A UPI ID is a unique address used within the Unified Payment Interface (UPI) system to identify you for financial transactions. UPI is a banking system that allows money transfers using payment apps.
Here's a breakdown:
- UPI (Unified Payment Interface): A real-time payment system in India enabling instant money transfers between bank accounts via mobile apps.
- UPI ID: This is your virtual payment address, often in the format yourname@bankname.
Think of it like this:
| Feature | UPI ID (yourname@bankname) | Bank Account Number & IFSC |
|---|---|---|
| Use | Identifying for UPI transfers | Traditional bank transfers |
| Ease of Use | Easy to remember and share | Cumbersome |
| Information Needed | Just your UPI ID | Account number, IFSC, name |
In order to use UPI, your bank must support it. With a UPI ID, you can link your bank account to payment apps like Google Pay and transfer funds without sharing sensitive details like your account number.
