We have come a long way since encashing a cheque in the bank, counting the money handed over by the teller, and then using that money to pay the merchant outlet. Moreover, in this age and time carrying a bundle of currency in your pocket or bag is both unwieldy and risky.
With the introduction of virtual money transfers, any form of money transaction is now fast and trouble-free. However, till 2016, there were different systems to transfer money between banks. These included the RTGS, IMPS and NEFT systems. Each was meant to serve a specific purpose. The Unified Payments Interface (UPI) was developed to simplify and provide a single interface. Soon, banks started to upload their UPI-enabled apps to the Google Play store. And you could now avail of a single app platform for transferring money virtually.
UPI is compatible with both Android and iOS, especially for Android 4.2.2 and iOS 8.1 and above.
However, as in any money transaction, there are certain rules and regulations to be followed. Let us go through some of these guidelines.
What is UPI, popular UPI payment options
UPI is a user-friendly, real-time solution for inter-bank transactions, and other digital transactions like payments while shopping. This technology allows almost instantaneous money transfers from person-to-person (P2P) or person-to-merchant (P2M) bank accounts. The platform was developed and launched by the National Payments Corporation of India (NPCI) in 2016. Since then, UPI has become very popular among people in the country with over one billion transactions every month.
Its usefulness stems from the fact that UPI adds multiple bank accounts into one application. It allows you to transact with banks, outlets, persons, or companies in a simple, efficient manner.
Payments can be made using a UPI ID, UPI Number, Account number, and also with IFSC (Indian Financial System) Code. Your transaction is secure since it follows Reserve Bank of India (RBI) guidelines in this aspect. The process uses a one-click, two-factor authentication using your UPI Personal Identification Number (PIN).
With a UPI app you can make the following financial transactions:
- Pay Request: Where you can send money using the mobile number and Mobile Money Identifier (MMID). The latter is a seven-digit unique code assigned to a bank account. You can also transfer funds using the account number with the IFSC code, and Virtual ID.
- Collect Request: Under this service you can receive money from your source or remitter, using a Virtual ID.
UPI can also be used for non-financial transactions on any Payment Service Provider (PSP) app
- Registration for mobile banking where the number is already registered with the concerned bank for SMS or other forms of cell phone alerts.
- For generating a One Time Password (OTP)
- To set or re-set your PIN
- To check or follow up on your payments
- To ask any question or to raise disputes
There are several uses in business too for UPI, including making a payment at a convenient time and so on, subject to certain specifications.
How to setup UPI
Setting up your own UPI account is as simple as downloading an app and registering your account.
- Download the app from Google Play or App Store or your bank’s website
- Open the app to create your profile, enter your name, virtual ID (payment address), password, etc.
- Tap on “Add/Link/Manage Bank Account”
- Links your bank and your account number with the virtual ID
You are ready to make your financial transaction.
UPI limit per day of different banks
There is a limit on the amount of money you can send to someone. This amount depends on the limit set by the concerned bank. Given below are the transaction amount for each bank
|Bank name||Bank type||Sponsor bank||UPI transaction limit||UPI daily limit|
|Abhyudaya Co-Operative Bank||Cooperative||NA||25000||25000|
|Adarsh Co-Op Bank Ltd||Cooperative||HDFC Bank||50000||50000|
|Aditya Birla Idea Payments Bank||Payments Bank||NA||100000||100000|
|Airtel Payments Bank||Payments Bank||NA||1,00,000||1,00,000|
|Allahabad Bank||Public Sector Bank||NA||25000||100000|
|Allahabad UP Gramin Bank||RRB||Allahabad||20000||40000|
|Andhra Bank||Public Sector Bank||NA||100000||100000|
|Andhra Pradesh Grameena Vikas Bank||RRB||SBI||25000||100000|
|Andhra Pragathi Grameena Bank||RRB||NA||10000||20000|
|Apna Sahakari Bank||Cooperative||NA||100000||100000|
|Assam Gramin VIkash Bank||RRB||United Bank of India||5000||25000|
|Bank Of Baroda||Public Sector Bank||NA||25000||Not set|
|Bank of India||Public Sector Bank||NA||10000||100000|
|Bank of Maharashtra||Public Sector Bank||NA||100000||100000|
|Baroda Gujarat Gramin Bank||RRB||Bank of Baroda||25000||Not set|
|Baroda Rajasthan Kshetriya Gramin Bank||RRB||BOB||25000||25000|
|Baroda Uttar Pradesh Gramin Bank||RRB||Bank of Baroda||25000||25000|
|Bassein Catholic Co-Op Bank||Cooperative||NA||20000||40000|
|Bhilwara Urban Cooperative Bank LTD||Cooperative||HDFC||25000||25000|
|Bihar Gramin Bank||RRB||UCO||Mergerd with DBGB|
|Canara Bank||Public Sector Bank||NA||10000||25000|
|Catholic Syrian Bank||Private||NA||100000||100000|
|Central Bank of India||Public Sector Bank||NA||25000||50000|
|Chaitanya Godavari Grameena Bank||RRB||Andhra Bank||25000||100000|
|Chhattisgarh Rajya Gramin Bank||RRB||SBI||25000||100000|
|Citibank Retail||Foreign Bank||NA||100000||100000|
|City Union Bank||Private||NA||100000||100000|
|COASTAL LOCAL AREA BANK LTD||Cooperative||BOM||50000||1,00,000|
|Corporation Bank||Public Sector Bank||NA||50000||100000|
|DBS Digi Bank||Foreign Bank||NA||100000||100000|
|Dena Bank||Public Sector Bank||NA||100000||100000|
|Dena Gujarat Gramin Bank||RRB||Dena||NA (Merged)|
|Deutsche Bank AG (Web Collect)||Foreign Bank||NA||NA|
|Dhanlaxmi Bank Ltd||Private||NA||100000||100000|
|Dombivali Nagrik Sahakari Bank||Cooperative||NA||100000||100000|
|Equitas Small Finance Bank||Small Finance Bank||NA||25000||100000|
|ESAF Small Finance Bank||Small Finance Bank||NA||100000||100000|
|FINO Payments Bank||Payments Bank||NA||100000||100000|
|G P Parsik Bank||Cooperative||NA||100000||100000|
(RS 5000 for new customers)
|Himachal Pradesh Gramin Bank||RRB||PNB||50,000||50,000|
|Hutatma Sahakari Bank Ltd||Cooperative||ICIC Bank||100000||No limit|
(25000 for Google Pay users)
(25000 for Google Pay users)
|IDBI Bank||Public Sector Bank||NA||25000||50000|
|India Post Payment Bank||Payments Bank||NA||25000||50000|
|Indian Bank||Public Sector Bank||NA||100000||100000|
|Indian Overseas Bank||Public Sector Bank||NA||10000||20000|
|J&K Grameen Bank||RRB||J&K||20,000||20,000|
|Jalgaona Janata Sahkari Bank||Cooperative||NA||100000||100000|
|Jammu & Kashmir Bank||Private||NA||20000||20000|
|Jana Small Finance Bank||Small Finance Bank||NA||10000||40000|
|Janta Sahakari Bank Pune||Cooperative||NA||100000||100000|
|Jio Payments Bank||Payments Bank||NA||100000||100000|
|Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd||Cooperative||NA||25000||200000|
|Karnataka Vikas Grameena Bank||RRB||NA||25000||25000|
|Karur Vysaya Bank||Private||NA||100000||100000|
|Kashi Gomti Samyut Gramin Bank||RRB||NA||100000||100000|
|Kaveri Grameena Bank||RRB||SBI||25000||25000|
|Kerala Gramin Bank||RRB||NA||20000||20000|
|Kotak Mahindra Bank||Private||NA||100000||100000|
|Langpi Dehangi Rural Bank||RRB||SBI||10000||100000|
|Madhya Bihar Gramin Bank||RRB||PNB||25000||100000|
|Maharashtra Grameen Bank||RRB||BOM||25000||100000|
|Maharashtra State Co-Op Bank||Cooperative||NA||5000||50000|
|Malwa Gramin Bank (Bank merged with Punjab Gramin Bank)||RRB||SBI||10000||25000|
|Manipur Rural Bank||RRB||SBI||10000||10000|
|Maratha Co-Op Bank||Cooperative||NA||100000||100000|
|Meghalaya Rural Bank||Foreign Bank||SBI||100000||100000|
|Mizoram Rural Bank||RRB||SBI||25000||100000|
|NKGSB Co-Op. Bank Ltd||Cooperative||NA||20000||40000|
|Oriental Bank of Commerce||Public Sector Bank||NA||100000||100000|
|Paschim Banga Gramin Bank||RRB||UCO||5000||25000|
|Paytm Payments Bank||Payments Bank||NA||100000||100000|
|Pragathi Krishna Gramin Bank||RRB||NA||20000||20000|
|Punjab and Maharastra Co-Op Bank||Cooperative||NA||100000||100000|
|Punjab and Sind Bank||Public Sector Bank||NA||10000||10000|
|Punjab Gramin Bank||RRB||PNB||10000||25000|
|Punjab National Bank||Public Sector Bank||NA||25000||50000|
|Rajasthan Marudhara Gramin Bank||RRB||SBI||25000||25000|
|Rajkot Nagari Sahakari Bank Ltd||Cooperative||NA||100000||100000|
|Samruddhi Co-Op Bank Ltd||Cooperative||TJSB||100000||100000|
|Sarva Haryana Gramin Bank||RRB||PNB||50,000||1,00,000|
|Sarva UP Gramin Bank||RRB||PNB||50000||100000|
|Saurashtra Gramin Bank||RRB||SBI||20000||100000|
|Shree Kadi Nagarik Sahakari Bank Ltd||Cooperative||Yes Bank||100000||100000|
|South Indian Bank||Private||NA||100000||100000|
|Standard Chartered||Foreign Bank||NA||100000||100000|
|State Bank of India||Public Sector Bank||NA||100000||100000|
|Suco Souharda Sahakari Bank||Cooperative||ICICI Bank||100000||100000|
|Suryoday Small Finance Bank Ltd||Small Finance Bank||NA||100000||100000|
|Suvarnayug Sahakari Bank Ltd||Cooperative||HDFC||100000||100000|
|Syndicate Bank||Public Sector Bank||NA||10000||100000|
|Tamilnadu Mercantile Bank||Private||NA||20000||100000|
|Telangana Gramin Bank||RRB||SBI||25000||100000|
|Telangana State Co-Operative Apex Bank||Cooperative||IDBI||10000||1,00,000|
|Thane Bharat Sahakari Bank||Cooperative||NA||100000||100000|
|The Cosmos Co-Operative Bank LTD||Cooperative||NA||10000||50000|
|The A.P. Mahesh Co-Operative Urban Bank||Cooperative||NA||25000||25000|
|The Ahmedabad District Co-Operative Bank Ltd||Cooperative||GSCB||10000||25000|
|The Ahmedabad Mercantile Co-Op Bank Ltd||Cooperative||HDFC Bank||100000||100000|
|The Andhra Pradesh State Co-Operative||Cooperative||NA||10000||100000|
|The Baroda Central Co-Operative Bank Ltd||Cooperative||GSCB||15000||100000|
|The Gujarat State Co-Operative Bank Limited||Cooperative||NA||50000||100000|
|The Hasti Co-operative Bank Ltd||Cooperative||NA||100000||100000|
|The Kalyan Janta Sahkari Bank||Cooperative||NA||100000||100000|
|The Lakshmi Vilas Bank Limited||Private||NA||100000||100000|
|The Mahanagar Co-Op. Bank Ltd||Cooperative||NA||25000||50000|
|The Malad Sahakari Bank Ltd||Cooperative||PMCO||10000||50000|
|The Mehsana Urban Co-Operative Bank||Cooperative||NA||100000||100000|
|The Municipal Co-Op Bank Ltd||Cooperative||NA||5000||50000|
|The Muslim Co-Operative Bank Ltd||Cooperative||HDFC||100000||100000|
|The Nainital Bank Ltd||Private||NA||20000||40000|
|The Ratnakar Bank Limited||Private||NA||25000||25000|
|The Saraswat Co-Operative Bank||Cooperative||NA||100000||100000|
|The Surat People’s Co-Op. Bank Ltd||Cooperative||NA||25000||100000|
|The Sutex Co-Op Bank||Cooperative||ICIC Bank||100000||100000|
|The SVC Co-Operative Bank Ltd||Cooperative||NA||10000||20000|
|The Thane Janta Sahakari Bank Ltd (TJSB)||Cooperative||NA||100000||100000|
|The Udaipur Mahila Samridhi Urban Co-Op Bank Ltd||Cooperative||ICIC Bank||100000||100000|
|The Udaipur Mahila Urban Co-Op Bank Ltd||Cooperative||NA||100000||100000|
|The Urban Cooperative Bank Ltd Dharangaon||Cooperative||ICICI Bank||20000||25000|
|The Varachha Co-Op Bank Ltd||Cooperative||NA||20000||40000|
|The Vijay Cooperative Bank Ltd||Cooperative||ICIC Bank||20000||200000|
|The Vishweshwar Sahakari Bank Ltd||Cooperative||NA||100000||100000|
|Tripura Gramin Bank||RRB||SBI||10000||10000|
|UCO Bank||Public Sector Bank||NA||100000||100000|
|Ujjivan Small Finance Bank Limited||Small Finance Bank||NA||50000||100000|
|Union Bank of India||Public Sector Bank||NA||100000||200000|
|United Bank of India||Public Sector Bank||NA||25000||60000|
|Uttarakhand Gramin Bank||RRB||SBI||25000||100000|
|Vananchal Gramin Bank||RRB||SBI||20000||20000|
|Vasai Vikas Co-Op Bank Ltd||Cooperative||NA||100000||100000|
|Vijaya Bank||Public Sector Bank||NA||25000||50000|
UPI vs Mobile Banking
With smartphones becoming ubiquitous, mobile banking had gained popularity. Started in 2002, mobile banking enabled users to use short messaging system or SMS could keep inquiring about their account balance and make transactions without the physical exchange of currency notes. It was perhaps the first step into remote banking using a cellular phone.
However, mobile banking had its own share of limitations like the amount that could be transferred, and the time taken for such transactions. You needed to pay a certain amount as bank charges and the process was vulnerable to mischievous elements like fraudsters. With the evolution of smartphones and the technological advancement in telephony and the internet, the process became faster and more seamless. Using operating systems like Android and iOS, you can now download mobile banking applications like UPI on your mobile phone and perform financial transactions online from wherever you are. UPI may perhaps be called the new mobile banking.
1. Difference between UPI and UPI Lite
Based on the trend among UPI users, it was estimated that a large percentage of digital payments will be low-value transactions. Most of such exchanges were below Rs. 200. For such users UPI Lite is a customer-friendly, pre-approved payment solution using the existing protocols. This helps reduce the traffic loads on core banking systems in real time. Going by the current guidelines, you can maintain a “stored value” balance limit of Rs. 2,000 from where you can make payments below Rs. 200 anytime, anywhere, and even for offline transactions. You can replenish the amount as you keep spending.
2. What is the format of UPI ID?
You use the app after creating a UPI ID for making a payment. The generic format of the UPI ID is either name@BankName or mobile@BankName.
3. Can I send money abroad using UPI?
National Payments Corporation of India (NPCI), which developed and launched UPI, has established partnerships with Discover Financial Services (DFS) in the USA, Japan Credit Bureau (JCB) in Japan, Union Pay International (UPI) in China, Royal Monetary Authority (RMA) of Bhutan and Network for Electronic Transfers (NETS), Singapore. Two years ago, NPCI International Payments Limited (NIPL) was set up as a wholly owned subsidiary of NPCI to take its product to the global market.
If you are visiting Europe, you can now use UPI to make payments due to cooperation between NIPL and European payment services facilitator Worldline. The facility is already available in Bhutan, the UAE, and the UK, where you do not need cash, a forex card, or a credit card to pay at the merchant outlet. The UPI app will take care of your payments.
By the end of this year, Malaysia, Singapore, Indonesia, Thailand, and the Philippines are also expected to sign a contract to combine their respective QR code payment systems. This will pave the way for merchant payments via QR codes throughout the region.
However, you cannot transfer money abroad through this option.
4. Does my UPI id get blocked after it reaches its limit
There is a maximum limit of UPI transactions set by the concerned agency in terms of amount (see above) as well as a number of transactions per bank account within 24 hours.
In case you have exceeded either limit then it is advised to retry the next day (after 24 hours) or try making a payment using a different bank account.