The Unified Payments Interface (UPI) is a system that integrates various bank accounts, smooth fund routing, and merchant payments into a single mobile application. This technology is gaining popularity these days.
Additionally, it supports "Peer to Peer" collection requests that may be planned and paid for according to need and convenience.
The UPI system is straightforward, cost-free, and immediate. You may conduct transactions with UPI 365 days a year, around the clock. If you are wondering how to use UPI to transfer money, this blog is just for you.
In this blog, we will examine how we may utilize the UPI system to carry out transactions, mainly how to transfer money by UPI. So, read on to know more about the same!
How to Use UPI to Transfer Money?
UPI makes sending money simple and secure. You can transfer money through any of the methods listed below-
Choose A Contact or Insert A Mobile Number
Choose a contact from your phonebook or enter a mobile number, enter the transfer amount, and then your PIN. In a few seconds, your payment will be processed.
Launch the digital payment application and enter the recipient's UPI ID to send money using UPI ID.
The required transfer amount must then be entered, and your MPIN must be entered to confirm the transaction.
Your payment will be finished in a brief amount of time.
Through Account Number & IFSC Code
This is the conventional method of payment, which UPI also supports. You can choose the sum and insert your PIN after entering the recipient's account number and IFSC, and in just a few seconds, your transaction will be processed.
By scanning the QR code for the recipient, you may send money over UPI as well.
Launch the digital payment mobile app on your phone, choose the option of ‘Pay,’ and then choose a QR code.
Enter the payment amount after scanning the recipient's QR code. Your payment will be processed in seconds when you enter your PIN.
How to Transfer Money Through UPI?
You may send money via UPI by taking the steps above-
Step 1: Launch the mobile payment app that accepts UPI transactions on your smartphone.
Step 2: Utilize your login information to access the application.
Step 3: Enter the recipient's mobile number in your payment app or choose them from your phone's contact list.
Step 4: Enter the whole amount to be transferred, then click ‘Pay.’
Step 5: Decide the bank account from which you wish to send the money.
Step 6: Enter your security PIN and press the ‘Confirm’ button to confirm the transaction.
Step 7: The inputted sum will now be taken out of your bank account and credited to the recipient's history.
Step 8: You will receive a receipt for the transaction on your mobile device and a second message on your ‘Messages’ app informing you that money has been deducted from your account.
Conclusion
In conclusion, the NPCI has built a robust payment infrastructure through the UPI that enables hassle-free and cashless transactions.
With the variety of payment applications, easy registration, and transactional stages, it is pretty straightforward to comprehend and utilize. We hope this blog helps you understand how to send money through UPI ID andthe basics of UPI money transfer.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
FAQs
Select Your Preferred UPI Payment Mode
How do I send money to UPI? ›
Through a UPI QR Code
By scanning the QR code for the recipient, you may send money over UPI as well. Launch the digital payment mobile app on your phone, choose the option of 'Pay,' and then choose a QR code. Enter the payment amount after scanning the recipient's QR code.
How do I send money to UPI from the USA? ›
Steps to send money using a UPI through Western Union
- Log in to your Western Union profile.
- Choose India as your receiving country (you will need to know your receiver's mailing address).
- Choose to send using a bank pay out and use any payment method.
- Choose UPI ID under the bank information section.
As per NPCI guidelines, the maximum amount for one UPI transaction is ₹1 Lakh for P2P transfers and most merchant payments. However, for some P2M transactions like credit card payments, loan repayments, and transactions related to capital markets, the limit is ₹2 Lakhs.
How do I create a UPI transaction? ›
On your mobile device, open Google Pay . At the top search bar, search for the receiver's VPA, UPI ID, or phone number. Select the receiver. After you select the receiver, tap Pay.
Can I send money to India using UPI? ›
UPI money transfers are a simple way to send INR funds to India, using just the recipient's name and UPI ID.
Is UPI allowed in the USA? ›
Yes, NRIs can use UPI from their registered overseas mobile number from the approved geographies, i.e. Australia, Canada, France, Hong Kong, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, UAE, UK and USA for INR transactions in India. How can an NRI set up a UPI/ VPA ID?
Which banks support UPI International? ›
Steps to Activate UPI International
- Bank of Baroda.
- Union Bank of India.
- Punjab National Bank.
- Canara Bank.
- Bank of India.
- Indian Bank.
- Central Bank of India.
- Bank of Maharashtra.
UPI is a banking system for money transfers on payment apps. To add a bank account to Google Pay, your bank must work with UPI. Your UPI ID is an address that identifies you on UPI (typically yourname@bankname).
Can I use UPI without a bank account? ›
Yes, you can create a UPI ID without a bank account by using digital wallets that support UPI, such as Bajaj Pay. These wallets allow you to link your UPI ID to the wallet instead of a traditional bank account.
Paytm is a popular digital wallet and payment app in India, but it is not currently possible to use the Paytm app internationally. So if you're a Paytm account holder looking to make international transfers, you will need to look at alternatives such as Wise.
Does UPI app work outside India? ›
From 2023, UPI has expanded to various countries outside India. At the moment of writing, it is accepted in Franch, Singapore, Thailand, Vietnam, Philippines, UAE and the latest addition being Mauritius and Srilanka.
What is the fee of UPI? ›
Thus, UPI payments of any amount for personal transactions are totally free. As per the 2024 NCPI guidelines, a merchant has to pay an interchange fee of up to 1.1% of the transaction amount on UPI transactions above Rs. 2000.
What are the new rules for UPI transactions? ›
In view of the above the per transaction value limit in UPI has now been enhanced to Rs 5 lakh for entities under categories aligned to tax payments." NPCI asked banks, payment service providers and UPI apps to ensure that the transaction limit should be increased for the MCC 9311 category of verified merchants.
Can I transfer $50,000 through UPI? ›
The UPI transaction limit per day is Rs.1 lakh as per NPCI.
The maximum UPI daily transfer limit can change from bank to bank between Rs.25,000 to Rs.1 lakh.
Can I transfer money from wallet to UPI? ›
Paytm Wallet is a digital powerhouse with versatile features and benefits, including UPI transactions and bill payments. It offers seamless money transfers to bank accounts without extra charges. Users can transfer up to Rs.
What is an example of the UPI number? ›
Your UPI ID might appear as “yourname@ybl.” Alternatively, it could be “90876543@okicici.” In this format, “yourname” can represent your name, email address, or mobile number, while the “@ybl” and “@okicici” parts indicate the initials of your respective bank.
What is the UPI ID in Federal bank? ›
Unified Payment Interface (UPI) is a smartphone enabled fund transfer for participating bank customers to pay/ receive money using a unique UPI ID.
How do I send a UPI payment link? ›
How to send UPI payment links? To send a UPI payment link, access your UPI payment app, choose the option to create a payment link, input payment details, and effortlessly share the generated link via messaging, email, SMS, or your preferred communication platform.
