What is a UPI ID? How to Create UPI ID?

Posted on Wednesday, January 29th, 2025 | By IndusInd Bank

In a fast-paced world, transferring money also needs to be quick and easy. With the Unified Payments Interface (UPI) system and a UPI ID, making digital payments is easy, instant, and secure.

But what is a UPI ID? It is a unique virtual address that acts as your financial identity for UPI payments. You can use the UPI ID to send and receive money instantly instead of sharing sensitive bank account details. 

Let’s learn about what a UPI ID is in detail, its significance, how to create one, and more. 

What is a UPI ID?

• UPI ID is a unique identifier assigned to each user on the UPI platform. 

• It is similar to an email address but is used for financial transactions. A UPI ID will usually look like ‘yourname@bankname’ or ‘yournumber@bankname’. 

• This ID links your bank account to the UPI system, which allows you to transact without sharing your bank account details. 

• The UPI ID acts as a virtual payment address (VPA). Understanding what a UPI ID is and how to use it wisely is important to make the most of the benefits of digital payments.

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Also Read: Digital Account Opening- Embracing the Future of Banking

How to Create a UPI ID?

Here are the steps to create a new UPI ID and start enjoying fast, digital payments:

1. Download a UPI-Enabled App

Install a UPI-enabled banking app such as the IndusInd Bank app from your smartphone’s app store.

2. Register Your Mobile Number

Open the app and register with the mobile number linked to your bank account. You will receive an OTP (One-Time Password) on this number for verification.

3. Link Your Bank Account

Select your bank from the list provided in the app. The app will automatically fetch your Savings Account details linked to the registered mobile number.

4. Create Your UPI ID

The app will prompt you to create a unique UPI ID once your bank account is linked.

5. Set UPI PIN

You need to set a UPI PIN to complete the process. This PIN will be used to authorise all transactions.

How to Set UPI PIN?

Here’s how to set a UPI PIN to ensure secure transactions:

1. Launch the UPI-enabled app where your UPI ID is registered.

2. Go to the ‘Bank Accounts’ section and select the account linked to your UPI ID.

3. Choose authentication method. You can either authenticate via Debit Card or Aadhar number. For debit card authentication, you will need to input your debit card’s last six digits and its expiry date. For authentication via Aadhar, you will have to verify using your Aadhar-linked mobile number.

4. You will receive an OTP on your registered phone number. Enter this OTP to proceed.

5. Enter a four- or six-digit UPI PIN of your choice and confirm it. This PIN will be used to authorise all UPI transactions made from that bank account.

If you are wondering how to change your UPI PIN later, follow the same steps. However, select the option to change or reset your UPI PIN.

How to Send Money Using UPI ID?

Now that you know how to set and reset your UPI PIN, you can use the UPI ID to send money to friends, family, and merchants. Follow the below steps:

1. Open the UPI app and log in.

2. Choose the ‘Send Money’ option from the home screen or the main menu.

3. Enter the recipient’s UPI ID. Ensure the UPI ID is correct to avoid transaction errors.

4. Input the amount you must send.

5.  Review the transaction details and confirm. You may add a note or description for the transaction.

6. Enter your UPI PIN to authorise the payment. The money will be transferred instantly.

How to Receive Money Using UPI ID?

Here’s how you can receive money on your UPI ID:

1. Provide your UPI ID to the person who will be sending you money.

2. You can also use the ‘Request Money’ feature in your UPI app:

     – Open the UPI app and go to the ‘Request Money’ section.

     – Enter the sender’s UPI ID.

     – Specify the amount and add a note if necessary.

     – Send the request.

3. The sender can accept or decline your request. The money is transferred to your account instantly upon acceptance. 

For every transaction you make with a UPI ID, you generate a UPI reference number. 

What is the UPI Reference Number?

The UPI reference number is a unique transaction ID generated for each UPI transaction. This number helps in tracking and verifying transactions. You can find the UPI reference number in the transaction details section of your UPI app. Tracking the UPI reference number and referring it can help resolve disputes or transaction issues. 

UPI ID FAQs

1. How many UPI IDs can I have?

You can have multiple UPI IDs linked to the same bank account or different accounts. This depends on the bank and UPI app you use. Some UPI-enabled apps or banks may have a limit on the number of IDs you can link to one account.

It is advisable to confirm such details before proceeding with creating another UPI ID. 

2. How does an additional UPI ID work?

An additional UPI ID works just like your primary UPI ID. You can create multiple UPI IDs for the same bank account to manage different types of transactions and to separate personal and professional finances.

In addition, UPI payments may sometimes be delayed or fail due to server issues. Adding a second UPI ID increases your chance of success by allowing your transaction to be routed through the most reliable server.

3. How do I create a second UPI ID?

To create a second UPI ID, follow these steps:

1. Open your UPI app and navigate to the ‘Profile’ or ‘Manage UPI’ section.

2. Navigate to the ‘UPI Settings’ section.

3. Select the option to create a new UPI ID.

4. Follow the prompts to set up and link this new ID to your existing bank account.

4. Where can I see my UPI ID?

You can view your UPI ID within the UPI app that you are using. Navigate to the ‘Profile’ or ‘Manage UPI section to see all UPI IDs linked to your bank accounts.

5. What is VPA? Is it the same as UPI?

A Virtual Payment Address (VPA) is the same as a UPI ID. It acts as an alternative for your bank account details. It makes transactions simpler by removing the need for sharing bank account numbers and IFSC codes.

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.