UPI 123PAY Limit: Daily and Maximum Transaction Limits

What is UPI 123PAY

UPI 123PAY is a revolutionary system introduced by the Reserve Bank of India (RBI) that enables Unified Payments Interface (UPI) transactions on feature phones without requiring internet access. This service allows individuals to perform digital payments using basic mobile phones, making it a game-changer for users in rural or underserved areas who do not have access to smartphones or a reliable internet connection.

With UPI 123PAY, users can complete transactions through Interactive Voice Response (IVR), missed calls, app functionality on feature phones, and proximity sound-based payments. This ensures that a large segment of India's population, previously excluded from digital payments due to technological limitations, can now engage in seamless and secure transactions.

This system integrates with the existing UPI infrastructure and functions similarly to UPI on smartphones, offering a reliable, accessible, and easy-to-use payment solution. UPI 123PAY enables a wide range of transactions such as person-to-person transfers, bill payments, and retail transactions, enhancing financial inclusion across the country.

What is UPI LITE

UPI LITE is another feature introduced by the RBI, designed for small-value transactions. It simplifies the UPI experience by enabling users to perform low-value payments without needing full internet access. UPI LITE works on smartphones and supports small transactions, typically under Rs. 200. This functionality reduces the load on the main UPI ecosystem, offering faster and smoother transactions without delays or failures often encountered during peak times.

The major advantage of UPI LITE is its offline capability, which means users can make payments without needing an active internet connection. It also limits the need for constant OTP authentication, simplifying the process for users. This is particularly useful for daily transactions like buying groceries or paying for transportation, where high-speed or constant internet connectivity is not always available.

For users, UPI LITE is fast, secure, and straightforward, making it an ideal solution for micro-payments.

UPI 123PAY limit per day

The UPI 123PAY system has a daily transaction limit, ensuring that users can complete multiple transactions throughout the day without any disruption. The daily limit for UPI 123PAY transactions is typically capped at Rs. 10,000. This allows users to manage routine payments such as utility bills, retail purchases, and money transfers, even on a feature phone without access to internet services.

UPI 123PAY offers a secure method for digital payments, giving users the confidence to perform multiple transactions in a day, such as paying for transportation, shopping, or transferring money to family and friends. Users of UPI 123PAY can initiate these transactions using simple commands, such as a missed call, IVR-based inputs, or voice commands.

The daily transaction limit ensures that while transactions remain manageable, users have sufficient scope to meet their everyday financial needs, all without requiring a smartphone.

UPI 123PAY maximum transaction limit

The maximum limit for UPI 123PAY transactions has been recently updated by the RBI to Rs. 10,000 per transaction. Initially, the limit was Rs. 5,000, but this increase to Rs. 10,000 now allows users to perform larger transactions while using UPI 123PAY.

This enhancement is especially beneficial for individuals or businesses that rely on feature phones for digital transactions, as they can now handle more significant financial transfers. Whether it is paying for higher-value goods, settling electricity or utility bills, or making business-related payments, the increased limit makes UPI 123PAY more versatile and practical for a broader range of needs.

The transaction limit ensures that UPI 123PAY remains a secure and controlled method for digital payments, but the new ceiling enhances its utility, especially for small business owners and those with larger financial responsibilities.

How UPI 123PAY benefits mobile phone users

UPI 123PAY is a game-changer for feature phone users, providing them with the ability to perform digital payments without needing a smartphone or an internet connection. This is particularly beneficial for individuals living in rural or remote areas with limited access to internet services.

Feature phone users can now enjoy the convenience of digital transactions, using easy-to-understand and accessible methods like IVR or missed calls. This solution empowers individuals by bringing them into the digital payments ecosystem, improving financial inclusion, and allowing them to participate in the country's growing cashless economy.

For users who are not tech-savvy, UPI 123PAY simplifies the entire process, making it possible for them to pay bills, transfer money, and even make retail purchases without complicated steps. This ease of use makes UPI 123PAY a vital tool for promoting digital adoption among traditionally underserved segments of society.

Benefits of UPI 123PAY for small businesses and individuals

Accessibility: UPI 123PAY allows users to make digital payments without requiring a smartphone or internet connection.

Increased transaction limits: With a maximum limit of Rs. 10,000 per transaction, users can handle larger financial transfers.

Secure transactions: UPI 123PAY follows strict security protocols, ensuring transactions are safe and protected.

Greater financial inclusion: By enabling feature phone users to make payments, UPI 123PAY expands financial inclusion to rural and underserved areas.

Cost-Efficient: UPI 123PAY provides a free or minimal-cost digital payment option for users without the need for expensive devices or internet plans.

Convenient for everyday use: With easy-to-use methods like IVR and missed calls, UPI 123PAY simplifies digital payments, making it accessible to everyone.

How to use UPI 123PAY on feature phones

Dial the IVR number: To initiate a UPI 123PAY transaction, users need to dial the designated IVR number provided by their bank.

Follow the IVR instructions: After connecting, follow the instructions provided by the IVR system to perform actions like sending money, paying bills, or checking balances.

Enter UPI PIN: When prompted, enter the UPI PIN, which was set during the registration process for UPI 123PAY.

Complete transaction: Confirm the transaction after entering the necessary details, and the payment will be processed.

For feature phone users, this process eliminates the need for a smartphone or internet connection, making it an easy and efficient way to perform digital payments.

Conclusion

UPI 123PAY is a significant step towards enhancing financial inclusion, particularly for users who do not have access to smartphones or reliable internet. With a higher daily and per-transaction limit, UPI 123PAY enables users to perform a range of transactions conveniently. Its straightforward processes ensure that feature phone users, especially those in rural areas, can access the benefits of digital payments. Solutions like Bajaj Finserv BBPS further simplify bill payments, allowing users to pay electricity and other utility bills easily.