Unified Payment Interface (UPI)

Unified Payment Interface (UPI), launched by National Payments Corporation of India has been gone live few months back. Several banks have already announced the launch of their UPI-enabled apps, which can be used by both customers of the respective banks or an account holder of another bank to transact payments.

Say, for example if I have installed the updated version of my HDFC Bank mobile app then from there I can add multiple bank accounts of mine - of all the banks which are now registered with UPI.

Here is how it works:

Steps for Registration:

Download the UPI app of your bank (or a third party app like PhonePe) from the Play Store. When you search UPI in Play Store, the list will show all registered banks' apps. Choose your bank"s app. Then install/update the app.

We all have been transferring money through NEFT/RTGS/IMP from long time. For that we used to require payee's bank account details like a/c no. and IFSC code. But with UPI to transfer money you don't require all those.

All you require is two things

(1) VPA  (Virtual Payment Address)

(2) MPIN

(1) Open the app and click on UPI icon there. Create UPI profile by entering details like name, answer to secret question etc. While creating UPI profile, it will ask you to choose your VPA. The format is always like below:

Your_chosen_VPA_Name@yourbank

For example my VPA is amisandip@hdfcbank

If the name you chosen for your VPA is not available then choose some other name which is available.

Go to “Add/Link/Manage Bank Account” option and links the banks and account numbers with your VPA.

(2) For registering or generating M-PIN:

Click on MPIN icon after you have successfully created your profile.

After you have entered last 6 digits of your debit card number and expiry month and year you will receive a One Time Password (OTP) from the issuer bank on your registered mobile number. 

Enter OTP and choose your preferred numeric MPIN and clicks on ‘submit’. Done.

How a UPI transaction is performed?

PUSH – Sending money using virtual address (VPA)

Log on to UPI application

After successful login, select the option of Send Money/Payment

Enter beneficiary’s/Payee virtual id (VPA) and amount and select your account to be debited.

You will get confirmation screen to review the payment details and clicks on ‘Confirm’.

Enter MPIN

Get ‘successful’ or ‘failure’ message.

So if you want to transfer me some money, all you need is my VPA - that's it.

PULL – Requesting money

Log in to the bank’s UPI application.

After successful login, select the option of collect money (request for payment)

Enter remitters/payer’s virtual id (VPA), amount and account to be credited i.e. your a/c no.

You will get confirmation screen to review the payment details and clicks on confirm.

The payer will get the notification on his mobile for request money.

Payer now clicks on the notification and opens his banks UPI app where he reviews payment request.

Payer then decides to click on accept or decline.

In case of accept payment, payer will enter his MPIN to authorise the transaction.

Payer gets ‘successful’ or ‘decline’ transaction notification.

Payee/requester gets notification and SMS from his bank for credit in his bank account.

And its done......

Regards,

Malay Shah