How does UPI money transfer work?

UPI money transfer works as a real-time payment system that enables instant fund transfers between bank accounts using a mobile device. It simplifies the process by using a Virtual Payment Address (VPA) or UPI ID, eliminating the need for bank account numbers or IFSC codes.

• Initiation: The user enters the recipient's UPI ID or scans a QR code.
• Authentication: The transaction is authorized using a secure UPI PIN.
• Processing: The request is routed through the NPCI, which facilitates the instant debit from the sender's account and credit to the receiver's account.