Paytm gets approval from RBI to onboard new UPI users – India TV

India’s leading financial services provider, Paytm, recently announced that it has received approval from the National Payments Corporation of India (NPCI) to introduce new UPI (Unified Payment Interface) users. This development comes as a relief to Paytm after its banking unit faced a central bank-ordered ban earlier this year. Paytm had submitted a request to NPCI in August and the 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 had raised concerns about the future of Paytm’s digital payments business and had a significant impact on the company’s stock value.

RBI has made changes to the UPI transaction limits

In other news, the Reserve Bank of India (RBI) has increased the limits for UPI Lite and UPI 123PAY transactions. The limit for UPI Lite transactions 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. Moreover, the limit for UPI 123PAY transactions has been doubled from Rs 5,000 to Rs 10,000.

These changes, announced as part of the development and regulatory framework, are aimed at facilitating digital transactions. The RBI Governor emphasized that the aim is to encourage wider adoption of UPI and make it more inclusive by increasing the 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 transactions without PIN.

UPI 123 PAY

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

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