? Cool Title, but what’s the news?
In a circular issued on October 21, NPCI, which manages the instant payment railroad, limited the daily UPI transactions from each account to 10, from 20 previously.
? Okay, but what does it mean?
The National Payments Corporation of India (NPCI) has halved the maximum number of peer-to-peer transactions that can happen from the same account in a single day to curb artificial incentive driven transactions on the Unified Payments Interface platform.
? Why should I care?
Some apps like PayTM & Google Pay have been known to incentivize the UPI platform to attract users. However, the limit applies only for peer-to-peer transactions as merchant payments have no such limits.
“A lot of third-party service providers are offering attractive incentives on UPI which could cause deal-hungry people to jump in. This causes stress on the platform unnecessarily, hence the move,” said a senior banker in know of the matter.
Source: Economic Times