What is UPI?

UPI means Unified Payment Interface which is a payment system where it allows users to link more than one bank account via mobile phones and makes fund transfer without providing IFSC code or account number. By using UPI funds are credited instantly on a real time basis.

To use it, the user must have a bank account and your bank must allow you to use the UPI facility. After checking if the bank supports the UPI system, one needs to download the supporting app on your smartphone. Some of the apps offering payment via UPI method are BHIM, Paytm, PhonePe, Amazon pay, Google pay etc.

How does it work?

UPI has been developed by the National Payments Corporation of India (NPCI) and is regulated by the Reserve Bank of India (RBI). Things which are required to transfer funds via UPI:

1. An active bank account

2. A smartphone

3. The mobile number must be active

4. Internet connection

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Participants in UPI

1. Remitter bank

2. Beneficiary bank

3. Merchants

4. NPCI

5. Bank account holder

6. Payer PSP

7. Payee PSP

Transfer money via UPI

There are three ways to transfer money via UPI -

1. By entering the virtual payment address (VPA) of the receiver,

2. Account number

3. 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.

How business can use UPI?

Swipe is a billing and invoicing software, where businesses can create bills in 10 seconds regarding their business can easily collect their payments in seconds using UPI. It allow business to send invoices with UPI links & embedded QR codes through which their customers can directly transfer payment to business owners bank accounts with no extra charge.

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