The growth of digital technology and internet penetration has created an impact in every sector including the payments ecosystem. In India, more and more people are embracing digital payments1.
Unified Payments Interface (UPI) have further boosted the digitisation of payments in the country. It is the brainchild of the NPCI (National Payments Corporation of India). The RBI (Reserve Bank of India) fuelled this initiative.
UPI is designed to empower a real-time payment system by allowing inter-bank transactions. It instantly transfers funds between two bank accounts on a single mobile platform. Neither one needs to visit the bank nor await a few hours for adding a beneficiary as in the case of net banking. Citizens can make payments anywhere and anytime, provided they have a UPI app and internet.
Likewise, for businesses, UPI enables them to have quick access to cash without paying physical visits to the bank. One can make/receive payments through UPI apps like Paytm, PhonePe, Google Pay, etc.
While digital payments are on the rise, it also faces the challenge of security against fraudsters and unauthorised transactions. Most mobile banking apps as well as the UPI apps enable various layers of security. For example, two-factor authentication or biometric authentication for logging into the account or making any payment.
Likewise, bank mobile apps or UPI apps ask to generate a password or a PIN for carrying out mobile transactions. So, some of the frequently asked questions are –
- What is an MPIN?
- How are MPIN, UPI PIN and ATM PIN different?
- What is meant by MPIN in UPI?
So, in this blog, we will dive into the details to clear the confusion around these terms.
MPIN: Full Form and Meaning
The MPIN stands for Mobile Banking Personal Identification Number. It’s a unique 4 or 6-digit code that authenticates financial transactions done via mobile banking apps.
Usually, consumers use MPIN to log in to their accounts on mobile banking apps and carry out transactions. The MPINs ensure that the original account holder is carrying out the transaction. Therefore, it is advised not to share the MPIN with any third person.
Mobile apps enable online payments via electronic methods such as NEFT, RTGS and IMPS & UPI. While some apps prompt users to create a separate PIN for UPI transactions, some allow UPI payments with the same MPIN using which the user has logged in to the mobile banking app to make transactions.
Therefore, MPIN can not only authenticate every mobile banking transaction but also serves the purpose of authenticating UPI transactions.
MPIN vs UPI PIN vs ATM PIN
A PIN is a numeric code or password that individuals use to protect their sensitive personal information from unauthorised access.It stands for (Personal Identification Number) which you can generate yourself.
ATM PIN is the code that users enter at the ATMs while they use their ATM or debit cards. It ensures that the cardholder is carrying out banking or transactional activity.
MPIN, as stated earlier, is the PIN of a mobile banking app. It allows users to log in to their bank accounts and carry out transactions.
UPI PIN is the PIN that authenticates UPI payments. Users can make UPI payments both on mobile banking apps as well as via UPI-enabled apps like BHIM, Amazon Pay, etc. by linking their bank accounts with the latter.
Now, here’s the catch, usually mobile banking apps enable all kinds of transactions (be it electronic transfers or UPI payments) through MPIN. On the other hand, for third-party UPI apps, users need to create a UPI PIN once they link their bank accounts. This UPI PIN can be the same as the MPIN or it can be different as well.
What is MPIN in UPI?
In the context of UPI, both UPI PIN and mPIN are often used interchangeably depending on the app type – whether it is a mobile banking app or a specific UPI-enabled app. Thus, you can use the same MPIN in your mobile banking app as MPIN in UPI app to validate transactions.
You require the UPI PIN or the MPIN when you are linking the bank account during the setup process of UPI services. The user will enter this PIN to authorize transactions whenever s/he transfers funds through that particular UPI-enabled application.
Let’s break this down for your understanding with the help of an example:
- Let’s assume that you have an XYZ bank account. You download its mobile banking app and set the PIN as 123456 (MPIN)
- Now let’s assume you want to execute a UPI transaction. To accomplish the same you download a UPI app & link your XYZ Bank account
- Here, you can choose to use the same MPIN as set in XYZ Bank’s mobile banking app to validate transactions on the UPI app. Otherwise, you can choose to set a new UPI PIN to validate the UPI transactions for the same bank account on the UPI-app
Steps to Generate an MPIN
To use UPI via a mobile banking app or UPI-enabled application, you first need to download that app to your preferred mobile device. Post download, register on that app by entering the personal information it asks for, your bank details, and similar other information.
With the mobile banking app, you can make UPI payments or any payment using one bank account that you hold with the bank. On UPI apps, you may link more than one bank account if needed. However, one bank account, as per your choice becomes the primary account for transactions. You can switch the primary account among multiple linked accounts anytime.
Once you are done with the basic registration, you need to create a UPI PIN. Just follow the instructions you see on the UPI app screen to create your UPI PIN.
Scenario 1: On a UPI App
Follow these simple steps-
- Go to the UPI-enabled mobile app (such as Google Pay, Paytm, BHIM, PhonePe, or any other bank’s app)
- First, log into your account using your mobile number or UPI ID
- Go to that section of the profile which has the option to generate or change your MPIN or UPI PIN
- Enter your existing MPIN or create a new one by following the on-screen instructions
- Re-enter the MPIN to confirm it
- Your new MPIN will be generated and can be used to authenticate UPI transactions
Scenario 2: On a Banking Mobile App
Here’s how you can do it-
- Open mobile banking app
- Go to that section which allows creating/changing MPIN
- You can create a new MPIN for easy logging into your account. You can also update by entering the existing PIN and creating a new one
- In case you forget your MPIN, you can click on ‘Forgot MPIN’. You may get a link or OTP to confirm your details and then you can create a new MPIN
Important Points to Remember
While doing UPI transactions, users must remember a few important things:
- UPI PIN or MPIN in UPI is a unique and valuable code to confirm your identity at the time of online transactions. You will not be able to make a payment without it
- UPI-enabled transfers can be made with the user’s phone number. It is also possible through the unique virtual payment address which is called the UPI ID. UPI money transfers are an extremely secure means of funds transfer
- The UPI ID is unique to each individual and makes online payments faster and easier. One needs not enter details like bank account number, IFSC, etc.
- You may need to complete a one-time KYC verification process to start using UPI services in certain cases
How to Transact Using a UPI PIN?
Here are a few steps to follow:
- Login to the UPI-enabled app that has been linked to your bank account
- Click on the option ‘Send Money’
- Enter the UPI ID of the beneficiary, or the UPI-linked number of the recipient or scan the QR code of the receiver
- Enter the amount and click confirm
- Enter the UPI PIN on the next screen to complete the process and validate the payment
