UPI transactions below Rs.50

UPI transactions below Rs.50

NPCI cut

NPCI (National Payments Corporation of India) is like to permanently ban all gaming transactions valued below Rs. 50 on its Unified Payments Interface (UPI) channel beginning this week end as per news available.

  1. The proposal is aimed to moderate transaction volumes especially during peak periods of activity like ongoing Indian Premier League (IPL) cricket.
  2. A sudden increase in the activity can trigger banking outages and technical declines are another reason.
  3. Also a ban on the fast growing category of small-ticket transactions can possibly derail the momentum for a slew of online gaming provides like fantasy sports outfit Dream1, competitive video gaming venture Nazara technologies as also Single game and multi-game platforms GetMega and Mobile Premier League.
  4. In the recent days NPCI has seen a steep increase in low value recurring transactions from as low as Re. 1 being processed by these platforms which spiked more during IPL telecast hours and has led to apprehensions of system outages.

Also NPCI’s caution is driven by the spate of high-profile system outages faced by HDFC Bank, SBI, NPCI’s NACH system and National Stock Exchange in recent months.

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