Starting from January 1, 2025, new rules for making payments through UPI 123Pay will come into effect. The Reserve Bank of India (RBI) has decided to increase the transaction limit for UPI 123Pay users.
Previously, users could only transact up to Rs 5,000, but now this limit will be raised to Rs 10,000.
This change aims to make transactions more convenient for users who rely on UPI 123Pay for payments, especially in areas where internet access might be limited.
What is UPI 123Pay and How Does It Work?
UPI 123Pay is a service that allows users to make payments without needing an internet connection.
It is especially useful for people with feature phones, providing them with a way to carry out UPI transactions through different options.
RBI has been working to control these transactions to ensure security, but with the new change, users will now have a higher transaction limit.
UPI 123Pay offers four different options for making payments:
1) IVR numbers
2) Missed calls
3) OEM-embedded apps
4) Sound-based technology
According to the National Payments Corporation of India (NPCI), feature phone users can make UPI transactions by calling IVR numbers (080-45163666, 08045163581, and 6366200200).
After verifying their UPI ID and following the instructions on the call, users can complete the payment. This service is particularly beneficial for the 4 crore feature phone users in India, providing them with more convenience.
Launch of UPI 123Pay and its Growing Impact
UPI 123Pay was launched in March 2022 and has since become an important tool for spreading UPI payments to smaller towns and villages in India.
Due to its success, RBI has decided to increase the transaction limit to Rs 10,000. The UPI system has also expanded beyond India, with services now available in countries like Sri Lanka.
With the government’s continuous support, UPI’s reach and popularity continue to grow both in India and internationally.
