What is UPI in a bank account?

UPI (Unified Payments Interface) is a real-time payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI). It allows you to link multiple bank accounts into a single mobile application for instant fund transfers 24/7. Instead of using sensitive details like account numbers or IFSC codes, UPI uses a Virtual Payment Address (VPA) or UPI ID. It facilitates seamless peer-to-peer and merchant payments through a secure two-factor authentication process using a unique UPI PIN.