Virtual Payment Address (VPA)—What is VPA in UPI?

Unified Payment Interface (UPI) has become one of the most popular and convenient payment methods for money transfers, bill payments, and merchant transactions. One of its key benefits is that it does not involve any additional transaction charges, and your bank account details remain private since only your Virtual Payment Address (VPA) is shared with the receiver. Currently, the National Payments Corporation of India (NPCI) has set a standard daily transaction limit of Rs 1 lakh and a maximum of 20 UPI transactions per day. However, individual banks may have their own limits ranging from Rs 10,000 to Rs 1 lakh, which can vary over time.

What Is VPA?

A Virtual Payment Address (VPA) is a unique identifier that helps UPI to track a person’s account. It acts as an ID independent of your bank account number and other details. VPA can be used to make and request payments through a UPI-enabled app. You need not fill in your bank account details repeatedly for making multiple payments.

Example Of VPA

A typical VPA looks something like abc@bankname. Generally, a primary default VPA will be set by the UPI app you are working on. The ‘abc’ part of the above example can be anything, such as your name, your registered mobile number, or things like that. The ‘bank name’ in the example can be the name of the bank your account is held with, or the name of the bank the app is associated with, or just the word ‘upi’.

For example, ‘geooorge@hdfcbank’, ‘anjeliene25@upi’, and ‘123456789@ybl’, can be a few examples of a VPA. 

On the other hand, you can check for the availability of a VPA that you would prefer and create one as you desire.

Creating VPA Of Your Choice

• Step 1: Open the UPI app you have installed on your mobile device. Here, the BHIM app is used for demonstration purposes.

• Step 2: Click on the ‘Profile’ tab on the home screen.

• Step 3: If you have already set a VPA, the primary VPA will be shown. Click on the arrow that leads to the right.

• Step 4: Click on the ‘+’ mark on the screen to create a VPA of your choice.

• Step 5: You will be given an option to choose the first part of the VPA, i.e. the segment that appears before the ‘@’ symbol. A list of recommendations also appear. You can choose one from the list or type your desired VPA and check for its availability.

• Step 6: Click on ‘Submit’ to confirm the VPA. That’s all!

VPA Suffixes For Third-Party Apps

Below is a table listing the VPA suffixes used by some of the most popular Third-Party Application Providers:

How Do Transactions Happen Under VPA?

Once you have installed a UPI-enabled app, you are required to choose a UPI ID for all your further transactions. A VPA can be anything ranging from your name, the first half of your email address, or even your mobile number.

This is to make sure that you do not forget it when required. You can log in to a UPI-enabled app using VPA. Linking VPA to a bank account is an essential step before you initiate any transaction via UPI. Also, make sure that the mobile number you have linked to the bank account is the same as the one you have registered you are receiving a notification.

Upon entering the VPA and the amount to be sent/received, you must enter the valid UPI PIN that was created while registering with UPI. This is a validation required to confirm that the right person is making the transaction.

General UPI Transaction Limit

Currently, the National Payment Corporation of India (NPCI) has predefined the UPI transaction limit to Rs 1 Lakh per day. The maximum number of UPI transactions is 20 per day. However, the upper limit differs from bank to bank. Hence, the upper limit could be anywhere between Rs 10,000 to Rs 1 lakh. It is important to note that the transaction limit might change from time to time.

UPI AutoPay

NPCI has introduced UPI AutoPay for regular payments. With this facility, you can enable a recurring e-mandate using any UPI application for recurring payments such as telephone bills, OTT charges, Netflix, WiFi charges, electricity bills, EMI bills, etc. 

Following is the list of a few banks and their respective partners (not limited to):

Note: The NPCI and UPI website has not disclosed if such auto payments also will be included under the UPI transaction limit or not.

Google Pay UPI Transaction Limit

• Maximum of Rs 1 lakh per day across all UPI apps.
• Maximum of 10 times per day across all UPI apps.
• A maximum request of Rs 2,000 from another individual or party.

PhonePe UPI Transaction Limit

• Maximum of Rs 1 lakh per day across all UPI apps.
• Maximum of 10 times across all UPI apps per day.

UPI Transaction Limit for BHIM App

You can transfer up to Rs 40,000 per transaction and a maximum of Rs 40,000 per day concerning one bank account. This UPI transfer limit is determined based on the bank account linked with BHIM. The State Bank of India introduced its own mobile payments app called BHIM SBI Pay. It can be used not only by SBI account holders, it can be used by customers of other UPI-enabled banks too. The fund transfer is executed via VPA.

What are the Advantages of Using VPA?

• Make payments from any bank account linked to your mobile number with sufficient balance using a simple Virtual Payment Address (VPA).
• Track all your transactions easily in one place with a single VPA.
• Use ‘Pay with VPA’ to transfer funds instantly by entering the recipient’s VPA, amount, and remarks.
• Request money via VPA and receive funds immediately once authorized.
• UPI transactions are available 24/7, including weekends and bank holidays.
• No need to add beneficiaries manually; transfers are fully online and fast.
• Funds remain in your bank account, allowing you to earn interest, unlike e-wallets.
• Link multiple bank accounts under one app and create or change VPAs anytime for added security.
• UPI transactions cost almost nothing compared to NEFT, RTGS, or IMPS.
• Powered by IMPS infrastructure, UPI ensures instant fund transfers.

In summary, UPI with Virtual Payment Address (VPA) offers a secure and convenient, avenue to manage your financial transactions. With instant transfers, 24/7 availability, and seamless integration across multiple bank accounts, it simplifies payments and enhances your banking experience. Embracing UPI means faster, smarter, and more efficient money management at your fingertips.

Related Articles:
1. BHIM UPI Registration 
2. BHIM UPI Payments App-How to Use It?