What is UPI ID: How to Create & Find your UPI ID?

The development of technology has been popular in every sphere, including finance. Technology in finance has made it more convenient for global citizens to send and receive money. Unified Payment Interface or UPI is one of the most convenient and safe modes of initiation digital payment.

Are you curious to know what UPI ID is? Stick to the end of this article to get a comprehensive guide on its features and benefits.

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What Is UPI ID?

UPI is a great replacement for the traditional ways of money transfer. UPI was launched in 2016 to streamline payment transactions. Following the pandemic, Indian citizens prefer to use UPI IDs for payment over the traditional methods. If you wonder what UPI ID means, it is a unique identifier which helps to track an individual’s account for fund transfer.

Your respective bank or wallet app will be responsible for creating it. The format is usually like “mmyy@ybl". Here, mmyy can be your name, part of your email or contact number. On the other hand, @ybl is the initials of your bank. It does not include any details of your bank account or other personal data.

How Is UPI ID Used?

Using UPI ID is simple and super convenient. While transferring money, the payer has to enter the payee's UPI ID. This ID will help you send and receive payments through your UPI portal without requiring a bank account number, IFSC, and other details. This helps you avoid the long process of sharing bank details and undertake a safer transfer mode.

Before sending, you can download any UPI app and simply enter the beneficiary's UPI ID and the amount. You might have to add the security PIN here. On the other hand, if you are expecting payment, you can simply share your UPI ID with the beneficiary.

What Are the Features of UPI ID?

Now that you know what UPI PIN means, the following features will help you generate some more information regarding UPI.

Simple and Convenient: UPI is one of the simplest modes of payment. It provides complete convenience to the users, who can use it for transactions from anywhere. You can create and change your UPI ID anytime and anywhere. There is no need to undergo the cumbersome banking process for transferring money.
Reliability: It is one of the most reliable online payment methods. Every virtual UPI ID is unique, which destroys the chances of overlapping or incorrect transactions. Most third-party payment apps often cause trouble in transactions even at the slightest fluctuation in the internet. However, there are no such issues with the UPI, and you can get a quick refund even if such a problem might occur.
Real-time transfer: UPI is capable of transferring our money in real-time. In most cases, money is transferred when you select the "Send" option on your UPI app. This makes it easier for users to complete daily tasks like paying for cabs, groceries, or friends without asking for a long time of money transfer.
Inclusivity: UPI does not always require the internet. It can also function on the payment app. It, therefore, has the option of completing financial transactions without a smartphone or working internet. You need to send specific text messages to initiate the transactions. This makes it highly convenient to enter digital transactions.
Linking Multiple Accounts: One of the best features of UPI is that you can link more than one bank account with it. Naturally, you can initiate multiple transactions through your UPI app. It makes the process much faster. You can also handle the issue of maximum transaction limit by using two or more bank accounts.
No Limit on the Minimum Transaction: UPI does not have a minimum transaction limit. You can send even ₹ 1 through UPI. NEFT and RTGS, on the other hand, do not allow you to transfer such small amounts. This makes UPI different and more convenient for many reasons.

How to Create a UPI ID?

Now that you know the meaning of UPI ID, you must wonder how to create one for yourself. The following steps will help you to get a UPI ID from UPI apps.

Step 1: Download and install any UPI application, such as Google Pay, Paytm, BHIM App, Amazon Pay, PhonePe, etc. Open it and register.

Step 2: Go to the main menu. Select “Create UPI ID”.

Step 3: It will lead you to create your UPI ID. Enter the preferred prefix using either your name or contact number.

Step 4: Sleet the “Continue” option. Next, link this payment address to your bank account.

How to Find a UPI ID?

If you already have a UPI ID and need to share it with others, you can find it on your UPI app through the following steps.

Step 1: Open a UPI app. Log in with your credentials or enter the security PIN.

Step 2: Tap on your photo in the top right corner. Next, tap on “Bank Account”.

Step 3: It will open your bank accounts associated with the UPI. Click on the account for transactions.

Step 4: You will find the UPI ID for the concerned bank account under the "Manager UPI IDs" section. You can copy it from here.

What Are the Advantages of UPI ID?

Here are some advantages of using UPI, which makes it one of the most popular transaction modes.

You can make the most secure and convenient payments using the UPI ID.
It is safe and reliable, and you do not need to enter our bank’s account number, ATM number, IFSC code, etc.
It helps you avoid additional fund transfer charges, as the Indian Government makes it free.
UPI offers access to all your bank accounts through a single application. You can maintain all the transactions easily.
You can use UPI to send payments to any unified payments interface support bank without paying additional charges.
UPI is also easy to access; you can use it all day from anywhere.
You might receive cashback and other benefits from using UPI ID for financial transactions.

What Are the Disadvantages of UPI ID?

Now that you know what UPI ID means and the advantages of using the same, it is essential to know its limitations and drawbacks. The following list outlines the same.

UPI is preferable for transferring smaller amounts. It has limitations on maximum fund transfer, which can be an issue.
It might be troublesome for certain users to download and use a UPI application if they are not accustomed to smartphones and the internet.
There is a common misconception about online fraud, which restricts people from using UPI.
The UPI PIN is usually a small 4-digit number. This is not safe, as hackers and scammers might be able to guess it.
If the bank server is down, UPI might take a long time in fund transfer.
Your fund transfer might be delayed if your smartphone is not working effectively and hanging.

Hopefully, now you know what UPI ID is. It is one of the digital platform's simplest and most popular methods of financial transactions. Following the COVID-19 pandemic, people have relied on this method in most cases over the traditional. However, this method can have some drawbacks, as pointed out in this article.

What Benefits can be Drawn with UPI Application?

Here are the benefits you can get from the UPI application.

A single UPI application can be used for financial transactions across multiple platforms.
It is also beneficial for accessing multiple bank accounts.
Such applications are usually more user-friendly and convenient than physical transactions.
It offers faster transfers without consuming much time, as banks often do.
The financial transactions are free of cost through the UPI applications.
You do not need to add the money in a wallet while using these applications. They stay safe in your bank account.

FAQs About UPI ID

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Is it safe to share my UPI ID?

Yes, sharing your UPI ID with your beneficiaries is completely safe. However, if you receive messages or calls from unknown sources asking for your UPI ID, avoid sharing these before knowing the caller's identity.

Can someone hack into my UPI ID?

There have been cases of hacked UPI accounts. Scammers might try to steal your data through phishing and remote screen monitoring. Therefore, keeping your device safe and avoiding clicking on suspicious links is essential.

Is UPI transaction tax free?

No, UPI transactions are not completely tax free. Following Section 56(2)(X) of the Income Tax Act of 1961, transactions over ₹ 50,000 in a fiscal year can be taxable.