Knowledge base
The Indian payments glossary, in plain language
27 terms that merchants, freelancers, and small businesses actually run into — VPA, MDR, collect requests, credit notes, IFSC, revenue stamps — each explained without jargon and linked to a free tool you can use immediately.
UPI Basics
UPI
Unified Payments Interface
India's instant, 24×7 bank-to-bank payment system run by NPCI. P2P and most small merchant QR scans stay free; some large P2M tickets take MDR from 15 Oct 2026.
Read definition →VPA
Virtual Payment Address
Your UPI ID — an email-style address like name@okaxis that routes payments to your bank account.
Read definition →NPCI
National Payments Corporation of India
The RBI-founded non-profit that owns and operates UPI, RuPay, IMPS, and other national payment rails.
Read definition →BHIM
Bharat Interface for Money
NPCI's own minimal UPI app, launched December 2016 as the reference implementation.
Read definition →Collect Request
UPI Collect Request
A 'request for money' pushed to a payer's app, which they approve with their UPI PIN.
Read definition →Payment Methods
IMPS
Immediate Payment Service
NPCI's instant account-to-account transfer service — the predecessor UPI built upon.
Read definition →NEFT
National Electronic Funds Transfer
RBI's batch-settled transfer system — near-instant these days, but settles in half-hourly cycles.
Read definition →RTGS
Real Time Gross Settlement
RBI's large-value instant settlement system with a ₹2 lakh minimum — the heavyweight rail.
Read definition →IFSC Code
Indian Financial System Code
An 11-character code identifying a specific bank branch — required for account-based transfers.
Read definition →UPI Lite
UPI Lite Small-Value Payments
NPCI's on-device wallet for tiny payments — no PIN needed, works even when networks wobble.
Read definition →UPI AutoPay
UPI AutoPay / e-Mandate
Recurring UPI mandates that pull subscription payments automatically within approved limits.
Read definition →RuPay Credit Card on UPI
RuPay Credit Card linkage with UPI
Link a RuPay credit card to a UPI app and spend credit at QR-scanning stalls, not just POS terminals.
Read definition →Merchant & QR
Static UPI QR
Static UPI QR Code
A permanent QR encoding just your VPA — customer enters the amount themselves.
Read definition →Dynamic UPI QR
Dynamic UPI QR Code
A per-transaction QR with the amount pre-filled and locked inside the payload.
Read definition →Soundbox
UPI Soundbox Device
A speaker device that announces every received UPI payment aloud, defeating fake-screen fraud.
Read definition →MDR
Merchant Discount Rate
The slice a network takes from the merchant. From 15 Oct 2026 some UPI P2M above ₹2,000 take 0.4% MDR; it is not a government tax.
Read definition →PSP
Payment Service Provider
The bank or entity whose @handle issued your VPA and routes your UPI payments.
Read definition →P2P vs P2M
Person-to-Person vs Person-to-Merchant
P2P vs P2M compares a transfer between two people with a payment to a shop, including limits, MDR, and how long a failed credit takes to return.
Read definition →P2PM
Person-to-Person-Merchant (small QR merchant)
P2PM meaning: the bank tag for a small UPI QR shop. Up to ₹1 lakh a month, those payments stay at 0% MDR from 15 Oct 2026.
Read definition →Bharat QR
Bharat QR (EMVCo merchant QR)
Bank-issued merchant QR that can carry UPI and card rails — not the everyday upi://pay standee shops print themselves.
Read definition →POS Machine
Point-of-Sale Terminal
The card-swipe terminal at counters — increasingly redundant next to a zero-fee UPI QR.
Read definition →Billing & GST
Tax Invoice
GST Tax Invoice
The mandatory GST document a registered supplier issues to charge tax on a taxable supply.
Read definition →Credit Note
GST Credit Note
A Section 34 document reducing a previously issued tax invoice after returns, discounts, or corrections.
Read definition →Debit Note
GST Debit Note
The mirror of a credit note — a supplementary document increasing tax payable on an earlier invoice.
Read definition →Proforma Invoice
Proforma Invoice
A preliminary 'this is what we'd bill' document — not a tax invoice, not payable.
Read definition →GSTIN
GST Identification Number
The 15-character GST registration number every taxable supplier prints on invoices.
Read definition →Revenue Stamp
Fiscal Revenue Stamp
The ₹1 stamp affixed and signed on certain paper acknowledgements — famously required on cash rent receipts of ₹5,000+.
Read definition →Learned the term? Now use the tool.
Every definition links to a useful merchant tool. Static generators, documents, and calculators run locally; cloud-backed dynamic redirects are clearly labeled and require an account.
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