Question

What is a Virtual Payment Address (VPA) in the context of UPI?

• A. A physical address for bank branches
• B. A unique identifier for a bank account number
• C. A unique virtual address used to facilitate transactions without sharing sensitive account details
• D. A password for accessing UPI applications

Answer 1

Answer:

C. A unique virtual address used to facilitate transactions without sharing sensitive account details

A Virtual Payment Address (VPA), often called a UPI ID, is a unique digital identifier used for sending and receiving money through UPI-enabled applications.

It acts as an alias for your bank account, meaning you can share this simple address (like yourname@bankhandle) instead of disclosing sensitive details like your bank account number and IFSC code. This makes transactions much simpler and more secure.