UPI ID - What is Upi id and its meaning UPI apps like BHIM?
UPI (Unified Payment Interface) is a scheme from Government of India to make digital cashless transactions easy and smooth. Using a UPI App, we can send money to a friend or pay to a merchant directly from our app without the hassle of having a credit and debit card. While paying a friend or a merchant through UPI app, you need to know their UPI ID. UPI id is also called 'Virtual Payment Address (VPA)'. For example, in ICICI bank app it is called UPI Id and SBI bank app it is called VPA.`
What is UPI Id
In UPI App, UPI Id acts as an alternative to one's bank account number. That is, while transferring money one needs to know the Upi id of the receiver instead of his/her bank account number which is required in NEFT or IMPS transfers.
UPI Id is the only detail you need to know while transferring money. UPI id looks like 'ram@icici' or 'mohan@SBI' or 'brij@HDFC'
Please note that you can transfer money to people who have created their upi id in other UPI app also. Many other apps use virtual private address (vpa) to represent the same concept as UPI ID. So make sure to ask the receiver their upi id or their upi virtual payment address.
Advantages of UPI ID
No need to give bank account number and other details like IFSC code for getting money.
No pre-registration of beneficiary (receiver of money) unlike in netbanking.
Money gets transferred immediately from sender's bank account to receiver's.
No need to park money somewhere other than your bank unlike e-wallets like paytm, mobiwik, etc.
Single address for accessing one's own multiple bank accounts.
Easy to remember as you choose it yourself. :)
Making Payment to a UPI ID in icici bank app
Funds Transfer is the main feature of UPI and UPI ID. Here are some points to remember before doing transfer -
To transfer funds through UPI, both the parties (sender and receiver) must be registered on UPI. See UPI Registration and Virtual Address Creation
Sender must have the MPIN set to authenticate the funds transfer.
Sender must know the UPI ID or Virtual Payment Address (VPA) of the receiver.
The process of money transfer is very simple and quick. Just open your ICICI UPI app, select 'Send Money', enter UPI Id of the receiver, the amount to transfer and your MPIN for authentication. Thats it! Money will be transferred.
Making Payment to a UPI id in non-icici bank like sbi pay
The process is same as above, only that the app will ask for virtual address instead of upi id of the receiver. Virtual address is same as upi id.Category: finance upi