Unified Payment Interface – What are the features of UPI

(Last Updated On: October 2, 2017)

What is Unified Payment Interface (UPI) ??

Unified Payment Interface or UPI is a payment system launched by NPCI ( or National Payments Corporation of India regulated by the Reserve Bank of India, enables the banks to launch apps (which can be downloaded and installed by the user) for online transactions through smart phones.

unified payment interface

What are the features of UPI ??

  • One can transfer funds from one customer account (bank account) to another by using the bank’s UPI app in the smartphone
  • It’s an advanced version of IMPS (Immediate Payment Service) where the transfer of payment takes place through unique payment id.
    MPIN (Mobile Banking Personal Identification Number) is used by the user to confirm payment
  • It allows a user to transfer fund both online and offline without typing the card number and other details every time
  • It is safer than other means of payment, since user share only the MPIN here and not the all card details while making a payment
  • There’s a limit of 1 lakh per transaction
  • You can make payment for movie tickets, for railway & air tickets, for shopping online and almost everywhere now.

BHIM and its Features

Government of India right after imposing de-monetization in the country, did one thing cool. That is introducing BHIM App for smart phones, which is based on UPI itself.

BHIM is like Paytm, run and managed completely by Government of India.
Having simplified options to pay
1). via smartphone, directly to a phone number (linked with a bank account),
2). or to an aadhaar number (that too linked with a bank account),
3). or simply to a bank account number.

It is the simplest way to switch to cashless mode. Though I am not a fan of PM Modi, still I appreciate his efforts towards bringing new technologies in the hands of a common man.

Moreover, I recently read in an article that in the next app update. BHIM is bringing in options to pay phone bills, water bills, electricity bills right through your BHIM app in your smartphone, just like Paytm.

How to use UPI while making online payment??

While shopping online, you will see an option on the payment page to choose the “method of payment”. And the page where VISA/Master Card, net banking options are visible you will also see an option “Make UPI payment”. Just choose this option and pay using your MPIN you created with your bank’s UPI app.

Note: You need to install and setup your account first with your bank’s UPI app. Which you can download and install from the Play Store in your android based smartphone.


For using either your Bank’s UPI app, or GOI’s BHIM app, you need to setup 4/6 digit m-pin to make payments through your debit card, linked with your savings account.

Aditya Singh
Folllow Me

Aditya Singh

Managing Partner at Aaditthya Websolutions LLP
Founder and Owner - Aaditthya Websolutions LLP.
Co-Founder and Owner - Mibrand Overseas LLP
Aditya Singh
Folllow Me