What is UPI and how is money transferred through it? 5 things you should know

New Delhi: Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), which is an RBI regulated entity. UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties' bank accounts.

In other words, UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience. Users can immediate money transfer through mobile device round the clock and throughout the year. UPI is available on Android and iOS platform.

Here are 5 most important things you should know about UPI

1. Does customer need to have a bank account for UPI fund transfer? 

UPI fund transfer can not be linked to a card or wallet. Only bank accounts can be added for the purpose.

2. Different channels for transferring funds using UPI

The different channels for transferring funds using UPI are as follows: 

a.Send/Collect through Virtual ID

b.Account Number + IFSC

c.Aadhaar Number

3. What are the 10 most popular Apps offering UPI in India?

PhonePe
Paytm
BHIM app
MobiKwik
Google Tez
Uber
Paytm Payments Bank
SBI Pay
Axis Pay
BOB UPI

4. How is UPI different from IMPS?

UPI provides additional benefits to IMPS in the following ways:

1.Provides for a P2P Pull functionality

2.Simplifies Merchant Payments

3.Single APP for money transfer

4.Single click two factor authentication

5. What is the limit of fund transfer using UPI?

Currently, the upper limit per UPI transaction is Rs.1 Lakh.