It is highly probable that Unified Payments Interface (UPI) transactions will have surpassed the 10 billion mark in August 2023. This achievement signifies a significant milestone, underscoring the burgeoning popularity of UPI as a prominent digital payment method in India.
Furthermore, the cumulative value of UPI transactions in August is anticipated to reach approximately ₹15 trillion. This reflects a remarkable 41 per cent surge compared to the transaction value in August 2022.
The remarkable growth of UPI can be attributed to several factors, including the platform’s convenience, the increasing prevalence of smartphones in India, and the government’s proactive efforts in promoting digital payments.
Transforming payment mechanism with UPI
UPI has ushered in a revolutionary transformation in the landscape of online transactions in India. It has not only enabled swift and hassle-free payments but has also ensured their security. Here are some of the ways through which UPI has redefined online transactions:
Convenience: UPI facilitates payments through smartphones, a device that has become ubiquitous for most individuals. This seamless integration makes it exceptionally convenient to execute payments, even when you’re on the move.
Speed: UPI transactions are processed in real-time, eliminating the need for extended waiting periods before funds are credited.
Security: UPI payments prioritize security by implementing two-factor authentication, mandating the input of both a PIN and OTP (One-Time Password) to complete a transaction.
Wide adoption: UPI enjoys extensive support from various banks and payment apps, offering users a broad spectrum of options for executing UPI payments tailored to their preferences.
Consequently, due to these attributes, UPI has emerged as the most favoured digital payment method in India, garnering usage across age groups and diverse demographics. Here are some instances illustrating the versatile applications of UPI:
- Individuals employ UPI for online shopping on e-commerce platforms.
- It is a common choice for settling bills at restaurants and supermarkets.
- Fuel purchases at petrol stations are conveniently paid through UPI.
- Utility bills find settlement through UPI transactions.
- People utilize UPI to transfer funds to friends and family.
UPI represents a game-changing force in the Indian economy. It not only contributes to reducing the reliance on cash, a medium that incurs higher processing costs and is susceptible to loss or theft but also promotes financial inclusivity by facilitating payments for individuals without traditional bank accounts.
Can payments fail or get stuck?
Occasionally, the same technology that simplifies our lives can also present challenges, as online transactions may encounter glitches or interruptions during payment processing. Several factors can lead to such situations, including:
Invalid UPI ID: Entering an incorrect or invalid UPI ID can result in payment failure.
Insufficient balance: If your bank account lacks the required funds, the payment won’t go through.
Network error: Network issues can disrupt payment processing, causing delays or failures.
Technical glitch: Occasionally, technical hiccups within the UPI system itself can lead to payment failures.
Failure of bank servers: During payment processing, it’s common to encounter a pop-up notification if the bank servers on either the sender’s or receiver’s side are experiencing issues. Consequently, these interruptions can lead to payment cancellations.
Exceeding UPI payment limit: Frequently, banks establish a daily limit governing the quantity of UPI payments users are permitted to initiate. Once this limit is reached, further transactions cannot be conducted.
In case your UPI payment encounters an issue and fails, the intended recipient will not receive the funds. However, the amount will still be deducted from your bank account. To resolve this, you should promptly contact your bank to initiate the refund process.
For UPI payments that are stuck or delayed, you can attempt to address the issue by restarting your device or clearing the cache and data of the UPI app. If the problem persists, it’s advisable to reach out to your bank for further assistance.
Steps to take when UPI transactions fail
If you encounter payment-related issues, consider these tips to facilitate a successful transaction.
Check your UPI daily transaction limit
The daily UPI transaction limit, currently set at ₹1 lakh, is determined by the National Payments Corporation of India (NPCI). This limit encompasses all UPI transactions, encompassing payments to merchants and peer-to-peer (P2P) transfers.
Additionally, individual banks may impose their own daily UPI transaction limits, which could be lower than the NPCI’s limit. For instance, some banks might enforce a daily UPI transaction cap of ₹50,000.
Should you surpass your daily UPI transaction limit, further UPI transactions become inaccessible until the following day. To ascertain your specific daily UPI transaction limit, you can consult your bank’s UPI app or website.
In the event that you find yourself in the midst of a payment and have already exceeded your daily UPI transaction limit, you will be required to abort the transaction. Subsequently, you can attempt to initiate the payment once again on the subsequent day.
Link multiple bank accounts with your UPI ID
One of the most prevalent causes of UPI failures or payment delays is congestion within bank servers. Since UPI transactions are executed in real time, busy servers can result in prolonged processing times.
To mitigate this issue, you have the option to associate multiple bank accounts with your UPI ID. By doing so, if one bank's servers encounter issues, you can still proceed with payments using another bank account. Here are the steps to link multiple bank accounts to your UPI ID:
- Launch the UPI app you are utilizing.
- Access the “Settings” or “Profile” section.
- Navigate to “Bank Accounts” or “Linked Accounts”
- Select “Add Bank Account”
- Choose the bank you wish to link your account with
- Input your bank account particulars.
- Confirm by tapping on the “Link Account” button.
Once you have successfully linked multiple bank accounts to your UPI ID, you can designate the specific bank account you wish to use for each payment. This practice ensures that your transactions proceed smoothly, even if one bank's servers are experiencing issues.
Check for correct numbers and codes
Before initiating a money transfer, the sender should meticulously verify the receiver's bank account number and IFSC code. An erroneous entry of the IFSC code or account number by the sender can lead to transaction failure.
Enter the correct UPI PIN
Forgetting UPI PINs is a common occurrence, especially when managing multiple UPI accounts. If you find yourself in this situation, you can reset your UPI PIN by following these steps:
- Launch the UPI app you use.
- Access the “Settings” or “Profile” section
- Select “UPI PIN” or “Change UPI PIN”
- Choose “Forgot UPI PIN”
- Input your UPI ID or registered mobile number
- An OTP will be sent to your registered mobile number
- Enter the OTP
- You will be prompted to create a new UPI PIN
- Enter the new UPI PIN twice
Your UPI PIN will be successfully reset.
It is advisable to record your UPI PIN in a secure location, such as a password manager. Ensure that the password manager itself is secure and that only you have access to it.
Ensure proper internet connection
A weak network connection ranks among the primary causes of UPI payment delays or failures. To address this issue, consider these steps:
Check your signal: Move around to seek a better signal reception. Alternatively, request the sender to enable their hotspot, ensuring a stable internet connection.
Restart your device: A simple device restart can often re-establish the internet connection.
Airplane mode: Toggle the airplane mode on and off to refresh the internet connection, then attempt the transaction once more.
Switch to UPI Lite
Sluggish bank servers and network problems stand out as leading culprits behind UPI payment failures. To alleviate this concern, the NPCI introduced UPI Lite last year. With UPI Lite, users can swiftly initiate payments of up to ₹200. UPI Lite allows users to send a maximum of ₹2,000 twice daily, with an overall daily usage cap of up to ₹4,000, all without necessitating the input of a UPI PIN or reliance on bank servers.
In the event of an unsuccessful UPI transaction, it is recommended to notify both your bank and the NPCI, the entity overseeing the UPI payments system. Customers have the option to register complaints on various matters, such as failed transactions, funds deducted but not transferred to the recipient, and erroneous fund transfers to incorrect accounts, among others, through the NPCI website.