UPI 123 Pay: RBI extends transaction limits- Here are key changes

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On October 9, the Reserve Bank of India (RBI) increased the transaction limit for UPI 123Pay from Rs 5,000 to Rs 10,000. Following this, the National Payments Corporation of India (NPCI) issued a circular instructing banks and service providers to ensure compliance with the updated limits.

 

What is UPI 123Pay?

 

UPI 123Pay facilitates digital payments on feature phones, enabling users to access UPI services without an internet connection. It supports four payment methods:

>IVR numbers

>Missed calls

>OEM-embedded apps

>Sound-based technology

 

Implementation timeline

 

Although the updated transaction limits are effective immediately, the NPCI has set January 1, 2025, as the final deadline for banks, public sector banks (PSBs), and service providers to implement the necessary changes.

 

Key changes to be implemented by Jan 1, 2025:

 

Increased transaction limit: UPI 123Pay’s transaction limit will officially rise from Rs 5,000 to Rs 10,000.

 

Aadhaar OTP Onboarding: Aadhaar OTP will be mandated for onboarding users in UPI 123Pay transactions.

 

Transaction tagging

 

A new purpose code (86) is introduced for UPI 123Pay transactions. All financial and non-financial transactions must include this code in the purpose = " " tag.

The previous initiation mode (31) will no longer be valid.

 

UPI Numeric ID Mapper Integration: Members must integrate with the UPI numeric ID mapper to enable UPI number functionality.

 

UPI Lite wallet updates 

In addition to UPI 123Pay changes, RBI also increased limits for UPI Lite wallets:

Wallet balance limit: Raised from Rs 2,000 to Rs 5,000.

Per-transaction limit: Increased from Rs 500 to Rs 1,000.

 

Why these changes matter

RBI Governor Shaktikanta Das highlighted UPI’s transformative role in India’s financial ecosystem, making digital payments more accessible and inclusive. The updated limits aim to foster further innovation and encourage broader adoption of UPI-based solutions.