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HIGHLIGHTS

  • When purchasing something, a user can choose to complete the transaction through UPI. To complete the transaction, the user will need to enter their payment address (for example – [email protected]).
  • There is no need to register a beneficiary to transfer money via UPI. This is because the amount would be transferred based on Virtual ID/Account + IFSC/Aadhaar number.
  • UPI provides real-time reversals for declines and the amount would be immediately transferred to the payer’s account. If this does not happen, the customer can contact their bank for the same.
New Delhi: Introduced in 2016, the Unified Payment Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI). The interface provides users with the facility to instantly transfer money between bank accounts.
Many might think of the difference between UPI and IMPS. It is worth mentioning here that UPI provides additional benefits to IMPS in the following ways: providing P2P Pull functionality, simplifying merchant payments, a single app for money transfer, and one-click two-factor authentication.

How to pay with UPI?

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When purchasing something, a user can choose to complete the transaction through UPI. To complete the transaction, the user will need to enter their payment address (for example – [email protected]). Once entered, the user will receive a collection request on the BHIM app.

Do you need to register a beneficiary before transferring funds through UPI?

There is no need to register a beneficiary to transfer money via UPI. This is because the amount would be transferred based on Virtual ID/Account + IFSC/Aadhaar number.

Do you need a bank account for UPI transactions?

Previously, customers were only allowed to link their bank accounts, but now they can also link PPI wallets in UPI.

What happens if the money is debited but the transaction fails?

Considering these scenarios, UPI provides real-time reversals for declines and the amount would be immediately transferred to the payer’s account. If this does not happen, the customer can contact their bank for the same.

If unsuccessful, the money is refunded to the account within a certain time. Sometimes it can take a little longer than expected.

What is the fund transfer limit using UPI?

Currently, the upper limit per UPI transaction is Rs 2 lakh.