UPI payments have experienced unprecedented growth in recent years, surpassing 100 billion transactions in 2023 alone.

As digital payments become increasingly commonplace, the traditional reliance on cash has evolved dramatically. The ease of making real-time, seamless payments across India using just the recipient’s name, transaction amount, and UPI PIN has transformed the transaction landscape. A key driver of this shift has been the widespread adoption of Virtual Payment Addresses (VPAs), simplifying digital transactions like never before.

What is VPA?

Virtual Payment Address (VPA) is a unique UPI payment system identifier. UPI is a payment service that allows users to transfer money between different bank accounts in real-time. The VPA in UPI is a unique virtual identifier for a bank account that eliminates the need to share sensitive data during transactions, such as account numbers, IFSC codes, etc. With a VPA, senders and recipients can identify your account using just one unique identifier, streamlining the payment process. A VPA in UPI combines letters, numbers and special characters that uniquely identifies a given bank account. A typical VPA could be something like “yourname@bankname” or “yourphonenumber@bankname.

Is VPA the same as UPI ID?

Yes, VPA is the same as UPI ID. Both the terms are used interchangeably to refer to your unique ID required to make UPI payments. 

How to create a VPA?

Creating a VPA involves a few simple steps:

• Step 1: Download a UPI-enabled app from your bank or another authorised provider.
• Step 2: Verify the mobile number associated with your bank account.  
• Step 3: Choose your bank from the provided list. 
• Step 4: Create a UPI PIN if setting up your bank account for the first time.  
• Step 5: Choose a unique VPA, such as yourname@bankname.  
• Step 6: Link and set your bank account as the default for transactions using your VPA.  

Once linked, your VPA allows for easy and secure fund transfers without the need to remember or share complex bank details. You can start sharing your VPA to receive payments.

How do you send money using VPA?

To transfer money using a Virtual Payment Address via your UPI app, follow these straightforward steps:

• Step 1: Log in to your UPI-enabled app.  
• Step 2: Choose ‘Send Money via UPI’.  
• Step 3: Input the recipient’s VPA, the amount, and any remarks (optional).  
• Step 4: Select the VPA associated with the bank account you wish to use.  
• Step 5: Review and confirm the transaction details.  
• Step 6: Authenticate the transaction with your MPIN.

After completing the above steps, your UPI payments can be processed. The transaction status can be tracked within the UPI app.

How to receive money via VPA?

To receive money using a Virtual Payment Address (VPA) through a UPI-based mobile app, follow these steps:

• Step 1: Log into the app and navigate to the UPI section.  
• Step 2: Select the “Request Money via UPI” option.  
• Step 3: Enter the VPA of the person from whom you are requesting money.  
• Step 4: Enter the amount you wish to receive, and add any necessary remarks.  
• Step 5: Select the VPA linked to the bank account where you want to receive the funds.  
• Step 6: Review and submit the request for approval.  

Once you have completed the above steps, the sender will receive direct notifications on their UPI app, nudging them to complete the payment. 

How Do Transactions Happen Under VPA?

A transaction happens under VPA in UPI through several steps:

• Setting up your VPA: The first step is to set up your VPA using a UPI App to register your bank account on UPI.

• Bank Account Linking: The next step is to link your bank account to the UPI app. To do so, you must select your bank from a list of banks and enter your bank account and debit card details.

• Create your VPA: After linking your bank account, you will be prompted to create your VPA/ UPI ID. You can choose any username, but make sure to use a unique but simple username for this step.

• Verify your VPA: This step is crucial since you can start using your VPA only after verification. This usually includes an OTP verification on your bank account-linked mobile number.

• Initiate your first transaction: To initiate your first payment using your VPA, you can share your unique VPA with the recipient and receive money into your bank account directly. 

• Authorising transactions: If you receive a payment request on your UPI app, you must authorise the transaction by entering your UPI PIN, a secure 4-6 digit code you established during registration.

• Transaction Completion: Once the transaction is completed successfully, both parties receive a text message confirming the transaction’s success. 

Benefits and Uses of VPA

There are several benefits of using a Virtual Payment Address (VPA):

1. Privacy of Bank Details: A Virtual Payment Address enables individuals to secure their bank account numbers. By employing a VPA, one can obfuscate their actual bank account number while facilitating cashless payments and transfers via Unified Payments Interface (UPI) applications.

2. Ease of usage: A VPA is considerably easier to recall than lengthy and intricate bank account numbers. The simplicity and security associated with VPA numbers contribute to their ease of usage, making them a preferred choice over long bank account numbers.

3. Accessibility: VPAs are accessible around the clock, offering uninterrupted access to account details. This continuous availability facilitates immediate transactions 24×7, enhancing the speed at which payments are processed.

4. Enhanced Security: The Unified Payments Interface (UPI) offers a secure platform for conducting transactions anytime and anywhere. Transactions through VPAs are instantaneous and offer heightened security compared to other transaction methods, such as Real Time Gross Settlement (RTGS) or National Electronic Funds Transfer (NEFT).

5. Transaction Monitoring: Owning a VPA permits tracking all fund transfer activities through the UPI app. This functionality provides valuable insights such as the amount transferred, the time and date of the transaction, recipient information, and other pertinent details.

Does Virtual Payment Address expire when not in use?

Your UPI Virtual Payment Address (VPA) remains active indefinitely, regardless of usage frequency. However, reactivation may be necessary if it has been dormant for a prolonged period.

Can an existing VPA be changed?

No, it is not possible to change an existing VPA. You can customise your VPA based on availability but cannot modify it further once it is created. 

How can I find my VPA address?

You can log into your payment apps, such as Google Pay and PhonePe, and look up your VPA address under the settings. Additionally, you can log into your net banking portal or contact your bank for your bank account details.

UPI AutoPay

The National Payment Corporation of India (NPCI) launched UPI AutoPay on July 22, 2020, to facilitate seamless recurring transactions via the UPI platform. UPI AutoPay helps eliminate manual intervention while ensuring timely payments and improving consumer convenience regarding subscriptions.

With UPI AutoPay, users can automate transactions up to ₹15,000 for various needs. The RBI also increased the limits for UPI AutoPay to ₹1,00,000 for three categories: subscription to mutual funds, payment of insurance premiums, and credit card bill payments. Popular banks and UPI apps that support UPI Autopay include the State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, Paytm, PhonePe, Google Pay, and Amazon Pay. The complete list of banks and apps is live on AutoPay here.

If you’re a business planning to use UPI AutoPay to support your business use case, you can start using Decentro’s UPI Autopay stack. Decentro can help set up recurring E-Mandates enabled on your platform via UPI with a one-time notification and real-time updates. You can also set up:

• Custom UPI Handles for Payees
• Pre-Debit Notification
• Flexible debits with customisable time frames

Get Started Today

UPI Payment Vs Internet Banking

Unified Payment Interface (UPI) and Internet Banking are popular tools that simplify online banking operations. While both are instant payment systems, they differ in their transaction requirements: UPI requires only the payee’s Virtual Payment Address (VPA), whereas Internet Banking requires detailed beneficiary bank account details. Due to its accessibility and lower risk of transaction errors, UPI is increasingly preferred over Internet Banking. However, there are specific banking tasks that still necessitate the use of Internet Banking where UPI needs to catch up.

	UPI	Internet Banking
Ease of use	Easier to use with 6 customer touch inputs to complete a transaction	The average number of customer touch inputs to complete a transaction is 50
Pricing	Free to use as of today	Small commission is charged (usually Rs. 5 to 15)
No. of banks covered	572	Almost all banks offer netbanking
Beneficiary details	Only VPA is required to process a transaction	Other details such as account number, IFSC code is also needed

Can I connect an existing VPA to a new application?

No, you cannot use an existing VPA with a new payment application since your VPA is specific to the payment app on which it was created. However, you can create a new VPA when you link your bank account to a new payment application. 

How do you edit VPA or UPI ID on a UPI app?

You cannot edit your pre-existing VPA or UPI ID on any payment application. However, you can add UPI IDs on your payment app to ensure higher transaction success rates. For example, if you are a GPay user:

• Open your GPay App.
• Click on your profile menu.
• Select the ‘Set up payment methods’ option.
• Select your bank account for which the UPI ID needs to be added.
• Select ‘Manage UPI IDs’ option.
• Add UPI IDs with partner bank handles like okicici, okaxis and oksbi.

Is it feasible to link multiple bank accounts to a VPA?

Yes, linking multiple bank accounts to the same VPA is possible. 

What is the UPI transaction limit?

UPI’s daily transaction limit is Rs.1 lakh by the National Payments Corporation of India (NPCI). 

However, payments to educational institutions and healthcare providers can go up to Rs.5 lakh. However, individual banks may set UPI transfer limits, ranging from Rs.25,000 to Rs.1 lakh daily. Additionally, some banks opt for weekly or monthly UPI transfer limits instead of a daily cap. You can see the UPI limits of all major banks in India below:

Bank name	Bank type	Sponsor Bank	UPI transaction limit
Abhyudaya Co-Operative Bank	Cooperative	NA	25000
Adarsh Co-Op Bank Ltd	Cooperative	HDFC Bank	50000
Aditya Birla Idea Payments Bank	Payments Bank	NA	100000
Airtel Payments Bank	Payments Bank	NA	1,00,000
Allahabad Bank	Public Sector Bank	NA	25000
Allahabad UP Gramin Bank	RRB	Allahabad	20000
Andhra Bank	Public Sector Bank	NA	100000
Andhra Pradesh Grameena Vikas Bank	RRB	SBI	25000
Andhra Pragathi Grameena Bank	RRB	NA	10000
Apna Sahakari Bank	Cooperative	NA	100000
Assam Gramin VIkash Bank	RRB	United Bank of India	5000
Axis Bank	Private	NA	100000
Bandhan Bank	Private	NA	100000
Bank Of Baroda	Public Sector Bank	NA	25000
Bank of India	Public Sector Bank	NA	10000
Bank of Maharashtra	Public Sector Bank	NA	100000
Baroda Gujarat Gramin Bank	RRB	Bank of Baroda	25000
Baroda Rajasthan Kshetriya Gramin Bank	RRB	BOB	25000
Baroda Uttar Pradesh Gramin Bank	RRB	Bank of Baroda	25000
Bassein Catholic Co-Op Bank	Cooperative	NA	20000
Bhilwara Urban Co Operative Bank LTD	Cooperative	HDFC	25000
Bihar Gramin Bank	RRB	UCO	Mergerd with DBGB
Canara Bank	Public Sector Bank	NA	100000
Catholic Syrian Bank	Private	NA	100000
Central Bank of India	Public Sector Bank	NA	100000
Chaitanya Godavari Grameena Bank	RRB	Andhra Bank	25000
Chhattisgarh Rajya Gramin Bank	RRB	SBI	25000
Citibank Retail	Foreign Bank	NA	100000
City Union Bank	Private	NA	100000
COASTAL LOCAL AREA BANK LTD	Cooperative	BOM	50000
Corporation Bank	Public Sector Bank	NA	50000
DBS Digi Bank	Foreign Bank	NA	100000
DCB Bank	Private	NA	5000
Dena Bank	Public Sector Bank	NA	100000
Dena Gujarat Gramin Bank	RRB	Dena	NA (Merged)
Deutsche Bank AG (Web Collect)	Foreign Bank	NA	NA
Dhanlaxmi Bank Ltd	Private	NA	100000
Dombivali Nagrik Sahakari Bank	Cooperative	NA	100000
Equitas Small Finance Bank	Small Finance Bank	NA	25000
ESAF Small Finance Bank	Small Finance Bank	NA	100000
Federal Bank	Private	NA	100000
FINO Payments Bank	Payments Bank	NA	100000
G P Parsik Bank	Cooperative	NA	100000
HDFC	Private	NA	100000(RS 5000 for new customer)
Himachal Pradesh Gramin Bank	RRB	PNB	50,000
HSBC	Foreign Bank	NA	100000
Hutatma Sahakari Bank Ltd	Cooperative	ICIC Bank	100000
ICICI Bank	Private	NA	10000(25000 for Google Pay users)
IDBI Bank	Public Sector Bank	NA	100000
IDFC	Private	NA	100000
India Post Payment Bank	Payments Bank	NA	25000
Indian Bank	Public Sector Bank	NA	100000
Indian Overseas Bank	Public Sector Bank	NA	50000
IndusInd Bank	Private	NA	100000
J&K Grameen Bank	RRB	J&K	20,000
Jalgaona Janata Sahkari Bank	Cooperative	NA	100000
Jammu & Kashmir Bank	Private	NA	20000
Jana Small Finance Bank	Small Finance Bank	NA	10000
Janta Sahakari Bank Pune	Cooperative	NA	100000
Jio Payments Bank	Payments Bank	NA	100000
Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd	Cooperative	NA	25000
Karnataka Bank	Private	NA	100000
Karnataka Vikas Grameena Bank	RRB	NA	25000
Karur Vysaya Bank	Private	NA	100000
Kashi Gomti Samyut Gramin Bank	RRB	NA	100000
Kaveri Grameena Bank	RRB	SBI	25000
Kerala Gramin Bank	RRB	NA	20000
Kotak Mahindra Bank	Private	NA	100000
Langpi Dehangi Rural Bank	RRB	SBI	10000
Madhya Bihar Gramin Bank	RRB	PNB	25000
Maharashtra Grameen Bank	RRB	BOM	25000
Maharashtra State Co-Op Bank	Cooperative	NA	5000
Malwa Gramin Bank (Bank merged with Punjab Gramin Bank)	RRB	SBI	10000
Manipur Rural Bank	RRB	SBI	10000
Maratha Co-Op Bank	Cooperative	NA	100000
Meghalaya Rural Bank	Foreign Bank	SBI	100000
Mizoram Rural Bank	RRB	SBI	25000
NKGSB Co-Op. Bank Ltd	Cooperative	NA	20000
Oriental Bank of Commerce	Public Sector Bank	NA	100000
Paschim Banga Gramin Bank	RRB	UCO	5000
Paytm Payments Bank	Payments Bank	NA	100000
Pragathi Krishna Gramin Bank	RRB	NA	20000
Prathama Bank	RRB	NA	10000
Punjab and Maharastra Co-Op Bank	Cooperative	NA	100000
Punjab and Sind Bank	Public Sector Bank	NA	10000
Punjab Gramin Bank	RRB	PNB	10000
Punjab National Bank	Public Sector Bank	NA	25000
Purvanchal Bank	RRB	SBI	25000
Rajasthan Marudhara Gramin Bank	RRB	SBI	25000
Rajkot Nagari Sahakari Bank Ltd	Cooperative	NA	100000
Samruddhi Co-Op Bank Ltd	Cooperative	TJSB	100000
Sarva Haryana Gramin Bank	RRB	PNB	50,000
Sarva UP Gramin Bank	RRB	PNB	50000
Saurashtra Gramin Bank	RRB	SBI	20000
Shree Kadi Nagarik Sahakari Bank Ltd	Cooperative	Yes Bank	100000
South Indian Bank	Private	NA	100000
Standard Chartered	Foreign Bank	NA	100000
State Bank of India	Public Sector Bank	NA	100000
Suco Souharda Sahakari Bank	Cooperative	ICICI Bank	100000
Suryoday Small Finance Bank Ltd	Small Finance Bank	NA	100000
Suvarnayug Sahakari Bank Ltd	Cooperative	HDFC	100000
Syndicate Bank	Public Sector Bank	NA	10000
Tamilnadu Mercantile Bank	Private	NA	100000
Telangana Gramin Bank	RRB	SBI	25000
Telangana State Co-Operative Apex Bank	Cooperative	IDBI	10000
Thane Bharat Sahakari Bank	Cooperative	NA	100000
The Cosmos Co-Operative Bank LTD	Cooperative	NA	10000
The A.P. Mahesh Co-Operative Urban Bank	Cooperative	NA	25000
The Ahmedabad District Co-Operative Bank Ltd	Cooperative	GSCB	10000
The Ahmedabad Mercantile Co-Op Bank Ltd	Cooperative	HDFC Bank	100000
The Andhra Pradesh State Co-Operative	Cooperative	NA	10000
The Baroda Central Co-Operative Bank Ltd	Cooperative	GSCB	15000
The Gujarat State Co-Operative Bank Limited	Cooperative	NA	50000
The Hasti Co-operative Bank Ltd	Cooperative	NA	100000
The Kalyan Janta Sahkari Bank	Cooperative	NA	100000
The Lakshmi Vilas Bank Limited	Private	NA	100000
The Mahanagar Co-Op. Bank Ltd	Cooperative	NA	25000
The Malad Sahakari Bank Ltd	Cooperative	PMCO	10000
The Mehsana Urban Co-Operative Bank	Cooperative	NA	100000
The Municipal Co-Op Bank Ltd	Cooperative	NA	5000
The Muslim Co-Operative Bank Ltd	Cooperative	HDFC	100000
The Nainital Bank Ltd	Private	NA	20000
The Ratnakar Bank Limited	Private	NA	25000
The Saraswat Co-Operative Bank	Cooperative	NA	100000
The Surat People’s Co-Op. Bank Ltd	Cooperative	NA	25000
The Sutex Co-Op Bank	Cooperative	ICIC Bank	100000
The SVC Co-Operative Bank Ltd	Cooperative	NA	10000
The Thane Janta Sahakari Bank Ltd (TJSB)	Cooperative	NA	100000
The Udaipur Mahila Samridhi Urban Co-Op Bank Ltd	Cooperative	ICIC Bank	100000
The Udaipur Mahila Urban Co-Op Bank Ltd	Cooperative	NA	100000
The Urban Cooperative Bank Ltd Dharangaon	Cooperative	ICICI Bank	20000
The Varachha Co-Op Bank Ltd	Cooperative	NA	20000
The Vijay Cooperative Bank Ltd	Cooperative	ICIC Bank	20000
The Vishweshwar Sahakari Bank Ltd	Cooperative	NA	100000
Tripura Gramin Bank	RRB	SBI	10000
UCO Bank	Public Sector Bank	NA	100000
Ujjivan Small Finance Bank Limited	Small Finance Bank	NA	50000
Union Bank of India	Public Sector Bank	NA	100000
United Bank of India	Public Sector Bank	NA	25000
Uttarakhand Gramin Bank	RRB	SBI	25000
Vananchal Gramin Bank	RRB	SBI	20000
Vasai Vikas Co-Op Bank Ltd	Cooperative	NA	100000
Vijaya Bank	Public Sector Bank	NA	25000
YES Bank	Private	NA	100000

UPI Transaction Limit for BHIM App

The BHIM UPI transaction limits are established by the National Payments Corporation of India (NPCI). The daily cap for all banks is set at ₹1 lakh (Rs 100,000). For new users, there is a reduced limit of ₹5,000 during the first 24 hours.

Banks can increase these limits based on a customer’s risk profile. Customers interested in higher limits can request an adjustment from their bank, which will evaluate their risk profile before potentially raising their BHIM UPI transaction cap.

Once users reach their daily BHIM UPI limit, they must wait until the next day to initiate more transactions via BHIM UPI. However, they can still perform bank transfers using NEFT or RTGS, allowing larger transaction volumes.

UPI Transaction Limit on PayTM

Paytm UPI permits a daily transfer limit of up to Rs 1,00,000.

Additionally, users can make transactions up to Rs 20,000 per hour. Paytm imposes a cap of five transactions per hour and 20 transactions per day through its UPI service.

Is it safe to share my VPA?

Yes, using your VPA to receive money or make payments is safe as it does not include sensitive bank account details such as numbers or passwords. However, as a general practice, it’s always advisable to exercise caution when sharing any personal financial details externally and ensure they are disclosed only to trusted parties.

Conclusion

In conclusion, the Virtual Payment Address (VPA) within the Unified Payments Interface (UPI) has revolutionised how we handle money, offering a seamless, secure, and efficient transaction method. Whether you’re sending or receiving money, setting up a VPA simplifies the process, freeing you from the hassle of sharing sensitive account details. As digital transactions continue to grow in popularity, understanding and utilising tools like VPA can significantly enhance your financial interactions and operational convenience. With the guidance provided in this blog, you’re now equipped to navigate the world of UPI and make the most of your VPA, ensuring smooth and secure digital payments.

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