UPI 123Pay transaction limit doubles to Rs 10,000 for feature phone users

This change boosts the utility of UPI 123Pay, enabling users to conduct higher-value digital transactions without needing internet access, thereby promoting greater financial inclusion across India.

The Reserve Bank of India (RBI) has increased the transaction limit for UPI 123Pay from Rs 5,000 to Rs 10,000, allowing users to make higher-value digital payments via feature phones. UPI 123Pay is a service designed for people who do not have internet access on their mobile phones, offering a way to make digital payments through methods such as:

• IVR (Interactive Voice Response): Users interact with a voice-based system to carry out transactions.
• Missed Calls: A feature where users can make payments by dialing specific numbers and hanging up, triggering a payment process.
• OEM (Original Equipment Manufacturer) Apps: Special apps installed on feature phones that allow users to make payments.
• Sound Technology: Using sound waves to securely transfer payment information between devices

 

The National Payments Corporation of India (NPCI), which manages UPI, has instructed banks and service providers to implement this change. Although the rule is effective immediately, full compliance with the new limit must be completed by January 1, 2025.

 

Key Changes:

• Increased Transaction Limit: The maximum transaction limit for UPI 123Pay has been raised from Rs 5,000 to Rs 10,000.
• Aadhaar OTP Authentication: To enhance security, Aadhaar OTP authentication will be implemented for UPI 123Pay transactions.
• Standardized Transaction Tagging: A new purpose code (86) has been introduced for UPI 123Pay transactions to facilitate better tracking and reporting.
• Enhanced Initiation Modes: The system will support multiple initiation modes, including IVR, missed calls, feature phone apps, and sound-based technology.
• UPI Number Functionality: Integration with the UPI numeric ID mapper will enable users to make payments using UPI numbers.

 

What is UPI 123Pay?

UPI 123Pay is a service that allows feature phone users to access UPI services without an internet connection. It utilizes various methods, such as IVR calls, missed calls, and sound-based technology, to initiate and complete transactions.

 

Benefits of the Changes:

• Increased Convenience: The higher transaction limit and enhanced features will make digital payments more convenient for feature phone users.
• Enhanced Security: Aadhaar OTP authentication will add an extra layer of security to UPI 123Pay transactions.
• Improved User Experience: The standardized tagging and multiple initiation modes will streamline the payment process.
• These changes are expected to further boost the adoption of digital payments in India, particularly among the underserved population.