August 13, 2022
New Delhi
What Is?

What is UPI and UPI PIN? How to Setup UPI Pin?

UPI was introduced in India in 2016. According to official data, Bharat Money-Unified Payments Interface (BHIM-UPI) has emerged as the payment method of choice for citizens and has achieved a record 452.75 crore digital payment transactions worth Rs. 8.27 lakh crore till February 28, 2022.

What is UPI?

UPI is a fast real-time payment system that allows you to transfer money from one bank account to another by entering mobile number or QR code or bank account. UPI works as an alternative payment method to IMPS/NEFT. You need to create UPI ID and UPI PIN to transfer money securely through UPI. The UPI ID acts as a virtual payment address for users and is created while setting up a UPI account. On the other hand, UPI PIN is a password that has to be set by the user to authorize transactions with a particular bank account.

Let us know what is UPI PIN and how to set it.

What is UPI PIN?

UPI PIN which stands for Unified Payments Interface Personal Identification Number is a 4 or 6 digit number that is set by the users themselves at the time of UPI registration in the UPI system or later. Since the UPI PIN allows user-to-user authentication, it should not be shared with anyone to avoid the possibility of fraud.

What is the Importance of a UPI PIN?

UPI PIN is a password that must be provided by the user to authenticate the transaction. Know here why UPI transaction is important-

  • The UPI PIN is unique for each bank account and is set by the account holder. Therefore it can only be used by the account holder, thus ensuring security
  • Users have the option to choose their unique UPI PIN, making it easy to remember

How to setup UPI?

To use UPI as a payment method, one must register for the service with a bank. This can be done through mobile/net banking of your particular bank. After that, the following steps should be followed to create a UPI PIN:

Step 1: Go to your favorite UPI app- BHIM, Google Pay etc.

Step 2: Search ‘Bank Account’ section of the app. This section displays all bank accounts associated with this application

Step 3: Select the bank account for which you want to set UPI PIN. If you have never set UPI PIN in bank account you will see ‘SET’ option

Step 4: Enter the ‘Last 6 Digits’ and ‘Expiry Date’ of your Debit/ATM card

Step 5: Now, you will receive an OTP from your bank on the registered mobile number. On the next screen, enter the OTP and UPI pin you want to set up the account with and click ‘Submit’.

How to Send Money using UPI PIN?

Follow the given instructions to send money using UPI PIN in UPI app-

1.Sign in to the UPI app linked to your bank account
2.Click on ‘Send Money’ option
3.Enter the UPI ID of the beneficiary or scan the QR code, if it is a merchant payment
4.Enter the amount you want to send
5.Click on Confirm, enter UPI PIN on the next screen and submit to complete the transaction

Benefits of Using UPI 

  • It is a real-time payment system that allows the user to transfer money quickly in real-time without any delay or disruption.
  • Funds can be transferred quickly on a 24*7 basis. It does away with traditional methods of fund transfer and waits for any kind of verification (eg, NEFT) before funds transfer takes place.
  • Transactions can only be completed using a virtual payment address and the need to provide another bank account is excluded
  • It is one of the most effective ways of promoting cashless transactions. UPI Apps can be download and used easily on smartphones
  • Reduces the chances of losing a bank card or stealing of your crucial banking information
  • UPI Pin is unique to every bank account, ensuring that it can be used only by the intended person
  • Funds can be transferred to any payee at any time. There is no need to add the receiving party to the specific payee list before they receive money from you

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