UPI — Unified Payments Interface
UPI — Unified Payments Interface What is UPI? UPI is India’s real-time payment system enabling instant fund transfers between bank accounts via mobile apps. Launched in 2016 by NPCI, it handles 10+ billion transactions monthly (2024), making it the world’s largest payment platform. How UPI Works Transaction Flow Sender Opens App: Selects UPI, enters recipient’s UPI/VPA Authenticates: Enters MPIN or uses biometrics Verification: Sender’s bank validates Processing: NPCI routes to receiver’s bank Confirmation: Instant SMS/notification to both Key Entities Payer PSP: Sender’s app (PhonePe, Paytm, GPay) Payee PSP: Receiver’s app NPCI: Central switch routing transactions Bank: Settlement participant UPI Features Payment Types P2P Transfer: Person to person P2M Transfer: Person to merchant (QR, UPI ID) Collect Request: Request money from someone Bill Payments: Via BBPS integration UPI Lite: Offline low-value payments (<₹500) Advanced Features UPI Autopay: Recurring payments (SIP, subscriptions) UPI International: Singapore, UAE, France, UK Credit on UPI: Credit line payments (new) Voice UPI: Voice commands for transfers Transaction Limits (2024) Transaction Type Limit Per Transaction ₹1,00,000 Daily Limit ₹2,00,000 (customizable) UPI Lite ₹500 per transaction PPI Wallet ₹10,000/month UPI Statistics (2024) Monthly Volume: 10+ billion transactions Monthly Value: ₹18+ lakh crore Registered Users: 400+ million Merchants: 50+ million Security Features Authentication MPIN: 4-6 digit secret PIN Biometrics: Fingerprint, face recognition Device Binding: Single device access Tokenization: Card data protection Fraud Prevention Handle Verification: Never pay to fake IDs Screen Share: Never share during payment Transaction Alerts: SMS + push notifications UPI Global Expansion Countries Live Singapore: GPay, liquid, NTUC UAE: LuLu, Wallets France: Bhim, indian banks UK: Zips How International UPI Works Link Indian bank account to international number Convert INR to local currency automatically Same UPI ID works abroad Common Issues & Solutions Failed Transactions Insufficient Balance: Add funds Bank Server Down: Try later Daily Limit Reached: Wait or increase limit Wrong UPI ID: Verify recipient Dispute Resolution Bank Level: 24-48 hours NPCI Level: For PSP disputes RBI Ombudsman: For unresolved issues Prime References NPCI UPI - Official documentation UPI Chalega - Government campaign RBI Payment Systems This 101 guide is part of DPIWatch’s citizen education initiative. Last updated: March 2026. ...