To minimise issues relating to reconciliation of timed out and declined transactions on the United Payments Interface (UPI) platform, the National Payments Corporation of India (NPCI) is working towards allowing real-time settlement of such transactions, reported The Economic Times.
Banks that currently take more than 24 hours to unblock funds stuck due to failed UPI transactions will be able to do so in less than 30 seconds, one of them said.
“The NPCI is working on a system that will allow banks to know if the money debited has been credited to the receiver or not; all this can be done in less than 30 seconds and the money can be reversed,” said the person, who is directly involved in the discussions.
State Bank of India, the largest remitter bank on the UPI platform, had a debit reversal success rate of 84. 61% in June, compared with 98. 92% for HDFC Bank, the second largest remitter network on the platform.
SBI processed more than 1.62 billion UPI transactions, compared with nearly 530 million by HDFC Bank.
There are two kinds of failures on UPI payments — technical decline and business decline. While technical decline is caused due to issues with bank or NPCI systems, business declines are caused due to reasons pertaining to customers such as incorrect passcode entry or transactions beyond stipulated limits.
In terms of technical decline, SBI saw TD rates of 5. 06% versus 0. 08% of HDFC Bank. The business decline of SBI was 6. 96%, while for HDFC Bank it was at 5. 48%.
In July, the UPI reported its highest ever monthly transactions since its inception in 2016 — more than 6. 28 billion transactions worth ₹10. 62 lakh crore, according to data from the NPCI.