What is a UPI app and how does it work?

A UPI app is a mobile application that uses the Unified Payments Interface to enable instant, real-time money transfers directly between bank accounts. Developed by the NPCI, it allows users to manage multiple bank accounts in one place.

• Setup: Users link their bank account to the app and create a unique UPI ID or Virtual Payment Address.
• Transaction: Payments are made using the recipient's UPI ID, mobile number, or by scanning a QR code.
• Security: Every transfer requires a 4 or 6-digit UPI PIN to authorize the transaction securely, ensuring 24/7 accessibility and immediate settlement.