Digital payment system has revolutionised banking methods for current account holders. They can now link their business accounts to UPI (Unified Payment Interface) to enable instant, seamless money transfers directly through mobile applications.
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What is UPI for Current Account?
Unlike savings accounts, which are meant for personal use, current accounts are tailored for higher transaction volumes and frequent business activities. UPI allows businesses to make real-time payments and transfers directly between bank accounts through a secure UPI payment gateway, without needing to share complex account details.
Whether accepting customer payments, transferring funds to suppliers, or reconciling transactions, UPI supports smooth, efficient operations that save both time and money. It also helps reduce administrative work, eliminates cash handling, and simplifies financial management.
How to Create a UPI ID For A Current Account?
Step 1: Download a UPI-enabled mobile application from your smartphone’s app store, like your bank’s official app, Google Pay or PhonePe.
Step 2: Open the app and complete the new user registration process by entering your mobile number. Verifying it through an OTP sent to your registered phone number.
Step 3: Create your account by filling in required personal details and setting a six-digit numeric password for app login.
Step 4: Navigate to the bank account linking section within the app, select your current account, and verify your account details to enable UPI functionality.
Step 5: Set up your unique UPI PIN by providing the last six digits of your debit card, expiry date, and complete the verification process through an OTP.
Step 6: Generate your personalised UPI ID (virtual address), typically formatted as username@bankname. This will serve as your unique digital payment identifier.
Step 7: Now you are ready to send and receive digital payments seamlessly through your newly created UPI platform.
How to Link UPI with Your Current Account
Step 1: Select an official UPI app from a trusted source, such as the Google Play Store for Android or the Apple App Store for iOS. Popular options include Google Pay, PhonePe, and your bank’s official UPI application.
Step 2: Open the app and navigate to the account linking section. This is typically found in app setting, profile, or account section or on home screen with the “Add Bank Account” or “+” button.
Step 3: Browse through the list of supported banks and choose the bank where your current account is maintained. Most major banks are integrated with UPI platforms.
Step 4: Enter the required information that includes your current account number, mobile number registered with the bank, and debit card details.
Step 5: The app will initiate a verification to confirm your account ownership. This is usually done by entering the OTP to authenticate the account link.
Step 6: After successful registration, you’ll be prompted to create a unique UPI PIN. This PIN will be used for authorising transactions.
The Ideal Users of UPI For Current Accounts
1. Small and Medium Enterprises (SMEs)
The instant payment capabilities enables SMEs to process transactions in real-time. By minimising transaction costs and delays, these businesses can improve their financial liquidity and maintain a more agile operational approach.
2. Corporate and Large Businesses
The platform’s high transaction limits support bulk payments. From simplified salary disbursements to efficient vendor payment management and integrated utility bill settlements, UPI offers solutions that enhance financial workflow and operational efficiency.
3. Professional Services and Freelancers
The platform allows instant payment receipt without the complexities of traditional banking systems. Independent professionals and freelancers can now eliminate cash-handling requirements.
4. Retail Merchants
By implementing seamless UPI integrations with their POS (point of sale) systems, merchants can offer customers multiple, instant payment options. This approach reduces transaction friction and enhances overall customer satisfaction.
Example of Using UPI with Current Accounts
For instance, a small urban clothing and accessories store can leverage UPI to streamline its payment process in the following way:
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A customer selects merchandise and proceeds to checkout.
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The shopkeeper presents a UPI QR code linked to their current account.
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Users initiate payments by launching their UPI app and scanning the provided QR code.
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Customer completes the transaction through their own UPI app.
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Instant fund transfer occurs between the customer’s and store’s bank accounts.
Benefits of UPI for Current Accounts
1. Instant Fund Transfers
UPI allows businesses to send and receive funds instantly, 24/7, including weekends and holidays.
2. Streamlined Payment Process
The UPI system consolidates payments through one unique identifier – your UPI ID. Customers can transact without entering complex details like account numbers or card information.
3. Budget-Friendly Option
Processing fees for UPI payments are generally cheaper than conventional payment systems like credit card processing or bank transfers.
4. Financial Inclusion
UPI allows businesses to accept payments from customers without credit or debit cards. This widens the customer base.
5. Advanced Protection Measures
UPI’s virtual payment addressing system keeps users’ sensitive banking details private, eliminating exposure of account numbers, bank codes, and payment card information.
6. Payment Scheduling Alerts
You can implement systems to notify customers about upcoming payment due dates. This reduces the chances of delayed payments and improves cash flow management.
7. Lower operational expenses
Switching to UPI payments helps organisations reduce expenses related to physical cash management, including secure transport, storage facilities, and protective measures.
8. Quick and efficient collections
Businesses can use UPI for quick and efficient collections, especially in scenarios like subscription-based services or recurring payments.
UPI Transaction Limit for Current Accounts
UPI transaction limits for current accounts in India differ between banks and UPI platforms. While the National Payments Corporation of India (NPCI) provides general guidelines, each financial institution sets its own specific parameters. Typically, daily transaction limits range from ₹25,000 to ₹1 lakh, with per-transaction amounts usually capped at ₹1 lakh after the initial 24-hour activation period.
By logging into your bank’s app, you can easily verify your current account’s precise UPI transaction limits, understand any recent changes, and confirm any special provisions for high-value transactions like tax payments, healthcare bills, or educational fees.
Conclusion
UPI has become an essential tool for modern businesses using current accounts. It offers instant transfers, better security, and lower costs compared to traditional banking methods. Getting started with UPI is straightforward – just download a UPI app, and create your UPI ID for current account. In today’s digital age, businesses should strongly consider adopting UPI to stay competitive and efficient. It not only simplifies payment processes but also helps improve cash flow and customer satisfaction.
Frequently Asked Questions (FAQs)
1. How do I secure my current account linked to UPI?
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Never share your UPI PIN with anyone
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Use fingerprint/face lock if available
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Check receiver’s UPI ID carefully before paying
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Keep your UPI app updated
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Don’t click on random payment links
2. Which UPI app is best for a current account?
PhonePe works best because it’s easy to use and has all the features you need for daily banking and payments.
3. What is UPI mandate for current account?
It’s like giving permission to automatically deduct money from your account for regular payments (like bills or subscriptions) – so you don’t have to pay manually each time.
4. Can I link multiple Current Accounts to a single UPI ID?
Yes, you can add more than one bank account to your UPI app using the same phone number.
5. Is UPI for Current Accounts suitable for businesses?
It’s perfect for businesses because of no transaction fees, instant payments, easy to track money, customers can pay quickly.
