How to use Virtual Payment Address (VPA) for financial transactions

The launch of various mobile based payment apps has made funds transfer extremely quick and hassle free. Unified Payment Interface which is also a mobile based payment app allows the user to connect his bank accounts with the app using a Virtual Payment Address (VPA). After installing UPI on your smartphone, you can use Virtual Payment Address (VPA) for all kinds of monetary transactions henceforth.

What is Virtual Payment Address?

Everyone who is using UPI needs a Virtual Payment Address (VPA) for transferring funds in real time. VPA, as the name says, is an address quite similar to an email id like jay****@icicibank or 99******35@PNB. A VPA is issued to the user when he/she registers for Unified Payment Interface (UPI).

All the UPI users to accept or make payments have to provide only their VPAs to complete the transactions. VPAs are being used instead of the card/bank account details for all kinds of financial activities.

Create a VPA

Download the UPI app from the particular play store and create a VPA. Every bank has its separate UPI app, but it not mandatory to use your banks UPI; for instance, if you have an ICICI bank account, you can use UPI app from SBI bank.

Once, the VPA is created, it works as your permanent financial address. When using the VPA, you need not remember details like bank account number, IFSC Code, CVV number, expiry date, etc. just remember your VPA, and you can do any financial transaction.

Link your bank account

After creating a VPA, it is imperative that you link your bank accounts to this VPA. You can link the bank account with VPA by generating a Mobile Personal Identification Number (MPIN), which is a four digit password used when you are making transactions on your phone.

How to generate the MPIN

MPIN like VPA is required when you are doing mobile banking and is quite easy to set up:

1. Login to your UPI app
2. Navigate to Account Management
3. Select the bank account you wish to generate the MPIN
4. Click on Set MPIN
5. Follow the instructions to generate MPIN

Use Virtual Payment Address (VPA) for financial transactions

Transfer money using VPA

Once you link the VPA with your bank account, financial activities are like a piece of cake. Follow the instructions below to know the process of fund transfer through VPA:

1. Log in to the UPI app in you mobile
2. Enter the PIN
3. Click on Fund Transfer through UPI
4. Enter the details of the person you wish to pay, i.e. the VPA, amount, and remarks
5. Click on Submit
6. Enter the MPIN to authenticate the transaction

Receive money using VPA

With the help of UPI, you can ask for payments from your debtor without calling, texting, or visiting him. Follow the steps below to know how:

1. Log in to your UPI app
2. Click on UPI and select Collect via UPI
3. Enter the VPA of your debtor
4. Enter the amount due and the remarks
5. Click on Submit
6. Your debtor hence receives a notification for the same and the moment he/she approves of the notification, the amount will be credited to your bank account

You can transfer up to Rs. 1 Lakh using VPA without incurring any charges. Use Virtual Payment Address (VPA) for financial transactions and do away with the hassles of remembering the bank account details, IFSC code, and CVV number.