Last week, RBI released new operational guidelines to enable inter-operability between bank accounts and e-wallets via the Unified Payments Interface (UPI) system. Soon after that the National Payments Corporation of India (NPCI) announced a reduction in the number of peer-to-peer transfers users can make in a span of 24 hours. Also Read - Google Pay will not charge transfer fee from Indian users; Google India clarifiesAlso Read - Google Pay to remove payments on web app, adds fee on instant money transfers
Earlier, the limit is 20 transactions per day, but after the revision, it has now been capped at 10. In a circular, NPCI said “to encourage genuine transactions in the UPI ecosystem and bring in rationality, the UPI transaction frequency limit has been revised.” The limit is applicable on all apps, be it BHIM, Google Pay, Paytm, HDFC bank, to name a few. Also Read - Google Pay gets a major redesign, can now manage your finances better
In essence, individuals can only make 10 transfers from individual bank account to the recipient, whereas the amount is capped atRs 1 lakh per day. This means, if you have more than one bank account linked to your mobile number and UPI, you can make over 10 peer-to-peer transactions. In short, if you have four bank accounts, you can make 40 transactions, with a limit of 10 per account.
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For those who have only one account, the timestamp of first transaction will be taken as the start time, and in the subsequent 24 hour window, the user can make the remaining nine transactions. It is also important to note that the limit is only applicable for peer-to-peer transactions, not person-to-merchant transactions. This means, if you are making an online purchase, say on Amazon India or Flipkart, and paying using BHIM or any other UPI app, the limit won t apply.
Today, small merchants like your neighborhood grocery stores, accept UPI payments, but if they have not registered themselves as merchants, the transaction will be counted as peer-to-peer, with a limit of 10.
UPI started with about 20 banks on the platform in 2016, and over the course of two years, it now has over 120 banks live. In September 2018, UPI transactions jumped 30 percent to 405 million, up from 312 million in August, NPCI revealed. Also, the platform has seen 1250 percent growth year-on-year. Lastly, when we talk about value, UPI saw transfers of Rs 59,835 crore in September, compared to Rs 54,212 crore in August.