UPI: 5 Useful Features You Should Know for Smarter Payments

UPI has become an essential part of everyday life in India. From paying for morning groceries and tea to settling monthly bills and rent, digital payments have made transactions quick and convenient.

But UPI is no longer limited to simply transferring money from your bank account. Several useful features now allow users to make payments through different funding sources and even let trusted family members make payments on their behalf.

Here are five UPI features worth knowing.

1. Standard UPI Payments From Your Bank Account

The most common way to use UPI is by linking your bank account to a UPI app. You can send and receive money using a mobile number, UPI ID or QR code.

For example, if your bank account has ₹10,000 and you make a ₹500 payment by scanning a QR code, the remaining balance will be ₹9,500.

You can also link multiple bank accounts to the same UPI app and select the account you want to use when making a payment.

2. UPI Lite for Small Payments

If you regularly make small payments for things such as tea, snacks or auto-rickshaw fares, UPI Lite can make the process easier.

UPI Lite allows you to maintain a separate balance for smaller transactions. One of its biggest advantages is that eligible small-value payments can be made without entering your UPI PIN for every transaction.

The current limits allow payments of up to ₹1,000 per transaction, while the UPI Lite balance can be maintained up to ₹5,000.

For people who make several small UPI payments throughout the day, this can be a convenient option.

3. Pay Through an Eligible RuPay Credit Card

UPI can also be used with eligible RuPay credit cards. Once the card is linked to a supported UPI app, users can select it as the payment source while paying at participating merchants through UPI QR codes.

However, credit-card-based UPI payments have limitations. They are primarily intended for merchant payments and cannot generally be used to send money directly to another individual or withdraw cash.

This can be useful when you want to make an eligible merchant payment without directly using the balance in your bank account.

4. Credit Line on UPI

Another option is Credit Line on UPI, introduced in 2023. It allows eligible customers to use a pre-approved credit limit provided by a bank as a funding source for UPI transactions.

In simple terms, regular UPI payments use money available in your bank account, while a credit line allows you to spend against credit that has already been sanctioned by the lender.

Therefore, scanning a UPI QR code does not necessarily mean that t the money will always come directly from your savings account. The selected payment source matters.

5. UPI Circle

UPI Circle is designed to allow a primary account holder to authorise another trusted person to make UPI payments using the primary user`s bank account, subject to the applicable limits and controls.

This can be particularly useful for families. For example, one family member may hold the bank account while another is authorised to make payments within a predetermined limit.

The feature provides a way to share payment access without handing over control of the entire bank account.

Check Your Payment Source Before Paying

Today, “Pay by UPI” does not always mean money will be deducted directly from your savings account. Depending on the feature you use, the payment could come from your bank account, UPI Lite balance, an eligible RuPay credit card or an approved credit line.

So, before confirming a transaction, always check the selected bank account or payment source and verify the amount. Understanding these features can help you use UPI more efficiently while avoiding accidental payments from the wrong source.