The National Payments Corporation of India (NPCI) is expected to launch the upgraded version of its Unified Payments System (UPI), dubbed as UPI 2.0 in July. The new update is said to come with a variety of anticipated features, which would add to peer-to-peer payments and promote merchant transactions. However, now a new report from Livemint suggests that some of the new features expected from UPI 2.0 haven t been developed well enough and could possibly be delayed. Also Read - Exclusive: Jio Pay with UPI now available to Jio Phone users in India, here's first lookAlso Read - Buy now, pay later: Why micro-credit is exactly what India needs right now
The report states that NPCI demonstrated UPI 2.0 to some industry experts, who believe that some of the features fall short of expectations. Livemint quoted a person familiar with the demonstration saying that the Standing feature, which enabled automatic payments for bills and loans, at specific intervals, will not be part of the new update. It is said to be rolled out at a later stage. Also Read - WhatsApp not authorized to go live with UPI full scale operations, RBI tells Supreme Court
Further, the amount blocking functionality, which allows users to block a certain amount of money in the bank account for future bookings, is said to come with some trade-offs as well. The person states that using the amount blocking functionality in UPI 2.0, will block the funds, as opposed to only blocking the credit limit till the debit date, as it is done in the case of credit cards. The person states that this will demotivate users from using UPI for multiple booking services, as there are already apps that offer zero cancellation charges.
NPCI is reported to only launch a beta version of UPI 2.0 at first, which will carry support from only 8-10 banks. The organization is planning to update its features based on user response and will commercially roll-out the service after that.
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UPI 2.0 is also said to offer other useful features such as sending an invoice to the customer after making a purchase and making secure QR code payments. NPCI is also doubling the daily transaction limit on UPI 2.0 to Rs 2,00,000.