The UPI Linkage is an extension within the UPU Interconnection Platform (UPU-IP) that connects participating designated operators with India Post and India’s Unified Payments Interface (UPI). Through this extension, designated operators can access PosTransfer powered by UPI, a service that enables near-real-time postal payments to bank accounts in India using the beneficiary’s UPI ID.
A UPI ID, also known as a Virtual Payment Address (VPA), is linked to the beneficiary’s bank account. India Post acts as the gateway between the UPU-IP and the UPI ecosystem. The service is available to designated operators connected to the UPU-IP that have established the required corridor arrangements with India Post.
Beneficiary validation during transaction initiation
The beneficiary’s UPI ID is recorded by the sending designated operator when the transaction is initiated. The beneficiary’s details are then verified through the UPI ecosystem, allowing the sender to be informed as to whether the payment can proceed.
Automatic payment trigger
Following successful beneficiary verification, payment is triggered automatically by the extension developed within the UPU-IP, without requiring India Post to send a separate payment instruction to the platform.
Automatic postal payment event orchestration and inclusion in the settlement cycle
Once payment is triggered, the UPU-IP manages the postal payment events and status updates required to process the transaction. Following payment confirmation, the extension moves the paid-out postal payment to the finalized state, allowing eligible transactions to be included in a subsequent PPS*Clearing cycle between the participating designated operators.
In exceptional cases, if the transaction cannot be paid out, its status is changed to “impossible to pay”, allowing the sending designated operator to initiate the appropriate reimbursement process.
Near-real-time service
The service is intended for urgent transactions and supports near-real-time credit to the beneficiary’s bank account.
Access through participating operators’ channels
Participating designated operators can make the service available through their authorized customer interfaces and mobile applications, subject to the applicable operational arrangements.
Simplified form filling
The transaction requires limited beneficiary information. The recipient’s UPI ID (also known as VPA) is used, thus eliminating the need to enter complete bank account and branch information.
Centralization
Transaction activities and status information are centralized through the UPU-IP. The applicable bilateral agreement parameters are applied in the same way as for other UPU-IP transactions.
Affordable and transparent
The service is designed to support cost-efficient and transparent transfers. Applicable customer fees are determined and communicated by the participating designated operators under the relevant corridor arrangements.
Beneficiary verification
During transaction processing, real-time AML/KYC checks are automatically performed on the beneficiary, together with verification of the applicable transaction limits. Payment is triggered only after all checks have been completed successfully.
Reach
The service extends the potential reach of PosTransfer payments to beneficiaries with UPI-enabled bank accounts in India.
Integrated settlement
Eligible transactions can be included in PPS*Clearing in accordance with the applicable settlement arrangements between the participating designated operators.