What is VPA Benefits & Uses

What is VPA Benefits & Uses

Virtual Payment Address also referred to as VPA is something like an email-ID, which is given to an individual using the Unified Payment Interface (UPI) service to send or receive money. With UPI, fund transfers can be initiated without an IFSC code or bank account number. So, VPA is essentially the only piece of information required for all transactions.

The UPI interface gives users the privilege to send money to any bank account holder with UPI on a 24-by-7 basis, instantaneously. To successfully start using UPI, it is mandatory to have a valid username, which is nothing but a VPA.

The VPA is specifically mapped to the user's bank account and is a unique ID.

Virtual Payment Address and UPI

The biggest use of this address is to facilitate financial transactions via the UPI payment system. In order 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 be then used to transfer funds from one account to another directly, without ever needing to provide any other bank account details.

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

How to Create VPA?

Download a UPI-enabled app

Provide your bank account details

Choose a VPA

Link VPA to bank account

Submit details after verification

Uses & Benefits of VPA

Money can be sent and received even on bank holidays and weekends

Funds can be transferred from anywhere, anytime on a 24 by 7 basis

There is no need to go through the tedious process of registering a beneficiary/payee

There is no need to use IFSC code or provide the bank account number of payee to send money. Only the VPA is required.

Economical and easy-to-use

User-friendly and speedy transfers

Pay using any account linked to your mobile phone that has enough money in it to cover the transaction.

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.

While several banks charge users for using RTGS, IMPS, and NEFT, VPA transactions using the UPI platform are practically free.

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.

How to get a VPA?

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

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.

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.

Once the final authentication is done, create a VPA for the account you provided.

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.

Once you provide a unique VPA, it gets approved instantly, and you get a virtual payment address.

Sending money via VPA

The arrival of the VPA and the UPI app has made funds transfer a much easier business than it used to be. To send money to someone using the UPI app, you must have the VPA of that person. Follow these steps to transfer money using VPA:

Enter your PIN and login to your UPI app.

Select fund transfer through UPI as your preferred option.

Enter the beneficiary VPA, the amount to be transferred and remarks.

If you have multiple VPAs, choose the one linked with the bank account you would like to pay from and click Submit.

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 steps to receive money using VPA are as follows:

Download and login to any UPI-based mobile app.

Select UPI, then click on 'Collect via UPI'.

Type the VPA address of the individual who you are requesting money from.

Give the amount requested and add remarks.

Choose the VPA address/account to which you need the money transferred.

Submit details requested and await approval from the other end.

Once approved by the individual you are requesting money from, the amount gets credited to your chosen account.

How Do VPA Transactions Take Place?

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.

VPA suffixes of some common banks

SBI Pay: @SBI

PNB UPI: @PNB

Axis bank: @axis

Bank of Baroda: @barodapay

HDFC Bank UPI: @HDFC

Yes Bank: @YBL

BHIM: @upi

Paytm Payment Bank - @paytm

Google Pay (Tez) - Suffixes depend upon your bank.

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:

Google Pay UPI Transaction Limit 

The users can transact maximum of Rs.1 lakh per day across all UPI apps. 

You are allowed to do maximum ten transactions per day across all UPI apps. 

A user can send request of maximum Rs.2,000 from an another individual. 

PhonePe UPI Transaction Limit 

The users can do the maximum transaction of Rs.1 lakh per day across all UPI applications. 

You can do maximum ten transactions per day across all UPI apps. 

UPI Transaction Limit for BHIM App 

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