What is UPI ID & How to Register for UPI Payments?

Learning how to make a UPI ID or set a UPI PIN is an easy solution to enjoying seamless transactions. Thanks to digital advancements and the launch of the UPI facility, now you no longer have to visit a bank to transfer money. With the Unified Payment Interface (UPI), you can effortlessly transfer funds from one account to another in seconds.

Read on to learn how to set up UPI, its features, benefits and how to generate a UPI ID.

What is UPI?

Governed by the Reserve Bank of India, UPI is a payment platform that has changed how people transact. One of the key benefits it offers is instant secured payments from one account to another. 

You get to transfer funds with minimal information compared to traditional methods like IMPS and NEFT, which require the sharing of more information about you and the recipient.

Moreover, before transferring funds, you have to add beneficiaries and wait 30 minutes to 1 hour. But with UPI, you can instantly transfer money with just a UPI ID or mobile number.

How Does UPI Work?

The Unified Payments Interface, UPI, has made payments simple, transparent and quick. It’s a real-time payment system that allows inter-bank transfers through two-factor authentication. The RBI regulates the interface and works with existing systems, such as:

• Immediate Payment Service (IMPS)
• Aadhaar Enabled Payment System (AEPS)

Not only does it help you carry out push (pay) and pull (receive) payments, it also helps make:

• Over-the-counter payments
• Barcode payments
• Recurring payments

Why is it Important?

UPI has been proving its worth since its inception. To have a profound knowledge of why UPI is important then, take note of the following reasons:

• It offers convenience and simplicity
• UPI enhances security
• It is available 24/7
• UPI is accepted almost everywhere
• UPI has helped to improve cash flow
• You can add multiple bank accounts

Understanding UPI Registration and UPI ID 

With your UI ID, also known as VPA (Virtual Payment Address), you can enjoy several benefits of digital transactions. But first, you need to complete the UPI registration process. To begin with the UPI registration process, link your bank account to the UPI app by providing details like:

• Your bank account number
• The IFSC code
• The mobile number linked to your bank account

After you complete the process, you can seamlessly and securely transfer money with your UPI ID or number. You can pay for:

• Online shopping
• Utility bills
• Credit card payments
• Merchant transactions
• Booking tickets 
• Buying insurance and more

Step-by-Step Process of Creating UPI ID

First, you need to download your preferred app. Some of the top and most common popular applications are:

• Google Pay
• Paytm
• PhonePe
• BHIM
• BharatPe

Once you have installed the app you want, follow the steps outlined below:

1. Register with the mobile number linked to your bank account
2. Complete the verification process
3. Go to your profile or account section
4. Select the ‘Bank Account’ option
5. Choose the account you have
6. Complete the verification through an OTP sent to your registered number

Registering for UPI Payments

After you complete the process, you will see multiple UPI IDs and numbers available under the profile section of the app. You can choose and edit any of the options as you wish and click ‘Activate’. You will receive an OTP for verification. Enter the code to complete the process.

Then, you need to select a 4 or 6-digit number UPI PIN that will authorise your UPI payments. Make sure you add a strong PIN and remember it. You need to provide your debit card details to set up your PIN.

Set UPI PIN

To successfully set a UPI PIN in your UPI app, you will have to follow these steps:

• Go to the Play Store
• Download the UPI app
• Open the installed app
• Tap your profile picture at the top right corner
• Add your bank account
• Enter all the debit details  
• Enter the OPT you received in your registered mobile number
• Enter your PIN and reconfirm it
• Make a small payment to check

How to Send Money Using UPI ID?

To transfer funds using UPI ID, you need to install and launch a digital payment application. Then, you can follow these steps:

1. Scan the QR code or enter the recipient’s ID or number
2. Add the transfer amount and note
3. Confirm the transaction and Enter your PIN

After the payment is complete, you’ll be notified about the same through the app and by your bank.

The transaction flow in UPI payments is similar to other payment options. Once you initiate a payment request, the banks verify the account details and balance. After verification, the confirmation is passed on to the NPCI, and the transfer occurs.

Now that you know how to make UPI ID and the various benefits of UPI payments. You will also have to start practising online hygiene to ensure your financial security. Once you have it set up, you can use it for easy and quick transfers. You can check your utility bills and other credit dues like loans on some UPI apps and pay your EMI quickly with your UPI ID number.

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FAQs on UPI ID

What is the UPI code?

A UPI code is the PIN and ID you set when you create your UPI ID number. You require these details to complete any UPI transaction.

Can I open a UPI ID without a bank account?

No, you cannot because you need a bank account to generate a UPI ID and facilitate fund transfers.

Is it safe to share a UPI ID?

Yes, because it doesn’t contain any sensitive information. Generally, your UPI ID is in the following format:

• your name@bankname
• registered mobile number@bankname

Can I use UPI without mobile banking?

No, since you make digital payments through UPI, you must activate the facility.

How to create a UPI ID without a debit card?

Here’s how you can create a UPI without a debit card:

1. Log in to a UPI app and navigate the ‘Add UPI ID’ option
2. Choose an Aadhaar-linked bank account and create a UPI ID according to the app
3. Select ‘Aadhaar-based verification’ and accept the terms and conditions
4. Provide your Aadhaar number’s first 6 digits and click on ‘Confirm’
5. Set up your UPI PIN
6. Enter the OTP that you’ll receive on your registered mobile number
7. Type in the UPI PIN and click on ‘Confirm’ to complete the registration

How to add UPI ID in Google Pay?

Log in to the app and follow this process:

• Step 1: Click on your profile picture in the top right corner
• Step 2: Go to the bank account tab and select the account added
• Step 3: Select the ‘Manage UPI IDs’ option
• Step 4: Choose the UPI ID you want to add from the drop-down menu