How to use UPI to transfer money

What is UPI?

We can consider the UPI as the improved version of IMPS to make money transfer hassle less. National Payment Corporation of India (NPCI) approved UPI payments and instructed banks to make arrangements for the latest payment mode. Below are the benefits of UPI.

What are the UPI benefits?

– To transfer money to others accounts you no need to use complete bank details. Earlier without Bank Name, Branch location, IFSC code and the account number we were not able to transfer funds to others accounts. But with UPI just the UPI ID (i.e. like mail ID) is sufficient for fund transfer.

• No need to add beneficiary to transfer funds into their accounts
• You can transfer up to Rs. 1 Lakh per single transaction.
• The complete processor works on Unique ID called UPI – ID. So now onwards to transfer funds to your friends you need to ask for their UPI – ID instead of complete bank details.
• You can transfer funds only from a mobile phone and a dedicated UPI app released by your bank. If you have accounts in two banks, you must install two separate apps published by both the banks from the Google Play store.
• There are no time restrictions on the transactions. Now you can transfer funds around the clock.

How to Register with UPI?

To make UPI fund transfers you have to download dedicated UPI app released by your bank. Here is the list of banks providing the UPI app right now, soon other banks are going to release apps on Google Play Store.

First Step:

Once you downloaded your Bank’s UPI app from the Google Play Store, open the app and enter your mobile number along with four digits PIN of your choice. Whenever you wants to transfer money with UPI app the PIN is required, so remember the PIN you created at this step.

Second Step:

Now your bank UPI app asks you to create a VPA address (Virtual Payment Address). VPA is like email address, create with care. If you are using ICICI, their VPA domain is “pockets”. So if you are a ICICI customer, your VPA address can be “person@pockets” or “mail@pockets” or “98763210@pokckets”. You can set whatever available name.

Third Step:

Once you created the VPA you need to link your Bank account with your VPA address.

How to transfer money with UPI?

In your UPI app, once you finished all the above steps you will get send money, collect money, respond to collect request and finally QR code scanning features.

Select Send Money option. On the next screen specify your friend’s VPA ID, the amount you want to transfer and the remarks. Finally, confirm the transaction simply by tapping on the screen. Now the amount will be transferred to your friend’s account instantly.

How to Receive money with UPI?

Open UPI app installed on your phone and select “Collect Money” option from the menu. Now specify the VPA ID of the person from whom you want to collect money, the amount you need to collect and other details, once you configured the transaction your friend also got notified by his UPA app and SMS about the collect request you initiated.