Paytm receives RBI approval to onboard new UPI users – India TV

Paytm, India’s leading financial services company, recently announced that it has obtained approval from the National Payments Corporation of India (NPCI) to onboard new Unified Payments Interface (UPI) users. The development comes as a relief for Paytm after its banking division faced a ban ordered by the central bank earlier this year. Paytm had submitted an application to NPCI in August and approval has now been granted.

The ban on Paytm’s banking unit was initiated by the country’s financial regulator in January due to ongoing compliance issues. The move raised concerns about the future of Paytm’s digital payments business and had a significant impact on the company’s stock value.

RBI changed UPI transaction limits

Separately, the Reserve Bank of India (RBI) has increased the limits for UPI Lite and UPI 123PAY transactions. The UPI Lite transaction limit has been increased from Rs 500 to Rs 1,000, and the wallet limit has been increased from Rs 2,000 to Rs 5,000. Additionally, the UPI 123PAY transaction limit has been doubled from Rs 5,000 to Rs 10,000.

These changes, announced as part of the development and regulatory framework, aim to facilitate digital transactions. The RBI governor emphasized that the aim is to encourage wider acceptance of UPI and make it more inclusive by increasing limits on a case-by-case basis.

What is UPI Lite?

UPI Lite allows users to make small payments without entering a UPI PIN. The previous transaction limit of Rs 500 has been increased to Rs 1,000 and the wallet capacity has been increased to Rs 5,000. Users need to fund their UPI Lite wallet for PIN-less transactions.

UPI 123PAY

Launched in March 2022, UPI 123PAY enables feature phone users to make digital transactions. With the update, users can now make payments of up to Rs 10,000 per transaction. UPI 123PAY supports various payment methods including personalized IVR numbers, missed calls, OEM enabled payments and voice technology.

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