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

NPCI sets a standard UPI limit of ₹1 lakh per day, with up to 20 transactions. Select categories, such as tax payments, hospital bills, and education fees, that allow transfers of up to ₹5 lakh. However, individual banks may impose lower daily limits based on their security policies.

Key Highlights

• Identity: A Virtual Payment Address (VPA) acts as a unique payment ID, keeping bank account details private.
• Limits: The daily UPI limit is usually ₹1 lakh, with up to ₹5 lakh allowed for select categories.
• Transactions: Most UPI apps allow up to 20 transactions per day.
• Security: New users or those resetting their UPI PIN have a ₹5,000 limit for the first 24 hours.
• Charges: Personal bank-to-bank UPI transfers are free, with no transaction fees for users.

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 is used to make and request payments through a UPI-enabled app. 

Example Of VPA

A typical VPA looks like username@bankname or mobile@upi.

• geooorge@hdfcbank
• anjeliene25@oksbi
• 123456789@axl

How do Transactions Work under VPA?

A UPI payment is completed within seconds through a secure process involving the UPI app, bank, the recipient's bank, and the NPCI network.

Step 1: When the users open the UPI app, enter the recipient's VPA, add the amount, and tap Send.  The NPCI network verifies the recipient's VPA and confirms the payee's name before proceeding.

Step 2: It also verifies the recipient's details  and authorize the payment. After that the bank debits the amount from the account.

Step 3: The recipient's bank instantly credits the amount and both parties receive a confirmation notification.

Creating VPA Of Your Choice

To check for the availability of a custom VPA inside your preferred app, follow the steps below:

Step 1: Open the installed UPI app on your mobile device.

Step 2: Tap the Profile tab on the home screen.

Step 3: Tap the arrow next to your primary VPA, then select the + icon to create a new VPA.

Step 4: Enter your preferred VPA, check its availability, and tap Submit.

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:

UPI AutoPay

UPI AutoPay lets users automate recurring payments such as OTT subscriptions, utility bills, loan EMIs, insurance premiums, and SIPs.

• One-Time PIN: Enter the UPI PIN only while setting up the mandate. Future payments up to ₹15,000 are processed automatically.
• Higher Limits: Auto-debits for SIPs, insurance premiums, and credit card bills can go up to ₹1 lakh without requiring a PIN for each payment.
• Pre-Debit Alerts: Users receive a notification 24 hours before the payment is deducted, giving you time to cancel or modify the mandate.
• Scheduled Processing: AutoPay transactions are processed during non-peak hours to ensure smooth execution.
• Separate from Daily Limits: AutoPay transactions do not count toward the standard 20 manual UPI transactions per day.

What are the Benefits of Using VPA?

The following are the Benefits of using VPA:

• Protects Privacy: A VPA hides your bank account number and IFSC code.
• Instant Payments: Send money using a VPA without adding a beneficiary or waiting for account activation, unlike traditional payment methods.
• Reduces Errors: Entering a simple VPA is easier and less error-prone than typing a bank account number and IFSC code.
• Manage Multiple Accounts: Link multiple bank accounts to a single UPI app and create separate VPAs for each account.
• Easy to Switch Banks: User can link your existing VPA to a different bank account without sharing a new payment ID with the user's contacts.
• Request Money: Besides sending payments, you can also use your VPA to send payment requests, which the payer can approve instantly.

Final Word

UPI with Virtual Payment Address (VPA) offers a secure and convenient, avenue to manage the 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?