how UPI (Unified Payment Interface) works:
- UPI Registration: To use UPI, you need to register your bank account with a UPI-enabled app, such as Google Pay, PhonePe, or BHIM. During registration, you will need to provide your bank account details, such as the bank account number, IFSC code, and mobile number linked to your bank account.
- Creating UPI ID: After registering your bank account with a UPI app, you will need to create a UPI ID, which is a virtual payment address that uniquely identifies you on the UPI network. The UPI ID can be created by selecting a unique username and linking it to your bank account.
- Initiating a Transaction: To initiate a transaction on UPI, you need to open the UPI-enabled app and select the ‘Send Money’ option. You will then need to enter the recipient’s UPI ID or mobile number and the amount you wish to transfer. You can also enter a remark or description for the transaction.
- Authentication: Once you have entered the transaction details, you will be prompted to authenticate the transaction using your UPI PIN. The UPI PIN is a 4 or 6 digit code that you set during registration and is used to authenticate all UPI transactions. You can also use biometric authentication, such as fingerprint or facial recognition, to authenticate the transaction.
- Confirmation: After you have authenticated the transaction, it will be processed by the UPI system in real-time. Once the transaction is completed, you will receive a confirmation message on the UPI-enabled app, and the money will be instantly transferred from your bank account to the recipient’s bank account.
- Payment Request: You can also receive payments through UPI by creating a payment request on the UPI-enabled app. To do this, you need to select the ‘Request Money’ option and enter the payer’s UPI ID or mobile number and the amount you wish to request. The payer will receive a notification of the payment request, and once they approve it, the money will be transferred from their bank account to yours.
UPI works on a 24/7 basis, and transactions can be initiated and completed at any time, including weekends and holidays. UPI is a fast, secure, and convenient way to transfer money from one bank account to another, and it has revolutionized the way people in India make payments.
How upi works
And furthermore, UPI also offers a range of other services, including:
- Bill Payments: With UPI, you can pay your utility bills, such as electricity, water, and gas bills, as well as other bills, such as credit card bills and insurance premiums, directly from your bank account.
- Mobile Recharge: You can also recharge your mobile phone or DTH account using UPI. Simply select the ‘Recharge’ option on the UPI-enabled app, enter your mobile number or DTH account number, and the amount you wish to recharge.
- Check Account Balance: You can check your bank account balance and view your transaction history directly from the UPI-enabled app.
- Request Money: In addition to sending money, you can also request money from other UPI users by creating a payment request on the UPI-enabled app.
- QR Code Payments: You can make payments using UPI by scanning a QR code using the UPI-enabled app. This is a convenient way to make payments at retail stores, restaurants, and other businesses.
UPI has made digital payments more accessible and convenient for millions of people in India. It has also helped to promote financial inclusion by enabling people to access banking services and make payments using their mobile phones. With UPI, you can transfer money, pay bills, recharge mobile, and more, all from the comfort of your home or office.