UPI Payments to be Faster from Mid-June
UPI transactions will begin being processed at a faster pace from June 16. The National Payments Corporation of India (NPCI) has released a new circular mentioning reduced response time for UPI transactions to better improve end-user experience.
Transaction Time Cut by 50 Percent
Now, in the case of UPI payment through scanning of QR code, confirmation will take a maximum of 30 seconds. The waiting period normally causes delay at shops or service providers. Starting June 16, the waiting time will be halved. Credit and debit transactions will be confirmed in 15 seconds.
Other Transaction Times Also Cut
Apart from the payment processing time, other elements of UPI transactions will also get faster:
- Transaction status has been updated: it takes only 10 seconds instead of 30 seconds now.
- Transaction reversals: To 10 seconds
- Address validation: Also within a threshold of 10 seconds
These changes are aimed at reducing the payment experience to a smoother and faster one.
Payment Apps and Bank Guidelines
NPCI has directed all UPI service providers—like popular apps Paytm and PhonePe—and associated banks to implement these changes by June 16. This means ensuring that their systems are updated to handle the new response time limits.
Example of the Improved Process
Consider a user making a payment from SBI’s YONO app to a merchant with an ICICI Bank account. Previously, it took about 30 seconds for ICICI Bank to confirm the transaction and for SBI to display the confirmation. With the update, this will now be done in just 15 seconds.
Expert Opinion on the Update
Experts believe that such drops will not only be beneficial for direct payments but also speed up all UPI-related transactions. This move is expected to improve user satisfaction and enhance reliability in electronic payments.
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