Attention Paytm, BHIM users! Now you can make only 10 UPI transactions a day.

National Payments Corporation of India (NPCI)

Less than a week after the RBI released operational guidelines to enable inter-operability between mobile wallets and between bank accounts and e-wallets through the Unified Payments Interface (UPI) system, the National Payments Corporation of India (NPCI) has introduced new checks and balances. “To encourage genuine transactions in the UPI ecosystem and bring in rationality, the UPI transaction frequency limit has been revised,” the umbrella organisation for all retail payments in India, which manages the UPI platform, said in a circular sent to member banks on Monday.

“Requisite changes have been implemented on UPI Fraud & Risk management system and is in effect from October 21, 2018,” it added.

The revised ceiling stands at 10 transactions per bank account for the peer-to-peer (P2P) segment in a span of 24 hours, where the timestamp of the first transaction is taken as the start time. Popular e-wallets like BHIM, Google Pay and Paytm use UPI to transfer and receive funds.

So the NPCI has basically halved the limit for P2P transactions from the same account in a single day, from 20 previously. “NPCI has been working towards meaningful and genuine traffic flow through UPI. This is one of the several measures for continuing such efforts. Now that UPI is two years old and real traffic is driving growth, we believe10 transactions per day should be good enough for P2P. There are no restrictions for P2M transactions,” Dilip Asbe, chief executive officer, NPCI, told The Economic Times.

In September, UPI transactions jumped 30% to 405 million from 312 million in the preceding month – and a 1250% increase year-on-year – according to NPCI data. Over 120 banks are live on the platform. In terms of value, UPI transferred Rs 59,835 crore in September against Rs 54,212 crore in August.

A large chunk of the above was in the P2P segment. Citing bankers the daily added that the incentives offered by third-party service providers to customers to use the platform caused unnecessary stress on the platform. That is why the NPCI lowered the daily transaction limit. Moreover, although same account transactions exceeding 10 a day is currently pegged at 10%, or less, of the overall UPI base, stakeholders say this initiative could help prevent round tripping in future. So while this development may discourage deal-hunters, it is being seen as a positive step towards curbing fake transactions.

0 Comments

Leave a reply

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

©2018 Money Bulletin

Log in with your credentials

Forgot your details?