Along with cash, UPI has proved itself to be one of the most important modes of transaction in India. While using UPI for online payments, users often come across the term VPA or virtual payment address. Let's know what the term VPA in UPI means.

What is VPA on UPI?

The full form of VPA is Virtual Payment Address, and in UPI, it is the unique ID of users. It is an easy-to-remember virtual ID or address or identifier or replacement of users' bank account details (account number, IFSC, account holder's name, branch, etc.). This unique ID, or the number registered with UPI or the QR Code is essential for effortless money transfers with UPI.

One user can have one or multiple VPA for one account. Similarly, users can have the same VPA for multiple accounts – it's super flexible.

Format

A VPA somewhat looks like “abcd123@oksbi” – it is the basic syntax of VPA in UPI. The characters before @ stand for username and the characters after @ stand for bank or payment provider.

For the user name, one can use letters, numbers, or a combination of both.

How Does It Work? How Does It Transact?

Transfers with VPA are instant, but there is a complex process underneath. As soon as a user initiates a payment, UPI system routes it to the bank account linked with the VPA or UPI ID to complete it.

So, Is VPA Same As UPI ID?

Yes, UPI IDs and VPAs are the same. In the UPI apps, the term UPI ID is used instead of VPA; however, both are same in meaning and function. These are the virtual addresses for the bank account.

How To Generate A VPA on UPI?

Well, a VPA gets auto-generated as soon as a user registers and completes the process of linking the bank account in a UPI-enabled app. Alternatively, users can create it on their own by following a few steps:

1. Download and install any UPI app
2. Enter mobile number
3. Choose the bank (where users have an active account registered with the mobile number entered)
4. Select the bank account
5. Link it by entering the details asked (card details)

As soon as users link their bank account successfully with the UPI app, they get the chance to choose (from a few options) or create their own VPA or UPI ID. After finalizing the VPA or UPI ID, users need to set the UPI PIN, which they will need to enter to send money.

Transacting with VPA or UPI ID on UPI App

Transacting with VPA in UPI eliminates the necessity of manually filling any form with so many details like name, account number, IFSC, etc.

To Send Money with VPA, the users need to

1. Open the UPI-enabled app
2. In the "Send Money" or "Transfer Money" section, select "to UPI ID or VPA" option
3. Type the VPA (It will show the name of the beneficiary)
4. Enter the amount
5. Add note (optional)
6. Choose an account for the transaction (if multiple accounts are linked)
7. Enter the UPI Pin

The beneficiary will shortly receive the money - both sender and beneficiary will receive a notification after completion. To Receive Money with VPA, users need to share their own VPA with the sender. Alternatively, the sender can request money by entering the VPA, amount, and other details in his/her UPI-enabled app from the "Request money" option and the payer can initiate the transaction.

Daily Limits: How Many Times And How Much Amount Can be Transferred Using VPA?

As per NPCI, users can transfer maximum 20 times in one day and the amount must not exceed 1 lakh in one day. Different banks and apps may have different daily limits.

Benefits of VPA

The benefits of VPA in UPI include:

1. Convenient and time-saving transactions – No need to enter bank details for each transfer
2. Error-free transfers – As it does not need manual typing, there is no possibility of mistakes in digits. Users can copy and share VPAs, avoiding typos. Entering or pasting a VPA also shows the account holder's name to ensure an error-free transfer.
3. Uncompromised security – VPA conceals account details and displays a unique user ID, making the account secure. It is used within a UPI window, ensuring high security.
4. Easy to remember – Bank account numbers are difficult to remember, whereas a VPA is short and simple, making it easy to recall.
5. Edit option – Users can edit the VPA until it is linked with a bank account. Editing is not allowed after linking.
6. Flexibility – Users can have multiple VPAs for the same account across different apps. Linking multiple bank accounts with the same VPA is also possible.
7. Round-the-clock availability – Money transfers through VPA are available 24×7, including weekends and bank holidays, allowing users to send or receive money anytime.
8. Free to use – Transferring money using a VPA is completely free.
9. Easy to register and obtain VPA – Generating a VPA is a one-time process, and the registration is simple.
10. Super fast transfers – Since VPA works within UPI apps, money transfers are quick and seamless.

End Words

Call it VPA or UPI ID, it is a handy way to transfer money without entering the details of a beneficiary manually. For error-free, safe, instant, and paperless transactions, it is as useful as the UPI QRs. Users can just enter it to find the person and initiate a payment. Similarly, they can copy and share their own VPA to ask for payment from anyone. In short, it is super useful for effortless transactions.

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