Fund transfer to own bank account using different UPI IDs to be blocked from August 1

Fund transfer to own bank account using different UPI IDs to be blocked from August 1

New Delhi: In a bid to curb the artificial increase in Unified Payments Interface (UPI) transactions, National Payments Corporation of India (NPCI), which manages the payment system, has decided to block fund transfer within the same account number having different UPI IDs, from August 1, The Economic Times reported quoting a circular issued by NCPI.

In the circular issued to banks, NCPI has said that transactions, where the payer and the payee account are same will be blocked from August 1, the ET report said.

Read more   ↓
Loading...

“While analysing the transaction patterns we have observed instances wherein both credit and debit accounts are same…customers are sending money from their account to the same account…these transactions do not serve any use case and also add unnecessary load on the system,” the financial daily quoted the circular as saying.

“While analysing the transaction patterns we have observed instances wherein both credit and debit accounts are same…customers are sending money from their account to the same account…these transactions do not serve any use case and also add unnecessary load on the system,” the financial daily quoted the circular as saying.

Of late, the volume of UPI transactions has witnessed huge growth. According to date released by NCPI, in April 2018, the volume of UPI transaction grew 7 per cent month-on-month to touche 190 million-mark.

Due to the artificial increase in UPI transactions, failure rates on UPI transactions has also become high and with the latest circular from NCPI, fake transactions could be substantially reduced, the financial daily said citing a top executive of a payments company.

“This could reduce the growth of the number of transactions happening on UPI, but then it is better to have lesser but meaningful transactions than false transactions on the platform,” the ET report quoted a senior banker with a private sector bank as saying.

 

 

Source:- timesnownews

Share:


loading...

You may also like...