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by 5paisa Research Team Last Updated: 2023-07-18T12:48:43+05:30
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Unified Payment Interface (UPI) is a banking system that allows money transfers using payment apps. Your bank must support UPI in order for you to add a bank account to Google Pay.

Your UPI ID is a unique address that you use to identify yourself on UPI (usually yourname@bankname).

 
The plan for UPI came into action in January 2016. India's government aimed for a cashless economy, and UPI was among the first tools. It has enabled people to transfer and receive money without using their debit cards. Today, UPI has transformed smartphones into a tool that can act as a virtual mode of payment like a debit card. It is fast, secure, and user-friendly.

Here's an example of a UPI ID:

UPI ID: rajesh.jain@bankname

In this example, "rajesh.jain" represents the unique identifier chosen by the account holder, and "bankname" refers to the specific bank associated with the UPI ID. The UPI ID is essentially a combination of the account holder's chosen identifier and the bank's name, separated by the "@" symbol.

Please note that UPI IDs can vary in format and may include different characters or symbols depending on the UPI-enabled application or the user's preferences. The example provided above is just one possible representation of a UPI ID.
 

What is UPI ID?

The traditional way of transferring funds earlier was tiresome. While transferring money, the account holder must always enter the IFSC code, account number, and other information to register a beneficiary which takes approximately 24 hours to approve. The repetitive process is undeniably cumbersome. However, with the advent of UPI, the fund transfer process has been streamlined. The UPI ID meaning is the ID generated for a bank account holder is a Virtual Payment Address (VPA).
 
Today, there are multiple UPI-enabled applications in the country, such as PayTM, Google Pay, PhonePay, etc. Therefore, if you need the answer to “what is my UPI ID?'', check the profile section of these apps to determine the same. In addition, the National Payments Corporation of India has developed BHIM (Bharat Interface of Money). All these applications have simplified the fund transfers for the nation.
 
Furthermore, banks have also developed personalized and user-friendly UPI-enabled applications for their customers.
 

How to Create UPI ID?

Creating a UPI ID is simple and can be done through various UPI mobile applications. Here's a step-by-step guide for different UPI apps:

1. How to Create UPI ID on BHIM App? 

a.    Download and open the BHIM app from Google Play Store or App Store. 
b.    Choose your preferred language and click on "Proceed." 
c.    Verify your mobile number by sending an SMS from the app. 
d.    Select your bank from the list and confirm your account details. 
e.    Set up a 4 or 6 digit PIN for secure transactions.

2. How to Create UPI ID on Google Pay? 

a.    Download and open the Google Pay app. 
b.    Tap on your profile picture in the top right corner. 
c.    Go to "Bank account" and select your added bank account. 
d.    Click on "Edit" next to 'UPI ID' and then tap on the plus sign to create your UPI ID.

3. How to Create UPI ID on PhonePe? 

a.    Download and open the PhonePe app, then register. 
b.    Under "My Money," click on "Bank Accounts" and select your bank account. 
c.    Choose an extension from the dropdown menu and click on the "+" sign. 
d.    Enter your selected UPI ID and click on "Activate."

4. Create UPI ID through *99# 

a.    Dial *99# on your phone and call. 
b.    Select your preferred language. 
c.    Enter your bank name or the first four digits of your branch's IFSC code. 
d.    Select your bank account. 
e.    Enter the last six digits and expiry date of your debit card. 
f.    Confirm your UPI PIN.
 

How to Find UPI ID in Mobile App?

To begin your UPI journey, start by creating a UPI ID. Irrespective of the application, you must follow the steps below to generate a UPI ID.
 
Step 1: Download the UPI application.
Step 2: Post installation, set a 4-digit password for operating the UPI application.
Step 3: Select the registered mobile number with your bank to link the UPI application.
Step 4: The verification process takes a few seconds to set up the account.
Step 5: You can check your UPI ID by clicking on the hamburger option in your application.
 
If you prefer the BHIM application, here is the step-by-step procedure for setting up your UPI ID.
 
Step 1:
Download and install the BHIM app.
Step 2: Choose your preferred language.
Step 3: Accept various prompts and verify your mobile number.
Step 4: The mobile number entered should be the registered number with the bank. The application will automatically verify the details such as bank account number, IFSC number, available balance, and others.
Step 5: Your UPI number with the BHIM app is now set. You can begin the transactions henceforth. 
 
Here is a step-by-step procedure if you are using bank-developed applications and wish to check your UPI ID.
 
Step 1: In your bank's UPI application, log in using a password or OTP.
Step 2: Complete the mobile verification process.
Step 3: Go to my profile and click on the UPI app.
Step 4: Your UPI will be displayed under the same.
 
Also read: How to apply for IPO through UPI ID
 
The National Payment Corporation of India launched UPI with the Reserve Bank of India (RBI) and the Indian Bank Association. But, what is a UPI ID example? While using a UPI ID or VPA, you must share the ID via a syntax such as 12345678@bankname. However, if you wonder  “what is my UPI ID”, you will receive this ID through the respective app where you have integrated and verified your bank account.
 
The UPI ID is much safer than sharing your bank number with strangers. It functions in the same way as any text message. You enter the name of the person you wish to text, and the name pops up. With UPI, you enter the mobile number, and the ID gets displayed automatically (if registered).
 
The user of a UPI ID can transfer up to 1 lakh in a day within 20 transactions. Also, you can request up to Rs. 2000 in a day. The NPCI has set the limit along with the RBI to regulate UPI operations. However, banks have the discretion to adjust the per-day transaction limit. Some banks allow only Rs. 25,000 per day for UPI transactions.
 

How to Change UPI ID?

Change UPI ID on BHIM app

a.    Open the BHIM app and access your profile. 
b.    Tap on "Settings." 
c.    Locate the option to edit your UPI ID. 
d.    Make the desired changes to your UPI ID. 
e.    Confirm the changes by clicking on "Confirm."

Change UPI ID on Google Pay

a.    Open Google Pay and go to "Payment Methods." 
b.    Select the bank account associated with the UPI ID you want to change. 
c.    Find the corresponding UPI ID and click on the "+" sign to edit it.

Change UPI ID on PhonePe 

a.    Open PhonePe and access your profile by tapping the top left corner. 
b.    Select "My UPI ID" and choose the extension you wish to change. 
c.    Click on "Activate" and follow the prompts to edit your UPI ID.
 

Generating UPI PIN

Your UPI PIN is a crucial authentication code used for UPI transactions. Just like your ATM PIN, it plays a vital role in safeguarding your transactions and preventing fraudulent activities. It is essential to keep your UPI PIN confidential and never share it with anyone.

How to Set UPI PIN?

●    Launch your UPI app on your smartphone and select "Add Bank Account."
●    Choose your bank from the provided list and verify your registered mobile number.
●    Once your bank account and phone number are verified, your device will be registered.
●    Set up your UPI PIN, which can be a 4 to 6 digit mPIN.
●    Generate your UPI PIN to complete the process. After setting up your UPI PIN, you can start using the UPI service to transfer funds and make payments securely.

How to Transfer Money Using UPI ID?

●    Open your preferred UPI app and enter the recipient's UPI ID, phone number, or account number. You can also scan the recipient's QR code.
●    Specify the amount you want to transfer.
●    Enter your UPI PIN to authorize the transaction.
●    (Optional) Check the transaction status and history in your UPI app. 
 

Features and Benefits of UPI ID

    Reliability:

●    UPI offers a reliable payment system that ensures seamless transactions between bank accounts.
●    The advanced infrastructure and standardized protocols of UPI contribute to its reliability.

    Real-time transfers:

●    UPI enables real-time fund transfers, allowing users to send and receive money instantly.
●    This feature is particularly beneficial for urgent or time-sensitive transactions.

    Inclusivity:

●    UPI promotes financial inclusivity by providing a common platform for all banks.
●    Users can create UPI IDs regardless of their banking institution, ensuring equal access to digital payment services.

    No minimum transaction limit:

●    UPI eliminates the constraints of a minimum transaction amount, making it convenient for both small and large transfers.
●    Users have the flexibility to initiate transactions of any desired amount.

    Stronger security system:

●    UPI incorporates robust security measures to safeguard transactions.
●    Users are not required to share sensitive information such as account numbers or card details during UPI transactions, enhancing data protection.
●    Additional security features, such as two-factor authentication and biometric verification, further strengthen the security of UPI.

    Money transfer at any time:

●    UPI enables 24/7 money transfers, providing the flexibility to initiate transactions at any time.
●    Users can conveniently send and receive funds outside of traditional banking hours.

    All Banks Covered:

●    UPI encompasses all eligible banks in India, ensuring that users can utilize UPI services regardless of their banking institution.
●    This comprehensive coverage offers users a wide range of options for UPI-enabled apps.

    Not Just Money Transfers:

●    UPI extends beyond simple money transfers and supports various financial transactions.
●    Users can utilize UPI for activities such as bill payments, online shopping, ticket bookings, and more.
●    This versatility makes UPI a versatile and convenient payment solution for diverse needs.
 

How to Remove an Extra UPI ID

●    Open your UPI-enabled mobile application.
●    Navigate to the settings or profile section of the app.
●    Look for the option related to UPI IDs or linked bank accounts.
●    Select the UPI ID or bank account that you want to remove.
●    Locate the option to delete or remove the selected UPI ID.
●    Follow the on-screen prompts or confirmations to complete the removal process.
●    Verify that the extra UPI ID has been successfully removed from your account.

How to Remove an Extra UPI ID from Google Pay:

●    Launch the Google Pay app on your mobile device.
●    Tap on your profile picture or initials in the top right corner.
●    Select the "Bank account" or "Payment methods" option.
●    Choose the bank account associated with the extra UPI ID.
●    Find the extra UPI ID that you want to remove and tap on it.
●    Look for the option to delete or remove the UPI ID.
●    Follow the provided instructions to confirm and remove the extra UPI ID.

How to Remove an Extra UPI ID from PhonePe:

●    Open the PhonePe app on your smartphone.
●    Tap on your profile or account icon located at the top left corner.
●    Select "My UPI ID" or a similar option.
●    Find the additional UPI ID that you wish to remove.
●    Tap on the "Delete" or "Remove" option next to the UPI ID.
●    Confirm the deletion by following the on-screen instructions.

How to Remove an Extra UPI ID from Paytm:

●    Launch the Paytm app on your mobile device.
●    Tap on the "Profile" icon located at the bottom right corner.
●    Select the "Settings" or "Manage UPI" option.
●    Choose the bank account associated with the extra UPI ID.
●    Find the additional UPI ID that you want to remove and select it.
●    Look for the option to delete or remove the UPI ID.
●    Follow the provided instructions to confirm and remove the extra UPI ID.
 

How to solve the UPI registration failure issue?

Try contacting the bank when you are trying to register for a UPI ID but fail. Your bank holds many rights, such as allowing UPI transactions or not. If you have encountered any unfavourable situation with your bank account, such as getting hacked, the bank might have blocked UPI payments from your account. To resolve the same, the respective bank account holder can request the bank through a letter or an email to enable the UPI transaction.
 
The user may face failed UPI registration for any of the below-mentioned reasons:
 
●      Incomplete KYC with the bank.
●      Wrong or no mobile number registered with the bank.
●      Any other incomplete formalities with the bank.
 
While registering the UPI ID, the application helps you generate a UPI pin. The PIN is crucial information. Therefore, it shouldn't be shared with all. People can crack your UPI ID after knowing the PIN, which could cost you a heavy loss. However, in the event of fraud or loss, you can inform your bank and stop all UPI transactions. The cyber cell can help you recover the money in such cases. However, it is better to keep your PIN to yourself.
 

Conclusion

The shifting dynamics towards digitalization have helped in eradicating fraudulent activities. Any transaction made by your account is traceable, and the culprit could be caught immediately. Such traceability wasn't possible a few years ago. Moreover, the legal procedure involved numerous verifications where the victim lost hope of getting the money recovered.
 
The inception of UPI has simplified lives. Today, people from all facets of life are using UPI. From a fruit seller to the cinema, all use UPI for fund transfers. The dream of making the nation a cashless country seems to be coming true.
 

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Frequently Asked Questions

In the Google Pay app, click on your image in the upper right corner. Then, select the bank account whose UPI ID you want to use.
 

Both net banking and UPI transactions are secure. However, UPI transactions are much more straightforward than net banking. 
 

UPI ID stands for Unified Payments Interface Identifier. It is a unique virtual payment address assigned to each UPI user, allowing them to send and receive funds securely.

Yes, UPI IDs are unique for each user. Each UPI ID is linked to a specific bank account and serves as an identifier for making UPI transactions.

The process of filing a complaint may vary depending on the specific UPI-enabled app. Most apps provide customer support or helpline numbers to address any issues or complaints regarding UPI transactions.

It is generally safe to share your UPI ID as it does not reveal any sensitive information such as your account number or banking details. However, it is crucial to keep your UPI PIN confidential and not share it with anyone.

No, a bank account is required to use UPI. UPI relies on the infrastructure of participating banks to facilitate fund transfers and other transactions.

While a debit card is commonly used to link a bank account to UPI, it is not mandatory in all cases. Some banks allow users to link their accounts directly without a debit card.

UPI ID is not directly assigned by the bank. Users can create their UPI IDs through UPI-enabled apps or platforms provided by their respective banks or third-party payment apps.

To use UPI, you typically need a smartphone, a bank account with an Indian bank, a registered mobile number linked to the bank account, and a UPI-enabled app installed on your device.

The process to recover your UPI PIN may vary depending on the UPI-enabled app you are using. Most apps provide options like "Forgot UPI PIN" or "Reset UPI PIN" within their settings or profile sections. Follow the instructions provided by the app to recover or reset your UPI PIN securely.