UPI Money Flow (India)

The 4-party PAY (push) flow: VPA resolution, PIN authorization, debit/credit legs, and deferred net settlement

UPI Money Flow (India) The 4-party PAY (push) flow: VPA resolution, PIN authorization, debit/credit legs, and deferred net settlement scan QR / enter VPA resolve VPA (ReqValAdd) look up VPA owner name + masked a/c VPA valid confirm + UPI PIN pay request (ReqPay) COLLECT variant: the payee's PSP sends this ReqPay first; the payer only approves with a UPI PIN, then the debit/credit legs are identical. debit payer a/c debit ok credit payee a/c credit ok success credit notification deferred net settlement NPCI nets obligations multilaterally; real interbank settlement happens in deferred RTGS cycles, not per transaction. Resolve VPA Authorize + debit/credit Notify + settle Payer · pays via app · Sequence participant Payer pays via app Payer PSP · e.g. GPay / PhonePe · Sequence participant Payer PSP e.g. GPay / PhonePe NPCI Switch · UPI central switch · Sequence participant NPCI Switch UPI central switch Payee PSP · merchant app / TPAP · Sequence participant Payee PSP merchant app / TPAP Remitter · payer's bank · Sequence participant Remitter payer's bank Beneficiary · payee's bank · Sequence participant Beneficiary payee's bank Legend request return security async trace

PAY (push) — the drawn flow

  • • Payer initiates: scans a QR or enters the payee VPA
  • • VPA is resolved to a real account before money moves
  • • UPI PIN authorizes; NPCI drives debit then credit

COLLECT (request-to-pay) variant

  • • Payee's PSP sends the ReqPay first (a collect request)
  • • Payer receives a request and approves with a UPI PIN
  • • From authorization onward the debit/credit legs are identical

Instant UX, deferred settlement

  • • Success reaches the payer in ~seconds
  • • Interbank money is netted multilaterally by NPCI
  • • Actual settlement clears in deferred RTGS cycles

Sequence diagram • Built with Archify • Create yours ↗ • Hover to trace • R route • Click to focus • +/− zoom • M radar • [/] views • P play story • T theme • E export