How does a person start using UPI?
A person starts using UPI by linking a bank account inside a UPI app and setting a UPI PIN. The mobile number must already be registered with that bank. This is a payment setup. It is not registration of a company, and it does not close NEFT or IMPS.
How is an account linked?
The person installs an app that the bank supports, confirms the mobile number, and chooses the account the bank shows. The app then asks for a UPI PIN, usually checked against the debit card. After that, the app shows a UPI ID for that account. Sending money needs the recipient’s UPI ID or a QR code, and the PIN. The PIN is not a password to share with anyone who calls.
What is this not?
It is not a filing with the Registrar. Forming a company is on the private-company page. A company can also link its own bank account in a UPI app. That link does not incorporate the company, and it does not register the business for GST.
Frequently asked questions
Four questions cover company registration, NEFT, a government fee, and the PIN.
Is UPI a company registration?
No. UPI links a bank account in a payment app. Incorporating a company is a separate filing with the Registrar.
Does UPI replace NEFT?
No. NEFT and IMPS still run. UPI is another way to move money between bank accounts.
Is there a government fee to create a UPI ID?
A person does not pay a government fee on this page’s steps to link an account and set a UPI PIN. A bank’s own charges, if any, are the bank’s.
Can the UPI PIN be shared?
No. The PIN authorises a debit. It is entered only on the app’s own PIN screen. It is not given to a caller.
Sources
UPI is the Unified Payments Interface run by the National Payments Corporation of India. A person uses it through a bank that offers it.