How does UPI work internally?

UPI works internally as a real-time payment system developed by NPCI, built on the IMPS infrastructure. When a transaction is initiated:

• The sender's app sends a request to the NPCI central switch.
• The NPCI routes the request to the sender's bank to verify funds and the UPI PIN.
• Once authorized, the sender's bank debits the account.
• NPCI then signals the recipient's bank to credit the funds.

This API-driven architecture ensures instant, secure, and interoperable inter-bank settlements 24/7.