Unified Payments Interface (UPI)

Unified Payments Interface (UPI) has become a cornerstone of India’s digital payment ecosystem, facilitating instant real-time transactions between banks through mobile platforms. Developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI), UPI supports both peer-to-peer (P2P) and person-to-merchant (P2M) transactions.

As of mid-2024, UPI has demonstrated phenomenal growth. Transaction volumes surged to 78.97 billion in the first half of 2024, marking a 52% increase from the same period in 2023. The total transaction value reached ₹116.63 trillion, a 40% rise year-over-year. In July 2024 alone, the system processed 14.44 billion transactions, totaling ₹20.64 trillion in value, maintaining a daily transaction average of 465 million​

With over 300 banks participating, UPI now dominates both in-store and online payment markets, encompassing sectors like e-commerce, government services, and financial services. The platform’s widespread adoption has been bolstered by popular apps like PhonePe, Google Pay, and Paytm. Furthermore, the integration of voice command features, supporting English and Indian vernacular languages, is underway, promising enhanced accessibility​

UPI’s rapid adoption reflects its utility for micro and macro transactions, cementing its role as a transformative force in India’s digital economy.

Service

Unified Payments Interface is a real time payment system that allows sending or requesting money from one bank account to another. Any UPI client app may be used and multiple bank accounts may be linked to single app. Money can be sent or requested with the following methods:

• Mobile number: Send or request money from/to the bank account mapped using mobile number.
• Virtual Payment Address (VPA) or UPI ID: Send or request money from/to bank account mapped using VPA.
• Account number & IFSC: Send money to the bank account.
• QR Code: Send money by QR code which has enclosed VPA, Account number and IFSC or Mobile number.
• Aadhaar: Send money to the bank account mapped using Aadhaar number.

Requirement:

• Bank a/c
• Smart Phone with internet facility
• Mobile number should be linked with bank a/c
• Debit Card for re-setting MPIN.

Service Activation:

• Download the App for UPI
• Do registration online on the App with a/c details
• Create a virtual ID
• Set MPIN
• 5-7 minutes

What is required for Transaction?

• Smartphone with internet facility
• Registered device only
• Use registered MPIN
• Self Service Mode

Transaction Cost:

• Customer pays for data charges.
• NIL to customer by most Banks.