VPA - Virtual Payment Address

As an alternative, you may create your own special VPA. The procedure to create a VPA are as follows: 

Step 1: Open a UPI-enabled app on your smartphone.

Step 2: Link your bank account by entering the registered mobile number.

Step 3: Provide the necessary information.

Step 4: The option to select UPI ID or VPA will be displayed.

Step 5: Make your own ID or select the option you want.

Step 6: After setting up your six- or four-digit UPI PIN and creating your VPA, you will be able to initiate UPI transactions.

Uses & Benefits of VPA

The main uses and benefits of UPA are mentioned below: 

1. Money can be sent and received even on bank holidays and weekends
2. Funds can be transferred from anywhere, anytime on a 24 by 7 basis
3. There is no need to go through the tedious process of registering a beneficiary/payee
4. There is no need to use the IFSC code or provide the bank account number of the payee to send money. Only the VPA is required.
5. Economical and easy-to-use
6. User-friendly and speedy transfers
7. Pay using any account linked to your mobile phone that has enough money in it to cover the transaction.
8. When you want to transfer money to any bank account, you can use the 'Pay with VPA' option. Entering the recipient's VPA, the payment amount, and remarks is all that is required.
9. While several banks charge users for using RTGS, IMPS, and NEFT, VPA transactions using the UPI platform are practically free.
10. The UPI links all your bank accounts. A single bank UPI app allows you to generate VPA for all of your UPI-enabled bank accounts.

Sending money via VPA

The arrival of the VPA and the UPI app has made fund transfers a much easier business than it used to be. To send money to someone using the UPI app, you must have the person’s VPA. 

Follow the below-mentioned procedure to transfer money using VPA: 

1. Enter your PIN and log in to your UPI app.
2. Select fund transfer through UPI as your preferred option.
3. Enter the beneficiary's VPA, the amount to be transferred and remarks.
4. If you have multiple VPAs, choose the one linked with the bank account you would like to pay from and click Submit.
5. Confirm the details and type your MPIN to validate.

Receiving Money via VPA

Instead of being handed over cash or a NEFT, anyone can request to receive money via UPI. 

The procedure to receive money using VPA are as follows: 

1. Download and log in to any UPI-based mobile app.
2. Select UPI, then click on 'Collect via UPI'.
3. Type the VPA address of the individual whom you are requesting money from.
4. Give the amount requested and add remarks.
5. Choose the VPA address/account to which you need the money transferred.
6. Submit the details requested and await approval from the other end.
7. Once approved by the individual you are requesting money from, the amount gets credited to your chosen account.

Format of VPA

Here are the required details regarding the format of VPA:

1. VPA follows a particular syntax
2. The username and password can be chosen as per the user followed by ‘@’ at the end
3. Example of VPA is efgh@abcbank, where ‘efgh’ can be user’s name, the first half of user’s email address, or even mobile number
4. ‘abc’ is the bank’s initial to which the VPA is linked.

Features of VPA

The main features of VPA are mentioned below: 

1. Protects Your Bank Account Information: Your VPA serves as a shield for your bank account number, allowing you to keep it confidential. Opting for a VPA enables you to withhold your actual bank account number, ensuring privacy regarding the nature of your account, be it savings or current. 

     This way, you maintain the confidentiality of your bank account while still enjoying the convenience of making cashless transactions through UPI apps via VPA.  

1. Simplified Recall: Remembering your VPA is notably easier compared to grappling with a lengthy and intricate bank account number. VPA numbers are not only believed to be secure but are also designed for ease of recall. 

    Users often find it more convenient to remember their VPA than their physical or actual account number.  

1. Flexibility to Change: You have the flexibility to change your VPA to another account as needed. Changing your VPA is a straightforward process, allowing you to use a new one if required. 

     However, it's important to note that once a bank account is linked to a VPA, changing or removing it is not permitted. Additionally, linking a bank account to multiple         VPA numbers is not allowed in adherence to banking regulations.  

1. 24/7 Accessibility: Your VPA is accessible round the clock, providing instant access to your account details. This accessibility ensures that you can receive payments promptly from various sources at any time, enhancing the efficiency of financial transactions. 
2. Enhanced Security: UPI transactions offer a secure and efficient means of making payments anytime, anywhere. The process is faster, safer, and more convenient than other modes of fund transfers, such as RTGS or NEFT. By using your VPA, you can send or receive payments instantly on a real-time basis, ensuring a higher level of security. 
3. User-friendly Transactions: Utilising your VPA, you can effortlessly make cashless payments to friends, relatives, children, and employees. This streamlined process eliminates the need to wait for extended periods, allowing you to send money through UPI apps without divulging your bank account details. 
4. Transaction Tracking Capabilities: Having a VPA number enables you to easily track all your fund transfer transactions within the UPI app. This includes valuable information such as the amount sent, transaction date and time, recipient details, and other relevant transaction information. 

Unified Payments Interface (UPI) Transaction Limit in General

The National Payments Corporation of India (NPCI) allows banks and UPI apps to set their own transaction limits. As of 2024:

1. Daily Limit: Rs. 5 lakh for most banks (e.g., HDFC, ICICI, Axis).
2. Per Transaction Limit: Rs. 1 lakh (for apps like Google Pay, PhonePe, BHIM).
3. Number of Transactions: Up to 20 per day (varies by bank).
4. Exceptions:
   1. BHIM App: Rs. 2 lakh/day (up from Rs. 40,000).
   2. UPI Lite: Small-value transactions (up to Rs. 500) without PIN.

Note: Limits may differ for merchant payments and UPI AutoPay. Check with your bank for specifics.

Google Pay UPI Transaction Limit

1. The users can transact a maximum of Rs.1 lakh per day across all UPI apps. 
2. You are allowed to do a maximum a ten transactions per day across all UPI apps. 
3. A user can send a request for a maximum of Rs.2,000 from an another individual. 

PhonePe UPI Transaction Limit

1. The users can make the maximum transaction of Rs.1 lakh per day across all UPI applications. 
2. You can make a maximum ten transactions per day across all UPI apps. 

UPI Transaction Limit for BHIM App

The BHIM App users can transfer a maximum of Rs.40,000 per day from one bank account. The UPI transfer limit is determined on the basis of the bank account linked with BHIM.

Recently, the State Bank of India (SBI) has launched its own mobile payment app known as BHIM SBI Pay. It can be used both by SBI account holders and account holders of other banks. 

How VPA Transactions Work

After installing a UPI-enabled app, you must select a UPI ID to make transactions. Your name, mobile number, or the initial part of your email address can be used as a VPA. This ensures that you remember the VPA. A UPI-enabled app may be accessed by using VPA. Before starting any UPI transaction, you must first link your VPA to a bank account.

You must also ensure that the mobile number you have registered to receive notifications is the same as the one linked to your bank account. After you enter the VPA and the amount that has to be transferred or received, you need to input the UPI PIN. This authentication is necessary to ensure that the correct person is requesting the transaction.

What are the Details of a VPA?

The following are some of the vital details that you need to know about VPA:

1. Virtual Payment Address is a unique identified that enables UPI (Unified Payment Interface) to track the user’s account
2. This ID does not consist of a bank account number and other details
3. Through a UPI-enabled app, VPA can be used to make and request payments
4. This helps users by not letting you fill bank details repeatedly
5. The primary default VPA is set by the UPI application that you are working on.
6. You can check the availability of the VPA you prefer to choose.

Virtual Payment Address and UPI

The biggest use of this address is to facilitate financial transactions via the UPI payment system. To do that successfully, a bank account holder who is also a UPI payment app user needs to have a VPA address linked to their account.

VPA replaces bank account details. This VPA can then be used to transfer funds from one account to another directly without ever needing to provide any other bank account details.

VPA makes the UPI payment system unique. Using VPA as its strong point, the UPI payment method is simplified. VPA makes it possible for UPI to be a friendly mobile-based app for fund transfers, making it a better system than IMPS, NEFT, digital wallets, and card payments.

Virtual Payment Address (VPA) is a digital ID used for sending and receiving money via UPI-enabled apps. During a transaction, VPA removes the requirement to manually enter information such as branch name, bank account number, and IFSC code. The payment process is made simpler with VPA because it allows senders and recipients to identify your account with just one indicator.

On UPI-enabled apps, the term UPI ID might appear rather than VPA. However, the meaning of both terms can be considered the same. These digital addresses are linked to your bank account to make money transfers easier. Continue reading to learn more about VPA.

VPA Suffixes of Popular Indian Banks

The VPA suffixes for some of the most popular Third-Party Application Providers (TPAP) are mentioned in the table below: 

How to get a VPA?

VPA is part of the UPI payment system. So, it can be obtained from the UPI App. The process to get a VPA is as follows:

1. Download the UPI app and link it to a bank account through your mobile number. Use the mobile number which is already registered at your bank.
2. You'll have to go through a mobile verification process, after which follows another verification round. This verification can be a security question, a grid or any such authentication technique.
3. Once the final authentication is done, create a VPA for the account you provided.
4. Just as it is with an email address, you are provided with a VPA of your choice if the availability check confirms it is available. If it isn't available, try a different address.
5. Once you provide a unique VPA, it gets approved instantly, and you get a virtual payment address.

Things to Remember about Virtual Payment Address

Here are some of the significant points that should be remembered about the virtual payment address (VPA): 

1. Choose unique VPA: It is vital that the user selects unique VPA that is easy to remember yet cannot be guessed or replicated easily. This will ensure the prevention of fraudulent transactions or loss of funds. 
2. Confirm receiver’s VPA is correct: Make sure that the receiver’s VPA is correct before initiating any transaction and never share your VPA with any unidentified individuals to prevent loss of funds. 
3. Multiple bank accounts: To set your primary account in the UPI application, you can link multiple bank accounts with a single VPA, and you can also change the primary account any time you wish. This enables the users to use a single VPA for all your transactions. 
4. Limits of transactions: There is a certain limit set for the amount you want to transfer via UPI using VPA. The limit varies depending on the bank and the type of account 

UPI AutoPay

National Payment Corporation of India (NPCI) has introduced UPI AutoPay for making regular payments. With the help of this facility, you will be able to enable a recurring e-mandate through any of the UPI app of your choice for doing recurring payments like OTT charges, telephone bills, WiFi charges, Netflix, Equated Monthly Installments (EMIs), utility bills, etc.

The following table displays the list of the banks and their UPI partners:

Comparing UPI with Other Online Payment Methods

1. UPI Payment vs Bank Account Transfer: The UPI process stands out for its simplicity compared to NEFT. Despite this, NEFT boasts higher transaction limits than UPI. 

     Additionally, NEFT transfers necessitate an upfront payment of at least Rs. 15, a requirement absent in UPI transactions. UPI transactions, in contrast, are entirely  free, allowing users to make instant payments from any location and for any amount using a UPI-enabled app.  

1. UPI Payment vs Internet Banking: UPI offers the convenience of making cashless payments to friends, colleagues, and employees without requiring their bank account details. Instant fund transfers can be accomplished with a single click using the recipient's VPA. 

      On the other hand, Internet banking typically demands the input of account details to complete fund transfers or cash withdrawals.  

1. UPI Payment vs ATM Transfer: UPI payments prove to be more straightforward when compared to ATM transfers. With UPI, users only need to remember their VPA number, and payments can be made from anywhere at any time, for any amount.  

        Instant money transfers via UPI apps using the VPA number are also possible. In contrast, ATM transfers involve recalling details such as the bank name, account number, IFSC code, and other particulars for cash withdrawals or deposits. The VPA is specifically mapped to the user’s bank account and is a unique ID.