What is a UPI transaction?

A UPI transaction is an instant, real-time payment that facilitates the immediate transfer of funds between two bank accounts via a mobile device. Developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI), it allows users to send or receive money 24/7 using a unique UPI ID, mobile number, or by scanning a QR code. Each transaction is secured by a user-set UPI PIN, ensuring a safe and seamless cashless experience without the need to share sensitive bank account details.