Unified Payments Interface (UPI) is a payment system launched by National Payments Corporation of India and regulated by the Reserve Bank of India which facilitates the instant fund transfer between two bank accounts on the mobile platform.
UPI is built over Immediate Payment Service (IMPS) for transferring funds using Virtual Payment Address (a unique ID provided by the bank), Account Number with IFS Code, Mobile Number with MMID (Mobile Money Identifier), Aadhaar Number, or a one-time use Virtual ID. An MPIN (Mobile banking Personal Identification number) is required to confirm each payment.
Performing a UPI (Unified Payments Interface) Transaction
Customer enters his Virtual Payment Address (VPA) and proceeds to pay.
Note: Virtual payment address (VPA) is a user-generated unique identifier for each bank account. All payment addresses are in the format abc @bank, where abc can be chosen by the customer.
A payment collection request for the transaction amount is sent to the customer on this VPA.
Customer will receive a mobile notification in their UPI app prompting him to authenticate the transaction with his 4 digit MPIN (Mobile Banking password)
Customer accepts the transaction and the payment is complete.