UPI Payments Without Smartphones Simplified; RBI Announces Major Update

In a move to simplify digital payments for non-smartphone users, the Reserve Bank of India (RBI) has raised the transaction limit for UPI 123Pay from ₹5,000 to ₹10,000. This initiative is aimed at making digital transactions more accessible to users of basic feature phones, expanding the reach of digital payments even to those without smartphones or internet access.

What is UPI 123Pay?

UPI 123Pay is a digital payment solution created for feature phones. It allows users to perform UPI transactions without an internet connection. This service offers free transactions and operates using a secure UPI PIN, a 4-6 digit code required for authorizing payments. The increased transaction limit reflects RBI's commitment to enhancing digital financial inclusion across India.

# New Language Options and Compliance Deadline

To make UPI 123Pay even more user-friendly, the National Payments Corporation of India (NPCI) has provided various language options, including English, Hindi, Kannada, Tamil, Bengali, Malayalam, and Telugu. The update, announced in a circular on October 25, 2024, requires banks to comply by January 1, 2025.

Easy and Diverse Payment Methods on UPI 123Pay
UPI 123Pay supports multiple transaction methods tailored for convenience, allowing users to choose the option that best suits them:

Voice Payment: Make payments through an IVR number.
Sound-Based Payments: Use sound waves for proximity payments.
Missed Call Payments: Pay via a missed call to a designated number.
App-Based Payments: Access a scan-and-pay feature on feature phones.

# Single Bank Account Limitation

UPI 123Pay supports only one bank account per user. Users wishing to link a different account must first de-register the existing one before adding another.

# Step-by-Step Guide to Link Your Bank Account
To start using UPI 123Pay, follow these steps to link your bank account:

Dial the UPI 123PAY service number provided by your bank.

Select your preferred language from the available options.

Choose the ‘Register’ option to link your bank account.

Enter debit card details as prompted (last six digits and expiry date).

Create a UPI PIN for secure transactions and confirm it.

Linking complete: Your account is now ready for UPI transactions.

With the increased transaction limit and multi-lingual support, UPI 123Pay is set to transform digital payments for feature phone users. RBI’s latest initiative promotes financial inclusion by bridging the digital gap, enabling millions of Indians to experience secure, convenient, and affordable digital transactions.