UPI Ushers in New Transaction Clause | CORPORATE ETHOS

UPI Ushers in New Transaction Clause

By: | October 31, 2018
samsungPay

Oct 31: The Unified Payments Interface (UPI) system, which had become the government’s favorite application to boost digital transactions, is coming up with a new clause. Users will be able to make only a limited number of transactions per day. Those who depend on UPI for payments a lot will now face difficulties.

Other payment applications like BHIM, Google Pay and Paytm will also be affected as they make use of UPI to transfer and receive money. Earlier users could make 20 transfers per day anywhere anytime. In order to boost the genuine transactions in UPI, its maker National Payments Corporation of India (NPCI) is implementing new checks and balances.

NCPI notice says that they have made changes made to the UPI Fraud & Risk management system which was put in motion on October 21. The transfer restriction to 10 per day is one of the changes made by the corporation. The 20 transfers which were allowed earlier per day are now cut down to 10. In the changes, it is said that a person to person transaction is 10 per day; this means a single bank account.

This means that if a user has multiple bank accounts, they can make more than 10 transactions a day. This is applicable even if the account is linked with the same mobile numbers. A person with more than four accounts can make use of UPI for at least 40 transfers.

When it comes to money transfer to a merchant, this rule becomes irrelevant. While registering, a merchant can record themselves as merchants. There will be no limit on the transactions when a user is making online purchases and making payments.  Thus you can make more than one transactions for online orders, food delivery, and cab bookings.

When compared to IMPS, UPI is a lot better. Services such as P2P Pull functionality, Simplifies Merchant Payments, Single APP for money transfer and Single click two-factor authentication is offered on NCPI’s digital application. Presently, the UPI transaction comes with an upper limit of Rs 1 lakh.  The UPI transaction in August was 312 million and now it has increased to 405 million in September.