In the rapidly evolving landscape of digital payments in India, the Unified Payments Interface (UPI) has emerged as a game-changer.
UPI allows seamless and instant fund transfers between individuals and businesses, making transactions more accessible and efficient.
However, a common question that often arises is, "Is debit card necessary for UPI?"
In this blog, we will explore the role of debit cards in UPI transactions and help you understand whether having a debit card is a prerequisite for using this revolutionary payment system. And what to do if you don’t have one.
Understanding the Evolution of UPI in India
Before diving into the debit card-UPI connection, let's grasp the essence of UPI.
UPI, or the Unified Payments Interface, is a real-time payment system developed by the National Payments Corporation of India (NPCI).
It allows users to link their bank accounts to a mobile app and conduct various financial transactions effortlessly.
UPI has made it possible to ensure cashless transactions even if you don’t have debit cards or there is no PoS counter.
Is Debit Card Mandatory for UPI?
To use UPI in India, you need to have a bank account. When you set up a UPI account, it is linked to your bank account.
In most cases, linking a debit card to your UPI account is part of the initial setup process.
The debit card serves as a verification tool, confirming your ownership of the bank account for which you set up the UPI PIN.
However, having a debit card linked to your UPI account doesn't mean it's necessary for every UPI transaction.
UPI transactions can be seamlessly initiated using your bank account details and registered mobile number.
This means you can transact via UPI without needing to physically use your debit card.
Benefits of Linking a Debit Card to UPI
Linking a debit card to your UPI account offers certain advantages.
It allows you to set up UPI PINs quickly, and it can be convenient for secure online shopping and bill payments.
Transactions Without a Debit Card
If you prefer not to use a debit card for UPI transactions, you can still send and receive money by linking your bank account directly.
This is especially helpful for users who may not have or want to use a physical debit card.
How to Use UPI without Debit Card?
You can use UPI without a debit card in multiple ways.
Using UPI via your bank account
First, you can simply set up your UPI PIN using the bank account directly and not the debit card.
To use UPI without a debit card, follow these steps:
1. Download a UPI-enabled mobile app from your bank or a third-party provider.
2. Open the app and select your bank.
3. Provide your bank account details and verify your mobile number.
4. Set up a secure UPI PIN.
5. You can now start sending and receiving money through UPI using your bank account directly.
Using UPI via the Aadhar Card-based process
The NPCI (National Payments Corporation of India) realized the need for an alternative to registering for UPI for those Indian citizens who don’t hold debit cards.
Hence, the NPCI introduced the Aadhar-based verification method for interested individuals who would like to use UPI without debit cardholder status.
This feature was introduced in September 2021.
What are the Steps to Follow Before Using UPI Without a Debit Card?
Before you proceed with the Aadhar-based registration for UPI, you must follow these steps:
Register your phone number at the UIDAI (Unique Identification Authority of India) - the Aadhar issuing entity.
Link this phone number with your Aadhar card.
Now, link this same Aadhar-linked mobile number as the registered mobile number (RMN) for your bank account to receive banking-related OTPs and verify transactions.
This is a one-time process, and now you can follow the next steps that will help you conduct UPI transactions without a debit card.
Once these steps are completed, you need to set up the UPI PIN using your Aadhar Card number and registered phone number.
Now, you have to follow the steps below:
Download your preferred UPI-enabled app on your smartphone. It could be GPay, PhonePe, PayTM, or others.
Navigate to the ‘Add UPI ID’ or ‘Add Bank Account’ option in the settings.
Find your bank name from the list of the banks provided and proceed to set the UPI PIN.
Now, you will be redirected to the ‘Verification’ section in the app.
Click on the ‘Aadhar-based verification’ option.
Accept the terms and conditions in the app.
Validate your Aadhar details by adding the first 6 digits of your Aadhar number.
Once validation is successful, set up your four-digit or six-digit UPI PIN.
Now, you will receive the OTP on the registered mobile number linked with the UIDAI interface.
Since the RMN is the same as the one linked with Aadhar, the app will auto-read and validate the OTP.
After OTP validation, you need to re-enter your UPI PIN for confirmation.
Upon successful registration, you can now use your UPI to make payments to peers and merchants across India.
FAQs
The Reserve Bank of India (RBI) has launched a feature that allows customers to deposit cash at ATMs using the Unified Payments Interface (UPI) without the need for a debit card. UPI Interoperable Cash Deposit (UPI-ICD), was unveiled by RBI Deputy Governor T Rabi Sankar at the Global Fintech Fest 2024 on Thursday.
Can I do UPI payment without debit card? ›
To create your UPI account without a debit or ATM card, link your bank account to your preferred UPI app and select Aadhaar-based verification instead of using your debit card. Then, submit and verify your Aadhaar details and set up a 4 or 6-digit UPI PIN.
Which card is required for UPI payment? ›
You can link your credit card to UPI apps such as Google Pay, PhonePe, Paytm, etc. the process for linking the credit card will depend on the bank issuing the card. Once you have completed the process of linking your credit card, you will receive a message confirming the same.
How can NRI use UPI in India? ›
Can NRIs use UPI for transactions in India using their overseas mobile number? Yes, NRIs can use UPI from their registered overseas mobile number from the approved geographies, i.e. Australia, Canada, France, Hong Kong, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, UAE, UK and USA for INR transactions in India.
Can I use Gpay without a debit card? ›
With this feature, you can withdraw money from an ATM with your Google Pay app without the use of your debit card.
Is a debit card mandatory for Google Pay? ›
When you add a bank account on Google Pay, you will need to verify your account using a debit card or Aadhaar. Make sure you have a debit card or Aadhaar linked to the bank account you want to add.
How can I transfer money without a debit card and UPI? ›
ATM Cash Deposit: Visit an ATM and deposit cash directly into the recipient's account using their bank card details. Bank Branch Transfer: Visit a bank branch and initiate a transfer using the recipient's account details. This option might involve fees. Cheque: Issue a cheque payable to the recipient and hand it over.
Can UPI payment be done with a credit card? ›
Making a UPI payment via a credit card is as simple as using a debit card or bank account through UPI. Here's how to do it: Select the Payment Option: When you are at the payment checkout, choose UPI as your payment method. Enter Your UPI ID: Input the UPI ID that is linked to your credit card.
What is required for UPI payment? ›
User downloads the UPI application from the App Store/Banks website. User creates his/her profile by entering details like name, virtual id (payment address), password etc. User goes to “Add/Link/Manage Bank Account” option and links the bank and account number with the virtual id.
Is UPI safer than debit card? ›
For users, UPI stands out for its convenience and security, providing an affordable payment method, with the majority of transactions incurring no charges. Initially, fund transfers to your UPI were limited to a debit card or a savings bank account.
International travellers can use the UPI One World app to make payments at merchant locations by simply scanning the QR codes. Any unused balance can be transferred back to the original payment source, in accordance with foreign exchange regulations.
Is UPI available in the USA? ›
Q2 Can I use an international phone number with UPI? Yes. If you're an NRI in the UK, USA, Saudi Arabia, UAE, Canada, Oman, Qatar, Australia, Singapore, or Hong Kong, you can use your global mobile number for UPI payments.
Can I access UPI from outside India? ›
To make UPI payments outside India, one needs to enable international payments on the respective apps. For example, if you are using UPI via the PhonePe app, the same has to be enabled on the platform from the settings menu. Once enabled, one will be able to make UPI payments with ease in international locations.
Can I use UPI without a debit card? ›
Unfortunately, no. The only way to set up a UPI ID without a debit card is to use your Aadhaar card. If you don't have either of them, you won't be able to set up your UPI ID.
Is an ATM card necessary for UPI? ›
No, a debit card is not strictly necessary for making UPI payments in India. You can make UPI payments by directly linking the bank account or through Aadhar-based registration in the UPI app.
Can I use Paytm without a debit card? ›
Upon adding your bank account to your Paytm wallet, you can access numerous benefits such as: Seamless Online Transactions: You do not need to carry credit and debit cards to transfer money to your bank account. Paytm enables you to deposit funds directly without any hassle.
How do I add money to Google Pay without a debit card? ›
You can link your bank account to your Google Pay account without a debit card in the following steps:
- Open the Google Pay app.
- At the bottom, tap Send.
- Choose the person you want to send money to.
- Enter the amount you want to send.
- Tap Send. ...
- Next to the payment method you want to use, tap Change Add bank account.
Yes, customers can send money/ pay to merchants using Credit card registered on UPI.
Can I do UPI transaction without SIM card? ›
Once affixed, a dedicated app becomes accessible on your feature phone, allowing you to seamlessly engage in UPI payments without the necessity of acquiring a new SIM card. What UPI functionalities can i use from the feature phone? UPI Functionalities on Feature Phone application: Scan and Pay.
Can I use UPI without debit card Quora? ›
Yes, you can definitely create BHIM UPI ID without a debit card, but you could only use it to receive money into your account, you may not be able to send it to anybody.
