How do UPI apps work?

UPI apps facilitate instant, real-time transfers between bank accounts 24/7. A user links their bank account to a Virtual Payment Address (VPA) or UPI ID. To initiate a payment, the user enters the recipient's UPI ID or scans a QR code, reviews the details, and authorizes the transaction with a secure UPI PIN. The National Payments Corporation of India (NPCI) switch instantly clears and settles the transfer between the banks.