UPI 123Pay Transaction Limit Increased to ₹10,000 for Feature Phone Users

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RBI Raises UPI 123Pay Transaction Limit to ₹10,000 for Feature Phone Users

The Reserve Bank of India (RBI) has increased the transaction limit for UPI 123Pay from ₹5,000 to ₹10,000, empowering feature phone users to make higher-value digital payments. UPI 123Pay is specifically designed for individuals without internet access on their mobile phones, offering multiple ways to perform digital transactions seamlessly:

How UPI 123Pay Works

  1. IVR (Interactive Voice Response): Users can complete transactions through a voice-based system by following simple instructions.
  2. Missed Calls: Payments are triggered by dialing specific numbers and hanging up, initiating a secure payment process.
  3. OEM (Original Equipment Manufacturer) Apps: Feature phone apps enable users to make transactions without requiring internet connectivity.
  4. Sound-Based Technology: Sound waves are used to securely transmit payment information between devices.

Key Changes Introduced

  1. Higher Transaction Limit:
    • The maximum transaction limit has been increased to ₹10,000, doubling the previous limit of ₹5,000.
  2. Enhanced Security with Aadhaar OTP Authentication:
    • Aadhaar-based OTP authentication will be integrated into UPI 123Pay transactions to provide an additional layer of security.
  3. Standardized Transaction Tagging:
    • A new purpose code (86) has been introduced to categorize and track UPI 123Pay transactions more efficiently.
  4. Improved Initiation Modes:
    • UPI 123Pay now supports expanded initiation modes, including IVR, missed calls, feature phone apps, and sound-based payments.
  5. UPI Number Functionality:
    • The system will enable payments using a unique UPI numeric ID mapper for added convenience.

Implementation Timeline

The National Payments Corporation of India (NPCI), which oversees UPI, has directed banks and service providers to adopt these changes immediately. Full compliance with the new guidelines is expected by January 1, 2025.

What is UPI 123Pay?

UPI 123Pay is a groundbreaking service that makes digital payments accessible to feature phone users who lack internet connectivity. By leveraging simple technologies such as IVR calls, missed calls, and sound-based communication, it bridges the gap between underserved populations and digital financial services.

Benefits of the Updates

  1. Increased Convenience:
    • The higher transaction limit will allow users to make more significant payments while staying within the UPI ecosystem.
  2. Enhanced Security:
    • Aadhaar OTP authentication strengthens transaction security, ensuring safer digital payments for feature phone users.
  3. Streamlined User Experience:
    • Standardized tagging and expanded payment modes simplify the payment process, enhancing usability.

These updates aim to accelerate the adoption of digital payments across India, especially in rural and underserved regions, further contributing to the country’s financial inclusion goals.