What is the NPCI's UPI platform and how does it work?

The National Payments Corporation of India (NPCI) operates the Unified Payments Interface (UPI) platform. UPI is a realtime payment system that allows users to instantly transfer funds between bank accounts using their smartphones. It enables individuals to make payments, request money, and perform various transactions seamlessly.

Here's how UPI works:

1. Registration: To use UPI, you need to download a UPIenabled mobile app provided by your bank or a thirdparty app that supports UPI. You must link your bank account(s) to the app by providing the necessary details and completing the registration process.

2. Virtual Payment Address (VPA): Once registered, you'll be assigned a unique Virtual Payment Address (VPA). The VPA is a userfriendly identifier, typically in the format of "yourname@bankname," that replaces the need to share sensitive bank account information during transactions.

3. Initiating Payments: To send money, you can select the "Send Money" or "Send" option in the UPI app. You'll need to enter the recipient's VPA or other payment details such as their mobile number or Aadhaar number. The app will verify the recipient's details and allow you to enter the amount to be transferred.

4. Authorization: After entering the payment details, you'll be prompted to authorize the transaction using a UPI PIN. The UPI PIN is a 4 or 6digit secure code set by you during the registration process. It acts as a secondfactor authentication to ensure only authorized users can initiate transactions.

5. Transaction Confirmation: Once you enter the correct UPI PIN, the transaction is processed in realtime. You'll receive an instant confirmation on the app, indicating that the money has been debited from your account and credited to the recipient's account.

6. Collect Requests and Payments: UPI also supports collect requests, allowing you to request money from other UPI users. You can generate a collect request by entering the payer's VPA or other payment details, specifying the amount, and sending the request. The payer can authorize and fulfill the request from their UPI app.

7. Additional UPI Features: UPI offers various additional features and services, such as linking multiple bank accounts to a single UPI app, checking account balance, viewing transaction history, creating payment reminders, and making payments through QR codes or USSD (Unstructured Supplementary Service Data) codes.

UPI simplifies the payment process by leveraging the existing infrastructure of banks and provides a seamless and secure way to transfer funds. It has gained popularity in India as a convenient and instant payment solution, supporting persontoperson (P2P) transfers, merchant payments, bill payments, and more.