The National Payment Corporation of India (NCPI) could soon block UPI transactions under Rs 50 in gaming apps. The decision could be made based on the sudden surge in low-ticket transactions in recent months, which has resulted in burdening the UPI network and banking systems.
An Economic Times report states that the surge in UPI transactions is due to increasing transactions in gaming apps. The NPCI has seen a massive spike in low-ticket transactions as low as Re 1 processed by these gaming apps. These transactions especially spiked during IPL matches, which has led to apprehensions among NPCI and member banks that increased transaction loads could lead to more system outages, one of the sources told the publication. As an alternative, users and gaming merchants should switch to standing instructions-based mode of payments like net banking.
Moneycontrol could not independently verify the report.
UPI has witnessed a significant increase in the number of transactions. In March, transactions via UPI rose to Rs 5.04 lakh crore, up from Rs 4.25 lakh crore in February. During FY 2020-21, the NCPI saw a 95 percent increase in UPI transactions. It rose from Rs 21 lakh crore to Rs 41 lakh crore last year.
The increasing demand could put a load on the UPI network and banking systems. NCPI is said to be considering putting a restriction on low-ticket transactions. However, the decision is yet to be made. "These transactions present a risk to the UPI system. Banks get clogged and are often unable to process other transactions due to sudden spurt in processing loads," an official told ET.
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