What Is UPI?

What Is UPI?

Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions. UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.

It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.

Each Bank provides its own UPI App for Android, Windows and iOS mobile platform(s).

What You Need:

  • Bank a/c
  • Mobile number should be linked with bank a/c
  • Smart Phone with internet facility
  • Debit Card for re-setting MPIN.

Funds Transfer limit: 1 lakh / transaction

Less than two years after it was launched, UPI has crossed the 100 million transaction mark in November, as reported by Inc 42. In terms of value, UPI transactions have risen over 100 times in one year, since November last year.

Unified Payments Interface (UPI)


1. UPI is Cheapest
The UPI is the cheapest way of fund transfer. The fees for fund transfer through the UPI is less than 50 paise. This is a major reason why has the potential to take over all other methods of money transfer.

2. It is Fast: Instant Transfer
UPI is very fast. It transfers money instantly. The UPI works 24 x 7. There is no restriction.The NEFT can take up to 12 hours for the fund transfer. But UPI is as fast as IMPS.

3. It is Smooth: Few and Easy Steps
For UPI, you dont require lengthy details like card number, expiry date and CVV and the OTP. You just need a 4-digit passcode.

4. It is Universal: One UPI App Many Accounts                                                              
One UPI App works for many bank accounts. Yo do not need different UPI app for a different bank account. You can link many bank accounts in a UPI-based app.


      1. 1.

    Transaction Limit

    1. In case of UPI, there is transaction limit which varies from bank to bank but in the majority of banks, it is not more than 1 lakh while in case of other modes of transfer like internet banking, RTGS there is no limit and an individual can transfer any amount which they want.

2. Requirement of Internet and Smartphone
Another problem with Unified Payment Interface is that since there is a new way of fund transfer, many people are reluctant to use because of unknown fear associated with new things, smartphones and virtual address for funds transfers.

3. Difficult to Convince the Customers
Hence, another problem with UPI is that it is difficult to convince the customer to install the bank application for UPI as the customer is reluctant and afraid of online fraud.

As one can see from that UPI have advantages as well as disadvantages, but looking at pros of UPI it is definitely better than other modes of fund transfer and if one can overlook cons of UPI than this method of funds transfer will change the way through which people transfer funds online.