Unified Payments Interface is an instant real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions. The interface is regulated by the Reserve Bank of India and works by instantly transferring funds between two bank accounts on a mobile platform.
What you need to use UPI
To use UPI, you must have a bank account with a member bank, i.e., your bank should allow you to use the UPI facility. Some of the member banks include State Bank of India, HDFC Bank and ICICI Bank.
Once you have checked whether you bank supports UPI payments, you need to download the UPI supporting app on your smart phone. Some of the commonly used apps offering payment via UPI method are BHIM, which is developed by NPCI, and there are some private players as well such as Paytm, PhonePe, Google Pay, Amazon Pay etc.
How to transfer money via UPI
There are three ways to transfer money via UPI - by entering the virtual payment address (VPA) of the receiver, account number and IFSC code or QR code.
Maximum limit on transfer of money
According to the NPCI website, at present, the upper limit per UPI transaction is Rs 1 lakh per account per day. Within this upper limit different banks may have their own sub limits hence one should check with the bank.