Mumbai: The big rbi boost for the UNIFIED (UPI) payment interface has the potential to take transactions on the platform to 100 crores per day, according to the National Indian Payment Corporation (NPCI) MD & CEO of Dilip Asbe.
The two main steps including allowing small transactions through the ‘On-Device’ wallet in the UPI application, which locks funds in a separate account, while the other is to allow payments to the mobile feature.
Upi transactions have reached 400 crores a month, mostly driven by transactions in small cities where the absence of other electronic payment infrastructure makes it easy to send and receive money.
The disadvantage of UPI is every small transaction, including RS-5 payments, treated as electronic withdrawals from bank accounts.
This requires the sender’s bank and recipient to send an SMS and it reflects as a debit entry in the passbook and statement.
More than this, the actual cost is the burden caused by the core banking system because each payment message must be regarding the two bank servers to complete the transaction.
Even though the details are unclear, industrial people say that e-Wallet on-Device will require the owner to transfer some money from their bank account to UPI e-Wallet in the application.
Blocked money can be used to make small-value payments without payment messages must rise from the phone to the payer bank server and the payment bank server before it is confirmed to the recipient.
Bankers compare it with prepaid cards used in transportation such as Metro, except that it will work with any UPI provider.
E-Wallet on-device will also reduce dependence on telecommunication networks such as, in the future, customers can use NFC to transfer funds from their E-Wallet UPI devices to the receiving device.
RBI also allows banks to facilitate payments for IPO subscriptions and purchases of government bonds from the central bank to RS 5 Lakh – increasing from the current level of RS 2 Lakh.
Announced the facility, RBI Governor Shaktikanta Das said that the IPO RS 2-5 lakh application was around 10% of the subscription application.