UPI and UPI 123Pay
UPI (Unified Payments Interface) is a real-time payment system that allows users to transfer money instantly from their bank accounts using mobile applications. UPI 123Pay is a new option for users who do not have smartphones. This feature provides digital payment benefits to feature phone users, allowing them to make payments easily, even without internet access.
New Transaction Limit
The NPCI has announced a 20% increase in the transaction limits of UPI and UPI 123Pay. Earlier, a maximum of ₹1 lakh could be transferred per day using UPI, which has now been increased to ₹1.20 lakh. The limit for UPI 123Pay has also been increased, enabling feature phone users to make larger transactions.
Benefits for Businesses
This increase will not only benefit consumers but also provide a significant opportunity for small and medium-sized businesses (MSMEs). During the festive season, digital payments on platforms will increase, and businesses will be able to make larger transactions without any hindrance. Earlier, many businesses faced issues with transaction limits, but now they will be able to make larger transactions easily.
The Role of UPI 123Pay
Transaction Limit of UPI: UPI 123Pay has been specifically designed for rural areas and feature phone users who do not have smartphones or internet access. This feature allows users to make payments using SMS and IVR-based systems. With the increased limit, such users will also be able to make larger transactions during the festive season.
The Impact of Increasing Digital Payments
In recent years, digital payments have gained significant traction in India. After the COVID-19 pandemic, cashless transactions have increased, and UPI has played a crucial role in this sector. This increase will not only provide convenience to consumers but also give a significant boost to the digital economy.
