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/mobile number/QR, which is unique to every user. UPI ID means Unified Payment Interface Identity, which 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 & Its Meaning?
A UPI ID is a virtual payment address (VPA) for every UPI user. Every user is required to generate a UPI ID in order to access the UPI services as a unique identifier for the user’s identity. The UPI 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/shortened name of the bank – providing services to the UPI app – with some prefix or suffix added in some cases).
To transfer money through Paytm UPI payment application, you don’t need to enter the receiver’s UPI ID. You can simply select the receiver’s contact from your phone book or enter the receiver’s contact number to send money via UPI. A UPI ID is completely independent of your bank account number or any other personal detail.
How to Create UPI ID?
To create a UPI ID, you must follow the following steps-
- Download the Paytm UPI payment application
- 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!
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.
We have explained the simple steps required to transfer funds through UPI-
- Log in to your Paytm UPI payment application and click on the ‘UPI/Send Money To Anyone’ option
- Select the receiver from your phone contact list or enter the mobile number of the receiver if it is not saved on your phone
- If the receiver does not use the app you use, you could ask them for their UPI ID on another app and enter that
- You could also click on the ‘Scan QR’ option and scan the recipient’s QR code
- Next, select the bank account from which you want to make the transfer and click on ‘Proceed’
- Enter UPI PIN associated with the selected bank a/c
- The amount will be immediately transferred from your bank account to the receiver’s bank account