Transfer Money Using UPI: A Step-by-Step Guide

Get all the information on how to send or receive money using UPI.
Transfer Money Using UPI: A Step-by-Step Guide
4 mins
21 Sep 2023

In the era of digital transactions, transferring money has never been easier, thanks to the Unified Payments Interface (UPI). UPI has revolutionised the way we send and receive money, offering a seamless and secure method for conducting financial transactions. In this article, we will guide you through the process of transferring money using UPI, discuss essential points to consider, delve into UPI payment features, and explore how UPI works.

How to transfer money using UPI

Transferring money through UPI is a straightforward process that can be completed in a few easy steps:

  1. Download a UPI-enabled app: To get started, you will need a smartphone and a UPI-enabled mobile application. Popular apps in India include the Bajaj Finserv app. Download and install the app from your app store or Google Play Store.
  2. Registration: Open the Bajaj Finserv app and follow the registration process. You will be asked to link your bank account to the app by providing necessary details, including your bank account number and the registered mobile number linked to that account.
  3. Setting up UPI PIN: Once your bank account is linked, you will need to set up a UPI Personal Identification Number (UPI PIN). This is a secure 4-6 digit code that authorises UPI transactions from your account. Ensure that your UPI PIN is confidential and never share it with anyone.
  4. Adding beneficiary: To transfer money to someone, you need to add them as a beneficiary. Enter the beneficiary's UPI ID, which could be their mobile number, or a UPI ID provided by their UPI app.
  5. Initiating the transfer: After adding the beneficiary, you can initiate the transfer. Enter the amount you wish to send, add a remark or description if needed, and select the beneficiary.
  6. Enter UPI PIN: To confirm the transaction, you will be prompted to enter your UPI PIN. This step ensures the security of the transaction.
  7. Transaction confirmation: Once you have entered the correct UPI PIN, your transaction will be confirmed. You will receive a notification confirming the successful transfer.
  8. Transaction history: Most UPI apps offer a transaction history feature, allowing you to keep track of your payments and receipts.

Points to consider while making money transfers through UPI

While UPI is a convenient way to transfer money, it is essential to keep the following points in mind for a smooth and secure experience:

  1. UPI PIN security: Always keep your UPI PIN confidential. Do not share it with anyone and choose a strong and unique PIN.
  2. Verify beneficiary details: Ensure that you are sending money to the correct UPI ID or mobile number. Double-check the beneficiary's details to prevent accidental transfers to the wrong person.
  3. Transaction limits: Different banks and UPI apps may have varying transaction limits. Be aware of these limits to avoid any issues while transferring larger sums of money.
  4. Internet connectivity: A stable internet connection is crucial for UPI transactions. Make sure you have a good network connection before initiating a transfer.
  5. Fees and charges: Some UPI apps or banks may levy transaction charges, especially for transferring money to a different bank. Familiarise yourself with these charges to avoid surprises.

UPI payment features

UPI offers a range of features and benefits that make it a popular choice for digital transactions:

  1. 24/7 availability: UPI transactions can be initiated at any time of the day, including weekends and holidays.
  2. Instant transfers: UPI transfers are processed in real-time, allowing recipients to access the funds immediately.
  3. Multi-bank support: UPI enables transfers between different banks, making it a universal solution for all users.
  4. Bill payments: You can use UPI to pay utility bills, purchase goods and services, and even make online and in-store payments.
  5. QR code payments: Many merchants accept UPI payments through QR codes, simplifying the payment process further.

How UPI works

UPI operates on a secure and robust framework that ensures the smooth flow of transactions. Here is a simplified overview of how UPI works:

  1. Initialisation: When you initiate a UPI transaction, the UPI app sends a request to the National Payments Corporation of India (NPCI), which acts as an intermediary.
  2. Authentication: The NPCI verifies the transaction details and authenticates the sender using the UPI PIN.
  3. Funds transfer: Upon successful authentication, the NPCI routes the transaction to the beneficiary's bank. The funds are then transferred from the sender's bank to the recipient's bank in real-time.
  4. Notification: Both the sender and the recipient receive notifications confirming the transaction's success.


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