PhonePe, Google Pay, and Paytm transactions to become faster, NPCI rolls out key UPI upgrade
The primary change under this new reform will significantly reduce the time taken for payment completion, from 30 seconds earlier to around 15 seconds now.
Faster UPI Transactions from June 16
From Monday, Unified Payments Interface (UPI) users in India are expected to see a significant improvement in the transaction speed. The government body which manages UPI transactions in India, The National Payments Corporation of India (NPCI), has put in place some new guidelines and system-level upgrades which are aimed to cut down processing times considerably. The primary change under this new reform will significantly reduce the time taken for payment completion, from about 30 seconds earlier to around 15 seconds now.
Impact on Major UPI Platforms
These changes will be applied to all UPI-enabled apps including PhonePe, Google Pay, Paytm, BHIM, and WhatsApp UPI. The upgrade aims to advance not just the speed of these transactions, but also their reliability across the entire ecosystem. Further, according to NPCI, the time taken for reversals in cases of failed transaction, and transaction status checks has also been reduced.
Faster Reversals and Status Checks
Previously, users had to wait for up to 30 seconds or more, when a transaction failed, just to confirm whether the amount was debited or returned. With the new update, this process will take merely 10 seconds. This applies to both status updates and payment reversals. Additionally, it has been revealed that in cases when transaction fails to reach the UPI system due to a network issue or timeout, it will be automatically marked as failed, hence saving time and avoiding unnecessary follow-up checks.
Reduced Response Time for Apps and Banks
The payment apps and banks had to typically wait for about 90 seconds before proceeding to check the status of a stuck transaction. Now, the users can start verifying after 45 to 60 seconds, leading to quicker resolutions. The response time for these key Application Programming Interfaces (APIs), which includes payment execution and transaction status checks, has been almost halved.
Example of Real-World Impact
For example, in a typical store transaction, where a customer usually scans a QR code and pays via a UPI app, the new system will process the payment confirmation within 15 seconds instead of the earlier 30. This upgrade will enhance the experience for both customers and merchants.
System Reliability and Load Management
In order to manage system load, NPCI has now limited the number of times banks and payment apps can check transaction status, to up to three attempts within two hours. These checks are now expected to complete within 10 seconds each.
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