UPI bullets

• UPI stands for Unified Payments Interface.
• The interface is built by NPCI (National Payments Corporation of India).
• UPI is extension of IMPS (Immediate Payment Service) framework built by NPCI.
• User can transfer & receive money 24x7, 365 days.
• User has to download and register on an UPI app & create an unique Virtual Address to transfer & receive money to & from a bank account.
• An user can create multiple Virtual Addresses depending on the UPI based apps he/she is using.
• User can set a default account for paying & a default account for receiving the money linked to a particular Virtual Address.
• Its a safe framework to make payments, involves 2 factor authentication.
• User has to create an UPI pin to start using any UPI app.
• Only NPCI accesses user's UPI pin, so feel safe as none of the app creators would be able to access it.
• No need for a seperate e-wallet, now your bank account can act as an e-wallet.
• Only PSP (Payment Service Provider) banks can issue Virtual Addresses to the user.
• Various banks & third party app creator's are partnering with PSP banks to provide various e-wallet services apart from money transfer like Bill payments, Mobile and DTH recharge & other utility payments.
• NPCI also acts as one of the eligible PSP's.
• NPCI launched BHIM (Bharat Interface for Money) app for Android & iOS platforms for indian public/end users based on UPI framework.
• The payment system has six entities involved in a payment workflow: Payer, Payee, Payer PSP, Payee PSP, Remitter Bank, Beneficiary Bank & NPCI.
• Multiple bank accounts can be linked to one unique Virtual Address & One bank account could be linked to multiple unique Virtual Addresses either from a same or another PSP.
• One PSP can have maximum three UPI handles / identifiers (post fixes to Virtual address) like in case of Yes Bank it could be @ybl, @yesbank, @yes.
• When a payment is initiated using UPI, Firstly NPCI verifies the Payer & Payee bank accounts either using Virtual Address or account number & IFSC code; Then NPCI settles the payment instruction as inducted by Payer if verification is successful.