​​​​​​​Is Debit Card Compulsory for UPI?

Once considered unique and revolutionary, digital payments have now become the norm. The United Payments Interface (UPI) system has been crucial in normalising digital payments. UPI allows you to send and receive money via your mobile phone. You can conduct instant fund transfers by linking multiple bank accounts to a single UPI mobile application. Using UPI for financial transactions is a prudent choice with so many benefits. Many people are confused regarding its usage. The question ‘Do we need a debit card for UPI’ crops up regularly in reference to UPI payments. So, let’s find out whether debit cards are compulsory for UPI transactions.

The National Payments Corporation of India (NPCI) launched the UPI payment system in 2016. At the time, the NPCI announced that interested users needed to link their debit cards to the UPI app to conduct UPI transactions. You had to log into the UPI app and enter your debit card details, like the 16-digit card number, the card expiration date, and the 3-digit CVV number.

By completing this one-time process, you could link bank accounts connected to your debit cards, allowing you to conduct your UPI transactions. The NCPI further stated that you could link multiple bank accounts to one UPI application.

Once you set up the UPI payment system, you can send and receive money without sharing each other’s bank details. You can transfer funds by logging in to the UPI app and entering the receivers’ phone numbers or QR codes. All this would take just a few seconds, and the payee would receive an instant credit of funds.

While the process mentioned above still exists, the NCPI realised that UPI payments could not be accessed by individuals who do not own debit cards. This was especially true for individuals residing in the rural corners of India. The NCPI filled this gap by introducing other ways to enable UPI payments without debit cards.

The governing body for UPI payments, NCPI, has introduced a simple procedure that allows all individuals to set up their UPI PIN by linking their Aadhaar number and UPI ID. Below are the steps.

• Step 1: Log in to your preferred UPI mobile application and locate the ‘Add UPI ID’ option. Remember to choose the bank account linked to your Aadhaar number.
• Step 2: Create your UPI ID based on the app’s requirements after checking if it is available.
• Step 3: Select the ‘Aadhaar-based verification’ option and accept the applicable terms and conditions.
• Step 4: Enter the first six digits of your Aadhaar number to validate it and click on ‘confirm’.
• Step 5: Set the four or six-digit UPI pin, which may vary based on your chosen UPI application.
• Step 6: You will receive a One-Time Password (OTP) on your registered mobile number linked to your Aadhaar card, which you must enter into the specific tab in the app.
• Step 7: Enter the UPI PIN you set earlier and click ‘Confirm’ to complete the registration process.

Once done, you can begin using the UPI app to make payments.

You can use UPI without debit cards. You will need your Aadhaar number. The only caveat is that you still need a bank account, and you should link the bank account intended for UPI transactions to the registered mobile number linked to your Aadhaar Card. By introducing UPI using Aadhaar, the NCPI made UPI payments more accessible to every section of society and empowered them to make payments through feature phones.

At HDFC Bank, we provide debit cards to enable smooth UPI set-up and transactions. You can also use your Aadhaar number to set up your UPI account and link your HDFC Mobile Banking App to conduct hassle-free transactions with HDFC Bank and UPI.

Read to know more about the Importance of Digital Banking here.

​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.