UPI: Unified Payments Interface-How it is unique?

Contents of this post

What is UPI?

Unified Payments Interface (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.

With the above context in mind, NPCI conducted a pilot launch with 21 member banks. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started to upload their UPI-enabled Apps on the Google Play store from 25th August 2016 onwards.

Why it is unique in India?

  1. Immediate money transfer through mobile device round the clock 24*7 and 365 days.
  2. Single mobile application for accessing different bank accounts.
  3. Single Click 2 Factor Authentication – Aligned with the Regulatory guidelines, yet provides for a very strong feature of seamless single click payment.
  4. Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
  5. Bill Sharing with friends.
  6. Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
  7. Merchant Payment with Single Application or In-App Payments.
  8. Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
  9. Donations, Collections, Disbursements Scalable.
  10. Raising Complaint from Mobile App directly.

What are the benefits for the UPI users?

Benefits for banks:

  1. Single click Two Factor authentication
  2. Universal Application for transaction
  3. Leveraging existing infrastructure
  4. Safer, Secured and Innovative
  5. Payment basis Single/ Unique Identifier
  6. Enable seamless merchant transactions

Benefits for end Customers:

  1. Round the clock availability
  2. Single Application for accessing different bank accounts
  3. Use of Virtual ID is more secure, no credential sharing
  4. Single click authentication
  5. Raise Complaint from Mobile App directly

Benefits for Merchants:

  1. Seamless fund collection from customers – single identifiers
  2. No risk of storing customer’s virtual address like in Cards
  3. Tap customers not having credit/debit cards
  4. Suitable for e-Com & m-Com transaction
  5. Resolves the COD collection problem
  6. Single click 2FA facility to the customer – seamless Pull
  7. In-App Payments (IAP)

Which banks are live with UPI?

Here is the list of Banks which are live with UPI-

Sr. No.Bank NameDetails
1Axis BankPSP & Issuer
2Bank of BarodaPSP & Issuer
3Bank of MaharashtraPSP & Issuer
4Canara BankPSP & Issuer
5Catholic Syrian BankPSP & Issuer
6Central Bank of IndiaPSP & Issuer
7DBS DigibankPSP & Issuer
8Federal BankPSP & Issuer
9HDFC BankPSP & Issuer
10HSBCPSP & Issuer
11ICICI BankPSP & Issuer
12IDBI BankPSP & Issuer
13IDFC BankPSP & Issuer
14Indian BankPSP & Issuer
15Indian Overseas BankPSP & Issuer
16IndusInd BankPSP & Issuer
17Karnataka BankPSP & Issuer
18Karur Vysya BankPSP & Issuer
19Kotak Mahindra BankPSP & Issuer
20Punjab & Sind BankPSP & Issuer
21Punjab National BankPSP & Issuer
22RBL BankPSP & Issuer
23South Indian BankPSP & Issuer
24Standard Chartered BankPSP & Issuer
25State Bank of IndiaPSP & Issuer
26TJSB BankPSP & Issuer
27UCO BankPSP & Issuer
28Union Bank of IndiaPSP & Issuer
29Yes BankPSP & Issuer
30Bank of IndiaPSP & Issuer
31City Union BankPSP & Issuer
32Jammu & Kashmir bankPSP & Issuer
33Janta Sahakari Bank PunePSP & Issuer
34Equitas small finance bankPSP & Issuer
35Airtel Payments BankPSP & Issuer
36Fino Payments BankPSP & Issuer
37Paytm Payments BankPSP & Issuer
38Bandhan BankPSP & Issuer
39Jio Payments BankPSP & Issuer
40Dhanlaxmi BankPSP & Issuer
41India Post Payments BankPSP & Issuer
42ESAF Small Finance BankPSP & Issuer
43AU Small Finance BankPSP & Issuer
44Dombivli Nagri Sahakari BankPSP & Issuer
45NSDL Payments BankPSP & Issuer
46Deutsche BankIssuer
47Cosmos Co-op BankIssuer
48The Surat Peoples Co-op BankIssuer
49Jana Small Finance BankIssuer
50SBM BankIssuer
51Utkarsh Small Finance BankIssuer
52A P Mahesh Co-operative Urban Bank LtdIssuer
53DCB BankIssuer
54Saraswat BankIssuer
55Apna Sahakari Bank LtdIssuer
56Vasai Vikas sahakari bank ltdIssuer
57Thane Bharat Sahakari BankIssuer
58Mehasana Urban co op BankIssuer
59GP ParsikIssuer
60Kalyan Janta SahakariIssuer
61CITI RetailIssuer
62Rajkot Nagrik sahakari BankIssuer
63Maharashtra Gramin BankIssuer
64Gujarat State Co-operative BankIssuer
65Hasti Co-op BankIssuer
66GS Mahanagar Co op Bank(MAHANAGR BANK IN MAIN DATA BANK)Issuer
67Prathama BankIssuer
68Karnataka Vikas Gramina BankIssuer
69Andhra Pragathi Gramina BankIssuer
70Kallapanna Arwade Ichalkaranji Janata sahakari BankIssuer
71Kerala Gramina BankIssuer
72Pragathi Krishna Gramin BankIssuer
73Andhra Pradesh Gramin Vikas BankIssuer
74Chhatisgarh Rajya Gramin BankIssuer
75Purvanchal BankIssuer
76Telangana Gramin BankIssuer
77Saurashtra Gramin BankIssuer
78Meghalaya Rural BankIssuer
79Uttarakhand Gramin BankIssuer
80Jharkhand Rajya Gramin BankIssuer
81Rajasthan Marudhar Gramin BankIssuer
82Mizoram Gramin BankIssuer
83Bassein Catholic Co-operative BankIssuer
84Tamilnad Mercantile BankIssuer
85Assam Gramin Vikas BankIssuer
86Jalgaon Janta co op BankIssuer
87The Vishweshwar Sahakari Bank LimitedIssuer
88Tripura Gramin BankIssuer
89Manipur Gramin BankIssuer
90Chaitanya Godavari Gramin BankIssuer
91Kashi Gomati Gramin BankIssuer
92SVC BankIssuer
93Baroda Gujarat Gramin BankIssuer
94Baroda Rajasthan Kshetriya Gramin BankIssuer
95The Sutex Co Op BankIssuer
96NKGSB Co-op BankIssuer
97Ujjivan Small Finance BankIssuer
98Baroda Uttar Pradesh Gramin bankIssuer
99Samruddhi Co-operative Bank LtdIssuer
100The Varanchha Co-Op Bank LtdIssuer
101Urban Co-op BankLtd, DharangaonIssuer
102Suco Souharda Sahakari Bank LtdIssuer
103Sarva Haryana Gramin BankIssuer
104Telangana State Co-op Apex BankIssuer
105Andhra Pradesh State Cooperative BankIssuer
106Maharashtra State Cooperative BankIssuer
107Paschim Banga Gramin BankIssuer
108Bhilwara Urban Co-operative Bank LtdIssuer
109Suvarnayug Sahakari Bank Ltd.Issuer
110The Udaipur Mahila Urban Co-Operative Bank Ltd.Issuer
111Maratha Cooperative Bank LtdIssuer
112The Vijay Co-operative Bank Ltd, AhmedabadIssuer
113The Udaipur Mahila Samridhi Urban Co-operative Bank Ltd.Issuer
114Sarva UP Gramin BankIssuer
115The Muslim Cooperative Bank LtdIssuer
116Hutatma Co-Op Bank LtdIssuer
117Punjab Gramin BankIssuer
118Abhyudaya Co-op Bank LtdIssuer
119Nainital Bank LtdIssuer
120Himachal Pradesh Gramin BankIssuer
121The Ahmedabad Mercantile Coop bankIssuer
122The Ahmedabad District Coop bankIssuer
123Madhya Bihar Gramin Bank(Dakshin Bihar Gramin Bank )Issuer
124Adarsh Cooperative Bank LtdIssuer
125Suryoday Small Finance Bank LtdIssuer
126Shree Kadi Nagarik Sahakari Bank LtdIssuer
127J & K Grameen BankIssuer
128The Municipal Co-op BankIssuer
129The Malad Sahakari BankIssuer
130The Baroda Central Co-op Bank LtdIssuer
131Fincare Small Finance BankIssuer
132Kalupur Commercial BankIssuer
133Patan Nagrik Sahakari BankIssuer
134Sarvodaya Commercial Co-operative BankIssuer
135Sindhudurg Co-op BankIssuer
136Bharat Co-op Bank(Mumbai)Issuer
137Vikas Souharda Co-op BankIssuer
138Shri Arihant Co-operative Bank LtdIssuer
139The Udaipur Urban Co-Operative Bank Ltd.Issuer
140Sandur Pattana Souharda Sahakari BankIssuer
141Nutan NagrikSahakari BankIssuer
142The SSK Co-op BankIssuer
143The Ahmednagar Merchants Co-op Bank LtdIssuer
144The Baramati Sahakari Bank LtdIssuer
145Shri Veershaiv Co-op Bank Ltd.Issuer
146The Sabarkantha District Central Coop Bank LtdIssuer
147Priyadarshini Nagari Sahakari Bank Ltd JalnaIssuer
148The Satara District Central Co-operative Bank Ltd.Issuer
149The Kaira District Central Co-Op. Bank Ltd.Issuer
150The Banaskantha District Central Co-Op. Bank Ltd.Issuer
151The Visakhapatnam Cooperative Bank Ltd.Issuer
152Bhagini Nivedita Sahakari Bank Ltd,PuneIssuer
153The Anand Mercantile Co-Op. Bank Ltd.Issuer
154Citizen Co-operative Bank Ltd – NoidaIssuer
155Shri Rajkot District Co-op Bank LtdIssuer
156Krishna Bhima Samruddhi Local Area BankIssuer
157Chartered Sahakari Bank NiyamithaIssuer
158Sterling Urban Co-operative Bank LtdIssuer
159Capital Small Finance BankIssuer
160Kokan Merchantile Co-operative Bank LtdIssuer
161Pune Cantonment Sahakari Bank LtdIssuer
162Rani Channamma Mahila Sahakari Bank BelagaviIssuer
163The Gadchiroli District Central Co-operative BankIssuer
164Fingrowth Co-operative Bank LtdIssuer
165The Banaskantha Mercantile Co-operative Bank LimitedIssuer
166Bank of America NAIssuer
167Nagarik Sahakari Bank Maryadit, VidishaIssuer
168Jalna Merchant’s Cooperative Bank Ltd., JalnaIssuer
169The Darussalam Cooperative Urban Bank LtdIssuer
170The Gayatri Co-operative Urban Bank LtdIssuer
171Janaseva Sahakari Bank Ltd PuneIssuer
172Janakalyan Sahakari BankIssuer
173The Himachal Pradesh State Co-operative Bank LtdIssuer
174Sri Vasavamba Cooperative Bank LtdIssuer
175Pali Urban Co-operative Bank LtdIssuer
176Manvi Pattana Souharda Sahakari Bank NIIssuer
177Jivan Commercial Co-operative Bank LtdIssuer
178Shree Dharati Co-operative Bank LtdIssuer
179Coastal Local Area Bank LtdIssuer
180Citizens Co-operative Bank LtdIssuer
181Shri Chhatrapathi Rajarsshi Shahu BankIssuer
182The Kanakmahalakshmi Co-operative Bank LtdIssuer
183The Pochampally Co-operative Urban bank LtdIssuer
184The Surat District Co-op Bank Ltd.Issuer
185Yadagiri Lakshmi Narasimha Swamy Co-Op Urban Bank LtdIssuer
186The Modasa Nagarik Sahakari Bank LimitedIssuer
187Shri Mahila Sewa Sahakari Bank LimitedIssuer
188Kolhapur District Central Co-operative Bank LimitedIssuer
189Smriti Nagrik Sahakari Bank Maryadit, MandsaurIssuer
190Indore Paraspar Sahakari Bank LtdIssuer
191Samarth Sahakari Bank LimitedIssuer
192Associate Co-operative Bank Limited, SuratIssuer
193Shri Basaveshwar Sahakari Bank Niyamit, BagalkotIssuer
194The Adarsh Urban Co-op. Bank Ltd., HyderabadIssuer
195The Vallabh Vidyanagar Commercial Co-operative Bank LtdIssuer
196Malviya Urban Co-operative Bank LimitedIssuer
197Sri Rama Co-operative Bank LtdIssuer
198Model Co-operative Bank LimitedIssuer
199The Merchants Souharda Sahakari Bank LtdIssuer
200Prime Co-operative Bank Ltd.Issuer
201Shivalik Mercantile Co-op. Bank Ltd.Issuer
202Saibaba Nagari Sahakari Bank MaryaditIssuer
203Madhya Pradesh Rajya Sahakari Bank MaryaditIssuer
204Mann Deshi Mahila Sahkari Bank LimitedIssuer
205Shree Mahavir Sahakari Bank LtdIssuer
206The New Urban Co-Operative Bank Ltd.RampurIssuer
207North East Small Finance Bank LimitedIssuer
208The Akola District Central Cooperative Bank LtdIssuer
209Irinjalakuda Town Co-Operative Bank LtdIssuer
210Surat National Co-operative Bank LimitedIssuer
211The Latur Urban Coop BankIssuer
212The Co-operative Bank of RajkotIssuer
213The Sirsi Urban Sahakari Bank LimitedIssuer
215The Rajkot Commercial Co-op Bank Ltd.Issuer
216Sadhana Sahakari Bank Ltd PuneIssuer
217The Eenadu Coop Urban Bank LtdIssuer
218Chhattisgarh Rajya Sahakari Bank MydtIssuer
219Sadhana Sahakari Bank Ltd PuneIssuer
220Sardar Vallabhbhai Sahakari Bank LtdIssuer
221Lonavala Sahakari Bank LtdIssuer
222The Godhra Urban Coop Bank LtdIssuer
223Vaishya Nagari Sahakari Bank Ltd ParbhaniIssuer
224Kolhapur Mahila Sahakari Bank Ltd.Issuer
225Rajgurunagar Sahakari Bank Ltd.Issuer
226The Jalgaon Peoples Co-op Bank Ltd.Issuer
227Bhadradri Co-operative Urban BankIssuer
228Shree Panchganga Nagari Sahakari Bank LtdIssuer
229The Kakatiya Co-operative Urban Bank LimitedIssuer
230Shri Janata Sahakari Bank Limited, HalolIssuer
231The Dahod Urban Co-operative Bank LimitedIssuer
232The Sarvodaya Nagrik Sahakari Bank LimitedIssuer
233Deogiri Nagari Sahakari Bank Ltd AurangabadIssuer
234Navi Mumbai Co-operative Bank LimitedIssuer
235Ambajogai Peoples Co-operative Bank LimitedIssuer
236Mahesh Sahakari Bank LimitedIssuer
237The Bhagyodaya Co-operative Bank LimitedIssuer
238The Khamgaon Urban Co-operative Bank Ltd, KhamgaonIssuer
239The Kolhapur Urban Cooperative Bank Ltd., KolhapurIssuer
240The Sardar Bhiladwala Pardi People’s Co-Op. Bank Ltd.Issuer
241The Saurashtra Co-operative Bank Ltd., AhmedabadIssuer
242Tirupati Urban Co-operative Bank LimitedIssuer
243The Kranthi Co-operative Urban Bank LimitedIssuer
244Rajarshi Shahu Sahakari Bank LimitedIssuer
245Karnataka Mahila Sahakara Bank NiyamithaIssuer
246The Karnataka State Co-operative Apex Bank LimitedIssuer
247Sree Charan Souhardha Co-operative Bank LimitedIssuer
248The Jamkhandi Urban Co-operative Bank LtdIssuer
249Amreli Jilla Madhyastha Sahakari Bank LtdIssuer
250Saraspur Nagrik Co-operative Bank LtdIssuer
251The Co-operative Bank of Mehsana LtdIssuer
252The Mandvi Nagarik Sahakari Bank LtdIssuer
253Jijamata Mahila Sahakari Bank LtdIssuer
254Sri Sudha Cooperative Bank LtdIssuer
255The Gandhinagar Nagrik Cooperative Bank LtdIssuer
256Kankaria Mainagar Nagrik Sahakari Bank LtdIssuer
257Akhand Anand Co.op Bank LtdIssuer
258The Surat Mercantile Coop Bank LtdIssuer
259Shri Bharat Urban Co-operative Bank Ltd JaysingpurIssuer
260Mahanagar Nagrik Sahakari Bank MaryaditIssuer

What is a UPI-PIN?

UPI-PIN (UPI Personal Identification Number) is a 4-6 digit passcode that you can create/set during first-time registration with this App. You have to enter this UPI-PIN to authorize all bank transactions. If you have already set up a UPI-PIN with other UPI Apps you can use the same on BHIM.

  1. Banks issued MPIN is different from the UPI UPI-PIN,
  2. Please generate a new UPI-PIN in the BHIM app
  3. Please do not share your UPI-PIN with anyone.
  4. BHIM does not store or read your UPI-PIN details and your bank’s customer support will never ask for it.

What happens if I enter wrong UPI-PIN during a transaction?

In case you enter the wrong UPI PIN, the transaction will fail. In case you input the wrong UPI PIN multiple times, the bank may temporarily block sending money using UPI from my account (this varies from bank to bank).

I have selected the Bank name to link with UPI but it does not find my bank A/C?

In such a case, please ensure that the mobile number linked to your bank account is the same as the one verified in any UPI App. If it is not the same, your bank accounts will not be fetched by the UPI platform.

How do I pay an online merchant through UPI?

When you shop online, you can pay through UPI when you see UPI as a payment option. On clicking that, you will need to enter your Payment Address (eg – xyz@upi). Once entered, you will receive a collect request on your BHIM app. Enter your UPI-PIN here and your payment will be complete. As easy as this!

Do money transfers happen on UPI only during banking hours?

All payments are instant and 24/7, regardless of your bank’s working hours.

I have paid for my transaction but not received anything. Why is that?

Once you complete a transaction, you should see a success status on the BHIM screen and receive an SMS from your bank. In some cases, due to operator issues, it can take a longer time. In case you have not received your confirmation within an hour please contact the customer support at your bank.

How is UPI different from IMPS?

UPI is providing additional benefits to IMPS in the following ways:

  1. Provides for a P2P Pull functionality

2. Simplifies Merchant Payments

3. Single APP for money transfer

4. Single click two-factor authentication

Does a customer need to register before remitting funds using UPI?

Yes, a customer needs to register with his/her PSP before remitting funds using UPI and need to link his accounts.

Does the customer need to register a beneficiary before transferring funds through UPI? What details of beneficiary will be required?

No, registration of Beneficiary is not required for transferring funds through UPI as the fund would be transferred on the basis of Virtual ID/Account+IFSC/Aadhaar Number. (Please check with your PSP and Issuing bank with regard to the services enabled on the App).

What happens if my mobile phone is lost?

In case of mobile loss, one needs to simply block his mobile number thus no transaction can be initiated from the same mobile number which is a part of device tracking, and at the same time, a UPI pin would be required for any transaction which is not to be shared with anyone.

Can I link more than one bank account to the same virtual address?

Yes, several bank accounts can be linked to the same virtual address depending on the functionalities being made available by the respective PSPs.

What are the different channels for transferring funds using UPI?

The different channels for transferring funds using UPI are:

  1. Send/Collect through Virtual ID
  2. Account Number + IFSC
  3. Aadhaar Number

What if my account is debited but the transaction does not go through?

UPI provides for real-time reversals for declines and the amount would be transferred back to the payer account immediately. In case if it does not reverse the amount immediately, you can contact your bank for the same.

What is the limit of fund transfer using UPI?

At present, the upper limit per UPI transaction is Rs.1 Lakh.

What happens if I forget my pin?

In case someone forgets the UPI pin, he needs to re-generate a new UPI pin using his debit card details (the last six digits of their debit card & expiry date).

Will I be able to use UPI after I change my sim or mobile?

In case of change in sim/mobile/application of the PSP, customers would require to re-register themselves for UPI.

What if I change my handset?

If you change your handset, you will need to:

  1. Download the PSP app again
  2. Register through mobile verification
  3. Your VPA will be auto saved

What if I lose my phone?

If you lose your phone, the UPI-PIN is required to authorize all transactions which will not be known to any third person, and hence they will not be able to use the UPI app. In addition, please contact our customer support at your bank in the event you lose your phone.

My UPI transaction has failed but my bank account has been debited?

In case of failure, money will be refunded back to your account. Sometimes this takes longer than intended. If you do not receive the refund within 1 hour, please contact customer support at your bank.

How can a merchant start accepting payments on UPI?

To enable the UPI system, merchants need to partner with the acquirer bank. Acquiring the bank will provide the UPI infrastructure to merchants.

When will merchant receive the money after UPI transaction?

The merchant will receive the money immediately after the customer confirms the payment into the merchant Pool bank account/ merchant bank account as per their agreement.

What is MCC code and who provides MCC code?

MCC Code (merchant category code) is the four-digit number listed in the ISO 18245 for retail financial services. MCC is used to classify the business by the type of goods or services it provides. And the MCC code is provided by the bank while the onboarding process.

How can a merchant start accepting payments on UPI?

To enable the UPI system, merchants need to partner with the acquirer bank. Acquiring the bank will provide the UPI infrastructure to merchants.

What are available integration modes for merchant?

Merchant can integrate UPI through QR, Intent, application-based, and Collect modes

What is QR based integration mode?

QR-based integration is features given to merchants where they can use a QR for UPI transactions. In the QR the merchant information is stored like merchant UPI ID and amount. So, when the customer scans the QR for payments the customer will get the merchant information on the payment page.

If a customer returns the goods or rejected the services, how will the merchant return the money?

The merchant will ask the bank to refund the charged amount as per the defined process.

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