What is UPI ID & How to Create it?

The facilitation of UPI has eliminated the complex process of enabling money transfers. While the traditional methods of IMPS/NEFT require the provision of the name, contact number, bank account number, IFSC, etc. of the receiver, UPI payments require only a UPI ID, which is unique to every user.

UPI has made money transfers easier to a great extent. And all this had been made possible only because of the UPI ID that acts as a virtual payment address for online transactions/money transfers. Let’s understand what is UPI ID and how you can create one in detail.

What is UPI ID?

A UPI ID is a virtual payment address (VPA) for every UPI user. Every user is required to generate an ID in order to access the UPI services as a unique identifier for the user’s identity. This ID acts as a way for the banks to track the user’s account.

A UPI ID is written in the following format-

abcd@bank (where, ‘abcd’ can either be your first name, a part of your email address, or your mobile phone number, and ‘bank’ is the name/initials of your bank).

It must be noted that every bank has its own format for creating a UPI ID for its user. When a user creates a profile on the mobile payments application supporting UPI service, an ID will automatically be generated in the format of his/her bank.

It is mandatory for every UPI user to have an ID on UPI; without which one can neither pay nor receive any amount from another UPI user in his/her bank account. A UPI is completely independent of your bank account number or any other personal detail. 

How to Create UPI ID?

To create an ID on UPI, you must follow the following steps-

  • Log in to your mobile UPI application, such as Paytm
  • Click on the ‘UPI’ option in the main menu
  • Select ‘Create UPI ID
  • Now, you need to enter the initials of your ID as allotted to you by your bank
  • Click on ‘Continue
  • Now, you need to link this ID to your bank account in order to use your UPI account

How to Send Money Using UPI ID?

Ever since its facilitation, UPI has become one of the easiest methods to transfer money from one bank account to the other. This is because transactions made through UPI require only an ID and a PIN to complete. 

We have explained the simple steps required to transfer funds through UPI-

  • The first step required to transfer money from one bank account to the other through UPI is to get the ID of the receiver
  • After getting the ID, you need to log in to your mobile payments application, and click on the ‘Send Money through UPI’ option
  • Now, you need to enter the receiver’s UPI ID, along with the amount of money to be transferred
  • Next, select the bank account from which you want to make the transfer and click on ‘Send
  • The amount will be immediately transferred from your bank account to the receiver’s bank account

How to Request Money Using UPI ID?

Mobile payment applications supporting UPI services not only allow you to transfer money from your bank account to the other’s but also let you request funds from another user. Here’s how you can do so-

  • Open the UPI-based mobile payment application on your mobile phone
  • Log in to the application using your MPIN
  • 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

What is UPI ID?
A UPI ID is your virtual payment address used for receiving/paying money using the UPI service.

How can I create my ID on UPI?
To create your ID on UPI, you need to log in to your mobile payment application such as Paytm and visit the ‘UPI’ section. There, you need to look out for the ‘Create UPI ID’ option and enter your existing ID allotted to you by your bank. You can now create the ID of your choice and confirm the same.

What is VPA?
VPA stands for Virtual Payment Address. Your VPA is the same as your UPI ID.

Can I link multiple accounts to my UPI?
Yes, you can link multiple accounts to your UPI. Moreover, you can also choose which bank account to use to make the payment or receive money through UPI.

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