How to use Virtual Payment Address for financial transactions
Posted by: Girija Gadre on Jan 02, 2017, 04.51 PM IST
Transacting using VPA A virtual payment address (VPA) is an identifier that can be uniquely mapped to an individual account. Unified Payment Interface (UPI) services offer customers the option to create any number of VPAs for making and receiving payments. UPI enables all bank account holders to instantaneously transfer funds across different banks using mobile phones. The service is available 24X7 and is expected to make e-commerce transactions easier, and facilitate micropayments and person-to-person payments.
Create a VPA Download the UPI mobile application and create a VPA of your choice. The VPA will act as your financial address. There is no need to remember beneficiary account number, IFSC codes or net banking ID and password for making transactions through UPI.
Link bank accounts Once the user has created a VPA, he can link his bank account to this VPA by generating and using an MPIN for this account. It is possible to link more than one account to a VPA.
Transferring money After the VPA has been linked with a bank account, payment can be made using the ‘Pay with VPA’ option. To pay any person using the VPA, enter the beneficiary’s VPA, amount and remarks and then authorise the transaction to start the fund transfer.
Receiving money You can also receive money from a third party using VPA. You have to enter the details of the transaction such as the VPA of the person you would like to collect from, amount and remarks and submit the transaction to initiate collect payment. The third party will have to authenticate the transaction for it to be executed.
Tracking transaction status As soon as a transaction is carried out using VPA, it is important to check its status under the transaction history.
Points to note 1. You only need the VPA of the beneficiary or the remitter and not any other bank or IFSC details to initiate a transaction.
2. Currently, the per-transaction cap is Rs.1 lakh and this may change from time to time and is subject to UPI guidelines.
3. Currently, there are no charges for transactions done through UPI.