Get answers to the most commonly asked questions on Unified Payments Interface
Launched in the year 2016, Unified Payments Interface is an instant, real-time payment settlement system in India. In the last three years, UPI has been anchoring the government’s digital revolution in India.
Recently, UPI crossed 1 billion transactions and added 100 million users for the month of October 2019. On a year on year basis, UPI transactions have increased by 135%. With 141 banks on the UPI platform, it is one of the sought after payment settlement systems in India.
In the course of this blog, let us try to understand some of the frequently asked questions concerning UPI.
1. What is the difference between UPI and IMPS?
A unified payment interface is a simplified version of an instant payment settlement system as compared to IMPS. UPI enables a user to make an online money transfer with only a virtual payment address. Hence, the long process of entering bank account, IFSC code, etc for IMPS is done away with.
2. Is UPI transaction free?
UPI transaction was free before April 1, 2019, for all banks. From April 1, 2019, Kotak Mahindra Bank is charging for UPI transactions. Users are charged after 30 peer to peer transactions/month. However, UPI payments via ICICI, SBI and HDFC platform continue to remain free.
3. Is card or wallet necessary for a UPI transaction?
No. Only bank account details are needed for UPI transactions.
4. Is it possible to have 2 UPI Ids?
Yes. It is possible to have up to ten UPI Ids linked to the same bank account.
5. What is the 2-factor authentication system in UPI?
It is the basic security feature of the UPI system. The 2-factor authentication system consists of verification using the M-PIN and the UPI ID.
6. Is mobile banking mandatory for UPI?
No, mobile banking is not necessary for UPI. The important requirements for UPI are Android phone and mobile number linked bank account.
7. Can UPI Id be changed?
Yes, you can change the UPI Id. You can obtain 2 more UPI Ids from the bank.
8. Is the UPI Id the same for all the UPI apps?
UPI Id is mobile-specific. One can create multiple email Ids linked to multiple mobile numbers. Hence, UPI Id remains the same for the same mobile number irrespective of the multiple UPI apps.
9. Does money transfer take place through UPI only during the banking hours?
No, money transactions take place through UPI 24*7.
10. Does the beneficiary need to register with UPI for receiving funds?
No, it is not necessary for the beneficiary to register with UPI for receiving funds. On the other hand, the only requirement for the beneficiary to receive funds is a mobile linked bank account.
11. How much time does UPI transfer take?
UPI transfer takes place instantly.
12. In case of a change of UPI app, re-registration is required or can I use the same virtual address?
Re-registration is required in case of a change of the UPI app. One needs to just do mobile verification. The virtual address remains the same.
13. What are the different channels for transferring funds using UPI?
- Transfer through VPA
- Account Number + IFSC
- Mobile Number + MMID
- Aadhaar Number
- Collect / Pull money basis VPA
14. What is the limit of funds transfer with UPI?
The limit of funds transfer with UPI is 1 lakh with an upper limit of 10 transactions per day.
15. What is UPI 2.0?
Launched in Aug 2018, UPI 2.0 is an upgrade to the UPI system. The salient features of UPI 2.0 are the option of linking an overdraft account, setting of mandates, receiving an invoice in the inbox and provision for signed intent and QR.
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YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in