Virtual Payment Address (VPA) Remark In UPI: Simplifying Money Transfers with Notes
Ever wondered how you send money to someone using just their phone number or a catchy nickname? That's the magic of UPI's Virtual Payment Address (VPA) remark!
How to create a VPA?
Creating a VPA is a breeze! Here's a quick overview:
- Download a UPI app: Choose a reputable app like the Bajaj Finserv App or any other UPI app.
- Link your bank account: Follow the app's instructions to link your bank account securely.
- Set your VPA: During the linking process, most apps will prompt you to create a VPA. This can be your mobile number followed by the bank identifier (e.g., 9876543210@xyzbank) or a custom combination of letters and numbers (subject to availability).
Features of VPA
VPAs offer several advantages:
- Convenience: Share your VPA instead of lengthy bank account details for receiving payments.
- Uniqueness: Each VPA is unique, ensuring the money goes to the right person.
- Memorability: Create a custom VPA using a nickname or phrase for better recall.
Difference between VPA and UPI ID
While both terms are often used interchangeably, there's a subtle difference:
Feature |
VPA |
UPI ID |
Technical Definition |
Virtual Payment Address (remark) |
Unified Payments Interface identifier |
User perspective |
Nickname or mobile number for receiving money |
Unique identifier for your UPI account |
Think of your UPI ID as your bank locker address, and your VPA as the nameplate outside your locker. Both are essential for accessing your account, but the VPA makes it easier for others to find you.
How do transactions happen under VPA?
Here's a simplified breakdown:
- Initiate transfer: The payer opens their UPI app and selects ‘SEND MONEY’
- Enter VPA: They enter your VPA (phone number or custom alias)
- Verify details: The app displays your name linked to the VPA for confirmation
- Enter amount and remarks (optional): The payer enters the amount and can add a brief note (VPA remark) about the transfer (e.g., Rent for April)
- Authorisation: The payer confirms the transaction using their UPI PIN.
- Instant transfer: The money is instantly transferred to your bank account linked to the VPA.
VPA remarks are optional, but they can be helpful for both parties. For instance, when paying rent, adding ‘RENT FOR APRIL’ in the remark clarifies the purpose of the payment.
The Bajaj Finserv BBPS platform simplifies the bill payment process by offering a comprehensive platform that includes UPI payments. With BBPS, you can make payments for various services such as electricity, water, gas, and insurance, among others, with ease and convenience. The platform ensures a secure and seamless payment experience, with the added benefit of UPI payments that allow for quick and easy transactions.
