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Debunking common UPI ID myths

Created on 06 Jun 2023

Wraps up in 10 Min

Read by 4.5k people

Updated on 22 Jun 2023

Picture this-  In the scorching heat, you crave a glass of ice-cold lemonade, but your wallet is as dry as the Sahara. The struggle is real, my friend. Hold on tight! You and the lemonade seller both embrace UPI. So, with a quick click on your phone, you enter the seller's UPI ID, and just like that, your thirst is quenched, and the seller has also received his payment. UPI to the rescue, making cashless refreshments a breeze! With a unique UPI ID, users can enjoy instant transfers, easy usability, multiple account management, secure transactions, and wide acceptance.

UPI, our trusty digital saviour, has come to our rescue countless times, from paying for autorickshaws to booking movies, ordering food, or even investing in the world of stocks. After all, it's the ultimate payment app. But have you ever stopped to wonder about its origins, what UPI actually stands for and its unique features? This article will answer all your questions and provide helpful insights. 

So, get comfortable, grab a refreshing beverage (perhaps paid for with UPI?), and dive into this article.

Who Started UPI?

The origin of UPI, or the Unified Payments Interface, can be traced back to the Reserve Bank of India's (RBI) vision of creating a cashless economy in India. In 2015, the National Payments Corporation of India (NPCI) was tasked with creating a payment system that would allow users to transfer money from one bank account to another instantly. The goal was to create a system that was fast, secure, and easy to use for both consumers and merchants. The NPCI worked with a number of banks and technology companies to develop the UPI platform, which was launched in 2016.

UPI was designed to be a mobile-first payment system that would allow users to transfer funds using a virtual payment address (VPA) or a mobile number linked to their bank account. The system was built on the Immediate Payment Service (IMPS) platform, which allowed for real-time fund transfers. UPI was also designed to be interoperable, meaning that users could transfer funds between different banks using the same platform.

The launch of UPI was a major milestone in India's journey towards a cashless economy. The system has gained widespread acceptance in India, with millions of people using UPI to make transactions every day. UPI has also been a game-changer for small businesses, allowing them to accept digital payments without having to invest in expensive point-of-sale systems. Overall, UPI has been a major success story for India's fintech industry, and it has helped to bring millions of people into the formal financial system.

What is UPI ID & Its Meaning?

So, what exactly is a UPI ID? Well, Unified Payments Interface (UPI) changed the game when it comes to transactions. Think of it as your digital wallet's unique address. In the old days, transferring money meant dealing with the complexity of remembering account numbers and IFSC codes for different banks and branches. This often led to errors and was a time-consuming and tedious process. But UPI is like a magical bridge connecting different banks, making it very easy to transfer money from one account to another. Say goodbye to those confusing and long account numbers and IFSC codes – with UPI, all you need is a simple and unique UPI ID, and you're good to go!

There exists a variety of UPI apps designed to simplify our lives. Some, like PhonePe, Paytm, and GPay, provide UPI as the main feature, while others, such as individual bank apps, offer UPI as an additional feature alongside their existing functions. You can choose to go all-in with dedicated UPI apps like PhonePe, Paytm, and GPay, or opt for the convenience of UPI within your favourite bank app. The choice is yours.

What Details are Required for UPI ID?

Creating a UPI ID is super easy, and all you need are a few details. Let's find out what they are!

  1. Bank Account: The first and most important detail you need is your bank account. Yep, you can't create a UPI ID without linking it to your bank account. So make sure you have a bank account ready to go

  2. Mobile Number: Next up, you'll need your mobile number. This number should be registered with your bank account. Make sure you have access to this mobile number, as it's crucial for the verification process wherein you will receive an OTP that you’ll have to share.

  3. Personal Information: Now, let's get personal (but not too personal, okay?) You will be required to furnish essential details regarding your personal background. This can include details like your name, email address, and sometimes even your date of birth. Don't worry, they just want to make sure it's really you creating the UPI ID, not an AI. After all, you can never know in the present time, right? 😉

  4. Security PIN: Ah, the all-important security PIN! The PIN adds an extra layer of protection to your UPI ID. You'll need to create a strong and unique PIN. Make a careful selection and ensure its safety.

And that's it! With these details in hand, you're ready to create an amazing UPI ID. Easy Peasy!

How to Create UPI ID?

So, you've downloaded the UPI app, signed up, and linked your bank account. Great job! Now, let's move on to the exciting part - creating your UPI ID.

When it comes to choosing your UPI ID, the sky's the limit! You can use your name, a cool nickname, or anything that represents you. Just make sure it's unique and memorable. After all, you want people to easily remember and associate it with you. Avoid using something too common or generic.

UPI ID Example

Imagine this- Your friend is in a bind and urgently needs some financial assistance. However, you don't have their bank details handy. But wait, when you use UPI, all you would need is his UPI Id, you can be the hero in this situation. Simply open your UPI app, enter your friend's UPI ID, and swiftly send them the money they need. No need to worry about account numbers or IFSC codes. UPI makes it effortless to come to the rescue and help your friend in their time of need.

Let's say you're creating your very own UPI ID. Keep in mind that UPI IDs can only be alphanumeric, which means you can use letters from A to Z, numbers from 0 to 9, and a few special characters like underscore (_), and hyphen (-). For example, if you are a gamer, you could use your gaming ID as your UPI ID, such as chickendinner@okhdfc.

UPI IDs can also be linked to your mobile number. So, if you want to keep things simple, you can create a UPI ID that's just your phone number. For example, "9876543210@upi". Just make sure to memorise it or write it down in a safe place because losing it would be a bummer.

Once you've come up with the perfect UPI ID, it's time to check its availability. The app will do this for you, making sure that no one else has snagged your awesome ID. If it's available, you're almost there! The app will guide you through the verification process, usually by sending an SMS from your registered mobile number. Just follow the instructions, and the chosen UPI ID will be officially yours!

How to Find UPI ID?

Step 1: Open your UPI app.

Step 2: Go to the profile section and click on your photo.

Step 3: Here, you’ll find your UPI ID.

UPI ID in Different Platforms Like GPay, PhonePe, Paytm

Ever wondered what those IDs in payment apps like GPay, PhonePe, and Paytm are all about? Hang on because we're about to reveal something significant!
In these digital payment apps, each platform assigns you a special ID. It's like your own personal code that helps you make your payment securely. GPay and PhonePe go all fancy with their alphanumeric IDs, while Paytm keeps it simple by using your registered mobile number as your ID.

Features of UPI ID

There are many perks of utilising UPI as a payment option. Here are some of those features available:

Instant Transfers

With UPI payments, you can transfer funds instantly between bank accounts. Unlike traditional transactions that could take days to complete, UPI payments are processed in real-time. The convenience of instant transfers has revolutionised the way people transact money, much like the way instant noodles like Maggi have transformed the food industry.

Easy to Use

It's so easy that even your tech-challenged dadaji can transfer money with a few taps on his smartphone. All you need is a smartphone and a bank account linked to your mobile number. Once you have that setup, you can easily transfer money with just a few taps on your phone screen.

Multiple Accounts

UPI enables the convenient management of your finances by allowing you to connect several bank accounts with your mobile number. For instance, you can link your salary account and your savings account to your UPI app. This way, you can transfer money between the two accounts instantly without having to go through the hassle of logging into multiple bank apps.

Secure

UPI payments are highly secure, thanks to the multi-factor authentication and encryption technology that they use. These features ensure that your transactions are well protected against unauthorised access.

Wide Acceptance

UPI payments are accepted by a large number of merchants and businesses, making it easy to pay for everything from groceries to online shopping.

Round-the-Clock Transfers

The UPI system allows money transfers 24/7, 365 days a year, through mobile devices. This means you can transfer money at any time, no matter where you are.

Alternative to Cash-On-Delivery

UPI payments are an excellent alternative to cash-on-delivery hassles or running to the ATM to pay in cash.

Variety of Payments

The UPI system supports several types of payments, such as utility bills, over-the-counter payments, or barcode (scan and pay) payments.

How to Change UPI ID?

Changing your UPI ID is pretty easy if you proceed with the following steps-

1) Open your UPI app. Then go to your profile.

2) Now, find the "Profile" or "Settings" option in your app and click on it. This will direct you to a page where you can change your personal information. 

3)Here, you need to look for the option to "Edit UPI ID" and click on it.

4)You may confirm your changes. Finally, click "Confirm" or "Save" to finish the process.

How to Change UPI Pin?

Let's see a step-by-step guide on how to change your UPI PIN to ensure the security of your UPI account.

Step 1: Open your UPI app.

Step 2: Find the UPI PIN section in the app's settings or profile area.

Step 3: Select the bank account you want to update.

Step 4: Look for the "Change UPI PIN" option and tap on it.

Step 5: Verify your identity by entering your current UPI PIN.

Step 6: Enter your new UPI PIN twice and ensure it's unique and strong.

Step 7: Confirm the new UPI PIN by matching both entries.

Step 8: Congratulations! Your UPI PIN has been successfully changed.

How to Send Money Via UPI Payment?

Now I'm going to explain to you how to send money using UPI payment. It's super simple and convenient.

  • Once you have the app, set up your UPI account and create your unique UPI ID. 

  • Before you can send money, you need to add the person you want to send it to as a beneficiary. Open the app, find the "Add Beneficiary" option, and enter their UPI ID or bank account details. Double-check the information to avoid any mix-ups later.

  • Now comes the exciting part! Open your UPI app, find the "Send Money" button, and enter the amount you want to send. You can even add a note or emoji to make it personal and fun. Select your beneficiary from the list, and hit the "Send" button. To keep your money safe and sound and ensure it's only accessible to you, your UPI app will ask you to set a secret PIN. 

Where to Use Your UPI ID?

Check out the incredible things you can do with your UPI ID:

  1. Easy Money Transfers: Send and receive money effortlessly using your UPI ID. Say goodbye to cumbersome bank account details and enjoy the simplicity of quick and secure transactions.

  2. Bill Payments Made Simple: Settle your bills with a few taps on your phone. Use your UPI ID to pay utility bills, credit card bills, and other payments conveniently.

  3. Mobile Recharge in a Snap: Running low on mobile balance? Recharge your phone instantly using your UPI ID. Top up your talk time and data with ease.

  4. Seamless Online Shopping: Shop till you drop! Most online merchants accept UPI payments. Enter your UPI ID at checkout and enjoy a hassle-free shopping experience.

  5. Split Expenses with Ease: Going out with friends? Splitting expenses is very simple with your UPI ID. Request or send money to your buddies using their UPI IDs and settle the bill without any fuss.

  6. Cashbacks and Exciting Offers: Get rewarded for your transactions! UPI apps often provide cashback and exclusive offers, making your payments even more rewarding.

Remember, these are just a few of the many uses of your UPI ID. As digital payments continue to evolve, new features and possibilities may arise.

The Bottom Line

In today's modern world, the advent of UPI has revolutionised the way we make payments. Whether you want to send a small amount of ₹10 or a larger one of ₹5000, UPI makes the transaction incredibly easy. It has become the go-to tool for hassle-free and safe transactions, and it's hard to find anyone who would disagree. Changing UPI ID and PIN is simple, and using UPI for sending money is convenient. Your financial journey will never be the same again, thanks to the remarkable impact of UPI on your life.

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Meet Muskan, the fun-loving ambivert who enjoys singing, dancing, lifting weights, and reading about various topics. She loves soulful ghazals and is into world affairs and geopolitics. To top it off, Muskan comes armed with infectious positivity, a calm demeanour, and listening skills to boot!

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