Unified Payments Interface (UPI), first introduced in 2016, was developed by the National Payments Corporation of India (NPCI) to make the process of payments easier. UPI is quite different from IMPS as it provides a P2P Pull functionality, simplifying merchant Payments, a single app for money transfer, and single-click two-factor authentication.
How can one make payments using UPI?
A user can make payments through UPI by entering the Payment Address (eg: abc@upi) which will then redirect them to their BHIM app to complete the process.
Does one need to register a beneficiary to transfer funds through UPI?
It is not necessary to register a beneficiary to transfer money via UPI as the amount can be transferred based on Virtual ID/Account+IFSC/Aadhaar Number.
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Is a bank account required for a UPI transaction?
Earlier, customers were allowed to link only their bank accounts but now they can link their PPI Wallets also.
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What will happen if money gets debited from the account but the transaction fails?
There is no need to worry if money gets debited from the account but the transaction fails. The money will be transferred back to the source account immediately and reflects in the account.
What is the limit of fund transfer using UPI?
As of now, the upper limit per UPI transaction is Rs 2 lakh.
