The Reserve Bank of India (RBI) has announced significant changes to enhance digital transactions from feature phones, enabling more users to participate in the digital economy. During the Monetary Policy Committee meeting on October 9, RBI Governor Shaktikanta Das revealed the decision to increase the limit for UPI 123Pay transactions from Rs 5,000 to Rs 10,000. Additionally, the limit for the UPI Lite wallet has been raised from Rs 2,000 to Rs 5,000.
Enhancing UPI Adoption in Rural Areas
This move is expected to have a profound impact, especially in rural and underserved areas where feature phones remain prevalent. The RBI’s initiative allows users to make UPI payments without the need for internet connectivity through feature phones, using a service known as UPI 123Pay. This accessibility aims to boost UPI transactions significantly in villages and among economically disadvantaged sections of society.
Understanding UPI 123Pay
UPI 123Pay is a feature phone-based payment service introduced by the National Payments Corporation of India (NPCI), allowing users to conduct UPI transactions without an internet connection or a smartphone. This service is designed to make digital payments more inclusive, catering to those who may not have access to advanced technology.
How to Make UPI Payments Without Internet
To utilize the UPI123Pay service, users can follow these simple steps:
- Dial 99# on their feature phone.
- Select option 1 for UPI payments.
- Choose the type of transaction.
- Enter the UPI ID of the recipient, along with the phone number or bank account number.
- Specify the amount to be sent.
- Enter your UPI PIN.
- Tap on the “Send” option to complete the transaction.
It is important to note that some banks also provide the facility for making UPI payments without internet access using USSD codes, further enhancing accessibility for users.
Conclusion
The RBI’s recent decision to increase transaction limits for UPI payments via feature phones marks a significant step towards fostering financial inclusion and digital payment adoption in India. By simplifying the process and expanding transaction limits, the RBI aims to empower users, particularly in rural areas, and promote a cashless economy.
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