NPCI To Ban UPI Transactions From Same Account From August
In order to curb the fake & illegitimate transactions made with the intention to receive cashback & prizes, The National Payments Corporation Of India (NPCI) has decided to ban upi transactions from same account from August 1.
From August 1, All payments transfers between same UPI will be blocked by the NPCI, the umbrella organisation for all digital payments in India.
According To The NPCI’s Circular
While analyzing 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,
According to the NPCI, A transaction is invalid and thus it will be banned if the transaction is performed between,
- Same UPI accounts,
- Payments made from the UPI ID to the account number ( Both Connected With Same Bank A/c)
- Sending money to another UPI ID, Which are again connected to the same bank account.
The main reason for the ban is to stop those customers who do multiple transactions within their same account to get cashback offers lured by UPI-driven digital payments platforms such as BHIM, Paytm, PhonePe, Tez, Mobikwik, Freecharge and others. The NPCI has also instructed banks to block such transactions from their end.
On the other hand it will also drastically improves the quality of UPI based payments, due to elimination of false/fake transaction and hence removing the unnecessary load from the system. Thus Chances of payments failure will be negligible.
What do you guys think about the ban. Do let us know your opinions & perspective through comments.