What is UPI?
Unified Payments Interface or UPI has become a household term in India in the last few years. Developed by the National Payments Corporation of India (NPCI), UPI is a 24*7 instant payment system that allows you to transfer money in real time between two bank accounts. UPI is built over the Immediate Payment Service or IMPS infrastructure, says the NPCI website.
You need a smartphone, an Internet connection, an app, and a virtual ID to send money via UPI. Through UPI, you can transfer money using a virtual ID or combo of bank account number and IFSC code or Aadhaar number or by scanning a quick response (QR) code. Do note that UPI allows you to use multiple bank accounts in a single mobile application.
How to use UPI?
To use UPI, you must have a bank account with a member bank, i.e., your bank should allow you to use the UPI facility. NPCI has added over 100 public and private sector banks, co-operative banks, small finance banks, and gramin banks as members over the years. You can check the list here.
Then, you need to download any app that supports UPI on your smartphone. Some commonly used apps offering UPI options are BHIM, Paytm, PhonePe, Google Pay, Amazon Pay, etc. Your mobile number must be registered with your bank account for verification purposes.
Also read: Difference between UPI123 and UPI Lite
UPI PIN mandatory for UPI transactions
While registering for UPI for the first time, you need to create a 4 to 6-digit Personal Identification Number (PIN) with the app. You have to enter this UPI PIN to authorise all bank transactions. Easy interface, single-click authentication, and quick money transfer have made UPI popular among users.
What is the transaction limit of UPI?
At present, the upper limit per UPI transaction is Rs 2 lakh, says the NPCI website. Moreover, UPI apps also allow you to request a payment from another user.
Can you receive money via UPI?
Yes, you can receive money via UPI. In the case of a virtual ID transaction, the beneficiary needs to have a virtual ID and in turn, be registered with UPI. In the case of a bank account plus IFSC or Aadhaar number, the beneficiary need not be registered for UPI, says NPCI.
How to check UPI transaction history?
You can easily check your UPI transaction history on the mobile application. To view transaction history, go to the ‘home screen’ and click on ‘transaction history’, says the NPCI website.
What is UPI Lite?
The Reserve Bank of India (RBI) launched UPI Lite last week. It is an ‘on-device wallet’ feature that will allow users to make real-time small-value payments without using a UPI PIN.
How UPI Lite works
First, you have to add funds to or load money into the wallet on the app, from your bank account. Then, you can use those pre-loaded funds to pay from the wallet via UPI Lite.
Who can use UPI Lite?
UPI Lite feature has been enabled on the BHIM app, according to an NPCI press release. At present, customers of eight banks can use UPI Lite via the BHIM app. These banks are Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India Union Bank of India, and Utkarsh Small Finance Bank, NPCI mentioned.
What is the transaction limit for UPI Lite?
Do note that UPI Lite has been designed for low-value transactions. So, the upper limit for UPI Lite transactions is Rs 200. Users don’t need a UPI PIN for payments below Rs 200 via UPI Lite, as per the NPCI website.
The total limit of UPI Lite balance for an on-device wallet will be Rs 2,000 at any point in time.
Can you use UPI Lite without Internet?
In phase one, UPI Lite will process transactions in near offline mode, i.e., debit (payments) can be made without an Internet connection, and credits into the account will be done online, NPCI said earlier.
Is a credit option available on UPI Lite?
At present, only debit from your wallet is permitted and all credits to UPI Lite including refunds will directly go to your bank account, according to NPCI.
How to check UPI Lite transaction history?
UPI Lite transactions, except top-ups, will not be displayed in your bank account statement or passbook. Customers will receive an SMS daily containing the history of UPI Lite transactions carried out during the day, from the bank, as per NPCI.
Difference between UPI and UPI Lite
|What is it?||UPI is a 24*7 instant payment system that allows you to transfer money in real time between two bank accounts.||UPI Lite is an ‘on-device wallet’ feature that will allow users to make real-time small-value payments.|
|Transaction Limit||The upper limit per UPI transaction is Rs 2 lakh||The upper limit is Rs 200. Total balance of the on-device wallet can be up to Rs 2,000.|
|Is PIN mandatory?||A 4 to 6-digit PIN is mandatory||At present, you don’t need a PIN to send money via UPI Lite|
|Can you send money?||Yes||Yes|
|Can you receive money?||Yes||Currently, only debit from your wallet is permitted. All credits to UPI Lite will directly go to your bank account|
|Who can use?||Customers of more than 100 banks can use UPI via applications like BHIM, Google Pay, Paytm, PhonePe or mobile banking apps||UPI Lite feature has been enabled on the BHIM app. Currently, customers of eight banks can use this facility|
|How to check transaction history?||Open app> Home screen > Click on view transaction history||You will receive an SMS daily containing the history of UPI Lite transactions carried out during the day from the bank.|