UPI ID: The Best Comprehensive Guide to Creating 2023

In today’s fast-paced digital era, the need for quick and hassle-free financial transactions is paramount. Here comes UPI ID, a revolutionary idea that has changed the way we deal with money online. Simplifying transactions by replacing lengthy bank details with a unique ID, the Unified Payments Interface (UPI) system has become a cornerstone of digital payments in India. Whether you’re a novice just stepping into the world of digital banking or someone seeking clarity on UPI’s intricacies, our comprehensive guide on creating and changing UPI ID promises to be a beacon of insight.

What Is UPI ID?

A UPI ID, a Virtual Payment Address (VPA), means a user’s account within the Unified Payment Interface (UPI) system. The National Payments Corporation of India (NPCI) devised UPI, an instant real-time payment system, to facilitate interbank transactions. 

Instead of sharing your bank account number and IFSC code to receive money, you can simply provide your UPI ID, which acts much like an email ID for money transfers. For example, a UPI ID might look like “yourname@bankname” or “mobilenumber@upi”. This ID is linked to your bank account, so when someone sends money to your UPI ID, it directly goes into your linked bank account.

To create a UPI ID, one needs to register with a bank’s mobile application that is UPI-compliant or with other popular UPI apps like Google Pay, PhonePe, or BHIM. Each app might provide a slightly different format for the UPI ID. However, its essence remains the same – a simple and unique identifier for digital transactions.

Features of UPI ID

1. Real-time Bank-to-Bank Transfer

UPI ID enables immediate money transfer, 24×7, across different banks through mobile devices.

2. Multiple Bank Accounts

One UPI ID application can house multiple bank accounts. This means users can manage several bank accounts with a single mobile app.

3. Virtual Payment Address (VPA)

With VPA, users don’t need to remember or share their bank account number and IFSC code. Instead, they can create a unique ID (e.g., yourname@bankname).

4. QR Code

UPI ID supports QR code-based transactions, allowing users to scan and pay easily.

5. One-Click Two-Factor Authentication

UPI ID provides a secure environment as it works on two-factor authentication.

6. Mobile Number as Identity

Users can use their mobile number as an identity for transactions through UPI.

7. Aadhaar Enabled Payments

UPI ID also supports payments using the Aadhaar number.

8. Peer-to-Peer Collect Request

With UPI ID, users can send a collect request to another person, essentially asking them to pay. The recipient can approve or decline the request.

9. Bill Splitting

UPI apps often come with features that allow users to split bills with friends or colleagues.

10. Check the Account Balance

Users can check their bank account balance in real time using UPI apps.

11. Customizable

UPI ID provides an open and customizable payment platform where third-party apps can build their own user experience for sending and receiving money.

12. Interoperability

Transactions through UPI are interoperable. This means that you can use any UPI-supported app to transact with any bank, eliminating the need for multiple bank apps.

13. Merchant Transactions

UPI isn’t just for peer-to-peer transactions. It can also be used to pay merchants, both online and offline.

14. Multiple Languages

To cater to India’s diverse linguistic landscape, UPI apps offer multiple language support.

15. Transaction Limits

UPI ID has daily transaction limits for users, ensuring a safe transaction environment.

In essence, UPI has revolutionized digital payments in India, providing a seamless, secure, and versatile platform for both individuals and merchants.

UPI ID in Google Pay

Google Pay, formerly known as Tez, is one of the most popular UPI-based digital payment platforms in India. The UPI ID, which in Google Pay is commonly referred to as the Payment Address, is an integral component of this system. The UPI ID or Payment Address in Google Pay is a unique identifier that you set up when you register on the app. It is linked to your bank account and allows you to send or receive money without sharing your bank details. Typically, it’s formatted like an email address. For example: ‘username@okhdfcbank’ or ‘phonenumber@okaxis’. Let’s examine the concept and application of UPI ID in Google Pay in greater detail:

How to Create UPI ID in Google Pay

1. Download and Install

The initial steps for obtaining your UPI ID involve downloading the Google Pay application from either the Google Play Store or Apple App Store. Subsequently, install the app on your device.

2. Open and Setup

• Launch the app and select the language of your preference.
• Enter your mobile number (make sure this is the same number linked to your bank account).
• Verify your number using the OTP received.

3. Link Your Bank Account

• On the home screen, tap on your profile picture at the top-right corner.
• Select ‘Bank account’ and then ‘Add bank account.’
• Choose your bank from the list provided.
• Google Pay will automatically fetch the bank account linked to your mobile number. Confirm the bank account details.

4. Set UPI PIN (If not set previously)

• If you’re using UPI for the first time, you’ll be prompted to set a UPI PIN. This PIN will be used for all your UPI transactions.
• Enter the last six digits and the expiry date of your debit card. You will receive an OTP. Enter it to proceed.
• Set your desired UPI PIN and confirm it.

5. UPI ID Creation

• Once your bank account is linked successfully, Google Pay will automatically generate a UPI ID for you. This is typically in the format ‘mobilenumber@okbankname’ (for example, ‘1234567890@okhdfcbank’ or ‘1234567890@okaxis’).

6. View or Change UPI ID

• To view your UPI ID, tap on your profile picture on the top right.
• Underneath your name and mobile number, you’ll see your UPI ID.
• If you wish to change or create an additional UPI ID, tap on ‘Payment methods’ and then go to the ‘UPI ID’ section. From here, you can modify or add new UPI IDs.

7. QR Code

• Additionally, Google Pay provides a unique QR code linked to your UPI ID. This can be shared or scanned by others to make transactions easier. You can find your QR code by tapping on the QR code icon on the top-right corner of the main screen.

Benefits of UPI ID in Google Pay

• Privacy
  You don’t have to share your bank account number and IFSC code with others.
• Convenience
  Easy to remember and share.
• Uniformity
  The same UPI ID can be used across different UPI-enabled apps.

UPI ID in Paytm

Paytm, one of India’s most popular digital wallet and UPI payment platforms, enables its users to create and use a UPI ID number for streamlined and safe transactions.

In Paytm, the UPI ID usually follows this format: username@paytm. For instance, if your username or associated mobile number is “john123”, your UPI ID might look something like john123@paytm.

How to Create UPI ID in Paytm

1. Install and Open the Paytm App

If you haven’t already, download the Paytm app from the Google Play Store or the Apple App Store. Once installed, open the application.

2. Register or Login

If you’re new to Paytm, register with your mobile number. If you already have an account, simply log in using your credentials.

3. Access the UPI Section

On the home screen of the Paytm app, you’ll find the ‘UPI’ option, often depicted with the symbol ‘₹’. Tap on it.

4. Link Your Bank Account

• For UPI transactions, it’s necessary to link your bank account with the Paytm app.
• Upon clicking the UPI option, the app will prompt you to link your bank account. It will use your registered mobile number to find bank accounts linked with that number.
• Select the bank account you wish to link. The app will then send an SMS from your mobile number to verify and fetch the bank details. Ensure you have sufficient balance for this SMS charge.

5. Set UPI PIN

• If you’re setting up UPI for the first time, you’ll need to create a UPI PIN. This PIN is crucial for authorizing UPI transactions.
• Follow the on-screen instructions to set this PIN. If you’ve used UPI on other apps and have a UPI PIN, you can use the same PIN here.

6. Create UPI ID

• After successfully linking your bank account, you will be prompted to establish a Unified Payments Interface (UPI) ID, which will serve as your distinctive identification for UPI transactions.
• By default, Paytm has the capability to propose a UPI ID that is derived from the user’s name or phone number. This UPI ID often follows the format of ‘name@paytm’ or ‘number@paytm’.
• In the event that an individual desires to modify their UPI ID, it is typically feasible to avail oneself of an option to alter or personalize it. It is imperative to ensure that the UPI ID selected is both distinctive and not currently in use.

7. Confirmation

• After setting your desired UPI ID and linking your bank account, you’re all set to make and receive payments using UPI on Paytm.

Remember:

Always ensure your UPI PIN remains confidential. It’s used to authenticate transactions, and sharing it can compromise the security of your bank account.

Benefits of UPI ID in Paytm

• Security
  Instead of sharing your bank account number and IFSC code for transactions, you can simply provide your UPI ID, which conceals your bank details.
• Simplicity
  It offers a user-friendly approach to transactions. Sending or receiving money becomes as simple as sharing an email ID.
• Quick Transfers
  UPI-based transactions are real-time and usually faster than traditional bank transfers.

UPI ID in PhonePe

UPI (Unified Payments Interface) ID, also known as a Virtual Payment Address (VPA), acts as a unique identifier representing your bank account for UPI transactions. PhonePe, a prominent digital payments platform in India, allows users to create and use a UPI ID to facilitate effortless and secure transactions. In PhonePe, the UPI ID typically adheres to the format: username@ybl. For instance, if you’ve chosen “alex123” as your unique name, your UPI ID would be alex123@ybl.

How to Create UPI ID in PhonePe

1. Install and Open the PhonePe App

If you haven’t already, download the PhonePe app from the Google Play Store or the Apple App Store. After installing, open the application.

2. Register or Login

If you’re new to PhonePe, sign up using your mobile number. This number should be the same one registered with your bank. If you’re an existing user, simply log in.

3. Navigate to the UPI Section

On the home screen, tap on the ‘My Money’ option.

4. Link Your Bank Account

• Inside the ‘My Money’ section, select ‘Bank Accounts’ and then choose ‘Add New Bank Account’.
• PhonePe will automatically detect banks associated with your mobile number. Select your bank from the list.
• Once you select the bank, the app will fetch your account details and link it.

5. Set UPI PIN

• If you are new to UPI, you must create a UPI PIN, which is required for authenticating transactions. The application will lead you through the procedure.
• If you have an existing UPI PIN (from another app), you may reuse it. However, there is an option to alter it if you so choose.

6. Generate UPI ID

• Once your bank account is linked, PhonePe will automatically generate a default UPI ID for you, typically in the format mobilenumber@ybl.
• If you wish to customize this UPI ID, navigate to the profile section on the top left corner of the main screen. Tap on the ‘UPI ID’ section, and you’ll find an option to create a new UPI ID or modify the existing one.
• Make sure the new UPI ID is unique. If it’s already taken, you’ll need to try a different combination.

7. Confirmation

• With your UPI ID now set up, you can use it for making payments, receiving money, or for any UPI-based transactions on PhonePe.

Safety Tip:

Keep your UPI PIN confidential. It’s a sensitive piece of information, and sharing it can jeopardize the security of your bank account.

Benefits of UPI ID in PhonePe

• Security
  With your UPI ID, there’s no need to share your actual bank account number and IFSC code for transactions. Instead, your UPI ID provides an additional layer of privacy.
• Convenience
  Transactions become as straightforward as sharing an email ID. Whether you’re sending or receiving money, using your UPI ID ensures a hassle-free process.
• Speed
  UPI-based transactions on PhonePe are instantaneous, often faster than traditional bank transfers.

UPI ID through *99#

*99# is a USSD (Unstructured Supplementary Service Data) based mobile banking service. It allows users to access financial services by dialing the *99# code from their mobile phone. The best part? You don’t need a smartphone or internet connection.

How to Create UPI ID through *99#

1. Ensure Mobile Number Registration

Make sure the mobile number you are using is registered with your bank. This is crucial for the authentication process.

2. Dial *99#

From your mobile phone’s dialer, key in the USSD code *99# and then press the call button. 

3. Welcome Screen 

You will be greeted with a welcome screen that will show several banking service options.

4. Choose UPI Services 

From the menu, select the option for UPI services. This might be directly labeled as “UPI” or “Unified Payments Interface”. The exact wording or option number might vary depending on the service provider.

5. Navigate to ‘My Profile’

Once in the UPI section, you should find an option labeled ‘My Profile’ or something similar. Select this option.

6. Set or Modify UPI ID

Under ‘My Profile’, there will be options to set or modify your UPI ID (often known as a Virtual Payment Address or VPA). This ID will usually be in the format of `mobilenumber@bankshortcode` or any other format depending on your bank.

7. Follow On-Screen Instructions

You’ll be guided through a series of prompts. Follow these carefully. You might be asked to set a UPI ID of your choice, or the system might suggest one based on your registered mobile number.

8. Set a UPI PIN (if required)

If you haven’t set up a UPI PIN previously, you’ll be prompted to do so. This PIN is essential for authenticating your transactions. If you already have a UPI PIN from another platform, you can use the same one here.

9. Confirmation

Once the process is complete, you should receive a confirmation message on your screen, indicating that your UPI ID has been successfully created.

10. Exit

You can now exit the service by following the on-screen prompts.

Note:

While the *99# service is designed to be straightforward, the exact sequence of options or their labeling might vary slightly based on the bank or service provider. It’s always a good idea to be patient and navigate the options carefully.

Benefits of Using 99#

• Universal Accessibility
  Since it doesn’t require internet connectivity, it’s available to a larger user base, including those in remote areas.
• Safety
  Transactions are authenticated using a UPI PIN, ensuring they are secure.
• Versatility
  Users can access a variety of banking services beyond just UPI.

UPI vs. Other Payment Gateways

UPI, being an India-specific payment solution, offers a unique proposition of instant bank-to-bank transfers with a focus on mobile transactions. In contrast, other international payment gateways like PayPal, Stripe, and Square have their own sets of advantages tailored to their primary user bases and markets. Choosing the right platform depends on one’s specific needs, operational regions, and business model.

Common UPI ID Issues and Solutions

UPI (Unified Payments Interface) has revolutionized digital payments in India, offering a quick, real-time payment system. However, like any other system, users sometimes encounter issues. Below are some common problems faced by UPI users and their potential solutions:

1. Transaction Failed, but Money Deducted

Solution: Wait for a while, as sometimes the transaction may be delayed. If the money isn’t credited back within a day, contact your bank’s customer support. They will guide you through the process of raising a complaint.

2. Incorrect UPI PIN

Solution: If you’ve forgotten your UPI PIN or entered it incorrectly multiple times, you may be temporarily blocked. Wait for a few hours and try again. If you’ve genuinely forgotten your PIN, use the ‘Reset UPI PIN’ option in your UPI-enabled app.

3. UPI ID Not Recognized

Solution: Ensure you’ve entered the correct UPI ID. Remember, UPI IDs are case-sensitive. If the issue persists, check if you’ve activated UPI services for your account.

4. Unable to Set UPI PIN

Solution: Make sure you’re entering the correct debit card details. If the issue persists, it might be a temporary server issue. Wait for a while and try again later.

5. Server Issues Leading to Transaction Failures

Solution: This might be due to high traffic or some technical glitch at the bank’s end. Wait and attempt the transaction after some time.

6. Receiving Unwanted Payment Requests

Solution: Never approve unknown payment requests. Report such requests to your bank. Use the in-app option to block unknown users sending such requests.

7. Incorrect Amount Transferred

Solution: Double-check the amount before finalizing any transaction. If you’ve transferred an incorrect amount, the only solution is to request the receiver to return the extra amount.

8. Beneficiary Bank Not Registered

Solution: The receiver’s bank might not be registered with UPI. Ask the beneficiary to check with their bank or use an alternative payment method.

9. Transaction Pending Status

Solution: Sometimes, due to server or connectivity issues, transactions may be stuck in a ‘pending’ status. Wait for some time; it may either complete or fail. If the status doesn’t change, contact your bank.

10. Mobile Number Linking Issues

Solution: Ensure your mobile number is correctly linked with your bank. If not, you need to update it at your bank. Also, ensure you’re using the same SIM card (mobile number) in your primary slot if you’re using a dual-SIM phone.

UPI ID vs. VPA: What’s the Difference?

Terminology

While the terms are used interchangeably, some platforms or users might prefer one over the other. VPA emphasizes the “virtual” nature of the address, while UPI ID underlines its association with the Unified Payments Interface.

Usage Context

In some situations, “VPA” may be used to emphasize the unique address for transactions within a particular app or platform, whereas “UPI ID” may be used more generally. However, they refer to the same entity in practice.

Conclusion

The Unified Payments Interface (UPI) has revolutionized digital transactions, offering a swift, real-time payment system. The concept of a UPI ID or VPA simplifies transactions, eliminating the complexities of traditional bank details. Creating and changing your UPI ID across various platforms like Google Pay, Paytm, or PhonePe is a straightforward process designed for user convenience. As with any digital tool, occasional challenges might arise, but solutions are often just a few taps away. Embracing the UPI system and understanding its intricacies, like the UPI ID, ensures a seamless, secure, and efficient financial experience in today’s digital age.

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