Effective from 1st August 2018, NPCI has banned Same account UPI Transaction while Same user 1 bank to another bank is Working Fine. This decision has been taken by NPCI in order to Stop Artificial transactions which users are doing Now-a-days to Get Cashback, The Another reason behind this is that is to avoid the unnecessary load on the system which will help to reduce the failure rates of payments on UPI platform due to low-value and repeated transactions. However we can Send money from our 1 account to another Bank account without any problem !!
Why NPCI Banned UPI Transactions to Same Bank Account:-
To curb fake or artificial transactions in order to get cashbacks, NPCI has taken a serious action and decided to halt this practice on its payments platform UPI.
From August 1, payments transfer within same account or UPI ID (where the payer and the payee account are actually the same) will be blocked by the umbrella organisation for all digital payments in India.
According to an ET report, the payments regulator has issued a circular and strictly prohibiting those transactions from the aforementioned date to avoid unnecessary load on the system.
The circular further added that NPCI had asked payment service providers and banks to block such transactions at their end.
NPCI also explained that these transactions are being done between same UPI accounts or in some case from the UPI ID to the account number, but the underlying account remains the same and thirdly by sending money to another UPI ID but connected to the same bank account.
At a time when digital payments platforms are fighting to gain highest UPI share, the crackdown from the digital payments watchdog will affect their number of transactions.
The prime reason behind the clampdown is to stop those customers who do multiple transactions within their account to get cashback offers lured by UPI-led digital payments platforms such as BHIM, Paytm, PhonePe, Mobikwik, Freecharge and others.
Additionally, this will reduce failure rates of payments on UPI platform due to low-value and repeated transactions.
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