To perform UPI payments, it is necessary to possess a valid identification known as a VPA, which stands for Virtual Payment Address. A VPA is essentially the payment address that allows users to execute UPI money transfers.
When sending money online from one bank to another via UPI, the funds are actually transferred from one VPA to another. UPI is short for Unified Payments Interface, which has simplified online banking and money transfers like never before.
With UPI as the payment mode, users can now send or receive money directly to or from their bank account. All that is required to carry out the transaction is a UPI ID.
Unlike traditional methods of money transfer, where adding beneficiaries and waiting for the bank’s approval can take up to 24 hours, UPI offers a hassle-free solution. In urgent situations, adding account numbers, IFSC codes, and other details can be time-consuming and prone to errors.
However, UPI has become a convenient mode of payment, allowing money transfers through the use of the recipient’s mobile number linked to their bank account.
How to Create VPA?
- Download a UPI-enabled app.
- Provide your bank account details.
- Choose a VPA.
- Link your VPA to your bank account.
- Submit your details after verification.
Uses & Benefits of VPA
- Money can be sent and received even on bank holidays and weekends.
- Funds can be transferred from anywhere, anytime on a 24/7 basis.
- There is no need to go through the tedious process of registering a beneficiary/payee.
- You don’t need to use the IFSC code or provide the bank account number of the payee to send money, only the VPA is required.
- VPA transactions are economical and easy-to-use.
- User-friendly and speedy transfers.
- Pay using any account linked to your mobile phone that has enough money to cover the transaction.
- When transferring money to any bank account, you can use the ‘Pay with VPA’ option, which requires entering the recipient’s VPA, the payment amount, and remarks.
- While several banks charge users for using RTGS, IMPS, and NEFT, VPA transactions using the UPI platform are practically free.
- The UPI links all your bank accounts. A single bank UPI app allows you to generate VPA for all your UPI-enabled bank accounts.
Creating a VPA of Your Choice
- Open the UPI app on your mobile device (we’ll use the BHIM app for demonstration purposes).
- Click on the ‘Profile’ tab on the home screen.
- If you’ve already set a VPA, the primary VPA will be displayed. Click on the arrow that points to the right.
- Click on the ‘+’ mark on the screen to create a VPA of your choice.
- You’ll be given the option to choose the first part of the VPA (the segment before the ‘@’ symbol). A list of recommendations will also appear. You can either select a VPA from the list or type your desired VPA and check if it’s available.
- Click on ‘Submit’ to confirm your VPA. That’s it!
Google Pay UPI Transaction Limit
- The maximum amount for UPI transactions per day across all UPI apps is Rs 1 lakh.
- You can only make up to 10 UPI transactions per day across all UPI apps.
- The maximum amount you can request from another individual or party is Rs 2,000.
Sending and Receiving Money via VPA
Sending Money via VPA
With the advent of the VPA and UPI apps, transferring funds has become a lot easier than it used to be. Follow these steps to send money using VPA:
- Log in to your UPI app by entering your PIN.
- Select the option for fund transfer through UPI.
- Enter the beneficiary’s VPA, the transfer amount, and any remarks you wish to add.
- If you have multiple VPAs, choose the one linked to the bank account you want to pay from and click on ‘Submit’.
- Confirm the details and enter your MPIN to authenticate the transaction.
Receiving Money via VPA
Instead of receiving cash or a NEFT, anyone can request to receive money via UPI. Follow these steps to receive money using VPA:
- Download and log in to any UPI-based mobile app.
- Select UPI and then click on ‘Collect via UPI‘.
- Enter the VPA of the individual from whom you are requesting money.
- Enter the requested amount and any remarks.
- Choose the VPA address/account where you want the money transferred.
- Submit the requested details and wait for approval from the other end.
- Once approved by the individual, the requested amount will be credited to your chosen account.
VPA Suffixes of Banks
- State Bank of India (SBI Pay): @SBI
- Punjab National Bank (PNB UPI): @PNB
- Axis Bank: @axis
- Bank of Baroda: @barodapay
- HDFC Bank UPI: @HDFC
- Yes Bank: @YBL
- BHIM: @upi
- Paytm Payment Bank: @paytm
- Google Pay (Tez): Suffixes depend upon your bank.