RBI Increases UPI 123Pay Transaction Limit To Rs.10,000: New Guidelines For Users; Check Details

The Reserve Bank of India (RBI), in its recent update, increased the transaction limit for UPI 123Pay from Rs. 5,000 to Rs. 10,000. This announcement, made in the RBI's Statement on Development and Regulatory Policies on October 9, 2024, aims to enhance the digital payment experience for feature phone users across India. The National Payments Corporation of India (NPCI) confirmed this change in a circular dated October 25, 2024, with a compliance deadline set for January 1, 2025.

What is UPI 123Pay?

The National Payments Corporation of India (NPCI) developed UPI 123Pay, a revolutionary solution, to enable Unified Payments Interface (UPI) transactions on non-smartphone devices like feature phones. This newly launched solution gives a digital payment experience without the use of the internet, making it accessible to a large segment of the population who are still unaware of digital transaction methods. And the best part is that there are no charges for transactions under UPI 123Pay.

How UPI 123Pay Works

Here's a step-by-step guide on how you can use UPI 123Pay via different payment methods:

IVR, or call-based:

For this method, you can dial the IVR number provided by your bank and choose the desired service from the menu using your phone's keypad. Next, you need to enter the amount and your UPI PIN to complete the transaction.

Missed Call Based:

This is a simple technique where you can give a missed call to the number displayed at the merchant's location, after which you will receive a callback to authenticate the payment. You can then enter your UPI PIN to successfully complete the transaction.

Feature phone app-based

There's an app especially designed for the featured phone; download that UPI app and choose either the Scan and Pay or the Send Money option. You can then enter the recipient's details, amount, and your UPI PIN for a successful transaction.

Sound Frequency:

Using this method, you can make a call on the IVR number and choose to pay the merchant option. They tap their mobile phone on merchant device (POD) and press # until you hear a unique tone; you can then enter the amount and UPI PIN to make the payment.

All About The New UPI 123Pay Guidelines:

The most recent updates by RBI are supposed to improve the user experience for feature phone users and help them carry out larger transactions without the use of the internet. Here are the main improvements as stated in the recent NPCI circular.

• The transaction limit for UPI 123Pay has been increased from Rs. 5,000 to Rs. 10,000, effective immediately. This will help the feature phone users with the flexibility of higher value payments.
• For the registration purpose, users should undergo Aadhaar-based OTP onboarding for safe and secure verification.
• All members are required to collectively identify and tag UPI 123Pay transactions separately to monitor the usage and performance of UPI 123Pay services.
• Members must integrate the UPI number functionality using the UPI numeric ID mapper. For easier tracking and identification of UPI 123Pay transactions.
• For new members joining the UPI 123Pay, askers are advised to adhere to the updated guidelines before going live with their services.
• The RBI has set a compliance deadline of January 1st, 2025, for all live UPI 123Pay members and has advised all financial institutions and payment service providers to update their systems and processes before the due date. Failure may result in penalties or disruptions in UPI 123Pay services.