Small UPI transactions have increased significantly in recent weeks. Most of these transactions have taken place in the gaming industry.
v
National Payments Corporation of India (NPCI) can permanently ban all gaming transactions under 50 rupees on the Unified Payments Interface (UPI) channel. According to sources, the new rule may come into force later this week. This step has been taken to reduce the amount of transactions at UPI because there has been a surge in the number of transactions recently.
The main reason for this is the increase in digital transactions, banking disruptions and technical issues in the wake of the Corona epidemic. According to sources, NPCI has seen a huge increase in low-ticket transactions of gaming merchants in recent weeks. These transactions have increased even more during the IPL matches, which worried the NPCI and member banks that the problem of system outage could occur due to increased transaction volume.
Small transactions happening for gaming
According to one source, NPCI wants customers and merchants to use payment methods like net banking instead of UPI. Instead of paying monthly subscription, game players pay only while playing games. This means that most transactions are less than 100 rupees.
Use of UPI will reduce in future
According to gaming industry experts, the use of UPI will be reduced in the future. According to gaming industry reports, NPCI had been considering such a ban for several weeks and was in close contact with major traders. On the other hand, according to the gaming industry report, NPCI’s move to ban such transactions is affected by the stress of the banking industry, as banks have no reason to bear the additional burden without merchant discount rate (MDR).
Huge hit for gaming
A source told that talks have been held between banks and NPCI to curb all major transactions, because now there is no charge on UPI transactions. A source in the gaming industry said, “UPI is the preferred mode of payment for more than half of our customers. More than 50% of us – Our transactions are less than 50 rupees. This is a big setback for the industry. “
