What is UPI? How is it used?


UPI stands for Unified Payments Interface, the latest means of making internet-based payment payments.

To use UPI, you need a bank account, its associated mobile number and a mobile app. If your smartphone has a UPI app then you can easily transfer money.

Various modes of payment prevalent before UPI

Since ancient times, the currency has been transacted for trade exchange. Over time, there has been a change in the form of currency. Precious metal coins like cowries, leather coins, gold and silver, paper notes, etc., have been used at different times.

As technology evolved, so did the methods of payment. The time of cheques, demand drafts, pay orders, money orders, etc., also came and went. In today’s time, the emergence of the internet has provided new dimensions like ATM, NEFT, RTGS, SWIFT, IMPS, BHIM and UPI for payment.

All these mediums have reduced cashless transactions significantly, and by tapping a few clicks and mobile screens, we can transfer or receive money in a pinch.

Ever since the use of UPI has increased, some new types of frauds have also started happening, we will also read how can you keep yourself safe from online frauds?

What is UPI?

In 2008, the Reserve Bank of India and other large banks formed an institution called the National Payments Corporation of India (NPCI). The main objective of this non-profit organization is to facilitate the transaction of money in the economy of the country. In this episode, NPCI launched UPI in 2016.

Your bank’s UPI app allows you to register a virtual payment address (VPA). Using this you can provide an ad-hoc payment.

The format of the VPA is similar to that of an email address, for example, something like this:

VPA Example: username@bankid

You can make the payment immediately by entering the VAPA ID of any beneficiary on your UPI app. The facility works 24 hours a day and seven days. You can make money transactions with it on Sundays and other holidays.


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Shivanga Kumar Gogoi
Shivanga Kumar Gogoi
I am Shivanga Kumar Gogoi, owner of the Multigyan.com website. I am a B.Tech degree holder and 21yrs old young entrepreneur from the City of Jorhat, Asam. By profession, I'm an instrumentation engineer, web designer, google webmaster and SEO optimizer. I have deep knowledge of Google AdSense and I am interested in Blogging.

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