What is a Virtual Payment Address (VPA) in UPI?
5paisa Research Team
Last Updated: 01 Jan, 2025 12:37 PM IST

Content
- What Is A Virtual Payment Address (VPA) In UPI?
- How Does VPA Work?
- Benefits Of Using Virtual Payment Address
- How To Create A VPA
- How To Use VPA For Transactions
- Security Features Of VPA
- VPA Vs. Card Payments
- Conclusion
In today's fast-paced digital world, sending money has become as easy as sending a text message. Thanks to the Unified Payments Interface (UPI), millions of Indians now make instant, secure mobile payments. At the heart of this revolutionary system is a Virtual Payment Address (VPA).
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Frequently Asked Questions
While many banks charge fees for RTGS, IMPS, and NEFT, using UPI for VPA transactions is almost always free. UPI can link all your bank accounts, and a single UPI app from any bank allows you to create a VPA for each of your UPI-enabled bank accounts.
Yes, there are some limitations when using a Virtual Payment Address (VPA):
- Transaction Limit: The National Payment Corporation of India (NPCI) has set a daily limit of ₹1 lakh for UPI transactions. However, this limit can vary from ₹10,000 to ₹1 lakh, depending on the bank, and it can change over time.
- Number of Transactions: You can make a maximum of 20 UPI transactions daily.
- New Users: New users on BHIM can only make transactions up to ₹5,000 for the first 24 hours after registering. After that, they can use the full daily limit of ₹100,000.
- Bank Issues: If your bank is experiencing problems, you might be unable to send money.
No, a Virtual Payment Address (VPA) is not the same across all UPI apps:
- Explanation: Each payment app has its own UPI setup and creates a unique VPA for users when they register. For example, on PhonePe, a unique handle is assigned when you create a bank-specific VPA. While you can use the same VPA prefix as another app, your handle will be unique to PhonePe.
- Security: Since every VPA is different, it enhances the security of your VPA.
- Multiple Apps: If you use multiple payment apps, you must create a separate VPA for each app during registration.