Cash is no longer the only transactional option; thanks to the convenience that online payment methods and instant money transfer services provide, many people are adopting online payment services over cash transactions in India. The emergence of the UPI (Unified Payments Interface) ecosystem has given digital payments in India a boost. UPI is a real-time online payment system that allows bank account holders to transfer funds to another bank account holder using a smartphone. The use of a VPA (Virtual Payment Address) makes the UPI process so simple and convenient. So, let’s delve into VPAs and learn more about how it works.
Virtual Payment Address or VPA: What is it?
VPA full form is Virtual Payment Address. VPA is a one-of-a-kind financial ID that allows you to send or receive money in your bank account via UPI. For example, your email account has an ID, and your phone has a unique number. Both allow people to contact you directly. Likewise, your Virtual Payment Address (VPA) directs payments to your bank account.
Unlike other online money transfer services, you do not need to share your bank account number, branch name, IFSC code, or other personal information with anyone to send or receive money. Share your VPA, and the funds will be transferred to your linked bank account. A typical VPA would look like abc@bankname. The UPI app you’re working on will set a primary default VPA in most cases.
The ‘ABC’ in the preceding example can be anything like your name, registered mobile number, or similar. The ‘bank name’ in the example can be the name of the bank with which your account is held, the name of the bank with which the app is associated, or simply the word ‘UPI’. ‘raghav@hdfcbank,’ ‘kylie23@upi,’ and ‘123456789@ybl’ are a few examples of VPAs. On the other hand, you can check for the availability of a VPA that you prefer and create custom VPAs as needed.
VPA: How to create one of your choice
Aside from understanding what a virtual payment address is, you must also understand how to create a VPA of your choice. VPAs have a standard nomenclature format, your name or ID followed by the bank’s or a third-party app’s VPA suffix. Generally, it would look like this: username@bankupi.
You must first install a UPI-enabled app on your smartphone to create your VPA. Your bank’s mobile banking app or a third-party app that allows for quick fund transfers, such as Google Pay or PayTM. Once installed, you can choose to create a new VPA by clicking the Create New VPA button. You must check the availability of your desired ID, just as you would when creating an email ID. If your desired ID is available, continue; otherwise, try another ID.
After you’ve created your ID, you can link your bank account to this VPA. This can be accomplished by creating an mPIN, a six-digit passcode that must be entered each time a transaction is made. The mPIN must be generated on the mobile number associated with the bank account. You are now ready to go once the PIN has been generated.
VPA: Process in which transactions happen
The introduction of VPA and UPI apps has made money transfer much easier than it used to be if you had to do it using IFSC or NEFT transfers. To send money to someone using the UPI app, you have to have that person’s VPA. To transfer money using VPA, follow these steps:
- Enter your PIN to access your UPI app.
- Choose UPI as your preferred method of fund transfer.
- Enter the beneficiary VPA, the amount to be transferred, and any additional comments.
- If you have multiple VPAs, select the one associated with the bank account from which you want to pay and click Submit.
- To validate, confirm the details and enter your MPIN.
Anyone can request to receive money through UPI instead of cash or an NEFT. The following are the steps to receiving money through VPA:
- Install and sign in to any UPI-based mobile app.
- Choose UPI, then click “Collect via UPI.”
- Enter the VPA address of the person from whom you are requesting funds.
- Give the requested amount and make any additional comments.
- Select the VPA address/account to which you want the funds transferred.
- Submit the requested details and wait for approval from the other end.
- The amount is credited to your chosen account once approved by the individual from whom you are requesting funds.
VPA: Advantages
There are numerous advantages to using money transfer via VPA. The most important benefit is that you don’t have to remember or share your account number, IFSC code, branch name, and so on for each transaction. Just remember your VPA, and you’ll be fine.
Similarly, you do not need to record a lot of information about the beneficiary’s bank account to send money. You don’t even need to add the person as a beneficiary ahead of time, as NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) do. Obtain the beneficiary’s VPA and transfer funds instantly via the UPI route.
VPA also aids in the preservation of privacy and the prevention of fraud. Both the sender and the recipient of funds are never made aware of your actual bank account information. This assists in ensuring that your bank account information is not being misused.
UPI: General transaction limit
The National Payment Corporation of India (NPCI) has set the UPI transaction limit at Rs 1 lakh per day for the time being. The maximum number of UPI transactions per day is 20. The upper limit, however, varies from bank to bank. As a result, the upper limit for daily UPI transactions could range from Rs 10,000 to Rs 1 lakh. It should also be noted that the daily transaction limit can be changed from time to time.
Banks supporting UPI Autopay
For regular payments, NPCI has introduced UPI AutoPay. You can use this feature to enable a recurring e-mandate for recurring payments such as phone bills, OTT charges, Netflix, WiFi charges, electricity bills, EMI bills, etc. The following are a few banks and their respective partners (not exhaustive):
| Issuer Bank | UPI Apps |
| Axis Bank | BHIM |
| Bank of Baroda | Paytm, BHIM |
| IDFC Bank | BHIM |
| ICICI Bank | Gpay, PhonePe |
| Indusind Bank | BHIM |
| HDFC Bank | Gpay, PhonePe, Paytm |
| HSBC Bank | HSBC SimplyPay |
| Paytm Bank | Paytm, BHIM |
UPI transaction limits
Google Pay
Maximum daily limit of Rs 1 lakh across all UPI apps. A total of ten times per day across all UPI apps. A maximum of Rs 2,000 can be requested from another individual or party.
BHIM app
You can transfer up to Rs 40,000 per transaction and Rs 40,000 per day between bank accounts. This UPI transfer limit is determined by the bank account linked to BHIM. The State Bank of India (SBI) launched its own mobile payments app, BHIM SBI Pay. It is used not only by SBI account holders but also by customers of other UPI-enabled banks. The funds are transferred using VPA.
PhonePe
Maximum daily limit of Rs 1 lakh throughout all UPI apps. A maximum of ten times per day across all UPI apps.
VPA: Suffixes used by some banks
- Axis bank: @axis.
- PNB UPI: @PNB.
- ICICI Bank UPI: @icici.
- SBI Pay: @SBI.
- HDFC Bank UPI: @HDFC.
- ICICI Bank UPI: @icici.
- Yes Bank: @YBL.
- Bank of Baroda: @barodapay.
FAQs
What exactly is VPA?
VPA means an identifier for all transactions made via the UPI system via a UPI-enabled mobile app.
Is it possible to associate multiple bank accounts with a single VPA?
Yes. This is a possibility. A single VPA can be linked to multiple bank accounts.
Is it possible to link an existing VPA to a new app?
Yes. This is possible, but it is also dependent on the app you use to make the payment or initiate the fund transfer. Some banks will not allow you to use an existing VPA.
Is my VPA going to expire if I don't use it?
It will not expire if you do not use it for a specified period.
Is any additional bank account information required if you use VPA?
No. It is only the VPA that is required.
Will VPA expire when not in use?
No, even if you do not use VPA daily or regularly, it will not expire.
On a UPI platform, how many VPAs can be created?
You can create as many VPAs as you want on different UPI platforms and link them to the same bank account.
Is the UPI ID and VPA the same thing?
A UPI ID is also known as a Virtual Payment Address (VPA). The term virtual payment address is used by some apps, including Google Pay, PhonePe, and Payzapp.
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