phone and you are good to transfer funds from your bank account to the receiver’s.

Well, it is actually as easy as it seems. To help you realize this, we have listed all the ways in which UPI allows you to transfer money from one bank account to another.

How to Use UPI to Transfer Money?

UPI mobile applications allow you to transfer money in multiple ways. Whether it is VPA, QR code, mobile number, or UPI ID, each of these methods is equally easy to use. Explained below is the process that you need to follow to transfer money through either of these methods.

Sending money through UPI is easy and safe. You may send money using any of the following ways-

  • Selecting a Contact/Entering Mobile number – Sending money is as simple as sending a message. Just select a phonebook contact or enter a mobile number, specify the amount to be transferred and enter your PIN. That’s it! Your payment will be completed in a few seconds.
  • Scanning a UPI QR code – You can also send money through UPI by scanning the receiver’s QR code. All you need to do is open the mobile payment application like Paytm on your phone, click on ‘Pay’, and select ‘QR code’. Scan the QR code of the receiver and enter the amount to be paid. Now enter your PIN and your payment will be completed in a few seconds.
  • Entering UPI ID – To send money through UPI ID, all you need to do so is open the mobile payment application, and enter the receiver’s UPI ID. After this, you need to enter the amount that needs to be transferred and verify the transaction by entering your MPIN. Your transaction will be completed in a few seconds.
  • Entering Account Number & IFSC – This the traditional way of payments and it is also supported on UPI. You may enter the account number & IFSC of the person you want to send money to, specify the amount and enter your PIN. Your payment will be completed in a few seconds.

How to Set up UPI?

You can easily set up your UPI account on the payment mobile application by following these simple steps-

  • Download a mobile payment application, like Paytm
  • Just enter your mobile number. If you have a dual SIM phone you may be prompted to select the SIM slot in which your mobile number is present
  • An SMS will be sent from your number to verify your mobile number
  • Once this is done, you will have to select your bank name from the list that will be presented to you. Please make sure that the mobile number registered with your Bank is the same as the one you entered earlier. Your bank account details will now be fetched from the bank using your mobile number
  • If you are linking your Bank for the first time, you will be asked to set up a UPI PIN. You will need your Debit card details for setting this up
  • Your Bank Account is now linked via UPI and you are ready to make your first payment

It is important to note that the mobile number that you enter while setting up your UPI ID should be linked to your bank account. Your UPI ID is one that will be shared with you by your bank. A UPI ID is unique to every account holder. It is related to your personal details. For example- Your UPI ID on Paytm is the same as your mobile number registered with your bank account. Suppose, your mobile number is 98XXXXXX90, then your UPI ID on Paytm would be 98XXXXXX90@paytm.

UPI IDs are simple to set and easy to remember. A UPI ID must be shared with the sender in order to receive money. However, the UPI PIN is strictly confidential as it acts as a password to confirm the transaction through your mobile payment application.

How to Transfer Money Through UPI?

You can transfer money through UPI by following these steps-

  • Open the mobile payment application such as Paytm that supports UPI transactions in your mobile phone
  • Log in to the application using your credentials
  • Click on ‘Transfer’ or ‘Send Money’
  • Enter the VPA/Mobile Number/Account Number of the receiver
  • Input the total amount to be transferred
  • Enter your security PIN to confirm the transaction
  • Click on ‘Confirm’
  • The entered amount will now be deducted from your bank account and will be credited to the receiver’s account
  • You will receive a receipt of the transaction on your mobile application

How to Use UPI To Request Money?

The mobile payment application can not only be used to transfer money but also to request money. Here’s what you need to do to request funds from another individual-

  • Open the UPI-based mobile payment application like Paytm on your mobile phone
  • Log in to the application using your login credentials
  • Click on the ‘Request Money’ option on the application
  • Enter the VPA details of the payee or select the payee’s VPA from the existing list
  • Enter your UPI PIN to confirm your request for money from the payee
  • This will send a payment request to the payee
  • Once this is done, the payee will confirm the payment directly by clicking on the ‘Approve’ option and entering his UPI PIN on his mobile application
  • After the payee clicks on ‘Confirm’, the amount will immediately be transferred to your bank account

How to Use UPI to Pay Bills?

After logging in to your payment application on your mobile phone by entering your login credentials (MPIN), follow these steps-

  • Click on ‘Bill Payment’
  • Click on ‘Add Payee’ and search for your biller (company/individual whom you wish to pay the bill)
  • Select your biller and click on ‘Add Payee’
  • Enter your bill amount and/or any other details, if required
  • Provide your UPI PIN to confirm the transaction
  • Click on ‘Confirm’
  • Your bill will be paid instantly

Note that you can easily learn how to use the Paytm UPI mobile application by following the above steps and you can easily make payments and/or set up reminders for all your bills, starting from electricity, water, rent, mobile, DTH, broadband, Gas, etc.

What is MPIN?
MPIN stands for Mobile Banking Personal Identification Number. It is a password required to log in to your payments mobile application.
What is UPI PIN?
UPI PIN is a password that must be set while creating the UPI ID. It is used while confirming any transaction through your UPI account on your mobile payment application.
What is UPI ID?
UPI ID is a unique virtual payment address, allotted to every user by the UPI app. You can share this UPI ID with the person from whom you want to receive money instead of sharing your Account Number and IFSC code. Anyone can send you money to your linked Bank Account just by entering your UPI ID.
How to use Paytm UPI to pay the electricity bills?
You can use Paytm UPI to pay your electricity bill simply by logging in to your mobile payment application. After this, you need to click on ‘Pay Bill’ and select your biller, enter the bill amount and click on ‘Confirm’.
How to use UPI to request money?
Yes, you can easily request money through UPI. To do so, you need to log in to your mobile application and click on the ‘Request Money’ option. After this, you need to enter the payee’s VPA and enter your UPI PIN to confirm your request. Once this is done, the payee will receive a notification asking for approval to send the money. Upon clicking on ‘Approve’, the money will be deducted from the payee’s account and will be credited to yours.
Is UPI safe?
UPI payments are absolutely safe. UPI payments are regulated by the Reserve Bank of India & NPCI and mobile payment applications like Paytm follow all the guidelines as laid down by these regulators. Payments can only be initiated from a mobile phone in which your SIM card or mobile number registered in your Bank is present. Also, you need to confirm your secret UPI PIN before every UPI payment.
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