Creating UPI ID: A beginner's guide to getting started

In the era of digital payments, Unified Payments Interface (UPI) has emerged as a game-changer in India. UPI enables seamless and instant fund transfers between bank accounts, making transactions quick, convenient, and secure. One of the first steps to start using UPI is to create a UPI ID, which serves as a unique identifier linked to your bank account. In this beginner's guide, we will walk you through the process of creating a UPI ID, along with setting up a UPI PIN to secure your transactions.

What does UPI mean?

Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). UPI allows users to link multiple bank accounts to a single mobile application, simplifying the process of transferring funds between accounts. It provides a secure and convenient platform for making payments, including person-to-person transfers, merchant payments, bill payments, and more.

How to create UPI ID

Creating a UPI ID is a simple process. Here's a step-by-step guide to help you get started:

  • Choose a UPI-enabled mobile app: There are several UPI-enabled apps available, such as Bajaj Pay, Google Pay, PhonePe, Paytm, and BHIM. Install the app of your choice from your smartphone's app store.

  • Register on the app: Open the UPI app and complete the registration process by providing your mobile number. Verify your mobile number through a One-Time Password (OTP) sent to your phone.

  • Link your bank account: After successful registration, you need to link your bank account to the UPI app. Select your bank from the list of available options and provide the necessary details, including your bank account number and IFSC code. Some apps may require additional verification steps.

  • Set up a UPI ID: Once your bank account is linked, the UPI app will prompt you to set up a UPI ID. The UPI ID is often in the format of [username]@[bankname], but you may have the option to customise it depending on the app. Enter a unique and easily recognisable UPI ID.

  • Verify your UPI ID: After selecting a UPI ID, the app will verify its availability. If your chosen UPI ID is not already taken, it will be assigned to your bank account.

How to find my UPI ID?

You can find your UPI ID by checking it in:

UPI app: Open your UPI app, check your profile or settings section. It is usually in the format of mobilenumber@bankname.

How to set UPI PIN

To secure your UPI transactions, you need to set a UPI PIN. The UPI PIN acts as a password to authorise and authenticate your transactions. Here's how you can set a UPI PIN:

  1. 1 Open the UPI app on your smartphone and navigate to the UPI PIN section. The exact location of this option may vary depending on the app you are using
  2. 2 Enter the last six digits of your debit card number and its expiry date. These details are required for verification purposes
  3. 3 You will receive an OTP on your registered mobile number. Enter the OTP to authenticate the process
  4. 4 Set a four or six-digit UPI PIN of your choice. Make sure to choose a PIN that is easy for you to remember but difficult for others to guess
  5. 5 Confirm the UPI PIN by entering it again. Once confirmed, your UPI PIN will be set, and you can start using it to authorise UPI transactions

How does UPI work?

Once you have created your UPI ID and set up a UPI PIN, you are ready to start using UPI for various transactions. Here's how UPI works:
  • Initiate a transaction: Open your UPI app like Bajaj Pay on Bajaj Finserv app, and choose the desired transaction type, such as person-to-person transfer, merchant payment, or bill payment.

  • Enter the recipient's UPI ID or scan their UPI QR code: To transfer funds, enter the recipient's UPI ID (e.g., [username]@[bankname]) or scan their UPI QR code using the app's scanner feature. This ensures accurate payment details.

  • Enter the transaction amount and additional information: Specify the amount you want to transfer and provide any additional information required for the transaction, such as a description or purpose.

  • Authenticate the transaction: To authorise the transaction, enter your UPI PIN or use biometric authentication (fingerprint or pattern lock) if supported by your app.

  • Complete the transaction: Once the transaction is authenticated, the funds will be instantly transferred from your bank account to the recipient's account.

It is important to note that UPI transactions have limits set by banks and NPCI. As of now, the daily transaction limit is typically set at Rs. 1 lakh per day for most banks. However, it's recommended to check with your bank for the specific transaction limits applicable to your account.

In conclusion, creating a UPI ID is a straightforward process that enables you to experience the convenience and security of digital payments. By following the steps outlined in this guide, you can set up your UPI ID and PIN, empowering yourself to make instant and hassle-free transactions through UPI-enabled apps. Embrace the digital revolution and enjoy the benefits of a cashless and seamless payment experience.