Launched in 2016, the Unified Payments Interface (UPI) has marked a significant step towards a cashless economy in India. This real-time payment system enables instant fund transfers and has been developed by the National Payments Corporation of India (NPCI), with oversight from the Reserve Bank of India.
Since its inception, UPI has become the preferred choice for digital payments. It effectively transforms a smartphone into a virtual debit card, allowing users to send and receive money seamlessly.
The UPI payment system permits users to link multiple bank accounts within a single smartphone application, facilitating fund transfers without the need for IFSC codes or account numbers. It represents one of the most straightforward methods for transferring money and making payments. This FAQ guide aims to address all potential questions regarding UPI and its application across the country.
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FAQs about UPI in India
1. What is the full form of UPI?
UPI stands for Unified Payments Interface.
2. What does UPI do?
UPI is an instant payment system developed by the National Payments Corporation of India (NPCI), which is an RBI-regulated entity. It is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties’ bank accounts.
3. What is the importance of UPI-PIN?
UPI-PIN is a 4 to 6-digit passcode you create or set when you register for the first time with any UPI app. This PIN has to be entered to authorize any kind of bank transaction. Without a UPI pin, no one can access your bank account to transfer funds.
4. Can one set the same UPI PIN on more than one app?
Yes, if you have already set up a UPI PIN with other UPI apps, you can use the same on the HIM app or any other app.
5. What happens if someone enters the wrong PIN during a transaction?
If you enter the wrong UPI PIN, the transaction will fail. If you enter the wrong PIN a number of times, the bank can temporarily block your sending money capability from the UPI account.
6. What to do if the selected Bank Name to link UPI can’t find your bank account?
Ensure that the mobile number linked to your bank account is the same as being used by the UPI App.
7. How can one pay an online merchant via UPI?
Whenever you shop online, you can use the UPI app on your phone to make the payment. You will find a UPI option in payment modes, click on it and enter the number of the merchant or scan the QR code. Next, enter the amount you want to send, key in your UPI PIN, and hit ‘Pay’. Your payment will be made.
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8. Do money transfers happen on UPI during banking hours only?
No, all payments via UPI are instant and 24/7 regardless of the bank’s working hours.
9. What happens when you have paid for your transaction, but the receiver hasn’t got the money?
Once you complete a UPI transaction, you get a success status on the app along with an SMS from the bank. However, sometimes due to operator issues or bank issues, payments might be slightly delayed. If you don’t receive a confirmation within one hour, contact customer support on the app or your bank.
10. Can one view transaction history on the UPI app?
Yes, you can go to the Home Screen of your UPI App, go to Transaction History, and view all ‘sent’ and ‘received’ transactions.
11. How is UPI different from IMPS?
UPI is better than IMPS in a variety of ways. It uses a single app for money transfers, simplifies merchant payments, and works with single-click two-factor authentication.
12. Does a customer need to register a beneficiary before using UPI to transfer funds?
No, there is no need to register a beneficiary for transferring funds via the UPI app.
13. Is linking a bank account mandatory to use UPI?
Yes, one has to link a Bank account or PPI wallet to start using UPI.
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14. What will happen if one loses his/her smartphone on which UPI is being used
If one loses their mobile, they can simply block the mobile number until they get a duplicate one from a telecom provider. This will ensure that no further transaction can be initiated from the same mobile number which is unable to access at the moment.
15. Can one link more than one bank account to the same virtual address?
Yes, more than one bank account can be linked to the same virtual address depending on functionalities being offered by respective PSPs.
16. What are the different ways of transferring funds via UPI?
Using UPI, one can transfer funds through virtual ID, Account number IFSC code, and Mobile number.
17. What if money has been debited but the transaction hasn’t gone through?
UPI offers real-time reversals for declines and the amount will be transferred to the payer account within a few hours. In case it doesn’t happen, contact your bank.
18. Can one put a stop payment request for funds transferred by UPI?
No, once the payment has been initiated, it can’t be stopped.
19. Where can one register a complaint with reference to any UPI transaction?
Any grievance regarding UPI transactions can be raised via an online app of participating banks.
20. What is the limit of fund transfer using UPI?
Normally, the UPI transaction limit is up to 1 Lakh per transaction. For some categories, it might vary. Also, you can use bank apps to modify transaction limits for different types of payments.
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21. If I want to change my UPI app, will it be required to register again?
Yes, if you are changing the UPI app, you need to re-register on that app.
22. What will happen when one forgets their UPI PIN?
In case you forget your UPI PIN, they can regenerate a new UPI PIN using their debit card details.
23. Will I be able to use UPI after I change my SIM or Mobile?
If you change your SIM card or Mobile, you will have to re-register on the UPI app.
24. Is UPI available on all mobile platforms?
Yes, UPI can be used on Android and iOS platforms.
25. If I give my mobile to someone for some time, will my money be at risk?
In any UPI transaction, one needs a UPI PIN so make sure the person you are giving your phone to doesn’t know your UPI PIN.
26. Will UPI itself auto-debit payments from my account?
No, unless you initiate it, UPI won’t auto-debit any payments from your account.
27. How does the UPI app get all the bank account information of a person when one enters their mobile number?
This feature has been included by NPCI so the UPI platform can retrieve account details linked with your phone number in a masked manner. UPI App doesn’t show all the details, but some of these.
28. What if my transaction is ‘Pending’ and the amount has neither been debited nor credited?
This means the transaction has been successful, but due to some issues at the beneficiary bank end, there is some delay. The amount will reach him/her in 48 hours once the bank is done with its settlements.
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29. Can one use more than one UPI app on the same mobile linked to different bank accounts?
Yes, one can use more than one UPI app on the same mobile phone.
30. What do you mean by PSP in UPI?
PSP means Payment Service Provider, which is a bank offering UPI services.
31. How can a bank onboard on UPI as a PSP?
The bank can get in touch with the respective relationship manager from NPCI to get on board as PSP.
32. How can a bank on-board a merchant for UPI?
Banks need to follow three steps to on-board a merchant for UPI-
- Due diligence/KYC of merchant along with risk assessment.
- Generate merchant identifiers to be used like MID/TID.
- Configuring interface for UPI by acquiring a switch of the bank.
33. Who will provide the necessary documents for onboarding a new merchant?
Bank-acquiring merchants have to submit documents as per NPCI requirements along with audit requirements for all merchants onboarded to NPCI.
34. How can a third party get onboarded on UPI?
Third-party will have to contact the sponsor bank which will raise a request to get onboard.
35. When can a merchant start accepting UPI payments?
When a merchant has partnered with an acquiring bank, they will be able to start accepting UPI payments.
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36. Will the merchant receive the money immediately after the UPI transaction?
Yes, the merchant will get the money within seconds after the customer confirms the payment into the merchant Pool Bank account.
37. What are the available integration modes for merchants?
Merchants can integrate UPI through QR code, app-based mode, collect mode, and phone number mode.
38. How does a QR-based integration work?
QR-based integration is given to merchants where they can use a QR Code 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.
39. Where can a merchant register a complaint with reference to a UPI transaction?
Merchant can raise their grievance or check the status of UPI transactions directly with their acquiring banks.
40. If a customer has returned the goods or rejected services, how will the merchant return their money?
Merchants will ask the bank to refund the charged amount as per the defined process.
41. How many banks have registered themselves for UPI/PPI Live?
Currently, 641 Indian banks have been registered for UPI/PPI.
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42. How many third-party banks have been registered for UPI in India?
Currently, 40+ third-party banks have been registered for UPI payments in India. These include WhatsApp, Tata Neu, Samsung Pay, Rio Money, PhonePe, Paytm, One Card, Mobikwik, Groww, Google Pay, Flipkart UPI, CRED, Bharat Pe, Amazon Pay and more.
43. What can one do to avoid any kind of frauds on their UPI IDs?
Do not share any personal details like UPI PIN, OTP, Account PIN Number, etc. to receive money or to claim rewards of any amount.
44. What does the Request Money option do?
Request Money is used to request money from the opposite party. Accepting a request for money means you are accepting the request to pay the opposite party. So if you validate the request by putting your PIN, it will debit the money from your account.
45. Who is eligible for using UPI in India?
Any Indian with an active bank account, linked mobile number, and an active Debit Card or Credit Card can use UPI.
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46. Can one transfer money abroad using UPI?
Yes, if you are visiting abroad, you can scan the QR code of local merchants to make payments provided the country supports UPI payments from India.
47. List the countries where Indian UPI will work.
Indians will be able to use UPI in the following countries-
- Bhutan
- Mauritius
- Nepal
- Singapore
- Sri Lanka
- France
Some countries added in 2025 are-
- Peru
- Namibia
- Trinidad and Tobago
- UAE
- Malaysia
- Philippines
- Thailand
48. Can UPI be linked to a credit card?
Yes, the UPI account can be linked to the credit card you are using. It leads to better convenience, rewards, and more ease with high credit limits. However, the downside is a tendency to overspend, the chances of falling into a debt trap, & high interest rates.
49. State some advantages of using UPI.
- UPI is a secure mode using two-factor authentication.
- UPI is available 24×7 so transactions can be made anytime.
- UPI allows real-time fund transfers, faster than IMPS, RTGS, and NEFT.
- UPI works across different banks and payment service providers.
- UPI can help reduce transaction costs.
- UPI can help improve cash flow.
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50. State some disadvantages of using UPI.
- Fraudsters may use phishing or malware attacks to hack UPI IDs.
- If your smartphone or browser is hacked, your passwords could be compromised.
- UPI has daily and per-transaction limits.
- UPI platforms may experience technical glitches, downtimes, or server issues.
- Some people might not be technically sound enough to use UPI.
- UPI is dependent on a stable internet connection which might be a problem.
- Insufficient customer support service can cause problems.
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