Unified Payments Interface (UPI) Services

(UPI) Services

Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI) that facilitates instant money transfers between bank accounts using a mobile device. It is regulated by the Reserve Bank of India (RBI) and has transformed digital payments in India.

Key Features of UPI:

·      Instant Money Transfer – Enables real-time fund transfers 24/7, including weekends and holidays.

·       Single Mobile Application – Users can link multiple bank accounts in a single UPI app.

·    Virtual Payment Address (VPA) – Transactions can be done using a unique ID (e.g., username@upi) without sharing bank details.

·       QR Code Payments – Quick payments using QR codes at merchants.

·       Bill Payments & Recurring Transactions – Supports bill payments, subscriptions, and autopay features.

·       UPI Lite – A simplified version for small-value transactions without using a PIN.

·       UPI International – Enables cross-border transactions in select countries.

Recent UPI Rule Updates (April 2025)

Ø  Deactivation of Inactive Numbers – Banks must remove UPI IDs linked to deactivated mobile numbers.

Ø  Beneficiary Name Verification – For RTGS & NEFT transactions, remitters can verify the recipient's name before transferring funds.

Ø  Mandatory System Updates – Banks must update their systems regularly to reduce transaction errors.

Ø  User Consent for Mobile Number Updates – Any changes to UPI-linked mobile numbers require user approval.

Ø  Monthly Reporting to NPCI – Banks must submit reports on active UPI users and transactions.

All banks and Payment Service Provider (PSP) apps must update mobile number records on a weekly basis.