What is VPA in UPI- How to Create, Benefits & Uses

What is VPA in UPI- How to Create, Benefits & Uses

If you have read about UPI payments, you probably have encountered terminologies like VPA or UPI ID. 

These two words may appear to be confusing at times. But in this blog, we'll explain their meanings and how they contrast with one another. To learn more, keep reading!

What Is UPI Money Transfer?

The most recent technology used to aid in making money transfers quicker, easier, and more accessible is called UPI, or Unified Payment Interface. 

The system helps with money transfers between accounts and services, bill payments, personal money transfers, and online shopping. 

The system simply needs an app to be downloaded and installed, making it easy to operate. 

Your bank account must be linked to the UPI app during a single registration process. 

After doing this, making online money transfers no longer requires logging into the bank portal. 

The application's additional features, such as the ability to link several bank accounts to a single ID and the lack of a waiting period before adding a payee, increase its usability and accessibility. 

UPI money transfers provide a more elegant and cost-effective option since they all do away with the need to pay additional transaction fees.

All you need to do to complete a UPI transaction is input the recipient's cellphone number in your app and the amount to be sent. 

The recipient immediately receives the money when you authorise the transaction with a single six-digit PIN. What function does the Verified Payment Address serve in this system, then?

What is VPA in UPI Payment?

A valid ID sometimes called a VPA, is required to use UPI. Virtual Payment Address, or VPA, is essentially the payment address where consumers may send money using UPI.

The fact that the money is sent from one VPA to another makes it feasible to execute online bank-to-bank transfers via UPI. 

Unified Payments Interface, or UPI for short, has simplified online banking and money transactions more than ever. 

Users may now use UPI as a payment method to send or receive money straight from or to a bank account. A UPI ID is all that is required to complete the transaction.

Users don't need to add beneficiaries or wait up to 24 hours for the bank to approve, as is the case with more conventional money transfer methods. 

It might take time to add account numbers, IFSC codes, and other information when a need is urgent. 

Reusing might also cause one to stumble. UPI, on the other hand, has developed into a simple method of payment that enables money transfers using a mobile number connected to the recipient's bank account.

What Makes the VPA in UPI Special?

In most circumstances, the VPA in UPI is often your phone number and bank name. 

It may occasionally also be a combination of names or dates of birth, but regardless of its structure, a VPA/UPI ID is specific to each user. 

Most UPI payment applications collaborate with banks to offer customers UPI services, and they both act as Payment Service Providers (PSPs).

Your phone number serves as both your identity in VPA and a unique identifier on the Paytm app. 

Because it is your virtual address for making or receiving payments, it is termed a virtual payment address. Because it is your specific ID for UPI payments, it is also known as your UPI ID.

There won't be any mistakes or improper money transfers since your VPA or UPI ID is unique. 

To prevent duplicate virtual payment addresses amongst users, your VPA contains at least one of your details.

Transferring Funds Using a Virtual Payment Address

  • Use your PIN to log into your UPI App.
  • Go to the Fund Transfer option and choose the Payment Using UPI option from the menu.
  • Click on Verify after entering the sender's VPA address.
  • Enter the amount you wish to send after verification and click Next.
  • To complete the transfer and transmit the money, enter your UPI Pin.
  • Log into your UPI App using your PIN to receive money.
  • Select the Collect Via UPI option after selecting the UPI option.
  • Click on Verify after entering the recipient's VPA address to make a money request.
  • Enter the amount of money you need next, then include any necessary comments.
  • Choose the VPA to which you wish to send the funds.
  • Send the request, then watch for the recipient to finish the fund transfer.

UPI Transaction Limit in General

The National Payment Corporation of India (NPCI) has set the daily limit for UPI transactions at Rs 1 lakh. 

There can be a limit of 20 UPI transactions per day. The maximum varies from bank to bank, though. 

As a result, the highest limit might range from Rs. 10,000 to Rs. It is significant to remember that the transaction cap may occasionally vary.

The Benefits of Using VPA

VPA offers several benefits since it has made bank account transactions easier. Here is a handful of them:

  • Make payments with your mobile number from any account. There should be enough money in the account.
  • Transactions via several bank accounts can be completed using a single virtual payment address.
  • The recipient's virtual payment address and the payment amount must be supplied to make payments.
  • You can also accept the money by providing a request with the recipient's information, the requested sum, and any further comments. The money is directly deposited to the recipient's account if the other party agrees to the request.
  • Using a virtual payment address, the transaction may be readily monitored.
  • Anytime, day or night, you can send money.
  • Money can be received and transferred on weekends and on bank holidays.
  • Beneficiaries or payees are often required for online banking apps on the website or bank application. This tiresome procedure may be avoided by using a virtual payment address.
  • Funds are not sent to any e-wallet or other middleman via the unified payment interface. It keeps the money in your bank account while accruing interest.
  • All of your accounts may be added to the UPI's unified interface in a single application.
  • You can always make changes to your VPA because it is changeable. No two VPAs are the same, and yours is special.
  • The feature, as mentioned above, increases the transaction's security.
  • If we focus on the financial aspect, NEFT or RTGS transactions in banks incur fees, but nearly no fees at all are assessed for UPI transactions.

How to Create a VPA?

Creating a Virtual Payment Address (VPA) is simple with any UPI application. To begin, take the following steps:

  • Launch the UPI app on your smartphone or desktop computer.
  • Select "Profile" from your home screen.
  • It will be shown on the screen if you've selected a VPA. If not, click the "add" button to make one.
  • Enter your chosen VPA, making it memorable and distinctive. Anything from your name to your phone number can be used.
  • Select the bank account to which you wish to attach your VPA and provide the essential information.
  • When you link your VPA to your bank account, you'll be asked to generate a UPI PIN, which is a 6-digit security code used to confirm transactions.
  • Your VPA will be generated and available when creating your UPI PIN. Simply enter your VPA and UPI PIN when requested to complete a transaction.
  • Keep your VPA and UPI PIN safe to protect the security of your transactions. You may reset your UPI PIN using the UPI app if you lose it.

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Conclusion on What is VPA in UPI

In conclusion, a Virtual Payment Address (VPA) is a unique identifier used in India's Unified Payment Interface (UPI) system. 

It allows individuals to send and receive money from a single virtual address rather than having to remember multiple bank account numbers and IFSC codes. 

To create a VPA, one needs to download a UPI-enabled app and choose a unique identifier, link it to a bank account, and create a UPI PIN for security. 

When prompted, transactions can be carried out easily by entering the VPA and UPI PIN. VPAs provide a convenient and secure way to make digital transactions in India.

FAQs related to What is VPA in UPI

1. What exactly is a Virtual Payment Address?

A VPA, or Virtual Payment Address, is a one-of-a-kind identity allocated to you in India's Unified Payment Interface (UPI) system. You may use a VPA to send and receive money using a single virtual address rather than several bank account numbers and IFSC codes.

2. How can I create a VPA in UPI?

It is simple to set up a VPA! Simply download a UPI-enabled app, select a unique identifier as your virtual address, link it to your bank account, and generate a secure UPI PIN.

3. Do I need a separate VPA for each of my bank accounts?

No, you do not need to form a separate VPA for each of your bank accounts. You may link numerous bank accounts to a single VPA, allowing you to transact from any of your linked accounts using the same virtual address.

4. Is it necessary to attach my phone number to my VPA?

Yes, your cellphone number to your VPA is required for authentication. Check that the number you registered with your bank and the one you supply in the UPI app match.

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