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What Is UPI and How Does It Work

UPI, or Unified Payments Interface, is a revolutionary payment system in India that allows you to instantly transfer money between bank accounts using just your smartphone. 

1. What is UPI

Most popular digital wallets in India, like Google Pay and Paytm, use UPI as their backend infrastructure. UPI has become the standard for mobile payments in India.

2. Backend Infrastructure

To get started with UPI, you'll need a smartphone with an internet connection and a bank account that supports UPI. Most major banks in India offer UPI services.

3. What do you need

There are many UPI-enabled apps available, each with its own features and interface. Popular options include Google Pay, PhonePe, and Paytm. Choose the app that best suits your preferences and needs.

4. Choose an app

You'll download a UPI-enabled app. Once you link your bank account to the app, you can create a unique UPI ID. It's typically created automatically when you link your bank account to the app.

5. How does it work

To send money using UPI, you simply need to enter the recipient's UPI ID or phone number. You can also scan a QR code if the recipient has one.

6. Send money

Before confirming the transaction, carefully review all the details, including the recipient's information and the amount to be sent.

7. Verify detail

To authorize the transaction, you'll need to use a security measure like a PIN, fingerprint, or facial recognition. This helps to protect your funds and prevent unauthorized transactions.

8. Authorize payment

Once you authorize the payment, the money will be instantly transferred from your account to the recipient's account. There's no waiting time or processing delays.

9. Instant transfer

To receive money using UPI, you simply need to share your UPI ID with the sender. The funds will be credited to your account instantly.

10. Receive money

The transfer limit for UPI transactions in India varies depending on the bank and the specific UPI app you're using. While there's no universal limit, but apps have a daily limit is from ₹1 lakh to ₹10 lakhs.

11. Transfer limit

UPI currently works within India. While there have been discussions to expand UPI to other countries, as of now, its services are primarily confined to India.

12. Countries Use