Does UPI need KYC?

Yes, KYC is mandatory for using UPI. Since UPI functions by linking directly to your bank account, you must complete the KYC process with your bank to enable transactions. According to RBI guidelines, banks verify your identity and address through documents like Aadhaar, Passport, or Voter ID. While you generally do not need separate KYC for a payment app to perform basic UPI transfers, the underlying bank account must be fully KYC-compliant to ensure secure and authorized money transfers.