These days, transactions below 50 rupees have increased significantly, in which case the possibility of system outage will increase. Therefore, NPCI has made up its mind to ban such transactions.
National Payments Corporation of India (NPCI) can permanently ban all gaming transactions done within 50 rupees on the Unified Payments Interface (UPI) channel. According to several sources, the new rule will come into force later this week. This step has been taken to reduce the amount of transactions at UPI because there has been a surge in the number of transactions recently.
The main reason for this is the increase in digital transactions, banking disruptions and technical issues in the wake of the Corona epidemic. According to industry sources, NPCI has seen a huge increase in low-ticket transactions of gaming merchants in recent weeks. These transactions have increased even more during the IPL matches, which worried the NPCI and member banks that the system outage could be a problem due to the increase in transaction volume.
Problems will increase for real-money gaming
To ensure a seamless experience, NPCI wants customers and merchants to use payment methods with permanent instructions (SI) such as Net Banking instead of UPI, as per a source. The source also said that this approach can bring trouble for real-money gaming, which is based on microtransport. Instead of paying the monthly subscription, the game players pay. This means that most transactions are less than Rs 100.
Use of UPI will reduce in future
According to gaming industry experts, the use of UPI will often be reduced in the future. According to gaming industry reports, NPCI had been considering such a ban for several weeks and was in close contact with major traders. On the other hand, according to the gaming industry report, NPCI’s move to ban such transactions is affected by the stress of the banking industry, as banks have no reason to bear the additional burden without merchant discount rate (MDR).
Huge hit for gaming
A source in the ET industry said that talks have been held between banks and NPCI to curb all major transactions, because now there is no charge on UPI transactions. A source in the gaming industry said, “UPI is the preferred mode of payment for more than half of our customers. More than 50% of us – Our transactions are less than 50 rupees. This is a big setback for the industry. “
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