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What is UPI? How to transfer funds through UPI

What is UPI?

Unified Payments Interface or commonly known as UPI is a payments system employed by the National Payments Corporation of India. It is an instant real-time transfer system wherein funds are transferred immediately as soon as the transaction is processed. Money transfer can be done between any two bank accounts on a mobile platform. It is built and an improvement over the existing Immediate Payment Service (IMPS) and was developed by NPCI that is the National Payments Corporation of India.

Although its a digital platform, its services can be availed by the consumers 24*7 including the public holidays. It is a great improvement over existing mobile wallets as you do not have to deposit money into your mobile wallet first and then only you can transfer the money. The UPI system uses a virtual payment address also known as VPA to identify the sender and payee. Everyone is provided a unique VPA by their bank and it can be used for instant fund settlement. It is a move to promote Digital India and minimize the use of cash. UPI service can be used via various applications such as BHIM, Tez, PhonePe, Paytm, and many others. It can also be used via USSD by dialing the service code that is *99# from the mobile dialer and then proceeding with the instructions.

How to transfer funds through UPI?

  1. Open the mobile app in which you have registered with your UPI enabled bank account.
  2. Click on send/pay button or select from the Contacts (only in Tez and PhonePe).
  3. You can also enter the bank account details of the payee such as Account number, IFSC code etc. to send payment.
  4. Enter the amount you would like to send and click on Pay/Proceed button.
  5. Enter your UPI pin in the space provided and click continue.
  6. You will get a confirmation message from the bank and app. that the money has been transferred successfully.

These are the easy steps you need to follow to send money using UPI. Please do note that these steps may vary from app to app.


As per the current governmental regulation, there are no charges for the UPI service and it can be availed for free by anyone who has a UPI enabled bank account.

{ 1 comment… add one }
  • SANTOSH PANDIT February 6, 2020, 2:09 pm

    Sir, my name was Santosh Pandit, my sister Helen Bara, who came an offer from Jeev, then I asked for the money and paid the entire money. Avi tak saman nhi mila aur na hi refund paisa hua

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